Expensify reported a slight dip in third-quarter revenue year over year amid continued growth of its new travel offering as well as progress in migrating clients to the "New Expensify."
Revenue in the third quarter totaled $35.1 million, down 1 percent year over year, and Expensify's paid members declined 6 percent to 642,000 for the quarter. Bookings for Expensify Travel, which the company launched last year, were up 36 percent year over year, and since the first quarter, they have nearly doubled, Expensify CFO Ryan Schaffer said in an earnings call.
The travel offering "continues to be a bright spot in the business and something both us internally and our customers are very excited about," he said.
Among its new users, Expensify signed the Brooklyn Nets, which already was an Expensify customer, to adopt Expensify Travel, the company's first professional sports deal, the company announced.
This week, Expensify also announced the launch of updated AI capabilities in its Concierge support system. The capabilities let users work with natural language commands within the Expensify app, chatting within the context of an individual expense or expense report, the company said.
The AI agent is "hybrid," meaning it can escalate to a human agent around the clock if necessary.
"We can seamlessly switch back and forth between AI and humans imperceptibly to the customer," Expensify founder and CEO David Barrett said. "To the customer, all they get is an incredible chat support experience, but on our side, it's handled using AI or humans seamlessly, depending on who's best for the job."
In addition, Barrett said the company continues to make progress in migrating customers to its "New Expensify" app. The company is "very close" to "feature parity" with the new app—meaning 90 percent of features on the classic app are available in the new app—and all new leads are started with New Expensify, Barrett said. All of Expensify's Collect customers have been nudged to move to New Expensify, and while they still have the option to use the classic version, the "vast majority" have opted to stay with the new app, according to Expensify.
The company now is focused on migrating its Control customers, which is its customized offering for larger companies, Barrett said.
Expensify reported a net loss of $2.3 million for the third quarter, compared with a loss of $2.2 million in the third quarter of 2024.
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