Expensify's revenue grew 5 percent year over year to $37 million in the fourth quarter, and the company is "almost there" to profitability, CFO Ryan Schaffer said in an earnings call.
The company's revenue increase was 5 percent both year over year and in comparison to the third quarter, Schaffer said. Paid members for the quarter totaled 687,000, which is down 4 percent year over year but up slightly, by 3,000 members, compared with the third quarter.
Spending on Expensify Card was up 44 percent year over year in the quarter, and the company said it has "effectively completed" migration to its new card program, which earns a higher rate of interchange per swipe. Interchange for the quarter was up 54 percent year over year, according to Expensify.
This week, Expensify announced that it has made its Expensify Travel offering, which lets users book travel within the Expensify platform, available to all members. Schaffer said there was "a lot of enthusiasm" among initial users and "a very large increase month-over-month" in travel bookings, and he said the travel offering could be more material to revenue with a broader user group.
"It will likely be like the card, where for some period we'll keep telling you it's growing, and then eventually, it's gotten quite large and moves revenue in a meaningful way even if subscriptions aren't necessarily going up," he said.
Expensify founder and CEO David Barrett said AI projects will be a continued focus this year, including its Concierge system, which already has cut "escalations" to human agents by 80 percent, he said. The ultimate plan is to have "Concierge everywhere," in which the technology can answer questions or make changes about "basically anything," he said.
"Just like ChatGPT, you can talk to Concierge in direct conversation, but unlike ChatGPT, you can also talk to it about data that is unique to you," Barrett said. "It's not just general conversations about the data you have access to; it's highly contextual conversations. When you talk with the Concierge inside the context of an expense report, for example, you're talking about that expense report, that employee, that particular approval flow."
Expensify reported a net loss of $1.3 million for the fourth quarter, an improvement from a $7.2 million loss in the fourth quarter of 2023. For the full year, Expensify's net loss was $10.1 million, less than a quarter of the $41.5 million loss it reported for 2023.
RELATED: Expensify Q3 results