Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Document Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-41043 | ||
Entity Registrant Name | EXPENSIFY, INC. | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 27-0239450 | ||
Entity Address, Street | 401 SW 5th Ave | ||
Entity Address, City | Portland | ||
Entity Address, State | OR | ||
Entity Address, Postal Zip Code | 97204 | ||
City Area Code | (971) | ||
Local Phone Number | 365-3939 | ||
Title of each class | Class A Common Stock, par value $0.0001 per share | ||
Trading Symbol | EXFY | ||
Name of each exchange on which registered | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 436 | ||
Documents Incorporated by Reference | Information required in response to Part III of this Annual Report on Form 10-K (Items 10, 11, 12, 13 and 14) is hereby incorporated by reference to portions of the registrant’s Proxy Statement for its Annual Meeting of Stockholders to be held in 2024. The Proxy Statement will be filed by the registrant with the Securities and Exchange Commission no later than 120 days after the end of the registrant’s fiscal year ended December 31, 2023. | ||
Entity Central Index Key | 0001476840 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class A | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 70,580,351 | ||
Common Stock, LT10 | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 7,333,335 | ||
Common Stock, LT50 | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 7,292,587 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | San Francisco, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 47,510 | $ 103,787 |
Accounts receivable, net | 13,834 | 16,448 |
Settlement assets, net | 39,261 | 35,838 |
Prepaid expenses | 5,649 | 8,825 |
Other current assets | 30,978 | 22,217 |
Total current assets | 137,232 | 187,115 |
Capitalized software, net | 12,494 | 6,881 |
Property and equipment, net | 14,372 | 14,492 |
Lease right-of-use assets | 6,435 | 745 |
Deferred tax assets, net | 457 | 344 |
Other assets | 5,794 | 664 |
Total assets | 176,784 | 210,241 |
Liabilities and stockholders' equity | ||
Accounts payable | 1,425 | 1,059 |
Accrued expenses and other liabilities | 9,390 | 9,070 |
Borrowings under line of credit | 15,000 | 15,000 |
Current portion of long-term debt, net of original issue discount and debt issuance costs | 7,655 | 551 |
Lease liabilities, current | 432 | 800 |
Settlement liabilities | 33,990 | 33,882 |
Total current liabilities | 67,892 | 60,362 |
Lease liabilities, non-current | 6,467 | 0 |
Other liabilities | 1,681 | 1,204 |
Long-term debt, net of original issue discount and debt issuance costs | 0 | 51,434 |
Total liabilities | 76,040 | 113,000 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, par value $0.0001; 10,000,000 shares of preferred stock authorized as of December 31, 2023 and 2022, respectively; no shares of preferred stock issued and outstanding as of December 31, 2023 and 2022 | 0 | 0 |
Common stock issued, value | 8 | 7 |
Additional paid-in capital | 241,509 | 194,807 |
Accumulated deficit | (140,773) | (97,573) |
Total stockholders' equity | 100,744 | 97,241 |
Total liabilities and stockholders' equity | $ 176,784 | $ 210,241 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (shares) | 70,569,815 | 68,238,245 |
Common stock, shares, outstanding (in shares) | 70,569,815 | 68,238,245 |
Common Stock, LT10 | ||
Common stock, shares authorized (in shares) | 24,994,989 | 24,997,561 |
Common stock, shares issued (shares) | 7,333,619 | 7,336,191 |
Common stock, shares, outstanding (in shares) | 7,333,619 | 7,336,191 |
Common Stock, LT50 | ||
Common stock, shares authorized (in shares) | 24,998,941 | 24,999,020 |
Common stock, shares issued (shares) | 7,321,894 | 6,854,931 |
Common stock, shares, outstanding (in shares) | 7,321,894 | 6,854,931 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 150,687 | $ 169,495 | $ 142,835 |
Cost of revenue, net | 66,888 | 62,669 | 53,693 |
Gross margin | 83,799 | 106,826 | 89,142 |
Operating expenses: | |||
Research and development | 23,368 | 13,692 | 10,988 |
General and administrative | 49,228 | 58,490 | 60,742 |
Sales and marketing | 44,352 | 49,876 | 27,664 |
Total operating expenses | 116,948 | 122,058 | 99,394 |
Loss from operations | (33,149) | (15,232) | (10,252) |
Interest and other expenses, net | (5,327) | (5,411) | (3,480) |
Loss before income taxes | (38,476) | (20,643) | (13,732) |
(Provision for) benefit from income taxes | (2,980) | (6,366) | 174 |
Net loss, basic | (41,456) | (27,009) | (13,558) |
Net loss, diluted | $ (41,456) | $ (27,009) | $ (13,558) |
Net loss per share: | |||
Basic (in dollars per share) | $ (0.50) | $ (0.33) | $ (0.36) |
Diluted (in dollars per share) | $ (0.50) | $ (0.33) | $ (0.36) |
Weighted-average shares of common stock used to compute net loss per share: | |||
Weighted-average number of basic shares outstanding (in shares) | 82,493,226 | 80,786,725 | 38,039,222 |
Weighted-average number of diluted shares outstanding (in shares) | 82,493,226 | 80,786,725 | 38,039,222 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity (Deficit) - USD ($) $ in Thousands | Total | Preferred stock Convertible preferred stock | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance at Dec. 31, 2020 | $ 45,105 | $ 45,105 | |||
Beginning balance (in shares) at Dec. 31, 2020 | 4,203,139 | 4,203,139 | |||
Increase (Decrease) in Temporary Equity | |||||
Conversion of convertible preferred stock to common stock (in shares) | (4,203,139) | ||||
Conversion of convertible preferred stock to common stock | $ (45,105) | ||||
Ending balance at Dec. 31, 2021 | $ 0 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||
Beginning balance at Dec. 31, 2020 | $ (31,036) | $ 0 | $ 21,312 | $ (52,348) | |
Beginning balance (in shares) at Dec. 31, 2020 | 29,366,940 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Conversion of convertible preferred stock to common stock | 45,105 | $ 5 | 45,100 | ||
Conversion of convertible preferred stock to common stock (in shares) | 42,031,390 | ||||
Issuance of common stock upon exercise of warrants (in shares) | 428,067 | ||||
Issuance of common stock upon initial public offering | 57,458 | 57,458 | |||
Issuance of common stock upon initial public offering (in shares) | 2,608,696 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 6,965,767 | ||||
Issuance of common stock upon exercise of stock options | 3,505 | $ 1 | 3,504 | ||
Vesting of early exercised stock options | 567 | 567 | |||
Stock-based compensation | 14,574 | 14,574 | |||
Net loss | (13,558) | (13,558) | |||
Ending balance at Dec. 31, 2021 | 76,615 | $ 6 | 142,515 | (65,906) | |
Ending balance (in shares) at Dec. 31, 2021 | 81,400,860 | ||||
Ending balance at Dec. 31, 2022 | $ 0 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options (in shares) | 478,547 | ||||
Issuance of common stock upon exercise of stock options | 711 | 711 | |||
Vesting of early exercised stock options | 1,242 | 1,242 | |||
Issuance of restricted stock units | 106 | 106 | |||
Issuance of restricted stock units (in shares) | 14,719 | ||||
Repurchases of early exercised stock options | (25) | (25) | |||
Repurchases of early exercised stock options (in shares) | (17,079) | ||||
Issuance of common stock under Matching Plan | 3,672 | 3,672 | |||
Issuance of common stock under Matching Plan (in shares) | 294,397 | ||||
Issuance of common stock in connection with restricted stock units vesting | 0 | $ 1 | (1) | ||
Issuance of common stock in connection with restricted stock units vesting (in shares) | 1,268,026 | ||||
Shares withheld from common stock issued to pay employee payroll taxes | (6,160) | (6,160) | |||
Shares withheld from common stock issued to pay employee payroll taxes (in shares ) | (411,023) | ||||
Repurchase and retirement of common stock | (6,000) | (1,342) | (4,658) | ||
Repurchase and retirement of common stock (in shares ) | (599,080) | ||||
Stock-based compensation | 54,089 | 54,089 | |||
Net loss | (27,009) | (27,009) | |||
Ending balance at Dec. 31, 2022 | $ 97,241 | $ 7 | 194,807 | (97,573) | |
Ending balance (in shares) at Dec. 31, 2022 | 82,429,367 | ||||
Ending balance at Dec. 31, 2023 | $ 0 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock upon exercise of stock options (in shares) | 288,465 | 288,465 | |||
Issuance of common stock upon exercise of stock options | $ 311 | 311 | |||
Vesting of early exercised stock options | 704 | 704 | |||
Issuance of restricted stock units | 117 | 117 | |||
Issuance of restricted stock units (in shares) | 18,144 | ||||
Repurchases of early exercised stock options (in shares) | (2,651) | ||||
Issuance of common stock under Matching Plan | 4,255 | $ 1 | 4,254 | ||
Issuance of common stock under Matching Plan (in shares) | 2,288,772 | ||||
Issuance of common stock in connection with restricted stock units vesting (in shares) | 968,888 | ||||
Shares withheld from common stock issued to pay employee payroll taxes | (1,766) | (1,766) | |||
Shares withheld from common stock issued to pay employee payroll taxes (in shares ) | (261,164) | ||||
Repurchase and retirement of common stock | (3,000) | (1,256) | (1,744) | ||
Repurchase and retirement of common stock (in shares ) | (504,493) | ||||
Stock-based compensation | 44,338 | 44,338 | |||
Net loss | (41,456) | (41,456) | |||
Ending balance at Dec. 31, 2023 | $ 100,744 | $ 8 | $ 241,509 | $ (140,773) | |
Ending balance (in shares) at Dec. 31, 2023 | 85,225,328 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (41,456) | $ (27,009) | $ (13,558) |
Adjustments to reconcile net loss to cash provided by operating activities: | |||
Depreciation and amortization | 5,164 | 5,388 | 5,197 |
Reduction of operating lease right-of-use assets | 614 | 666 | 741 |
Loss on impairment, receivables and sale or disposal of equipment | 923 | 881 | 319 |
Stock-based compensation | 41,212 | 52,332 | 14,574 |
Amortization of original issue discount and debt issuance costs | 257 | 42 | 32 |
Deferred tax assets | (113) | 26 | 48 |
Deferred tax liabilities | 0 | 0 | (916) |
Changes in assets and liabilities: | |||
Accounts receivable, net | 2,219 | (1,341) | (6,006) |
Settlement assets, net | (6,398) | (7,796) | 173 |
Prepaid expenses | 3,176 | (1,389) | (6,509) |
Related party loan receivable | 0 | 14 | 586 |
Other current assets | (561) | 2,875 | (4,100) |
Other assets | (5,130) | (81) | 124 |
Accounts payable | 228 | (2,693) | 1,424 |
Accrued expenses and other liabilities | 906 | (1,537) | 7,511 |
Operating lease liabilities | (200) | (758) | (801) |
Settlement liabilities | 108 | 12,202 | 7,372 |
Other liabilities | 610 | 1,054 | (725) |
Net cash provided by operating activities | 1,559 | 32,876 | 5,486 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (1,384) | (585) | (2,706) |
Proceeds from sale or disposal of property and equipment | 0 | 5 | 0 |
Software development costs | (5,910) | (1,619) | (4,908) |
Net cash used in investing activities | (7,294) | (2,199) | (7,614) |
Cash flows from financing activities: | |||
Principal payments of finance leases | (513) | (793) | (774) |
Principal payments of outstanding debt | (44,587) | (595) | (25,191) |
Proceeds from term loan | 0 | 0 | 45,000 |
Vesting of restricted common stock | 0 | 0 | 567 |
Proceeds from initial public offering, net of underwriters' discounts, commissions and offering costs | 0 | 0 | 57,458 |
Repurchases of early exercises of common stock | (17) | (25) | 0 |
Proceeds from common stock purchased under Matching Plan | 4,255 | 3,672 | 0 |
Proceeds from issuance of common stock on exercise of stock options | 311 | 795 | 3,505 |
Payments for employee taxes withheld from stock-based awards | (1,766) | (5,336) | 0 |
Repurchase and retirement of common stock | (3,000) | (6,000) | 0 |
Net cash (used in) provided by financing activities | (45,317) | (8,282) | 80,565 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (51,052) | 22,395 | 78,437 |
Cash and cash equivalents and restricted cash, beginning of period | 147,710 | 125,315 | 46,878 |
Cash and cash equivalents and restricted cash, end of period | 96,658 | 147,710 | 125,315 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 5,936 | 3,912 | 3,082 |
Cash paid for income taxes | 3,785 | 975 | 6,922 |
Noncash investing and financing items: | |||
Stock-based compensation capitalized as software development costs | 3,126 | 1,757 | 628 |
Purchases of property and equipment and capitalized software in accounts payable and accrued expenses | 390 | 0 | 0 |
Right-of-use assets acquired through operating leases | 6,402 | 0 | 0 |
Right-of-use assets acquired through finance leases | 409 | 0 | 0 |
Reconciliation of cash and cash equivalents and restricted cash to the Consolidated Balance Sheets: | |||
Cash and cash equivalents | 47,510 | 103,787 | 98,398 |
Restricted cash included in other current assets | 27,742 | 19,542 | 8,651 |
Restricted cash included in other assets | 0 | 0 | 47 |
Restricted cash included in settlement assets, net | 21,406 | 24,381 | 18,219 |
Total cash and cash equivalents and restricted cash | $ 96,658 | $ 147,710 | $ 125,315 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of the Business Expensify, Inc. ("Expensify") was incorporated in Delaware on April 29, 2009. Expensify offers a comprehensive expense management platform that integrates with a variety of third-party accounting applications, including QuickBooks Desktop, QuickBooks Online, Xero, NetSuite, Intacct, Sage, Microsoft Dynamics, MYOB and others. Expensify's product simplifies the way that employees and vendors manage and submit expense receipts and bills and provides efficiencies to companies for the payment of those bills. Expensify delivers its services over the internet to corporations and individuals under a license arrangement and offers unique pricing options for small and midsized businesses and enterprises on a per-active-member basis. Expensify also offers an Expensify charge card ("Expensify Card"), which is primarily distributed to corporate customers in the United States ("U.S.") that subsequently distribute the card to their employees for business use. The Expensify Card allows customers to have real-time control over their employees' spending and compliance with spending limits in addition to eReceipt reporting on purchases. Information regarding the subsidiaries of Expensify is as follows: • Expensify established a wholly-owned subsidiary in the United Kingdom ("UK"), Expensify LTD., in 2015 that primarily serves to promote and market Expensify's services to customers and potential customers of Expensify in the UK. • Expensify established a wholly-owned subsidiary in Australia, Expensify Australia PTY LTD., in 2017 that primarily serves to promote and market Expensify's services to customers and potential customers of Expensify in Australia. • Expensify established a wholly-owned subsidiary, 401 SW 5th Ave LLC, in 2019 with the subsidiary’s primary purpose being to hold title to the commercial building purchased in Portland, Oregon. • Expensify established a standalone entity, Expensify.org, in 2019 which is a nonprofit benefit organization. Expensify.org is included within the consolidated financial statements of Expensify as Expensify has both a majority voting interest in the board of Expensify.org and an economic interest in the organization. Any contributions from Expensify.org to a charitable organization are recorded as an expense within General and administrative expenses on the consolidated financial statements upon payment. • Expensify established wholly-owned subsidiaries, Expensify Canada Inc. and Expensify Netherlands B.V., in 2020 that primarily serve to promote and market Expensify's services to customers and potential customers of the Company in Canada and the Netherlands, respectively. • Expensify established a wholly-owned subsidiary, Expensify Payments LLC, in 2020 that primarily serves as the licensed provider of money transmission services for Expensify with its expense management program. • Expensify established a wholly-owned subsidiary, Expensify Lounge LLC, in 2021 that primarily serves to manage, promote and market Expensify's lounge operations in the United States. • Expensify established a wholly-owned subsidiary, Fifth & Harvey, LLC, in 2023 that primarily serves to hold title to and manage operations of the operating lease for lots in Portland, Oregon that are currently used to host multiple portable food vendors open to the general public. Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Expensify and its wholly-owned subsidiaries (the "Company") and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances have been eliminated in consolidation. Initial Public Offering The Company’s registration statement on Form S-1 (the "IPO Registration Statement") related to its initial public offering ("IPO") was declared effective on November 9, 2021 and the Company’s Class A common stock began trading on the Nasdaq Global Select Market on November 10, 2021. On November 15, 2021, the Company closed its IPO of 11,190,392 shares of the Company's Class A common stock at $0.0001 par value per share (the "Class A common stock"), in which the Company sold 2,608,696 shares of Class A common stock, and the selling stockholders sold 8,581,696 shares of Class A common stock at an IPO price of $27.00 per share. This total sale of 11,190,392 shares of Class A common stock in the IPO includes the full exercise of the underwriters’ option to purchase an additional 1,459,616 shares of Class A common stock from certain selling stockholders at an IPO price of $27.00 per share. The Company did not receive any proceeds from the sale of shares of Class A common stock in the offering by the selling stockholders. The Company received aggregate net proceeds of approximately $57.5 million after deducting underwriting discounts and commissions of approximately $4.9 million and offering costs of approximately $8.0 million. Immediately prior to the effectiveness of the IPO Registration Statement, the Company filed an Amendment to the Amended and Restated Certificate of Incorporation to create three classes of authorized common stock: Class A, LT10, and LT50 common stock. All shares of common stock then outstanding were reclassified as Class A common stock except for shares under the Company's exchange offer, which provided employees and other service providers the opportunity to exchange, on a one-for-one basis, their Class A common stock into LT10 or LT50 shares. Under this exchange offer, 13,556,800 shares of Class A common stock were exchanged for 7,332,640 shares of LT10 common stock and 6,224,160 shares of LT50 common stock. Upon closing of the IPO, all convertible preferred stock then outstanding, was converted into 42,031,390 shares of common stock on a 10-for-one basis and reclassified into Class A common stock. In addition, 430,080 shares of common stock warrants were converted to an equivalent number of shares of Class A common stock warrants. Immediately prior to the closing of the IPO, the Company filed its Amended and Restated Certificate of Incorporation authorizing a total of 1,000,000,000 shares of Class A common stock which entitles holders to one vote per share; 25,000,000 shares of LT10 common stock, which entitles holders to 10 votes per share; and 25,000,000 shares of LT50 common stock, which entitles holders to 50 votes per share. In addition, the Amended and Restated Certificate of Incorporation authorized a total of 10,000,000 shares of undesignated preferred stock. Stock Split On October 27, 2021, the Company effected a 10-for-one stock split of its common stock. All share and per share information has been retroactively adjusted to reflect the stock split for all periods presented. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and judgments are based on historical experience, forecasted events and various other assumptions that the Company believes to be reasonable under the circumstances. Estimates and judgments may differ under different assumptions or conditions. Estimates and judgments are evaluated on an ongoing basis. Actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. Estimates and assumptions by management affect the Company’s classification of employee and employee-related expenses, the useful lives and recoverability of long-lived assets and deferred contract acquisition costs, income taxes, capitalization of internal-use software costs, stock-based compensation and the Company's incremental borrowing rate utilized to measure its lease right-of-use ("ROU") assets and lease liabilities. Foreign Currency The Company uses the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into the U.S. dollar at the end-of-period exchange rates except for prepaid expenses, property and equipment and related depreciation and amortization, and lease ROU assets and related amortization, which are remeasured at the historical exchange rates. Revenues and expenses are remeasured at average exchange rates in effect during each period. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations within Interest and other expenses, net. Cash and Cash Equivalents Cash consists of funds deposited with banks. The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The recorded carrying amount of cash equivalents, which is cost plus accrued interest, if any, approximates fair value. As of December 31, 2023 and 2022, the Company had no cash equivalents. Restricted Cash Restricted cash primarily includes cash in transit for funds held for customers to the Company's payment processor, Expensify Card collateral for funds held for customers, and cash held by Expensify.org for social justice and equity efforts of Expensify.org. Refer to Note 6 for the breakout of these amounts within Other current assets as of December 31, 2023 and 2022. Restricted cash also includes amounts within Settlement assets, net for funds held for customers that are deposited into a commercial bank account held by the Company for the benefit of the customers until remitted to the customer's members. Refer to the Settlement assets, net and liabilities policy note below for further detail. Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are recorded at the invoiced amount, net of an allowance for expected credit losses. The allowance for expected credit losses is based on the Company’s assessment of the collectability of the accounts receivable. Management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends and changes in customer payment terms. The Company recorded an immaterial allowance for expected credit losses as of December 31, 2023 and 2022. Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited with federally insured commercial banks in the United States that may at times exceed federally insured limits. Management believes that these financial institutions are financially sound, and the Company has not experienced material losses to date. The Company generally does not require collateral or other security in support of accounts receivable except for the restricted cash accounts discussed in the Restricted Cash policy note above. No customer represented 10% or more of revenue during the years ended December 31, 2023, 2022 and 2021. In addition, there were no customers representing 10% or more of accounts receivable as of December 31, 2023 and 2022. Settlement Assets, Net and Liabilities and Allowance for Expected Credit Losses Upon an approved request for expense reimbursement from customers, the Company initiates a transaction facilitated by a third-party vendor to collect funds from customers that are deposited into a commercial bank account held by the Company for the benefit of the customers until remitted to the customer’s members after a clearing period of up to three business days, including the day of the transaction. The Company records a settlement receivable upon approval of the expense reimbursement until funds are cleared in the Company’s commercial bank account. A corresponding liability is recorded upon approval of the expense reimbursement until funds are remitted from the Company’s commercial bank account to the customer’s members. For customer transactions incurred through the Expensify Card, the Company initiates a transaction facilitated by a third-party vendor to collect funds from customers that are deposited into a commercial bank account held by the Company until remitted to the issuing bank the next business day. The majority of customers settle Expensify Card transactions on a daily basis while certain customers settle Expensify Card transactions on a monthly basis. The Company records a settlement receivable for Expensify Card transactions until funds are cleared in the Company’s commercial bank account. A corresponding liability is recorded until funds are remitted from the Company’s commercial bank account to the issuing bank. Settlement receivables are recorded net of an allowance for expected credit losses. The allowance for expected credit losses is based on the Company’s assessment of the collectability of the settlement receivables. Management considers the following factors when determining the collectability of specific customer accounts: customer creditworthiness, past transaction history with the customer, current economic industry trends and changes in customer settlement terms. The Company recorded an immaterial allowance for expected credit losses as of December 31, 2023 and 2022. During the years ended December 31, 2023 and 2022, the Company recorded credit losses of $2.2 million and $1.5 million, respectively, net of recoveries of $0.3 million and $0.5 million, respectively. Leases The Company determines if an arrangement is or contains a lease at inception by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. Operating and finance leases are included in lease ROU assets and lease liabilities in the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. The Company uses rates implicit in the lease, or if not readily available, its incremental borrowing rate, to calculate its ROU assets and liabilities. The operating and finance lease ROU assets also include any lease payments made before commencement and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, and the Company includes those options in the lease terms when it is reasonably certain it will exercise them. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Lease expense for finance lease payments is recognized on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. The Company made the policy election to account for short-term leases by recognizing the lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term rather than recognizing these leases on the Company’s Consolidated Balance Sheets. Variable lease payments are recognized in the Consolidated Statements of Operations in the period in which the obligation for those payments is incurred. The Company has real estate and data center equipment lease agreements with lease and non-lease components for which the Company has made the accounting policy election to account for these agreements as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms to be accounted for as a new lease or whether the additional right-of-use should be included in the original lease and continue to be accounted with the remaining ROU asset. Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, typically three years for computer equipment, five years for furniture and fixtures and thirty years for buildings. Land has an indefinite useful life and is not depreciated. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposal, the cost and related accumulated depreciation and amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in the Consolidated Statements of Operations. Gains or losses from disposition of property and equipment for the years ended December 31, 2023, 2022 and 2021 have been immaterial. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No depreciation is recorded for construction in progress until the relevant assets are completed and put into use. Construction in progress as of December 31, 2023 and 2022 represents leasehold improvements under installation. Capitalized Software Development Costs, Net The Company capitalizes internal and external costs directly related to obtaining or developing internal-use software during the application development stage of the projects. Additionally, the Company capitalizes qualifying costs incurred for upgrades and enhancements that result in additional functionality to existing software. Maintenance activities or minor upgrades are expensed in the period performed. The Company's internal-use software is reported at cost less accumulated amortization. Amortization begins once the project is ready for its intended use, which is usually when the software code goes into production. The Company amortizes the asset on a straight-line basis over a period of three years, which is the estimated useful life. During the years ended December 31, 2023, 2022 and 2021, the Company capitalized $9.4 million, $3.4 million and $4.9 million, respectively, in software development costs. Long-Lived Assets Long-lived assets, primarily capitalized software development costs, property and equipment and lease right-of-use assets, are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When indications of impairment are present and the estimated undiscounted future cash flows from the use of the asset are less than the asset's carrying value, the related asset will be written down to fair value. Any impairment losses are included in the same financial statement caption as the related depreciation and amortization for the respective asset class on the Consolidated Statements of Operations. Impairment losses on long-lived assets were immaterial for each of the years ended December 31, 2023, 2022 and 2021. Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal and other fees related to the IPO. Upon completion of the IPO, deferred offering costs of $8.0 million were reclassified to stockholders’ equity and recorded net against the IPO proceeds. The Company had no capitalized deferred offering costs as of December 31, 2023 and 2022. Revenue Recognition The Company generates revenue from subscription fees paid by its customers to access and use the Company’s hosted software services, as well as standard customer support. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. Revenue is recognized net of applicable taxes imposed on the related transaction. The Company’s contracts are either month-to-month arrangements billed monthly in arrears based on a specified number of members or annual arrangements billed monthly in arrears based on a minimum number of monthly members, with typical payment terms being 30 days. Month-to-month contracts can be terminated by either party at any time without penalty. Annual subscription customers who wish to terminate their contracts before the end of the term are required to pay the remaining obligation in full plus any fees or penalties set forth in the agreement. The Company charges its customers subscription fees for access to its platform based on the number of monthly members and level of service. The contractual price per member is based on either negotiated fees or rates published on the Company’s website. The Company’s contracts with customers include two performance obligations: access to the hosted software service ("SaaS"), inclusive of all features available within the platform, and related customer support. The SaaS and the support are accounted for as a combined performance obligation because they have the same pattern of transfer over the same period and, therefore, are delivered concurrently. The Company satisfies its performance obligation over time each month as it provides the SaaS and support services to customers and, as such, generally recognizes revenue monthly based on the number of monthly members and contractual rate per member. Certain annual contracts provide the customer the option to increase the minimum number of members and extend the contract term on a prospective basis or to purchase members beyond the minimum contracted number of members at a higher rate for a particular month. These options are accounted for when the customer exercises the option as they do not represent a material right and are accounted for as a contract modification. A contract asset is the right to consideration for transferred goods or services and arises when the amount of revenue recognized exceeds amounts billed to a customer. The Company has no unsatisfied, or partially unsatisfied, performance obligations as of December 31, 2023 and 2022 as performance obligations are satisfied monthly. Deferred Contract Acquisition Costs Sales commissions that are incremental costs of the acquisition of contracts with customers are capitalized. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred when the costs are incremental and would not have occurred if the customer contract had not been obtained. The deferred commission amounts are recoverable through the future revenue streams from our customer contracts, all of which are non-cancelable. The Company did not pay any sales commissions during the years ended December 31, 2022 and 2021. Commissions paid upon the acquisition of an initial contract are amortized over an estimated period of benefit which has been determined to be three years based on historical analysis of average customer life, industry benchmarks, and useful life of our product offerings. Amortization is recognized on a straight-line basis and included within Sales and marketing expenses in the Consolidated Statements of Operations. The Company periodically reviews these deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company did not recognize any impairment of deferred contract acquisition costs during the periods presented. The following table presents the change in deferred contract acquisition costs (in thousands): 2023 Balance as of January 1 $ — Added during the year 386 Amortized during the year (48) Balance as of December 31 $ 338 Cashback Rewards In August 2021, the Company began offering a cashback rewards program to all customers based on volume of Expensify Card transactions and SaaS subscription tier. Cashback rewards are earned on a monthly basis and are applied against outstanding customer receivables or are paid out the following month. The Company considers cashback rewards as consideration payable to a customer and it is recorded as contra revenue within Revenue on the Consolidated Statements of Operations. Cashback rewards are impacted over time by customers meeting eligibility requirements in conjunction with the SaaS subscription tier of the customer and the timing of payments to customers. Cashback rewards liability was $0.9 million and $0.2 million as of December 31, 2023 and 2022, respectively, and is recorded within Accrued expenses and other liabilities on the Consolidated Balance Sheets. Cashback rewards offset against outstanding customer receivables were $0.2 million as of December 31, 2023 and are reflected as a reduction to Accounts receivable, net on the Consolidated Balance Sheets. Cashback rewards were not offset against outstanding customer receivables as of December 31, 2022. The cashback rewards cost was $7.0 million, $2.8 million and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of GAAP. Those provisions require all stock-based awards granted to employees, including stock options and restricted stock units, to be measured based on fair value at the date of grant, with the resulting expense generally recognized in the Consolidated Statements of Operations over the period during which the employee is required to perform service in exchange for the award. The Company utilizes the Black-Scholes option pricing model to determine the estimated fair value of stock options. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. Forfeitures are recorded as they occur. The Black-Scholes option pricing model requires management to make a number of assumptions, including the fair value and expected volatility of the Company’s underlying common stock, expected life of the award, risk-free interest rate and expected dividend yield. Prior to the IPO, the fair value of common stock was determined by the Board of Directors based on a number of factors, including independent third-party valuations of our common stock, which considered estimates of our future performance and valuations of comparable companies. The Company also considered prices at which others have purchased our stock, and the likelihood and timing of achieving a liquidity event. When awards were granted or revalued between the dates of valuation reports, the Company considered the change in common stock fair value and the amount of time that lapsed between the two reports to determine whether to use the latest common stock valuation or an interpolation between two valuation dates for purposes of valuing stock-based awards. Subsequent to the completion of the IPO, the fair value of the Company’s underlying common stock is determined by the closing price, on the date of grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. The Company granted employees, consultants and directors (collectively, "Service Providers") restricted stock units ("RSUs") that settle in shares of Class A and LT50 common stock, effective immediately prior to the effectiveness of the IPO Registration Statement. All RSUs granted to Service Providers after the effectiveness of the IPO Registration Statement have a service condition only and are recognized on a straight-line basis over the requisite service period of the award, which is generally the RSU vesting term of eight years. The Company measures these RSUs granted based on the fair value of the underlying common stock on the grant date, which is determined by the closing price, on the date of the grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. All RSUs granted to Service Providers before the effectiveness of the IPO Registration Statement were considered RSUs with both a service and performance condition for accounting purposes. The Company measures these RSUs based on the fair value of the underlying common stock on the grant date, which was consistent with the factors described within the Black-Scholes option pricing model. Once the performance condition was satisfied for these RSUs on November 9, 2021, the Company recognized a cumulative one-time stock-based compensation expense for the service period satisfied prior to this date. All remaining stock-based compensation for these awards will be recognized over the remaining service period using the accelerated graded method. The service period of these awards is the RSU vesting term of eight years. The Company granted RSUs in November 2021 to its Non-Employee Directors, which is comprised solely of the Company's Audit Committee members, in connection with each member's initial appointment to the Board of Directors and consummation of the IPO. All RSUs granted to Non-Employee Directors settle in shares of Class A common stock and are recognized on a straight-line basis over the requisite service period of the award, which is generally the initial RSU grant vesting term of three years. Additionally, the Company will grant RSUs to Non-Employee Directors on an annual basis at each annual stockholders' meeting that will vest upon the earlier of the satisfaction of a service condition or a performance condition, which is considered a change in control event. These annual RSU grants will be recognized on a straight-line basis over the requisite service period of the award, which is one year. Furthermore, RSUs will be granted to Non-Employee Directors on a quarterly basis as a retainer for their services, which vest only upon the satisfaction of a service condition. These quarterly RSU grants will be recognized on a straight-line basis over the requisite service period of the award, which is three months. The Company measures all RSUs granted to Non-Employee Directors based on the fair value of the underlying common stock on the grant date, which is determined by the closing price, on the date of the grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. Forfeitures are recorded as they occur for all RSUs. Refer to Note 9 for further detail over stock-based compensation and the stock incentive plans of the Company. Employee Stock Option Exercise Cash Bonus In June 2021 for the Company's named executive officers and in July 2021 for all other employees, the Company determined it would pay a cash bonus to each of its employees in a value that approximated the cost of each employee exercising 45% of their total stock options issued, limited by the total stock options outstanding as of June 15, 2021, including the tax withholding applicable to each employee. The Company included both vested and unvested stock options outstanding and held by each existing employee as of June 15, 2021 in determining the cash bonus paid to each employee. In addition to using the exercise cost of the stock options through June 15, 2021, the Company relied on an estimate to determine the tax withholding that could be applicable to each employee based on if they were to exercise the stock options. In order to determine this estimate, the Company relied on third-party tax consultants that reviewed a number of assumptions provided by management, including the applicable taxable income to the employee as a result of the cash bonus in 2021 and the spread of the fair value of the options based on the latest independent third-party common stock valuation as of June 15, 2021 and the exercise price of the same options applicable to each employee. No employee was obligated to use the cash bonus to exercise their outstanding stock options. During the years ended December 31, 2023 and 2022, there were no bonus expenses related to the named executive officers or employee stock option exercise cash bonus. During the year ended December 31, 2021, the Company recorded bonus expenses related to the employee stock option exercise cash bonus of $48.4 million. All bonuses were fully paid to employees during the year ended December 31, 2021. Of the total bonus expenses related to the employee stock option exercise cash bonus during the year ended December 31, 2021, the bonus expense for the Company's named executive officers was $7.9 million. Employee stock option exercise cash bonus is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2021 Cost of revenue, net $ 13,708 Research and development 8,550 General and administrative 21,174 Sales and marketing 4,984 Total $ 48,416 Employee cash bonuses capitalized as internally developed software costs were $1.5 million for the year ended December 31, 2021. Employee and Employee-Related Expenses Allocating employee and employee-related expenses, which consist of contractor costs, employee salary and wages, stock-based compensation and travel and other employee-related costs, to their appropriate financial statement line items on the Consolidated Statements of Operations, requires the Company to make estimates and judgments as a result of a generalist model and organizational structure. The Company bases the estimates for allocating employee and employee related expenses on internal productivity and team management tools. Management reviews the estimates each reporting period to evaluate the amounts allocated to Cost of revenue, net, Research and development, General and administrative, and Sales and marketing on the Consolidated Statements of Operations. Cost of Revenue, Net Cost of revenue, net primarily consists of expenses related to hosting the Company’s service, including the costs of data center capacity, credit card processing fees, third-party software license fees, outsourcing costs to support customer service and outsourcing costs to support our patented scanning technology SmartScan, net of consideration from a vendor for monetizing Expensify Card activities. This consideration, net of credit card processing fees paid to the vendor, is included as a reduction to cost of revenue of $10.1 million, $6.2 million, and $2.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Additional costs include amortization of finance lease right-of-use assets and amortization expense on capitalized software development costs and personnel-related expenses, including stock-based compensation, attributable to supporting our customers and maintenance of our platform. Research and Development Research and development expenses consist primarily of personnel-related expenses, including stock-based compensation, and external contributor expenses incurred in the planning and preliminary project stage and post-implementation stage of new products or enhancing existing products or services. We capitalize certain software development costs that are attributable to developing or adding significant functionality to our internal-use software during the application development stage of the projects. All research and development expenses, excluding capitalized software development costs, are expensed as incurred. General and Administrative General and administrative expenses primarily consist of personnel-related expenses, including stock-based compensation, for any employee time allocated to administrative functions, including finance and accounting, legal and compliance, and human resources. In addition to personnel-related expenses, general and administrative expenses consist of rent, utilities, depreciation on property and equipment, amortization of operating lease right-of-use assets and external professional services, including finance and accounting, audit, tax, legal and compliance, human resources and information technology. General and administrative expenses are expensed as incurred. Sales and Marketing Sales and marketing primarily consist of personnel-related expenses, including stock-based compensation, advertising expenses, depreciation on property and equipment, outsourcing costs for sales and product demos, branding and public relations expenses, referral fees for strategic partners and other benefits that the Company provides to its referral and affiliate partners. I n general, the Company expenses the costs of sales and marketing, including promotional expenses, as incurred. For media advertising arrangements, the Company expenses the costs related to producing advertisements as incurred, and the costs related to communicating the advertisement when the advertisement first takes place or is released. Advertising costs were $10.4 million, $30.9 million, and $15.6 million for th e years ended December 31, 2023, 2022 and 2021, respectively. Interest and Other Expenses, net Interest and other expenses, net, primarily consist of interest paid under our credit facilities with Canadian Imperial Bank of Commerce ("CIBC"). It also includes the results of operations of our Fifth & Harvey, LLC subsidiary, realized gains and losses on foreign currency transactions and foreign currency remeasurement Income Taxes The Company is subject to income taxes in the U.S. and several foreign jurisdictions. The Company records a (provision for) benefit from income taxes utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities, as well as net operating losses ("NOL") and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies any liabilities for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. The Company is subject to the global intangible low-taxed income ("GILTI") provisions of the Tax Cuts and Jobs Act ("TCJA") due to its foreign operations. The Company's accounting policy with respect to GILTI is to account for it as a period cost. The Company's provision for income taxes does not include provisions for foreign withholding taxes associated with the repatriation of undistributed earnings of certain foreign subsidiaries that the Company intends to reinvest indefinitely in its foreign subsidiaries. Net Loss Per Share Attributabl |
CAPITALIZED SOFTWARE, NET
CAPITALIZED SOFTWARE, NET | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
CAPITALIZED SOFTWARE, NET | CAPITALIZED SOFTWARE, NET Capitalized software, net consisted of the following (in thousands): As of December 31, 2023 2022 Capitalized software development costs $ 22,683 $ 14,052 Less: accumulated amortization (10,189) (7,171) Capitalized software, net $ 12,494 $ 6,881 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following (in thousands): As of December 31, 2023 2022 Computers and equipment $ 170 $ 178 Furniture and fixtures 1,930 1,698 Leasehold improvements 7,937 6,948 Commercial building 6,493 6,493 Land 4,151 4,151 Construction in progress 2,570 2,551 Total property and equipment 23,251 22,019 Less: accumulated depreciation (8,879) (7,527) Property and equipment, net $ 14,372 $ 14,492 Depreciation expense related to property and equipment is recorded in General and administrative, Sales and marketing, and Interest and other expenses, net on the Consolidated Statements of Operations. Depreciation expense related to property and equipment for the years ended December 31, 2023, 2022 and 2021 was $1.4 million, $2.0 million and $2.1 million, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for real estate and a finance lease for data center equipment. The operating and finance leases contain options to extend or terminate the leases. However, these were not included in the original accounting treatment of the leases as the Company is not reasonably certain to exercise these options. During the year ended December 31, 2023, the Company entered into four operating lease agreements and renewed its finance lease. There were no new operating or finance lease agreements entered into during the years ended December 31, 2022 and 2021. The components of lease cost reflected on the Consolidated Statements of Operations were as follows (in thousands): Year ended December 31, 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 506 $ 790 $ 790 Interest on lease liabilities 14 22 42 Total finance lease cost 520 812 832 Operating lease cost 981 704 821 Short-term lease cost 379 320 128 Total lease cost $ 1,880 $ 1,836 $ 1,781 Other information related to leases was as follows (in thousands, except as noted within): As of December 31, 2023 2022 Finance lease ROU asset (included within Lease right-of-use assets) $ 364 $ 461 Operating lease ROU asset (included within Lease right-of-use assets) $ 6,071 $ 284 Weighted-average remaining lease term (in years): Finance leases 2.67 0.58 Operating leases 9.18 0.42 Weighted-average discount rate: Finance leases 8.10 % 2.50 % Operating leases 8.30 % 5.30 % Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (564) $ (790) $ (880) Operating cash flows from finance leases $ (14) $ (22) $ (42) Financing cash flows from finance leases $ (513) $ (793) $ (774) ROU assets obtained in exchange for finance lease liabilities $ 409 $ — $ — ROU assets obtained in exchange for operating lease liabilities $ 6,402 $ — $ — To calculate the ROU assets and liabilities, the Company uses the discount rate implicit in lease agreements when available. When the implicit discount rates are not readily determinable, the Company uses the incremental borrowing rate. For lease agreements entered into or renewed during the year ended December 31, 2023, the Company determined the incremental borrowing rate from a corporate yield curve corresponding with the lease term using information available on the commencement date. Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Finance leases Operating leases For the year ending: 2024 $ 153 $ 838 2025 153 1,079 2026 102 1,018 2027 — 1,033 2028 — 1,063 Thereafter — 4,499 Total future lease payments 408 9,530 Less: imputed interest (40) (2,999) Less: lease liabilities, current (129) (303) Lease liabilities, non-current $ 239 $ 6,228 |
LEASES | LEASES The Company has operating leases for real estate and a finance lease for data center equipment. The operating and finance leases contain options to extend or terminate the leases. However, these were not included in the original accounting treatment of the leases as the Company is not reasonably certain to exercise these options. During the year ended December 31, 2023, the Company entered into four operating lease agreements and renewed its finance lease. There were no new operating or finance lease agreements entered into during the years ended December 31, 2022 and 2021. The components of lease cost reflected on the Consolidated Statements of Operations were as follows (in thousands): Year ended December 31, 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 506 $ 790 $ 790 Interest on lease liabilities 14 22 42 Total finance lease cost 520 812 832 Operating lease cost 981 704 821 Short-term lease cost 379 320 128 Total lease cost $ 1,880 $ 1,836 $ 1,781 Other information related to leases was as follows (in thousands, except as noted within): As of December 31, 2023 2022 Finance lease ROU asset (included within Lease right-of-use assets) $ 364 $ 461 Operating lease ROU asset (included within Lease right-of-use assets) $ 6,071 $ 284 Weighted-average remaining lease term (in years): Finance leases 2.67 0.58 Operating leases 9.18 0.42 Weighted-average discount rate: Finance leases 8.10 % 2.50 % Operating leases 8.30 % 5.30 % Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (564) $ (790) $ (880) Operating cash flows from finance leases $ (14) $ (22) $ (42) Financing cash flows from finance leases $ (513) $ (793) $ (774) ROU assets obtained in exchange for finance lease liabilities $ 409 $ — $ — ROU assets obtained in exchange for operating lease liabilities $ 6,402 $ — $ — To calculate the ROU assets and liabilities, the Company uses the discount rate implicit in lease agreements when available. When the implicit discount rates are not readily determinable, the Company uses the incremental borrowing rate. For lease agreements entered into or renewed during the year ended December 31, 2023, the Company determined the incremental borrowing rate from a corporate yield curve corresponding with the lease term using information available on the commencement date. Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Finance leases Operating leases For the year ending: 2024 $ 153 $ 838 2025 153 1,079 2026 102 1,018 2027 — 1,033 2028 — 1,063 Thereafter — 4,499 Total future lease payments 408 9,530 Less: imputed interest (40) (2,999) Less: lease liabilities, current (129) (303) Lease liabilities, non-current $ 239 $ 6,228 |
SIGNIFICANT BALANCE SHEET COMPO
SIGNIFICANT BALANCE SHEET COMPONENTS | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SIGNIFICANT BALANCE SHEET COMPONENTS | SIGNIFICANT BALANCE SHEET COMPONENTS Other Current Assets Other current assets consisted of the following (in thousands): As of December 31, 2023 2022 Expensify Card posted collateral for funds held for customers $ 16,561 $ 11,509 Expensify.org restricted cash 5,881 5,518 Cash in transit for funds held for customers 5,107 2,361 Income tax receivable 2,993 2,471 Deferred contract acquisition costs 129 — Expensify Payments LLC restricted cash 113 102 Matching Plan escrow and other restricted cash 80 52 Other 114 204 Other current assets $ 30,978 $ 22,217 Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Sales, payroll and other taxes payable $ 3,389 $ 2,721 Partner payouts and advertising fees 1,486 669 Professional fees 1,311 1,473 Restricted common stock liability for early stock option exercises 562 1,283 Interest payable 359 1,318 Cashback rewards 915 223 Matching plan payroll liability 198 195 Accrued expense reports 159 291 Commissions payable 140 — Hosting and license fees 134 75 Credit card processing fees 76 22 Other 661 800 Accrued expenses and other liabilities $ 9,390 $ 9,070 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Amortizing Term Mortgage In August 2019, the Company entered into an $8.3 million amortizing term mortgage agreement with Canadian Imperial Bank of Commerce ("CIBC") for the Company's commercial building located in Portland, Oregon. The agreement requires principal and interest payments to be made each month over a five-year period. Interest accrues at a fixed rate of 5.00% per year until August 2024, at which point the remaining outstanding principal balance on the amortizing term mortgage is due in full . The borrowings are secured by the building. The outstanding balance of the amortizing term mortgage was $7.7 million and $7.8 million a s of December 31, 2023 and 2022 , respectively. 2021 Amended Term Loan In September 2021, the Company amended and restated its loan and security agreement with CIBC ("2021 Amended Term Loan") to refinance the existing non-amortizing and amortizing term loans, establish a single term loan of up to $75.0 million, consisting of a $45.0 million initial term loan effective immediately with an option at a later date to enter into an additional $30.0 million delayed term loan, and increase the monthly revolving line of credit to $25.0 million. Approximately $23.5 million of the loan proceeds were used to immediately repay the remaining balances under the amortizing and non-amortizing term loans at the time of the amendment as well as the commitment fees and any other debt issuance costs associated with the amendment. The remaining proceeds from the initial term loan were utilized to fund the Company's normal business operations. Under the 2021 Amended Term Loan, the initial term loan of $45.0 million was payable over a 60-month period with principal and accrued interest payments due each quarter, commencing on September 30, 2021. The 2021 Amended Term Loan amortized in equal quarterly installments of $0.1 million through September 30, 2024, $0.2 million beginning October 1, 2024 and $0.6 million beginning October 1, 2025, with any remaining principal balance due and payable on maturity. The amounts borrowed beared interest at the bank’s reference rate plus 2.25% (9.75% as of December 31, 2022) beginning on September 30, 2021 and continuing on a quarterly basis through maturity of the term loan. The borrowings were secured by substantially all the Company’s assets. As of December 31, 2022, the outstanding balance of the 2021 Amended Term Loan was $44.5 million. The outstanding balance of $36.0 million and $0.1 million of accrued interest on the term loan were repaid in full on October 12, 2023. Upon completion of the IPO in November 2021, the Company became obligated to pay a $2.5 million success fee as part of the Company's 2021 Amended Term Loan. This amount was paid to CIBC in November 2021. Monthly Revolving Line of Credit The line of credit agreement, as amended with the 2021 Amended Term Loan, provides borrowings up to $25.0 million. Borrowings under the line of credit bear interest at CIBC’s reference rate plus 1.00% (9.50% and 8.50% as of December 31, 2023 and 2022, respectively) and are secured by substantially all of the Company’s assets. As of December 31, 2023 and 2022, there were $15.0 million of borrowings under the line of credit and $10.0 million of capacity available for additional borrowings. In connection with the amortizing term mortgage and the 2021 Amended Term Loan, the Company recorded an immaterial amount of debt issuance costs and the 2021 Amended Term Loan was subject to an original issue discount. These amounts are amortized to interest expense over the term of the respective agreements using the effective interest method. As of December 31, 2023 and 2022, unamortized original issue discount and debt issuance costs remaining were immaterial and $0.3 million, respectively. Interest expense included within Interest and other expense, net on the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 was $5.2 million, $4.5 million and $3.1 million, respectively. Future aggregate annual principal payments on long-term debt as of December 31, 2023 is expected to be as follows (in thousands): For the years ending: 2024 $ 7,671 2025 — 2026 — 2027 — 2028 — Thereafter — Total principal payments 7,671 Less: unamortized original issue discount and debt issuance costs (16) Less: current portion, net of unamortized original issue discount and debt issuance costs (7,655) Long-term debt, net of unamortized original issue discount and debt issuance costs $ — Additionally, $15.0 million of outstanding borrowings under the line of credit are due in September 2024 upon maturity of the facility. The Company is subject to customary covenants under the 2021 Amended Term Loan agreement, which unless waived by CIBC, restrict its and its subsidiaries' ability to, among other things, incur additional indebtedness, create or incur liens, permit a change of control or merge or consolidate with other companies, sell or transfer assets, pay dividends or make distributions, make acquisitions, investments or loans, or payments and prepayments of subordinated indebtedness, subject to certain exceptions. If the Company fails to perform its obligations under these and other covenants, CIBC’s credit commitments could be terminated and any outstanding borrowings, together with accrued interest, under the credit or loan agreements could be declared immediately due and payable. As of December 31, 2023 , the Company was not in compliance with all debt covenants, specifically the minimum fixed charge coverage ratio covenant, the covenant related to the requirement to maintain all deposit, operating and collateral accounts with CIBC with certain exceptions during the period, the covenant related to investments in non loan subsidiaries where investments cannot exceed twenty percent of the Company's free cash flow as defined within the 2021 Amended Term Loan for the twelve month period then ended with certain exceptions, the covenant related to maintaining cash and other assets where the aggregate value of all subsidiaries cannot be in excess of ten percent of consolidated assets or individually by subsidiary in excess of five percent of consolidated assets, and the covenant related to subsidiary revenue where the aggregate value of all subsidiary revenue cannot be in excess of ten percent of consolidated revenue or individually by subsidiary in excess of five percent of consolidated revenue. A waiver was obtained from CIBC for the Company's non-compliance with these covenants. The Company does not believe non-compliance with these covenants had any material impact on the Company or its operations. On February 21, 2024, the Company entered into a Second Amended and Restated Loan and Security Agreement (the "2024 Amended Term Loan") with CIBC. The 2024 Amended Term Loan amends and restates the 2021 Amended Term Loan, to extend the maturity date of the revolving line of credit to September 21, 2025, remove certain provisions related to the term loan that was repaid in full in October 2023, and make certain changes to the positive and negative covenants intended to better align with the operations of the Company. The 2024 Amended Term Loan continues to provide for a $25.0 million revolving credit facility, and interest on borrowings continues to accrue at CIBC's reference rate plus 1.00%. As of February 21, 2024, $15.0 million was outstanding under the Loan and Security Agreement. |
CONVERTIBLE PREFERRED STOCK AND
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) Share Repurchase Program On May 10, 2022, the Executive Committee of our Board of Directors approved a share repurchase program with authorization to purchase up to $50.0 million of shares of Class A common stock ("2022 Share Repurchase Program"). The Company may repurchase shares from time to time through open market purchases, in privately negotiated transactions or by other means, including the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934 ("Exchange Act"), in accordance with applicable securities laws and other restrictions. The actual timing, manner, price and total amount of future repurchases will depend on a variety of factors, including business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, restrictions under the terms of loan agreements and other considerations. The 2022 Share Repurchase Program does not obligate the Company to acquire any particular amount of Class A common stock, and the program may be suspended or terminated at any time by the Company at any time at its discretion without prior notice. During the years ended December 31, 2023 and 2022, the Company repurchased 504,493 shares of Class A common stock at a total cost of $3.0 million and 599,080 shares of Class A common stock at a total cost of $6.0 million, respectively. Convertible Preferred Stock Upon closing of the IPO, all convertible preferred stock then outstanding, was converted into 42,031,390 shares of common stock on a 10-for-one basis and reclassified into Class A common stock. As such, there is no convertible preferred stock outstanding as of December 31, 2023 or 2022. As of December 31, 2020, convertible preferred stock consisted of the following: (in thousands, except share and Shares authorized Shares issued and outstanding Original issuance price per share Liquidation amount Carrying value Series A 1,090,868 1,090,868 $ 0.91670 $ 1,000 $ 1,000 Series B 1,401,399 1,401,399 $ 2.67903 3,754 22,827 Series B-1 644,541 644,541 $ 5.54619 3,575 4,108 Series C 1,066,331 1,066,331 $ 15.56770 16,600 17,170 Total 4,203,139 4,203,139 $ 24,929 $ 45,105 Warrants The Company issued warrants during various dates in 2013 and December 2016 to purchase 430,080 shares of common stock in relation to a previous credit agreement entered into with Silicon Valley Bank. Although the credit agreement was terminated in 2018, the common stock warrants remained outstanding until exercised or expired. The warrants issued in 2013 and 2016 were exercisable immediately at $0.07 and $0.53 per share, respectively, with expiration dates 10 years after issuance. The Company recorded the common stock warrants in Additional paid-in capital at their grant date fair value which approximates the exercise price. Following the completion of the IPO, Silicon Valley Bank net exercised all common stock warrants then outstanding for 428,067 shares of Class A common stock. As such, there are no common stock warrants outstanding as of December 31, 2023 or 2022. The following table discloses information regarding common stock warrants issued and outstanding at December 31, 2020: Date issued Number of warrant shares Fair value on issuance date Exercisable through September 2013 150,000 $ 10 September 2023 October 2013 150,000 10 October 2023 December 2016 130,080 69 December 2026 Total 430,080 $ 89 |
STOCK INCENTIVE PLANS
STOCK INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK INCENTIVE PLANS | STOCK INCENTIVE PLANS 2009 and 2019 Stock Plans In 2009, the Board of Directors approved the 2009 Stock Plan ("2009 Stock Plan"). As amended in 2015, the 2009 Stock Plan permitted the Company to grant up to 16,495,150 shares of common stock. In January 2018, the Company increased the number of shares of common stock reserved under the 2009 Stock Plan by 535,130 shares to 17,030,280 shares. In April 2019, the Board of Directors approved the adoption of the 2019 Stock Plan ("2019 Stock Plan", and together with the 2009 Stock Plan, "Stock Plans"). The 2019 Stock Plan permitted the Company to grant up to 8,173,970 additional shares, increasing the overall common stock reserved for grant under the Stock Plans to 25,204,250 shares. In September 2021, under the 2019 Stock Plan, the Board of Directors approved the grant of 8,679,380 restricted stock units under the 2019 Stock Plan, which consisted of an aggregate of 4,339,690 shares of each of Class A and LT50 common stock effective immediately prior to the effectiveness of the Company's IPO Registration Statement. On November 9, 2021, the Board of Directors amended and restated the 2019 Stock Plan to, among other things, increase the common stock reserved for issuance under the 2019 Stock Plan to an aggregate of 16,856,770 shares of Class A and LT50 common stock. Following the completion of the IPO, the Company did not and does not intend to make any further grants under the Stock Plans. However, the Stock Plans will continue to govern the terms and conditions of the outstanding awards granted under the Stock Plans. Upon the expiration, forfeiture, cancellation, withholding of shares upon exercise or settlement of an award to satisfy the exercise price or tax withholding, or repurchase of any shares of Class A common stock underlying outstanding stock-based awards granted under the 2009 Stock Plan or of Class A or LT50 common stock underlying outstanding stock-based awards granted under the 2019 Stock Plan, an equal number of shares of Class A common stock will become available for grant under the 2021 Incentive Award Plan ("2021 Plan") and the Company's Stock Purchase and Matching Plan ("Matching Plan" and together with the 2021 Plan, "2021 Incentive Plans"). 2021 Incentive Plans In November 2021, the Company's Board of Directors adopted, and its stockholders approved, the 2021 Incentive Plans, which both became effective immediately before the effectiveness of the IPO Registration Statement and use a combined share reserve. Under the 2021 Incentive Plans, 11,676,932 shares of Class A common stock were initially reserved for issuance pursuant to a variety of stock-based awards, including incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units ("RSUs") and other forms of equity and cash compensation under the 2021 Plan and purchase rights and matching awards under the Matching Plan. The number of shares initially reserved for issuance or transfer pursuant to awards under the 2021 Incentive Plans will be increased upon the expiration, forfeiture, cancellation, withholding of shares upon exercise or settlement of an award to satisfy the exercise price or tax withholding, or repurchase of any shares of Class A common stock underlying outstanding stock-based awards granted under the 2009 Stock Plan or of Class A or LT50 common stock underlying outstanding stock-based awards granted under the 2019 Stock Plan. The number of shares of Class A common stock reserved for issuance under the 2021 Incentive Plans as of December 31, 2023 was 22,282,735 shares. The number of shares reserved for issuance under the 2021 Incentive Plans will automatically increase each subsequent January 1 through January 1, 2031, by the lesser of (A) 6% of the aggregate number of shares of all classes of common stock outstanding on the immediately preceding calendar year, or (B) such lesser number of shares as determined by the Company’s Board of Directors or compensation committee; provided, however, that no more than 87,576,990 shares of Class A common stock may be issued upon the exercise of incentive stock options. Stock Purchase and Matching Plan The Matching Plan operates using consecutive three month offering periods that commenced on March 15, 2022. Service Providers of the Company can participate in the Matching Plan by electing to contribute compensation through payroll deductions or from fee payments or may be granted discretionary awards under the Matching Plan. On the last day of the offering period the contributions made during the offering period are used to purchase shares of Class A common stock. The price at which Class A common stock is purchased under the Matching Plan equals the average of the high and low trading price of a share of Class A common stock as of the last trading day of the offering period. At the end of each offering period, the Company may provide a discretionary match up to 1/10 of a share of Class A common stock for each share of Class A common stock purchased by or issued to a service provider under the Matching Plan that is retained through the end of the applicable offering period. No fractional shares will be issued by the Company. The Company will round to the nearest full share for shares purchased by a Service Provider as well as any matched shares issued to a Service Provider under the Matching Plan. The match rate applicable to each offering period shall be limited to 1.50% of the shares of any class of capital stock outstanding as of the exercise date applicable to such offering period. The Company estimates the fair value of matched shares provided under the Matching Plan using the Black-Scholes option-pricing model on the date of grant. The Company recognizes stock-based compensation expense related to the matched shares pursuant to its Matching Plan on a straight-line basis over the applicable three month offering period. Service Providers who participated in the Matching Plan during 2023 purchased a total of 1,010,412 in Class A common shares, based on an average purchase price of $4.21, resulting in gross cash proceeds to the Company of $4.3 million. Service Providers who participated in the Matching Plan during 2022 purchased a total of 272,196 in Class A common shares, based on an average purchase price of $13.49, resulting in gross cash proceeds to the Company of $3.7 million. The Company elected to match each share of Class A common stock purchased by or issued under the Matching Plan with 1/20 of a share of Class A common stock. During 2023, the Company granted a total of 147,109 shares of Class A common stock under the Matching Plan, net of a total of 15,871 shares withheld for taxes. During 2022, the Company granted 22,201 shares of Class A common stock under the Matching Plan. The fair value of awards granted as a result of this Company match within the Matching Plan was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended December 31, 2023 2022 Fair value of common stock per share $ 3.94 $ 12.49 Expected dividend yield (1) — % — % Risk-free interest rate (2) 5.4 % 3.6 % Expected volatility (3) 97.9 % 68.7 % Expected life (in years) (4) 0.25 0.25 (1) The Company has no history or expectation of paying cash dividends on its common stock. (2) The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. (3) The Company estimates volatility of its common stock at the date of the grant based on the expected weighted-average volatility of its Class A common stock. (4) The expected life of awards granted as a Company match within the Matching Plan represents the duration of each offering period under the terms of the Matching Plan. The Company has made discretionary contributions under the Matching Plan to eligible Service Providers. During 2023, the Company granted a total of 1,050,969 shares of Class A common stock as discretionary contributions under the Matching Plan, net of a total of 64,411 shares withheld for taxes. There were no discretionary contributions under the Matching Plan during the year ended December 31, 2022. Restricted Stock Units The 2019 Stock Plan and the 2021 Plan authorize the grant of RSUs. In September 2021, under the 2019 Stock Plan, the Company's Board of Directors approved and authorized 8,679,380 restricted stock units to be granted, which consisted of an aggregate of 4,339,690 shares each of Class A and LT50 common stock effective as of immediately prior to the effectiveness of the Company's IPO Registration Statement. Of this total, 2,980,260 RSUs, comprised of 1,490,130 shares of each of Class A and LT50 common stock were considered granted for accounting purposes in September 2021 to the Company's named executive officers and certain members of management as the Company and these certain Service Providers had a mutual understanding of the key terms and conditions of the award on the board approval date, which occurred on September 24, 2021. RSUs granted to Service Providers in September 2021 vest upon the satisfaction of both a performance and service condition. The performance condition was satisfied immediately prior to the effectiveness of the IPO Registration Statement. The service condition for these awards is satisfied over eight years with a cliff vest for 1/8 of the grant on September 15, 2022 and quarterly vesting of 1/32 of the grant every December 15, March 15, June 15 and September 15 thereafter until fully vested. In November 2021, the Company granted 5,666,260 RSUs, comprised of 2,833,130 shares of each of Class A common stock and LT50 common stock, to certain Service Providers that were not included in the September RSU grant. These RSUs only have a service condition, which is equivalent with the service condition of the awards granted in September 2021, and were deemed granted for accounting purposes on November 10, 2021, the date these certain Service Providers had a mutual understanding of the key terms and conditions of the award. On March 28, 2022, the Company granted a Service Provider 43,060 RSUs, comprised of 21,530 shares each of Class A common stock and LT50 common stock, at a grant date fair value of $18.93 per share. These RSUs only have a service condition, which is satisfied over approximately eight years with a cliff vest for 1/8 of the grant on September 15, 2022 and quarterly vesting of 1/32 of the grant every December 15, March 15, June 15 and September 15 thereafter until fully vested. Pursuant to the Company's Non-Employee Director Compensation Program, which was adopted under the 2021 Incentive Plans, the Company granted 55,731 Class A common stock RSUs during the year ended December 31, 2023. A total of 29,421 Class A common stock RSUs vested during the year ended December 31, 2023 related to previously-granted RSU awards as the quarterly service conditions were satisfied. The Company granted 27,780 Class A common stock RSUs to members of the Company's Audit Committee during November 2021 in connection with each member's initial appointment to the Board of Directors and consummation of the IPO. For accounting purposes, the grant date was considered to be November 12, 2021 as this was the date the Company filed its IPO price pursuant to Rule 424(b)(4). The IPO price was a key determination of the number of RSUs awarded to members of the Audit Committee and therefore on this date the Company and each Audit Committee member had a mutual understanding of the key terms and conditions of the awards granted. The RSUs granted vest upon the earlier of the satisfaction of a service condition or a performance condition, which is considered a change in control event. The service condition for these awards is satisfied over three years with quarterly vesting of the grant until fully vested. During the year ended December 31, 2023, RSU activity was as follows: Class A Common Stock LT50 Common Stock Weighted average grant date fair value per share Outstanding at December 31, 2022 3,379,657 3,304,643 $ 33.88 RSUs granted 55,731 — $ 8.17 RSUs vested (501,846) (467,042) $ 32.80 RSUs cancelled/forfeited/expired (191,269) (191,269) $ 40.92 Outstanding at December 31, 2023 2,742,273 2,646,332 $ 32.59 As of December 31, 2023, there was $153.4 million of unamortized stock-based compensation cost related to unvested RSUs, which is expected to be recognized over the remaining weighted average life of 5.37 years. As of December 31, 2022, there was $204.2 million of unamortized stock-based compensation cost related to unvested RSUs, which was expected to be recognized over the remaining weighted average life of 6.23 years. Stock Options The Stock Plans and the 2021 Plan provide for the grant of incentive and nonstatutory stock options to employees, non-employee directors and consultants of the Company. Under the Stock Plans and the 2021 Plan, the exercise price of incentive stock options must be equal to at least 110% of the fair market value of the common stock on the grant date for a “10-percent holder” or 100% of the fair market value of the common stock on the grant date for any other participant. The exercise price of nonstatutory options granted must be equal to at least 100% of the fair market value of the Company’s common stock on the date of grant. The Company has only granted options under the Stock Plans. Options typically vest over four years and are exercisable at any time after the grant date, provided that Service Providers exercising unvested options receive restricted common stock that is subject to repurchase at the original exercise price upon termination of service. The repurchase right lapses in accordance with the vesting schedule of the exercised option . Early exercises of options prior to vesting are not deemed to be substantive exercises for accounting purposes and accordingly, amounts received for early exercises of unvested options are recorded as a liability. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. During each of the years ended December 31, 2023 and 2022 , the Company repurchased an immaterial amount of exercised restricted common stock. There were no repurchases of exercised restricted common stock during the year ended December 31, 2021 . As of December 31, 2023 and 2022, there were 393,251 and 813,311 shares subject to repurchase, respectively, related to unvested stock options that had been early exercised. As of December 31, 2023 and 2022, the Company recorded a liability related to shares subject to repurchase of $0.6 million and $1.3 million, respectively, which is included within Accrued expenses and other liabilities in the accompanying Consolidated Balance Sheets . These amounts are reclassified to common stock and additional paid in capital as the underlying shares vest. A summary of the Company's stock option activity was as follows: Shares Weighted average exercise price per share Weighted average Outstanding at December 31, 2022 6,301,650 $ 1.67 5.20 Options granted — $ — Options exercised (288,465) $ 1.08 Options cancelled/forfeited/expired (110,594) $ 2.79 Outstanding at December 31, 2023 5,902,591 $ 1.68 4.03 Exercisable at December 31, 2023 5,821,461 $ 1.65 4.00 The to tal pretax intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was $1.3 million, $10.9 million and $80.7 million , respectively . The total pretax intrinsic value of options outstanding at December 31, 2023, 2022 and 2021 was $8.9 million, $46.0 million and $302.8 million , respectively. The intrinsic value is the difference between the estimated fair market value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. No options were granted during the years ended December 31, 2023 and 2022 . The weighted average grant date fair value of options granted during the year ended December 31, 2021 was $6.87. The total grant date fair value of options vested during the years ended December 31, 2023, 2022 and 2021, was $3.4 million, $3.9 million, and $3.4 million, respectively. As of December 31, 2023 , there was $4.1 million of unrecognized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 0.75 years . As of December 31, 2022, there was $8.1 million of unrecognized stock-based compensation cost related to unvested stock options, which was expected to be recognized over a weighted average period of 1.21 years. As of December 31, 2021, there was $13.2 million of unrecognized stock-based compensation cost related to unvested stock options, which was expected to be recognized over a weighted average period of 1.70 years. Cash received from option exercises and purchases of shares under the Stock Plans for the years ended December 31, 2023, 2022 and 2021 was $0.3 million, $0.8 million and $3.5 million, re spectively. Prior to the IPO, the fair value of option grants was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended December 31, 2021 Fair value of common stock per share $ 12.16 Exercise price per share $ 8.90 Expected dividend yield (1) — % Risk-free interest rate (2) 1.1 % Expected volatility (3) 51.5 % Expected life (in years) (4) 5.98 (1) The Company has no history or expectation of paying cash dividends on its common stock. (2) The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. (3) The Company estimates the volatility of its common stock at the date of grant based on the expected weighted-average volatility for a group of publicly traded companies in a similar industry or with similar service offerings, with a term of one year or greater. There have been no grants of stock options after the completion of the IPO. (4) The expected life of stock options granted under the option plans is determined using the simplified method, which deems the expected life to be the average of the time-to-vesting and the contractual life of the stock-based awards. The expected life represents the period of time that options granted are expected to be outstanding. Stock-Based Compensation The following table summarizes the stock-based compensation expense recognized for options granted under the 2009 Stock Plan, options and RSUs granted under the 2019 Stock Plan, RSUs granted under the 2021 Plan and matching shares issued under the Matching Plan (in thousands): Year ended December 31, 2023 2022 2021 Stock options $ 3,409 $ 3,888 $ 3,425 Matching shares 5,260 67 — Restricted stock units 35,669 50,134 11,149 Total stock-based compensation $ 44,338 $ 54,089 $ 14,574 Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2023 2022 2021 Cost of revenue, net $ 13,868 $ 18,403 $ 4,115 Research and development 10,870 7,875 1,617 General and administrative 9,842 17,850 7,356 Sales and marketing 6,632 8,204 1,486 Total stock-based compensation expense $ 41,212 $ 52,332 $ 14,574 Stock-based compensation capitalized as internally developed software costs was $3.1 million, $1.8 million and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. For RSUs granted in September 2021, the Company recorded cumulative stock-based compensation expense of approximately $2.9 million upon the date of the performance condition being satisfied on November 9, 2021. The remaining stock-based compensation expense is recognized over the vesting period using an accelerated graded method. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the Company's loss before taxes consisted of the following (in thousands): Year ended December 31, 2023 2022 2021 Domestic $ (39,680) $ (21,614) $ (14,562) Foreign 1,204 971 830 Total loss before taxes $ (38,476) $ (20,643) $ (13,732) The components of the Company’s (provision for) benefit from income taxes are as follows (in thousands): Year ended December 31, 2023 2022 2021 Current: Federal $ (624) $ (4,052) $ (99) State (254) (659) (239) Foreign (2,214) (1,626) (356) (3,092) (6,337) (694) Deferred: Federal — — 912 State — — (415) Foreign 112 (29) 371 112 (29) 868 Total (provision for) benefit from income taxes $ (2,980) $ (6,366) $ 174 A reconciliation of the U.S. statutory federal income tax rate to the Company's effective income tax rate is as follows: Year ended December 31, 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % State tax 0.9 (2.8) 4.7 Research and development credit 1.4 1.2 5.1 GILTI (2.2) (4.2) — Foreign tax credit 1.4 4.2 — Rate differentials for controlled foreign corporations and charitable organizations (1.3) 1.9 (1.9) Permanent items and others (0.1) 0.7 1.0 Stock-based compensation (16.1) (25.3) 16.5 Change in valuation allowance (9.7) (13.4) (18.1) 162(m) limitation (3.0) (14.1) (27.0) Effective income tax rate (7.7) % (30.8) % 1.3 % Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): As December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 88 $ — Tax credit carryforwards 413 251 Accruals and reserves 785 254 Stock-based compensation 2,639 2,232 Interest expense limitation 118 — Lease liabilities 1,742 204 Charitable contributions 101 604 Property and equipment 654 689 Capitalized research and development 7,677 3,216 Total deferred tax assets 14,217 7,450 Less: valuation allowance (8,971) (5,241) Deferred tax assets net of valuation allowance 5,246 2,209 Deferred tax liabilities: Capitalized software development costs (3,080) (1,675) Operating lease right-of-use assets (1,625) (190) Capitalized commissions (84) — Total deferred tax liabilities (4,789) (1,865) Deferred tax assets, net $ 457 $ 344 The TCJA requires taxpayers to capitalize and amortize research and experimental ("R&D") expenditures under Internal Revenue Code Section 174 for tax years beginning after December 31, 2021. This rule became effective for the Company during the year ended December 31, 2022 and resulted in the capitalization of R&D costs of $21.3 million and $16.5 million during the years ended December 31, 2023 and 2022, respectively, and are offset by a valuation allowance as of December 31, 2023 and 2022. The Company will amortize these costs for tax purposes over five years for R&D performed in the U.S. and over 15 years for R&D performed outside of the U.S. Under the provisions of ASC 740, Income Taxes, the Company assessed its ability to realize the benefits of its deferred tax assets by evaluating all available positive and negative evidence, objective and subjective in nature, including cumulative results of operations in recent years, sources of recent pre-tax income, projected reversals of existing taxable temporary differences, and estimates of future taxable income. As of December 31, 2023, the Company concluded it is more likely than not that the Company will not have the ability to realize the benefits of its domestic deferred tax assets in excess of existing taxable temporary differences and therefore recorded a valuation allowance on the remaining domestic deferred tax assets. As of December 31, 2023, the Company had $1.3 million available NOL carryforwards for state tax purposes of which expires in 2043. As of December 31, 2022, the Company had utilized all available NOL carryforwards for U.S. federal and state tax purposes. As of December 31, 2023, the Company had state research and development tax credit carryforwards of $1.1 million. As of December 31, 2022, the Company had state research and development tax credit carryforwards of $0.9 million. The state tax credits do not expire and will carry forward indefinitely until utilized. The Company follows the provisions of ASC 740-10, Accounting for Uncertainty in Income Taxes . ASC 740-10 prescribes a comprehensive model for the recognition, measurement, presentation and disclosure in financial statements of uncertain tax positions that have been taken or expected to be taken on a tax return. As of December 31, 2023 and 2022, the Company recorded an uncertain tax position liability of $1.5 million and $1.2 million respectively, within Other liabilities on the Consolidated Balance Sheets. As of December 31, 2023, 2022 and 2021, the Company had $2.1 million, $1.8 million and $1.7 million of unrecognized tax benefits, respectively. Approximately $1.5 million and $1.2 million of the unrecognized tax benefits for the years ended December 31, 2023 and 2022, respectively, if recognized, would affect the effective tax rate. A reconciliation of the amount of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2023 2022 2021 Balance as of January 1 $ 1,812 $ 1,656 $ 1,329 Additions based on tax positions related to current year 247 126 336 Additions based on tax positions of prior year (9) 30 (9) Balance as of December 31 $ 2,050 $ 1,812 $ 1,656 The Company recognizes penalties and interest expense related to income taxes as a component of tax expense. There are immaterial amounts of interest and penalties recorded in the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 and in the Consolidated Balance Sheets as of December 31, 2023 and 2022. The Company anticipates that it is reasonably possible its unrecognized benefits will decrease by $0.3 million, exclusive of interest and penalties, within 2024 mainly due to the expiration of statute of limitations. The Company's federal and state returns for the tax years ended from December 2018 to December 2023 remain open to examination. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year ended December 31, 2023 2022 2021 Numerator Net loss, basic and diluted $ (41,456) $ (27,009) $ (13,558) Denominator Weighted average shares of common stock used to compute net loss per share, basic and diluted 82,493,226 80,786,725 38,039,222 Net loss per share, basic and diluted $ (0.50) $ (0.33) $ (0.36) The rights, including the liquidation and dividend rights, of the holders of Class A, LT10 and LT50 common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote per share, each share of LT10 common stock is entitled to 10 votes per share and each share of LT50 common stock is entitled to 50 votes per share. Each share of LT10 and LT50 common stock is convertible into one share of Class A common stock voluntarily at the option of the holder after the satisfaction of certain requirements, which includes a 10-month notice period for LT10 common stock and a 50-month notice period for LT50 common stock to convert to Class A common stock, or automatically upon certain events. The Class A common stock has no conversion rights. As the liquidation and dividend rights are identical for Class A, LT10 and LT50 common stock, the undistributed earnings are allocated on a proportional basis based on the number of weighted-average shares within each class of common stock during the period and the resulting net loss per share attributable to common stockholders will be the same for the Class A, LT10 and LT50 common stock on an individual or combined basis. The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Year ended December 31, 2023 2022 2021 Warrants — — 366,982 Weighted-average stock options 4,334,383 5,406,383 9,419,506 Matching shares 8,181 17,240 — Convertible preferred stock — — 36,619,129 Total 4,342,564 5,423,623 46,405,617 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation From time to time in the normal course of business, the Company may be involved in claims, proceedings and litigation. In the case of any litigation, the Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews these provisions at least quarterly and adjusts provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. As of December 31, 2023 and 2022, there were no legal contingency matters, either individually or in aggregate, that would have a material adverse effect on the Company's financial position, results of operations or cash flows. Indemnification Agreements In the ordinary course of business, we enter into agreements of varying scope and terms whereby we agree to indemnify customers, issuing banks, card networks, vendors and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us or from intellectual property infringement claims made by third parties. In addition, we have entered into indemnification agreements with our directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon us to provide indemnification under such agreements and there are no claims that we are aware of that could have a material effect on our Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit), or Consolidated Statements of Cash Flows. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS 401(k) Plan In fiscal 2009, the Company sponsored a U.S. 401(k) defined contribution plan covering eligible employees who elect to participate. The Company is allowed to make discretionary profit sharing and 401(k) matching contributions as defined in the plan and as approved by the Board of Directors. Effective January 1, 2018, the Company matches up to 4.50% of each participant’s eligible compensation. No discretionary profit-sharing contributions were made for the years ended December 31, 2023, 2022 and 2021 . The Company’s 401(k) matching contributions for the years ended December 31, 2023, 2022 and 2021 were $0.9 million, $0.8 million and $0.7 million, respectively. In accordance with local laws and customs of the UK, the Company sponsored a UK pension plan covering eligible employees who elect to participate. The Company is allowed to make discretionary profit sharing and matching contributions as defined in the plan and as approved by the Board of Directors. The Company matches up to 4.50% of each participant's eligible compensation. No discretionary profit-sharing contributions were made for the years ended December 31, 2023, 2022 and 2021 . The discretionary matching contributions for the years ended December 31, 2023, 2022 and 2021 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS During the years ended December 31, 2023, 2022 and 2021 Expensify, Inc. contributed $0.3 million, $2.4 million and $3.1 million, respectively, to its established standalone entity, Expensify.org. There were no commitments from Expensify, Inc. that remained open for contribution as of December 31, 2023 and an immaterial amount as of December 31, 2022. During the year ended December 31, 2021, the Company incurred sales and marketing expenses of $0.4 million, related to partner payouts and advertising fees paid to CPA.com. CPA.com is considered a related party to the Company as Timothy L. Christen, the Chairman of the Company's Audit Committee in addition to being a Director on the Company's Board of Directors, also serves as a Director on CPA.com's Board of Directors. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net loss | $ (41,456) | $ (27,009) | $ (13,558) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
David Barrett [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Trading Arrangement Action Date Rule 10b5-1 (1) Non-Rule 10b5-1 (2) Total Shares to be Sold Expiration Date David Barrett, Chief Executive Officer Terminate (3) December 15, 2023 X 720,000 October 10, 2024 David Barrett, Chief Executive Officer Adopt December 15, 2023 X 2,098,023 (4) September 15, 2024 (1) Intended to satisfy the affirmative defense of Rule 10b5-1(c). (2) Not intended to satisfy the affirmative defense of Rule 10b5-1(c). (3) Trading arrangement was originally adopted June 10, 2022. (4) The actual number of shares sold under the trading plan will depend on the current share price when sales occur, this estimation is based on the closing share price on February 8, 2024. | |
Officer Trading Arrangement Expiring Oct 2024 [Member] | David Barrett [Member] | ||
Trading Arrangements, by Individual | ||
Name | David Barrett | |
Title | Chief Executive Officer | |
Adoption Date | June 10, 2022 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | December 15, 2023 | |
Aggregate Available | 720,000 | 720,000 |
Officer Trading Arrangement Expiring Sep 2024 [Member] | David Barrett [Member] | ||
Trading Arrangements, by Individual | ||
Name | David Barrett | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Arrangement Duration | 275 days | |
Aggregate Available | 2,098,023 | 2,098,023 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include the accounts of Expensify and its wholly-owned subsidiaries (the "Company") and have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and judgments are based on historical experience, forecasted events and various other assumptions that the Company believes to be reasonable under the circumstances. Estimates and judgments may differ under different assumptions or conditions. Estimates and judgments are evaluated on an ongoing basis. Actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. Estimates and assumptions by management affect the Company’s classification of employee and employee-related expenses, the useful lives and recoverability of long-lived assets and deferred contract acquisition costs, income taxes, capitalization of internal-use software costs, stock-based compensation and the Company's incremental borrowing rate utilized to measure its lease right-of-use ("ROU") assets and lease liabilities. |
Foreign Currency | Foreign Currency The Company uses the U.S. dollar as its functional currency. Foreign currency assets and liabilities are remeasured into the U.S. dollar at the end-of-period exchange rates except for prepaid expenses, property and equipment and related depreciation and amortization, and lease ROU assets and related amortization, which are remeasured at the historical exchange rates. Revenues and expenses are remeasured at average exchange rates in effect during each period. Gains or losses from foreign currency transactions are included in the Consolidated Statements of Operations within Interest and other expenses, net. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash consists of funds deposited with banks. The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The recorded carrying amount of cash equivalents, which is cost plus accrued interest, if any, approximates fair value. As of December 31, 2023 and 2022, the Company had no cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash primarily includes cash in transit for funds held for customers to the Company's payment processor, Expensify Card collateral for funds held for customers, and cash held by Expensify.org for social justice and equity efforts of Expensify.org. Refer to Note 6 for the breakout of these amounts within Other current assets as of December 31, 2023 and 2022. Restricted cash also includes amounts within Settlement assets, net for funds held for customers that are deposited into a commercial bank account held by the Company for the benefit of the customers until remitted to the customer's members. Refer to the Settlement assets, net and liabilities policy note below for further detail. |
Accounts Receivable and Allowance for Expected Credit Losses | Accounts Receivable and Allowance for Expected Credit Losses |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited with federally insured commercial banks in the United States that may at times exceed federally insured limits. Management believes that these financial institutions are financially sound, and the Company has not experienced material losses to date. The Company generally does not require collateral or other security in support of |
Settlement Assets, Net and Liabilities and Allowance for Expected Credit Losses | Settlement Assets, Net and Liabilities and Allowance for Expected Credit Losses Upon an approved request for expense reimbursement from customers, the Company initiates a transaction facilitated by a third-party vendor to collect funds from customers that are deposited into a commercial bank account held by the Company for the benefit of the customers until remitted to the customer’s members after a clearing period of up to three business days, including the day of the transaction. The Company records a settlement receivable upon approval of the expense reimbursement until funds are cleared in the Company’s commercial bank account. A corresponding liability is recorded upon approval of the expense reimbursement until funds are remitted from the Company’s commercial bank account to the customer’s members. For customer transactions incurred through the Expensify Card, the Company initiates a transaction facilitated by a third-party vendor to collect funds from customers that are deposited into a commercial bank account held by the Company until remitted to the issuing bank the next business day. The majority of customers settle Expensify Card transactions on a daily basis while certain customers settle Expensify Card transactions on a monthly basis. The Company records a settlement receivable for Expensify Card transactions until funds are cleared in the Company’s commercial bank account. A corresponding liability is recorded until funds are remitted from the Company’s commercial bank account to the issuing bank. |
Leases | Leases The Company determines if an arrangement is or contains a lease at inception by evaluating whether there is an identified asset and whether the Company controls the use of the identified asset throughout the period of use. The Company determines the classification of the lease, whether operating or financing, at the lease commencement date, which is the date the leased assets are made available for use. Operating and finance leases are included in lease ROU assets and lease liabilities in the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating and finance lease ROU assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. The Company uses rates implicit in the lease, or if not readily available, its incremental borrowing rate, to calculate its ROU assets and liabilities. The operating and finance lease ROU assets also include any lease payments made before commencement and exclude lease incentives. The Company’s lease terms may include options to extend or terminate the lease, and the Company includes those options in the lease terms when it is reasonably certain it will exercise them. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Lease expense for finance lease payments is recognized on a straight-line basis over the lesser of the lease term or the estimated useful life of the asset. The Company made the policy election to account for short-term leases by recognizing the lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term rather than recognizing these leases on the Company’s Consolidated Balance Sheets. Variable lease payments are recognized in the Consolidated Statements of Operations in the period in which the obligation for those payments is incurred. The Company has real estate and data center equipment lease agreements with lease and non-lease components for which the Company has made the accounting policy election to account for these agreements as a single lease component. Modifications are assessed to determine whether incremental differences result in new contract terms to be accounted for as a new lease or whether the additional right-of-use should be included in the original lease and continue to be accounted with the remaining ROU asset. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, typically three years for computer equipment, five years for furniture and fixtures and thirty years for buildings. Land has an indefinite useful life and is not depreciated. Leasehold improvements are amortized over the lesser of the lease term or the estimated useful life of the asset. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposal, the cost and related accumulated depreciation and amortization are removed from the Consolidated Balance Sheets and the resulting gain or loss is reflected in the Consolidated Statements of Operations. Gains or losses from disposition of property and equipment for the years ended December 31, 2023, 2022 and 2021 have been immaterial. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No depreciation is recorded for construction in progress until the relevant assets are completed and put into use. Construction in progress as of December 31, 2023 and 2022 represents leasehold improvements under installation. |
Capitalized Software Development Costs, Net | Capitalized Software Development Costs, Net |
Long-Lived Assets | Long-Lived Assets Long-lived assets, primarily capitalized software development costs, property and equipment and lease right-of-use assets, are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. When indications of impairment are present and the estimated undiscounted future cash flows from the use of the asset are less than the asset's carrying value, the related asset will be written down to fair value. Any impairment losses are included in the same financial statement caption as the related depreciation and amortization for the respective asset class on the Consolidated Statements of Operations. Impairment losses on long-lived assets were immaterial for each of the years ended December 31, 2023, 2022 and 2021. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal and other fees related to the IPO. Upon completion of the IPO, deferred offering costs of $8.0 million were reclassified to stockholders’ equity and recorded net against the IPO proceeds. The Company had no capitalized deferred offering costs as of December 31, 2023 and 2022. |
Revenue Recognition and Deferred Contract Acquisition Costs | Revenue Recognition The Company generates revenue from subscription fees paid by its customers to access and use the Company’s hosted software services, as well as standard customer support. Revenue is recognized when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to receive in exchange for those goods or services. Revenue is recognized net of applicable taxes imposed on the related transaction. The Company’s contracts are either month-to-month arrangements billed monthly in arrears based on a specified number of members or annual arrangements billed monthly in arrears based on a minimum number of monthly members, with typical payment terms being 30 days. Month-to-month contracts can be terminated by either party at any time without penalty. Annual subscription customers who wish to terminate their contracts before the end of the term are required to pay the remaining obligation in full plus any fees or penalties set forth in the agreement. The Company charges its customers subscription fees for access to its platform based on the number of monthly members and level of service. The contractual price per member is based on either negotiated fees or rates published on the Company’s website. The Company’s contracts with customers include two performance obligations: access to the hosted software service ("SaaS"), inclusive of all features available within the platform, and related customer support. The SaaS and the support are accounted for as a combined performance obligation because they have the same pattern of transfer over the same period and, therefore, are delivered concurrently. The Company satisfies its performance obligation over time each month as it provides the SaaS and support services to customers and, as such, generally recognizes revenue monthly based on the number of monthly members and contractual rate per member. Certain annual contracts provide the customer the option to increase the minimum number of members and extend the contract term on a prospective basis or to purchase members beyond the minimum contracted number of members at a higher rate for a particular month. These options are accounted for when the customer exercises the option as they do not represent a material right and are accounted for as a contract modification. A contract asset is the right to consideration for transferred goods or services and arises when the amount of revenue recognized exceeds amounts billed to a customer. The Company has no unsatisfied, or partially unsatisfied, performance obligations as of December 31, 2023 and 2022 as performance obligations are satisfied monthly. Deferred Contract Acquisition Costs Sales commissions that are incremental costs of the acquisition of contracts with customers are capitalized. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred when the costs are incremental and would not have occurred if the customer contract had not been obtained. The deferred commission amounts are recoverable through the future revenue streams from our customer contracts, all of which are non-cancelable. The Company did not pay any sales commissions during the years ended December 31, 2022 and 2021. Commissions paid upon the acquisition of an initial contract are amortized over an estimated period of benefit which has been determined to be three years based on historical analysis of average customer life, industry benchmarks, and useful life of our product offerings. Amortization is recognized on a straight-line basis and included within Sales and marketing expenses in the Consolidated Statements of Operations. The Company periodically reviews these deferred costs to determine whether events or changes in |
Cashback Rewards | Cashback Rewards In August 2021, the Company began offering a cashback rewards program to all customers based on volume of Expensify Card transactions and SaaS subscription tier. Cashback rewards are earned on a monthly basis and are applied against outstanding customer receivables or are paid out the following month. The Company considers cashback rewards as consideration payable to a customer and it is recorded as contra revenue within Revenue on the Consolidated Statements of Operations. Cashback rewards are impacted over time by customers meeting eligibility requirements in conjunction with the SaaS subscription tier of the customer and the timing of payments to customers. Cashback rewards liability was $0.9 million and $0.2 million as of December 31, 2023 and 2022, respectively, and is recorded within Accrued expenses and other liabilities on the Consolidated Balance Sheets. Cashback rewards offset against outstanding customer receivables were $0.2 million as of December 31, 2023 and are reflected as a reduction to Accounts receivable, net on the Consolidated Balance Sheets. Cashback rewards were not offset against outstanding customer receivables as of December 31, 2022. The cashback rewards cost was $7.0 million, $2.8 million and $1.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition and measurement provisions of GAAP. Those provisions require all stock-based awards granted to employees, including stock options and restricted stock units, to be measured based on fair value at the date of grant, with the resulting expense generally recognized in the Consolidated Statements of Operations over the period during which the employee is required to perform service in exchange for the award. The Company utilizes the Black-Scholes option pricing model to determine the estimated fair value of stock options. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option vesting term of four years. Forfeitures are recorded as they occur. The Black-Scholes option pricing model requires management to make a number of assumptions, including the fair value and expected volatility of the Company’s underlying common stock, expected life of the award, risk-free interest rate and expected dividend yield. Prior to the IPO, the fair value of common stock was determined by the Board of Directors based on a number of factors, including independent third-party valuations of our common stock, which considered estimates of our future performance and valuations of comparable companies. The Company also considered prices at which others have purchased our stock, and the likelihood and timing of achieving a liquidity event. When awards were granted or revalued between the dates of valuation reports, the Company considered the change in common stock fair value and the amount of time that lapsed between the two reports to determine whether to use the latest common stock valuation or an interpolation between two valuation dates for purposes of valuing stock-based awards. Subsequent to the completion of the IPO, the fair value of the Company’s underlying common stock is determined by the closing price, on the date of grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. The Company granted employees, consultants and directors (collectively, "Service Providers") restricted stock units ("RSUs") that settle in shares of Class A and LT50 common stock, effective immediately prior to the effectiveness of the IPO Registration Statement. All RSUs granted to Service Providers after the effectiveness of the IPO Registration Statement have a service condition only and are recognized on a straight-line basis over the requisite service period of the award, which is generally the RSU vesting term of eight years. The Company measures these RSUs granted based on the fair value of the underlying common stock on the grant date, which is determined by the closing price, on the date of the grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. All RSUs granted to Service Providers before the effectiveness of the IPO Registration Statement were considered RSUs with both a service and performance condition for accounting purposes. The Company measures these RSUs based on the fair value of the underlying common stock on the grant date, which was consistent with the factors described within the Black-Scholes option pricing model. Once the performance condition was satisfied for these RSUs on November 9, 2021, the Company recognized a cumulative one-time stock-based compensation expense for the service period satisfied prior to this date. All remaining stock-based compensation for these awards will be recognized over the remaining service period using the accelerated graded method. The service period of these awards is the RSU vesting term of eight years. The Company granted RSUs in November 2021 to its Non-Employee Directors, which is comprised solely of the Company's Audit Committee members, in connection with each member's initial appointment to the Board of Directors and consummation of the IPO. All RSUs granted to Non-Employee Directors settle in shares of Class A common stock and are recognized on a straight-line basis over the requisite service period of the award, which is generally the initial RSU grant vesting term of three years. Additionally, the Company will grant RSUs to Non-Employee Directors on an annual basis at each annual stockholders' meeting that will vest upon the earlier of the satisfaction of a service condition or a performance condition, which is considered a change in control event. These annual RSU grants will be recognized on a straight-line basis over the requisite service period of the award, which is one year. Furthermore, RSUs will be granted to Non-Employee Directors on a quarterly basis as a retainer for their services, which vest only upon the satisfaction of a service condition. These quarterly RSU grants will be recognized on a straight-line basis over the requisite service period of the award, which is three months. The Company measures all RSUs granted to Non-Employee Directors based on the fair value of the underlying common stock on the grant date, which is determined by the closing price, on the date of the grant, of its Class A common stock, which is traded on the Nasdaq Global Select Market. Forfeitures are recorded as they occur for all RSUs. Refer to Note 9 for further detail over stock-based compensation and the stock incentive plans of the Company. |
Employee and Employee-Related Expenses | Employee and Employee-Related Expenses Allocating employee and employee-related expenses, which consist of contractor costs, employee salary and wages, stock-based compensation and travel and other employee-related costs, to their appropriate financial statement line items on the Consolidated Statements of Operations, requires the Company to make estimates and judgments as a result of a generalist model and organizational structure. The Company bases the estimates for allocating employee and employee related expenses on internal productivity and team management tools. Management reviews the estimates each reporting period to evaluate the amounts allocated to Cost of revenue, net, Research and development, General and administrative, and Sales and marketing on the Consolidated Statements of Operations. |
Cost of Revenue, Net | Cost of Revenue, Net |
Research and Development | Research and Development Research and development expenses consist primarily of personnel-related expenses, including stock-based compensation, and external contributor expenses incurred in the planning and preliminary project stage and post-implementation stage of new products or enhancing existing products or services. We capitalize certain software development costs that are attributable to developing or adding significant functionality to our internal-use software during the application development stage of the projects. All research and development expenses, excluding capitalized software development costs, are expensed as incurred. |
General and Administrative | General and Administrative General and administrative expenses primarily consist of personnel-related expenses, including stock-based compensation, for any employee time allocated to administrative functions, including finance and accounting, legal and compliance, and human resources. In addition to personnel-related expenses, general and administrative expenses consist of rent, utilities, depreciation on property and equipment, amortization of operating lease right-of-use assets and external professional services, including finance and accounting, audit, tax, legal and compliance, human resources and information technology. General and administrative expenses are expensed as incurred. |
Sales and Marketing | Sales and Marketing Sales and marketing primarily consist of personnel-related expenses, including stock-based compensation, advertising expenses, depreciation on property and equipment, outsourcing costs for sales and product demos, branding and public relations expenses, referral fees for strategic partners and other benefits that the Company provides to its referral and affiliate partners. I n general, the Company expenses the costs of sales and marketing, including promotional expenses, as incurred. For media advertising arrangements, the Company expenses the costs related to producing advertisements as incurred, and the costs related to communicating the advertisement when the advertisement first takes place or is released. Advertising costs were $10.4 million, $30.9 million, and $15.6 million for th |
Interest and Other Expenses, net | Interest and Other Expenses, net Interest and other expenses, net, primarily consist of interest paid under our credit facilities with Canadian Imperial Bank of Commerce ("CIBC"). It also includes the results of operations of our Fifth & Harvey, LLC subsidiary, realized gains and losses on foreign currency transactions and foreign currency remeasurement |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. and several foreign jurisdictions. The Company records a (provision for) benefit from income taxes utilizing the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities, as well as net operating losses ("NOL") and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts more likely than not expected to be realized. The Company accounts for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. The Company classifies any liabilities for unrecognized tax benefits as current to the extent that the Company anticipates payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. The Company is subject to the global intangible low-taxed income ("GILTI") provisions of the Tax Cuts and Jobs Act ("TCJA") due to its foreign operations. The Company's accounting policy with respect to GILTI is to account for it as a period cost. The Company's provision for income taxes does not include provisions for foreign withholding taxes associated with the repatriation of undistributed earnings of certain foreign subsidiaries that the Company intends to reinvest indefinitely in its foreign subsidiaries. |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders The Company computes net loss per share attributable to common stockholders using the two-class method required for participating securities. All series of the Company's previously outstanding convertible preferred stock were participating securities as the holders of such stock were entitled to receive stated noncumulative dividends when and if declared and then they could participate on a pari passu basis in the event that a dividend was paid on common stock. The holders of previously outstanding convertible preferred stock did not have a contractual obligation to share in the Company’s losses. The undistributed earnings were allocated between common stock and participating securities as if all earnings had been distributed during the period presented. Basic net loss per share attributable to common stockholders is computed by dividing net loss for the period by the weighted-average number of outstanding shares of common stock during the period, less weighted-average shares subject to repurchase. Diluted net loss per share attributable to common stockholders is computed by dividing net loss for the period by the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period using the more dilutive of the treasury stock method or if-converted method, as applicable. The dilutive effect of previously outstanding participating securities is calculated using the more dilutive of the treasury method or the two-class method. For periods in which the Company reports net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, because potentially dilutive common shares are anti-dilutive. |
Share Repurchases | Share Repurchases |
Segment Reporting | Segment Reporting |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Responses to the SEC's Disclosure Update and Simplification Initiative. The amendments clarify or improve disclosure and presentation requirements on various disclosure areas, including the statement of cash flows, earnings per share, debt, and equity. The amendments will align the requirements in the FASB ASC with the SEC's regulations. The amendments in this ASU will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will not be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. The Company is currently evaluating the impact of this update on its consolidated financial statement disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures , which provides improvement primarily through enhanced disclosures about significant segment expenses. The ASU is effective for annual periods beginning after December 15, 2023 and quarterly periods beginning after December 15, 2024. The ASU allows for adoption on a retrospective basis for all prior periods presented in the financial statements. The Company is currently evaluating the effect of this update on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. The ASU is effective for annual periods beginning after December 15, 2024 and allows for adoption on a prospective basis, with a retrospective option. The Company is currently evaluating the effect of this update on its consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Change in Deferred Contract Acquisition Costs | The following table presents the change in deferred contract acquisition costs (in thousands): 2023 Balance as of January 1 $ — Added during the year 386 Amortized during the year (48) Balance as of December 31 $ 338 |
Revenue from geographic areas | The table below provides the Company’s total revenue by geographic region based on the currency of the subscription (in thousands). No other individual country outside of the United States accounted for more than 10% of total revenue. Year ended December 31, 2023 2022 2021 Revenue by Customers' Geographic Locations United States $ 137,367 $ 154,785 $ 127,652 All other locations 13,320 14,710 15,183 Total revenue $ 150,687 $ 169,495 $ 142,835 |
Schedule of Stock-based Compensation Expense | Employee stock option exercise cash bonus is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2021 Cost of revenue, net $ 13,708 Research and development 8,550 General and administrative 21,174 Sales and marketing 4,984 Total $ 48,416 The following table summarizes the stock-based compensation expense recognized for options granted under the 2009 Stock Plan, options and RSUs granted under the 2019 Stock Plan, RSUs granted under the 2021 Plan and matching shares issued under the Matching Plan (in thousands): Year ended December 31, 2023 2022 2021 Stock options $ 3,409 $ 3,888 $ 3,425 Matching shares 5,260 67 — Restricted stock units 35,669 50,134 11,149 Total stock-based compensation $ 44,338 $ 54,089 $ 14,574 Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2023 2022 2021 Cost of revenue, net $ 13,868 $ 18,403 $ 4,115 Research and development 10,870 7,875 1,617 General and administrative 9,842 17,850 7,356 Sales and marketing 6,632 8,204 1,486 Total stock-based compensation expense $ 41,212 $ 52,332 $ 14,574 |
CAPITALIZED SOFTWARE, NET (Tabl
CAPITALIZED SOFTWARE, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
Schedule of capitalized software, net | Capitalized software, net consisted of the following (in thousands): As of December 31, 2023 2022 Capitalized software development costs $ 22,683 $ 14,052 Less: accumulated amortization (10,189) (7,171) Capitalized software, net $ 12,494 $ 6,881 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property And Equipment | Property and equipment, net consisted of the following (in thousands): As of December 31, 2023 2022 Computers and equipment $ 170 $ 178 Furniture and fixtures 1,930 1,698 Leasehold improvements 7,937 6,948 Commercial building 6,493 6,493 Land 4,151 4,151 Construction in progress 2,570 2,551 Total property and equipment 23,251 22,019 Less: accumulated depreciation (8,879) (7,527) Property and equipment, net $ 14,372 $ 14,492 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of Lease Cost | Year ended December 31, 2023 2022 2021 Finance lease cost: Amortization of ROU assets $ 506 $ 790 $ 790 Interest on lease liabilities 14 22 42 Total finance lease cost 520 812 832 Operating lease cost 981 704 821 Short-term lease cost 379 320 128 Total lease cost $ 1,880 $ 1,836 $ 1,781 Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (564) $ (790) $ (880) Operating cash flows from finance leases $ (14) $ (22) $ (42) Financing cash flows from finance leases $ (513) $ (793) $ (774) ROU assets obtained in exchange for finance lease liabilities $ 409 $ — $ — ROU assets obtained in exchange for operating lease liabilities $ 6,402 $ — $ — |
Summary of Supplemental Balance Sheet Information | Other information related to leases was as follows (in thousands, except as noted within): As of December 31, 2023 2022 Finance lease ROU asset (included within Lease right-of-use assets) $ 364 $ 461 Operating lease ROU asset (included within Lease right-of-use assets) $ 6,071 $ 284 Weighted-average remaining lease term (in years): Finance leases 2.67 0.58 Operating leases 9.18 0.42 Weighted-average discount rate: Finance leases 8.10 % 2.50 % Operating leases 8.30 % 5.30 % |
Summary of Operating Lease Maturity | Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Finance leases Operating leases For the year ending: 2024 $ 153 $ 838 2025 153 1,079 2026 102 1,018 2027 — 1,033 2028 — 1,063 Thereafter — 4,499 Total future lease payments 408 9,530 Less: imputed interest (40) (2,999) Less: lease liabilities, current (129) (303) Lease liabilities, non-current $ 239 $ 6,228 |
Summary of Finance Lease Maturity | Maturities of lease liabilities as of December 31, 2023 were as follows (in thousands): Finance leases Operating leases For the year ending: 2024 $ 153 $ 838 2025 153 1,079 2026 102 1,018 2027 — 1,033 2028 — 1,063 Thereafter — 4,499 Total future lease payments 408 9,530 Less: imputed interest (40) (2,999) Less: lease liabilities, current (129) (303) Lease liabilities, non-current $ 239 $ 6,228 |
SIGNIFICANT BALANCE SHEET COM_2
SIGNIFICANT BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Other Current Assets | Other Current Assets Other current assets consisted of the following (in thousands): As of December 31, 2023 2022 Expensify Card posted collateral for funds held for customers $ 16,561 $ 11,509 Expensify.org restricted cash 5,881 5,518 Cash in transit for funds held for customers 5,107 2,361 Income tax receivable 2,993 2,471 Deferred contract acquisition costs 129 — Expensify Payments LLC restricted cash 113 102 Matching Plan escrow and other restricted cash 80 52 Other 114 204 Other current assets $ 30,978 $ 22,217 |
Schedule of Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other liabilities consisted of the following (in thousands): As of December 31, 2023 2022 Sales, payroll and other taxes payable $ 3,389 $ 2,721 Partner payouts and advertising fees 1,486 669 Professional fees 1,311 1,473 Restricted common stock liability for early stock option exercises 562 1,283 Interest payable 359 1,318 Cashback rewards 915 223 Matching plan payroll liability 198 195 Accrued expense reports 159 291 Commissions payable 140 — Hosting and license fees 134 75 Credit card processing fees 76 22 Other 661 800 Accrued expenses and other liabilities $ 9,390 $ 9,070 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Principal Payments on all Long-term Debt | Future aggregate annual principal payments on long-term debt as of December 31, 2023 is expected to be as follows (in thousands): For the years ending: 2024 $ 7,671 2025 — 2026 — 2027 — 2028 — Thereafter — Total principal payments 7,671 Less: unamortized original issue discount and debt issuance costs (16) Less: current portion, net of unamortized original issue discount and debt issuance costs (7,655) Long-term debt, net of unamortized original issue discount and debt issuance costs $ — |
CONVERTIBLE PREFERRED STOCK A_2
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule Of Convertible Preferred Stock | As of December 31, 2020, convertible preferred stock consisted of the following: (in thousands, except share and Shares authorized Shares issued and outstanding Original issuance price per share Liquidation amount Carrying value Series A 1,090,868 1,090,868 $ 0.91670 $ 1,000 $ 1,000 Series B 1,401,399 1,401,399 $ 2.67903 3,754 22,827 Series B-1 644,541 644,541 $ 5.54619 3,575 4,108 Series C 1,066,331 1,066,331 $ 15.56770 16,600 17,170 Total 4,203,139 4,203,139 $ 24,929 $ 45,105 |
Schedule of Warrants Issued And Outstanding | The following table discloses information regarding common stock warrants issued and outstanding at December 31, 2020: Date issued Number of warrant shares Fair value on issuance date Exercisable through September 2013 150,000 $ 10 September 2023 October 2013 150,000 10 October 2023 December 2016 130,080 69 December 2026 Total 430,080 $ 89 |
STOCK INCENTIVE PLANS (Tables)
STOCK INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Fair Value Assumptions for Stock Options | The fair value of awards granted as a result of this Company match within the Matching Plan was estimated using the Black-Scholes option pricing model with the following weighted average assumptions: Year ended December 31, 2023 2022 Fair value of common stock per share $ 3.94 $ 12.49 Expected dividend yield (1) — % — % Risk-free interest rate (2) 5.4 % 3.6 % Expected volatility (3) 97.9 % 68.7 % Expected life (in years) (4) 0.25 0.25 (1) The Company has no history or expectation of paying cash dividends on its common stock. (2) The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. (3) The Company estimates volatility of its common stock at the date of the grant based on the expected weighted-average volatility of its Class A common stock. (4) The expected life of awards granted as a Company match within the Matching Plan represents the duration of each offering period under the terms of the Matching Plan. Year ended December 31, 2021 Fair value of common stock per share $ 12.16 Exercise price per share $ 8.90 Expected dividend yield (1) — % Risk-free interest rate (2) 1.1 % Expected volatility (3) 51.5 % Expected life (in years) (4) 5.98 (1) The Company has no history or expectation of paying cash dividends on its common stock. (2) The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of the awards in effect at the time of grant. (3) The Company estimates the volatility of its common stock at the date of grant based on the expected weighted-average volatility for a group of publicly traded companies in a similar industry or with similar service offerings, with a term of one year or greater. There have been no grants of stock options after the completion of the IPO. (4) The expected life of stock options granted under the option plans is determined using the simplified method, which deems the expected life to be the average of the time-to-vesting and the contractual life of the stock-based awards. The expected life represents the period of time that options granted are expected to be outstanding. |
Schedule of RSU Rollforward | During the year ended December 31, 2023, RSU activity was as follows: Class A Common Stock LT50 Common Stock Weighted average grant date fair value per share Outstanding at December 31, 2022 3,379,657 3,304,643 $ 33.88 RSUs granted 55,731 — $ 8.17 RSUs vested (501,846) (467,042) $ 32.80 RSUs cancelled/forfeited/expired (191,269) (191,269) $ 40.92 Outstanding at December 31, 2023 2,742,273 2,646,332 $ 32.59 |
Schedule of Stock Option Roll-forward | A summary of the Company's stock option activity was as follows: Shares Weighted average exercise price per share Weighted average Outstanding at December 31, 2022 6,301,650 $ 1.67 5.20 Options granted — $ — Options exercised (288,465) $ 1.08 Options cancelled/forfeited/expired (110,594) $ 2.79 Outstanding at December 31, 2023 5,902,591 $ 1.68 4.03 Exercisable at December 31, 2023 5,821,461 $ 1.65 4.00 |
Schedule of Stock-based Compensation Expense | Employee stock option exercise cash bonus is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2021 Cost of revenue, net $ 13,708 Research and development 8,550 General and administrative 21,174 Sales and marketing 4,984 Total $ 48,416 The following table summarizes the stock-based compensation expense recognized for options granted under the 2009 Stock Plan, options and RSUs granted under the 2019 Stock Plan, RSUs granted under the 2021 Plan and matching shares issued under the Matching Plan (in thousands): Year ended December 31, 2023 2022 2021 Stock options $ 3,409 $ 3,888 $ 3,425 Matching shares 5,260 67 — Restricted stock units 35,669 50,134 11,149 Total stock-based compensation $ 44,338 $ 54,089 $ 14,574 Stock-based compensation expense is allocated based on the cost center to which the award holder spent time during the reported periods. Stock-based compensation is included in the following components of expenses on the accompanying Consolidated Statements of Operations (in thousands): Year ended December 31, 2023 2022 2021 Cost of revenue, net $ 13,868 $ 18,403 $ 4,115 Research and development 10,870 7,875 1,617 General and administrative 9,842 17,850 7,356 Sales and marketing 6,632 8,204 1,486 Total stock-based compensation expense $ 41,212 $ 52,332 $ 14,574 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of the Company's loss before taxes consisted of the following (in thousands): Year ended December 31, 2023 2022 2021 Domestic $ (39,680) $ (21,614) $ (14,562) Foreign 1,204 971 830 Total loss before taxes $ (38,476) $ (20,643) $ (13,732) |
Components of Income Tax (Provision) Benefit | The components of the Company’s (provision for) benefit from income taxes are as follows (in thousands): Year ended December 31, 2023 2022 2021 Current: Federal $ (624) $ (4,052) $ (99) State (254) (659) (239) Foreign (2,214) (1,626) (356) (3,092) (6,337) (694) Deferred: Federal — — 912 State — — (415) Foreign 112 (29) 371 112 (29) 868 Total (provision for) benefit from income taxes $ (2,980) $ (6,366) $ 174 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. statutory federal income tax rate to the Company's effective income tax rate is as follows: Year ended December 31, 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % State tax 0.9 (2.8) 4.7 Research and development credit 1.4 1.2 5.1 GILTI (2.2) (4.2) — Foreign tax credit 1.4 4.2 — Rate differentials for controlled foreign corporations and charitable organizations (1.3) 1.9 (1.9) Permanent items and others (0.1) 0.7 1.0 Stock-based compensation (16.1) (25.3) 16.5 Change in valuation allowance (9.7) (13.4) (18.1) 162(m) limitation (3.0) (14.1) (27.0) Effective income tax rate (7.7) % (30.8) % 1.3 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities are as follows (in thousands): As December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 88 $ — Tax credit carryforwards 413 251 Accruals and reserves 785 254 Stock-based compensation 2,639 2,232 Interest expense limitation 118 — Lease liabilities 1,742 204 Charitable contributions 101 604 Property and equipment 654 689 Capitalized research and development 7,677 3,216 Total deferred tax assets 14,217 7,450 Less: valuation allowance (8,971) (5,241) Deferred tax assets net of valuation allowance 5,246 2,209 Deferred tax liabilities: Capitalized software development costs (3,080) (1,675) Operating lease right-of-use assets (1,625) (190) Capitalized commissions (84) — Total deferred tax liabilities (4,789) (1,865) Deferred tax assets, net $ 457 $ 344 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the amount of unrecognized tax benefits is as follows (in thousands): Year ended December 31, 2023 2022 2021 Balance as of January 1 $ 1,812 $ 1,656 $ 1,329 Additions based on tax positions related to current year 247 126 336 Additions based on tax positions of prior year (9) 30 (9) Balance as of December 31 $ 2,050 $ 1,812 $ 1,656 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year ended December 31, 2023 2022 2021 Numerator Net loss, basic and diluted $ (41,456) $ (27,009) $ (13,558) Denominator Weighted average shares of common stock used to compute net loss per share, basic and diluted 82,493,226 80,786,725 38,039,222 Net loss per share, basic and diluted $ (0.50) $ (0.33) $ (0.36) |
Schedule of Anti-dilutive Securities | The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive: Year ended December 31, 2023 2022 2021 Warrants — — 366,982 Weighted-average stock options 4,334,383 5,406,383 9,419,506 Matching shares 8,181 17,240 — Convertible preferred stock — — 36,619,129 Total 4,342,564 5,423,623 46,405,617 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION - Narratives (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Nov. 15, 2021 USD ($) $ / shares shares | Oct. 27, 2021 | Dec. 31, 2023 vote $ / shares shares | Dec. 31, 2022 $ / shares shares | Nov. 14, 2021 vote class shares | |
Related Party Transaction | |||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||
Stock split ratio, common stock | 10 | ||||
Common Class A | |||||
Related Party Transaction | |||||
Classes of stock (class) | class | 3 | ||||
Share conversion ratio | 1 | ||||
Shares converted (in shares) | 13,556,800 | ||||
Convertible preferred stock | |||||
Related Party Transaction | |||||
Share conversion ratio | 10 | ||||
Shares converted (in shares) | 42,031,390 | ||||
Warrants | |||||
Related Party Transaction | |||||
Shares converted (in shares) | 430,080 | ||||
Common Class A | |||||
Related Party Transaction | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Shares converted (in shares) | 1 | ||||
Common stock, shares issued (shares) | 70,569,815 | 68,238,245 | |||
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||
Common stock, voting right per share | vote | 1 | 1 | |||
Common Class A | IPO | |||||
Related Party Transaction | |||||
Shares issued (in shares) | 11,190,392 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Exercise price (in dollars per share) | $ / shares | $ 27 | ||||
Proceeds from the sales of stock | $ | $ 57.5 | ||||
Payments for underwriting discounts and commission | $ | 4.9 | ||||
Payments of deferred offering costs | $ | $ 8 | ||||
Common Class A | Public Stock Offering - New Shares | |||||
Related Party Transaction | |||||
Shares issued (in shares) | 2,608,696 | ||||
Common Class A | Public Stock Offering - Shares From Existing Shareholders | |||||
Related Party Transaction | |||||
Shares issued (in shares) | 8,581,696 | ||||
Common Class A | Public Stock Offering - Stock Options | |||||
Related Party Transaction | |||||
Shares issued (in shares) | 1,459,616 | ||||
Common Stock, LT10 | |||||
Related Party Transaction | |||||
Common stock, shares issued (shares) | 7,332,640 | 7,333,619 | 7,336,191 | ||
Common stock, shares authorized (in shares) | 24,994,989 | 24,997,561 | 25,000,000 | ||
Common stock, voting right per share | vote | 10 | 10 | |||
Common Stock, LT50 | |||||
Related Party Transaction | |||||
Common stock, shares issued (shares) | 6,224,160 | 7,321,894 | 6,854,931 | ||
Common stock, shares authorized (in shares) | 24,998,941 | 24,999,020 | 25,000,000 | ||
Common stock, voting right per share | vote | 50 | 50 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narratives (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 28, 2022 | Nov. 30, 2021 | Dec. 31, 2023 USD ($) contract segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 15, 2021 USD ($) | Jul. 31, 2021 | |
Significant Accounting Policies | |||||||
Credit losses | $ 2,200,000 | $ 1,500,000 | |||||
Net of recoveries | 300,000 | 500,000 | |||||
Capitalized software development costs | 9,400,000 | 3,400,000 | $ 4,900,000 | ||||
Deferred offering costs | $ 0 | 0 | $ 8,000,000 | ||||
Deferred contract acquisition costs, term (in years) | 3 years | ||||||
Number of performance obligations | contract | 2 | ||||||
Cashback rewards | $ 915,000 | 223,000 | |||||
Cashback rewards offset against outstanding customer receivables | 200,000 | ||||||
Cashback rewards from contract revenue | $ 7,000,000 | 2,800,000 | 1,100,000 | ||||
Vesting period (in years) | 4 years | ||||||
Share based compensation vesting period (in years) | 4 years | ||||||
Bonus payments as a percentage of stock options issued (percent) | 45% | ||||||
Bonus expense | $ 0 | 0 | 48,416,000 | ||||
Consideration revenue from vendors | 10,100,000 | 6,200,000 | 2,900,000 | ||||
Advertising expense | $ 10,400,000 | $ 30,900,000 | 15,600,000 | ||||
Number of reportable segments | segment | 1 | ||||||
Executive Officer | |||||||
Significant Accounting Policies | |||||||
Bonus expense | 7,900,000 | ||||||
Restricted stock units | |||||||
Significant Accounting Policies | |||||||
Vesting period (in years) | 8 years | 8 years | |||||
Share based compensation vesting period (in years) | 8 years | 8 years | |||||
Service period (in years) | 1 year | 1 year | |||||
Restricted stock units | Share-based Payment Arrangement, Nonemployee | |||||||
Significant Accounting Policies | |||||||
Service period (in years) | 3 months | ||||||
Restricted stock units | 2021 Incentive Plan | |||||||
Significant Accounting Policies | |||||||
Vesting period (in years) | 3 years | ||||||
Share based compensation vesting period (in years) | 3 years | ||||||
Computers and equipment | |||||||
Significant Accounting Policies | |||||||
Property, plant and equipment useful life (years) | 3 years | ||||||
Furniture and fixtures | |||||||
Significant Accounting Policies | |||||||
Property, plant and equipment useful life (years) | 5 years | ||||||
Buildings | |||||||
Significant Accounting Policies | |||||||
Property, plant and equipment useful life (years) | 30 years | ||||||
Capitalized software | |||||||
Significant Accounting Policies | |||||||
Property, plant and equipment useful life (years) | 3 years | ||||||
Software Development | |||||||
Significant Accounting Policies | |||||||
Bonus expense | $ 1,500,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Contract Acquisition Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Change in Deferred Contract Acquisition Costs | |
Balance as of January 1 | $ 0 |
Added during the year | 386 |
Amortized during the year | (48) |
Balance as of December 31 | $ 338 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Components of Bonus Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option Exercise Cash Bonus | |||
Bonus expense | $ 0 | $ 0 | $ 48,416,000 |
Cost of revenue, net | |||
Employee Stock Option Exercise Cash Bonus | |||
Bonus expense | 13,708,000 | ||
Research and development | |||
Employee Stock Option Exercise Cash Bonus | |||
Bonus expense | 8,550,000 | ||
General and administrative | |||
Employee Stock Option Exercise Cash Bonus | |||
Bonus expense | 21,174,000 | ||
Sales and marketing | |||
Employee Stock Option Exercise Cash Bonus | |||
Bonus expense | $ 4,984,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Total revenue by geographic area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | |||
Revenue | $ 150,687 | $ 169,495 | $ 142,835 |
United States | |||
Disaggregation of Revenue | |||
Revenue | 137,367 | 154,785 | 127,652 |
All other locations | |||
Disaggregation of Revenue | |||
Revenue | $ 13,320 | $ 14,710 | $ 15,183 |
CAPITALIZED SOFTWARE, NET - Cap
CAPITALIZED SOFTWARE, NET - Capitalized Software, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Capitalized Computer Software, Net | ||
Capitalized software development costs | $ 22,683 | $ 14,052 |
Less: accumulated amortization | (10,189) | (7,171) |
Capitalized software, net | $ 12,494 | $ 6,881 |
CAPITALIZED SOFTWARE, NET - Nar
CAPITALIZED SOFTWARE, NET - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Research and Development [Abstract] | |||
Amortization expense for capitalized software | $ 3.3 | $ 2.6 | $ 2.3 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of Property And Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net | ||
Total property and equipment | $ 23,251 | $ 22,019 |
Less: accumulated depreciation | (8,879) | (7,527) |
Property and equipment, net | 14,372 | 14,492 |
Computers and equipment | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | 170 | 178 |
Furniture and fixtures | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | 1,930 | 1,698 |
Leasehold improvements | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | 7,937 | 6,948 |
Commercial building | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | 6,493 | 6,493 |
Land | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | 4,151 | 4,151 |
Construction in progress | ||
Property, Plant and Equipment, Net | ||
Total property and equipment | $ 2,570 | $ 2,551 |
PROPERTY AND EQUIPMENT, NET -Na
PROPERTY AND EQUIPMENT, NET -Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 1.4 | $ 2 | $ 2.1 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 lease | |
Leases [Abstract] | |
Number of operating lease contracts (lease) | 4 |
LEASES - Summary of Lease Cost
LEASES - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost: | |||
Amortization of ROU assets | $ 506 | $ 790 | $ 790 |
Interest on lease liabilities | 14 | 22 | 42 |
Total finance lease cost | 520 | 812 | 832 |
Operating lease cost | 981 | 704 | 821 |
Short-term lease cost | 379 | 320 | 128 |
Total lease cost | $ 1,880 | $ 1,836 | $ 1,781 |
LEASES - Summary of Related to
LEASES - Summary of Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Finance lease ROU asset (included within Lease right-of-use assets) | $ 364 | $ 461 |
Operating lease ROU asset (included within Lease right-of-use assets) | $ 6,071 | $ 284 |
Weighted-average remaining lease term (in years): | ||
Finance leases | 2 years 8 months 1 day | 6 months 29 days |
Operating leases | 9 years 2 months 4 days | 5 months 1 day |
Weighted-average discount rate: | ||
Finance leases | 8.10% | 2.50% |
Operating leases | 8.30% | 5.30% |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Lease right-of-use assets | Lease right-of-use assets |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Lease right-of-use assets | Lease right-of-use assets |
LEASES - Cashflow Disclosures (
LEASES - Cashflow Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ (564) | $ (790) | $ (880) |
Operating cash flows from finance leases | (14) | (22) | (42) |
Financing cash flows from finance leases | (513) | (793) | (774) |
ROU assets obtained in exchange for finance lease liabilities | 409 | 0 | 0 |
ROU assets obtained in exchange for operating lease liabilities | $ 6,402 | $ 0 | $ 0 |
LEASES - Lease Maturity Schedul
LEASES - Lease Maturity Schedule (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finance leases | |
2024 | $ 153 |
2025 | 153 |
2026 | 102 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total future lease payments | 408 |
Less: imputed interest | (40) |
Less: lease liabilities, current | (129) |
Lease liabilities, non-current | $ 239 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, non-current |
Operating leases | |
2024 | $ 838 |
2025 | 1,079 |
2026 | 1,018 |
2027 | 1,033 |
2028 | 1,063 |
Thereafter | 4,499 |
Total future lease payments | 9,530 |
Less: imputed interest | (2,999) |
Less: lease liabilities, current | (303) |
Lease liabilities, non-current | $ 6,228 |
Operating Lease, Liability, Current, Statement of Financial Position | Lease liabilities, current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | Lease liabilities, non-current |
SIGNIFICANT BALANCE SHEET COM_3
SIGNIFICANT BALANCE SHEET COMPONENTS - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Current Assets | ||
Expensify Card posted collateral for funds held for customers | $ 16,561 | $ 11,509 |
Cash in transit for funds held for customers | 5,107 | 2,361 |
Income tax receivable | 2,993 | 2,471 |
Deferred contract acquisition costs | 129 | 0 |
Matching Plan escrow and other restricted cash | 80 | 52 |
Other | 114 | 204 |
Other current assets | 30,978 | 22,217 |
Expensify Payment LLC | Related Party | ||
Other Current Assets | ||
Restricted cash | 113 | 102 |
Subsidiaries | Expensify.Org | ||
Other Current Assets | ||
Restricted cash | $ 5,881 | $ 5,518 |
SIGNIFICANT BALANCE SHEET COM_4
SIGNIFICANT BALANCE SHEET COMPONENTS - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Sales, payroll and other taxes payable | $ 3,389 | $ 2,721 |
Partner payouts and advertising fees | 1,486 | 669 |
Professional fees | 1,311 | 1,473 |
Restricted common stock liability for early stock option exercises | 562 | 1,283 |
Interest payable | 359 | 1,318 |
Cashback rewards | 915 | 223 |
Matching plan payroll liability | 198 | 195 |
Accrued expense reports | 159 | 291 |
Commissions payable | 140 | 0 |
Hosting and license fees | 134 | 75 |
Credit card processing fees | 76 | 22 |
Other | 661 | 800 |
Accrued expenses and other liabilities | $ 9,390 | $ 9,070 |
FINANCING ARRANGEMENTS - Amorti
FINANCING ARRANGEMENTS - Amortizing term mortgage (Details) - USD ($) | 1 Months Ended | ||
Aug. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Capitalization, Long-term Debt | |||
Long-term debt, net of original issue discount and debt issuance costs | $ 0 | $ 51,434,000 | |
Mortgages | |||
Schedule of Capitalization, Long-term Debt | |||
Loaned amount | $ 8,300,000 | ||
Debt instrument, term | 5 years | ||
Interest rate | 5% | ||
Long-term debt, net of original issue discount and debt issuance costs | $ 7,700,000 | $ 7,800,000 |
FINANCING ARRANGEMENTS - 2021 A
FINANCING ARRANGEMENTS - 2021 Amended Term Loan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Oct. 01, 2025 | Oct. 01, 2024 | Sep. 30, 2024 | Oct. 12, 2023 | Sep. 30, 2021 | Nov. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Capitalization, Long-term Debt | ||||||||||
Repayments of long term debt | $ 44,587,000 | $ 595,000 | $ 25,191,000 | |||||||
Long-term debt, net of original issue discount and debt issuance costs | 0 | 51,434,000 | ||||||||
Cash paid for interest | 5,936,000 | $ 3,912,000 | $ 3,082,000 | |||||||
Secured Debt | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Payments of debt issuance cost | $ 2,500,000 | |||||||||
2021 Amended Term Loan | Secured Debt | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | ||||||||
Repayments of long term debt | $ 36,000,000 | |||||||||
Effective interest rate (percent) | 9.75% | |||||||||
Long-term debt, net of original issue discount and debt issuance costs | $ 44,500,000 | |||||||||
Cash paid for interest | $ 100,000 | |||||||||
2021 Amended Term Loan | Secured Debt | Reference Rate | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Variable rate (percent) | 2.25% | |||||||||
2021 Amended Term Loan | Secured Debt | Forecast | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Periodic payment | $ 600,000 | $ 200,000 | $ 100,000 | |||||||
2021 Amended Term Loan | Line of Credit | Revolving Credit Facility | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Maximum borrowing capacity | $ 25,000,000 | 25,000,000 | $ 25,000,000 | |||||||
Repayments of long term debt | 23,500,000 | |||||||||
2021 Amended Term Loan | Line of Credit | Revolving Credit Facility | Reference Rate | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Variable rate (percent) | 1% | 1% | ||||||||
Initial Term Loan | Secured Debt | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Maximum borrowing capacity | 45,000,000 | $ 45,000,000 | ||||||||
Debt instrument, term | 60 years | |||||||||
Delayed Term Loan | Secured Debt | ||||||||||
Schedule of Capitalization, Long-term Debt | ||||||||||
Maximum borrowing capacity | $ 30,000,000 | $ 30,000,000 |
FINANCING ARRANGEMENTS - Monthl
FINANCING ARRANGEMENTS - Monthly revolving line of credit (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Feb. 21, 2024 | Oct. 12, 2023 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line of Credit Facility | |||||||
Borrowings under line of credit | $ 15,000,000 | $ 15,000,000 | |||||
Unamortized debt issuance costs | 16,000 | 300,000 | |||||
Interest expense | 5,200,000 | 4,500,000 | $ 3,100,000 | ||||
Outstanding borrowing | 7,671,000 | ||||||
Repayments of long term debt | 44,587,000 | 595,000 | $ 25,191,000 | ||||
Long-term debt, net of original issue discount and debt issuance costs | 0 | $ 51,434,000 | |||||
2021 Amended Term Loan | Secured Debt | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 75,000,000 | $ 75,000,000 | |||||
Effective interest rate (percent) | 9.75% | ||||||
Repayments of long term debt | $ 36,000,000 | ||||||
Long-term debt, net of original issue discount and debt issuance costs | $ 44,500,000 | ||||||
2021 Amended Term Loan | Secured Debt | Reference Rate | |||||||
Line of Credit Facility | |||||||
Variable rate (percent) | 2.25% | ||||||
Amended 2024 Term Loan | Secured Debt | Subsequent Event | |||||||
Line of Credit Facility | |||||||
Long-term debt, net of original issue discount and debt issuance costs | $ 15,000,000 | ||||||
Revolving Credit Facility | 2021 Amended Term Loan | Line of Credit | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 25,000,000 | 25,000,000 | 25,000,000 | ||||
Borrowings under line of credit | 15,000,000 | 15,000,000 | |||||
Remaining borrowing capacity | $ 10,000,000 | $ 10,000,000 | |||||
Repayments of long term debt | $ 23,500,000 | ||||||
Revolving Credit Facility | 2021 Amended Term Loan | Line of Credit | Reference Rate | |||||||
Line of Credit Facility | |||||||
Variable rate (percent) | 1% | 1% | |||||
Revolving Credit Facility | Secured Debt with CIBC | Line of Credit | |||||||
Line of Credit Facility | |||||||
Effective interest rate (percent) | 9.50% | 8.50% | |||||
Revolving Credit Facility | September 2024 Upon Maturity of Facility | Line of Credit | |||||||
Line of Credit Facility | |||||||
Outstanding borrowing | $ 15,000,000 | ||||||
Revolving Credit Facility | Amended 2024 Term Loan | Line of Credit | Subsequent Event | |||||||
Line of Credit Facility | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Revolving Credit Facility | Amended 2024 Term Loan | Line of Credit | Reference Rate | Subsequent Event | |||||||
Line of Credit Facility | |||||||
Variable rate (percent) | 1% |
FINANCING ARRANGEMENTS - Future
FINANCING ARRANGEMENTS - Future aggregate annual principal payments on all long-term debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Long-term Debt, Fiscal Year Maturity | ||
2024 | $ 7,671 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total principal payments | 7,671 | |
Less: unamortized original issue discount and debt issuance costs | (16) | $ (300) |
Less: current portion, net of unamortized original issue discount and debt issuance costs | (7,655) | (551) |
Long-term debt, net of unamortized original issue discount and debt issuance costs | $ 0 | $ 51,434 |
CONVERTIBLE PREFERRED STOCK A_3
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - Narratives (Details) | 12 Months Ended | ||||||
Nov. 15, 2021 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | May 10, 2022 USD ($) | Dec. 31, 2020 shares | Dec. 31, 2016 $ / shares shares | Dec. 31, 2013 $ / shares shares | |
Class of Stock | |||||||
Shares repurchased, value | $ | $ 25,000 | ||||||
Warrants issued (in shares) | 430,080 | 430,080 | 430,080 | ||||
2013 Warrants | |||||||
Class of Stock | |||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.07 | ||||||
Warrants and right term | 10 years | ||||||
2016 Warrants | |||||||
Class of Stock | |||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 0.53 | ||||||
Warrants and right term | 10 years | ||||||
Convertible preferred stock | |||||||
Class of Stock | |||||||
Shares converted (in shares) | 42,031,390 | ||||||
Share conversion ratio | 10 | ||||||
Class A common stock | |||||||
Class of Stock | |||||||
Shares converted (in shares) | 1 | ||||||
Shares issued on warrant conversion (in shares) | 428,067 | 0 | 0 | ||||
Class A common stock | 2022 Share Repurchase Program | |||||||
Class of Stock | |||||||
Stock repurchase program, authorized amount | $ | $ 50,000,000 | ||||||
Shares repurchased, value | $ | $ 3,000,000 | $ 6,000,000 |
CONVERTIBLE PREFERRED STOCK A_4
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - Schedule of Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands | Dec. 31, 2020 USD ($) $ / shares shares |
Class of Stock | |
Preferred stock, shares authorized (in shares) | 4,203,139 |
Preferred stock. shares issued (in shares) | 4,203,139 |
Preferred stock, shares outstanding (in shares) | 4,203,139 |
Liquidation amount | $ | $ 24,929 |
Carrying value | $ | $ 45,105 |
Series A | |
Class of Stock | |
Preferred stock, shares authorized (in shares) | 1,090,868 |
Preferred stock. shares issued (in shares) | 1,090,868 |
Preferred stock, shares outstanding (in shares) | 1,090,868 |
Original issuance price (in dollars per share) | $ / shares | $ 0.91670 |
Liquidation amount | $ | $ 1,000 |
Carrying value | $ | $ 1,000 |
Series B | |
Class of Stock | |
Preferred stock, shares authorized (in shares) | 1,401,399 |
Preferred stock. shares issued (in shares) | 1,401,399 |
Preferred stock, shares outstanding (in shares) | 1,401,399 |
Original issuance price (in dollars per share) | $ / shares | $ 2.67903 |
Liquidation amount | $ | $ 3,754 |
Carrying value | $ | $ 22,827 |
Series B-1 | |
Class of Stock | |
Preferred stock, shares authorized (in shares) | 644,541 |
Preferred stock. shares issued (in shares) | 644,541 |
Preferred stock, shares outstanding (in shares) | 644,541 |
Original issuance price (in dollars per share) | $ / shares | $ 5.54619 |
Liquidation amount | $ | $ 3,575 |
Carrying value | $ | $ 4,108 |
Series C | |
Class of Stock | |
Preferred stock, shares authorized (in shares) | 1,066,331 |
Preferred stock. shares issued (in shares) | 1,066,331 |
Preferred stock, shares outstanding (in shares) | 1,066,331 |
Original issuance price (in dollars per share) | $ / shares | $ 15.56770 |
Liquidation amount | $ | $ 16,600 |
Carrying value | $ | $ 17,170 |
CONVERTIBLE PREFERRED STOCK A_5
CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - Warrants Issued and Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2016 | Dec. 31, 2013 |
Class of Warrant or Right | |||
Warrants issued (in shares) | 430,080 | 430,080 | 430,080 |
Warrants outstanding (shares) | 430,080 | ||
Fair value of warrants outstanding | $ 89 | ||
September 2013 | |||
Class of Warrant or Right | |||
Warrants issued (in shares) | 150,000 | ||
Warrants outstanding (shares) | 150,000 | ||
Fair value of warrants outstanding | $ 10 | ||
October 2013 | |||
Class of Warrant or Right | |||
Warrants issued (in shares) | 150,000 | ||
Warrants outstanding (shares) | 150,000 | ||
Fair value of warrants outstanding | $ 10 | ||
December 2016 | |||
Class of Warrant or Right | |||
Warrants issued (in shares) | 130,080 | ||
Warrants outstanding (shares) | 130,080 | ||
Fair value of warrants outstanding | $ 69 |
STOCK INCENTIVE PLANS - 2009 an
STOCK INCENTIVE PLANS - 2009 and 2019 Stock Plans (Details) - shares | 1 Months Ended | ||||
Apr. 30, 2019 | Jan. 31, 2018 | Nov. 09, 2021 | Sep. 30, 2021 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 25,204,250 | ||||
The 2009 Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 17,030,280 | 16,495,150 | |||
Additional shares authorized (in shares) | 535,130 | ||||
The 2019 Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Additional shares authorized (in shares) | 8,173,970 | ||||
The 2019 Option Plan | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 16,856,770 | ||||
The 2019 Option Plan | Common Stock, LT50 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 16,856,770 | ||||
The 2019 Option Plan | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 8,679,380 | ||||
The 2019 Option Plan | Restricted stock units | Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 4,339,690 | ||||
The 2019 Option Plan | Restricted stock units | Common Stock, LT50 | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Shares authorized (in shares) | 4,339,690 |
STOCK INCENTIVE PLANS - 2021 In
STOCK INCENTIVE PLANS - 2021 Incentive Plan and Stock Purchase and Matching Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Nov. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options granted (in shares) | 0 | |||
Common stock | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares repurchased (in shares) | 0 | |||
2021 Incentive Plan | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares reserved for future issuance (in shares) | 22,282,735 | 11,676,932 | ||
2021 Incentive Plan | Common Class A | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Shares reserved for future issuance (in shares) | 87,576,990 | |||
Annual increase in shares reserved for future issuance (as a percent) | 6% | |||
Stock Purchase and Matching Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Employer share match rate (as a percent) | 1.50% | |||
Stock Purchase and Matching Plan | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock issued during period, shares, employee stock ownership plan ( in shares ) | 1,010,412 | 272,196 | ||
Original issuance price (in dollars per share) | $ 4.21 | $ 13.49 | ||
Proceeds from issuance of common stock | $ 4.3 | $ 3.7 | ||
Matching Plan 1/20th Share Issuance | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options granted (in shares) | 147,109 | 22,201 | ||
Shares withheld from common stock issued to pay employee payroll taxes (in shares ) | 15,871 | |||
Matching Plan - Discretionary Contributions | Common Class A | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Options granted (in shares) | 1,050,969 | |||
Shares withheld from common stock issued to pay employee payroll taxes (in shares ) | 64,411 |
STOCK INCENTIVE PLANS - Fair Va
STOCK INCENTIVE PLANS - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | |||
Fair value of common stock per share (in dollars per share) | $ 3.94 | $ 12.49 | $ 12.16 |
Exercise price per share (in dollars per share) | $ 8.90 | ||
Expected dividend yield (as a percent) | 0% | 0% | 0% |
Risk-free interest rate (as a percent) | 5.40% | 3.60% | 1.10% |
Expected volatility (as a percent) | 97.90% | 68.70% | 51.50% |
Expected life (in years) | 3 months | 3 months | 5 years 11 months 23 days |
STOCK INCENTIVE PLANS - RSU Nar
STOCK INCENTIVE PLANS - RSU Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Mar. 28, 2022 | Nov. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 09, 2021 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Shares authorized (in shares) | 25,204,250 | ||||||
Vesting period (in years) | 4 years | ||||||
Granted (in dollars per share) | $ 8.17 | ||||||
Common Class A | The 2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Shares authorized (in shares) | 16,856,770 | ||||||
Common Stock, LT50 | The 2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Shares authorized (in shares) | 16,856,770 | ||||||
Restricted stock units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 43,060 | 5,666,260 | |||||
Vesting period (in years) | 8 years | 8 years | |||||
Granted (in dollars per share) | $ 18.93 | ||||||
Share-based compensation expense not yet recognized | $ 153.4 | $ 204.2 | |||||
Share-based compensation not yet recognized, recognition period (in years) | 5 years 4 months 13 days | 6 years 2 months 23 days | |||||
Restricted stock units | The 2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 2,980,260 | ||||||
Shares authorized (in shares) | 8,679,380 | ||||||
Restricted stock units | 2021 Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 27,780 | ||||||
Vesting period (in years) | 3 years | ||||||
Restricted stock units | Common Class A | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 21,530 | 2,833,130 | 55,731 | ||||
Vested (in shares) | 501,846 | ||||||
Restricted stock units | Common Class A | The 2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 1,490,130 | ||||||
Shares authorized (in shares) | 4,339,690 | ||||||
Restricted stock units | Common Class A | 2021 Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 55,731 | ||||||
Vested (in shares) | 29,421 | ||||||
Restricted stock units | Common Stock, LT50 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Granted (in shares) | 21,530 | 2,833,130 | 0 | ||||
Vested (in shares) | 467,042 | ||||||
Restricted stock units | Common Stock, LT50 | The 2019 Option Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||||
Shares authorized (in shares) | 4,339,690 |
STOCK INCENTIVE PLANS - RSU Rol
STOCK INCENTIVE PLANS - RSU Rollforward (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Mar. 28, 2022 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Weighted average grant date fair value per share | ||||
Beginning balance (in dollars per share) | $ 33.88 | |||
Granted (in dollars per share) | 8.17 | |||
Vested (in dollars per share) | 32.80 | |||
Cancelled/forfeited/expired (in dollars per share) | 40.92 | |||
Ending balance (in dollars per share) | $ 32.59 | $ 33.88 | ||
Restricted stock units | ||||
RSU Rollforward | ||||
Granted (in shares) | 43,060 | 5,666,260 | ||
Weighted average grant date fair value per share | ||||
Granted (in dollars per share) | $ 18.93 | |||
Share-based compensation expense not yet recognized | $ 153.4 | $ 204.2 | ||
Share-based compensation not yet recognized, recognition period (in years) | 5 years 4 months 13 days | 6 years 2 months 23 days | ||
Restricted stock units | Class A Common Stock | ||||
RSU Rollforward | ||||
Beginning balance (in shares) | 3,379,657 | |||
Granted (in shares) | 21,530 | 2,833,130 | 55,731 | |
Vested (in shares) | (501,846) | |||
Cancelled/forfeited/expired (in shares) | (191,269) | |||
Ending balance (in shares) | 2,742,273 | 3,379,657 | ||
Restricted stock units | LT50 Common Stock | ||||
RSU Rollforward | ||||
Beginning balance (in shares) | 3,304,643 | |||
Granted (in shares) | 21,530 | 2,833,130 | 0 | |
Vested (in shares) | (467,042) | |||
Cancelled/forfeited/expired (in shares) | (191,269) | |||
Ending balance (in shares) | 2,646,332 | 3,304,643 |
STOCK INCENTIVE PLANS - Stock O
STOCK INCENTIVE PLANS - Stock Option Narratives (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 4 years | ||
Intrinsic value of options exercised | $ 1,300,000 | $ 10,900,000 | $ 80,700,000 |
Intrinsic value of options outstanding | 8,900,000 | 46,000,000 | $ 302,800,000 |
Weighted average grant date fair value of options granted (in dollars per share) | $ 6.87 | ||
Proceeds from issuance of common stock on exercise of stock options | 300,000 | 800,000 | $ 3,500,000 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Grant date fair value of options vested | 3,400,000 | 3,900,000 | 3,400,000 |
Share-based compensation expense not yet recognized | $ 4,100,000 | $ 8,100,000 | $ 13,200,000 |
Share-based compensation not yet recognized, recognition period (in years) | 9 months | 1 year 2 months 15 days | 1 year 8 months 12 days |
Stock options | Common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares repurchased (in shares) | 0 | ||
Stock options | The 2019 Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 4 years | ||
Stock options | The 2009 Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Vesting period (in years) | 4 years | ||
Non Statutory Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Purchase price as a percentage of common stock (as a percent) | 100% | ||
Ten Percent Holder | Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Purchase price as a percentage of common stock (as a percent) | 110% | ||
Other Than Ten Percent Holder | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Purchase price as a percentage of common stock (as a percent) | 100% | ||
Chief Executive Officer | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares subject to repurchase related to stock options early exercised and not yet vested (in shares) | 393,251 | 813,311 | |
Chief Executive Officer | Weighted-average stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares subject to repurchase related to stock options early exercised and not yet vested | $ 600,000 | $ 1,300,000 |
STOCK INCENTIVE PLANS - Stock_2
STOCK INCENTIVE PLANS - Stock Option Roll-forward (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 6,301,650 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (288,465) | |
Options cancelled/forfeited/expired (in shares) | (110,594) | |
Ending balance (in shares) | 5,902,591 | 6,301,650 |
Options exercisable (in shares) | 5,821,461 | |
Weighted average exercise price per share | ||
Beginning balance (in dollars per share) | $ 1.67 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 1.08 | |
Options cancelled/forfeited/expired (in dollars per share) | 2.79 | |
Ending balance (in dollars per share) | 1.68 | $ 1.67 |
Options exercisable (in dollars per share) | $ 1.65 | |
Weighted average remaining contractual life, options outstanding (in years) | 4 years 10 days | 5 years 2 months 12 days |
Weighted average remaining contractual life, options exercisable (in years) | 4 years |
STOCK INCENTIVE PLANS - Stock-b
STOCK INCENTIVE PLANS - Stock-based Compensation (Details) - USD ($) | 12 Months Ended | |||
Nov. 09, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expense | ||||
Stock-based compensation expense | $ 44,338,000 | $ 54,089,000 | $ 14,574,000 | |
Total stock-based compensation expense | 41,212,000 | 52,332,000 | 14,574,000 | |
Cost of revenue, net | ||||
Share-based Payment Arrangement, Expense | ||||
Total stock-based compensation expense | 13,868,000 | 18,403,000 | 4,115,000 | |
Research and development | ||||
Share-based Payment Arrangement, Expense | ||||
Total stock-based compensation expense | 10,870,000 | 7,875,000 | 1,617,000 | |
General and administrative | ||||
Share-based Payment Arrangement, Expense | ||||
Total stock-based compensation expense | 9,842,000 | 17,850,000 | 7,356,000 | |
Sales and marketing | ||||
Share-based Payment Arrangement, Expense | ||||
Total stock-based compensation expense | 6,632,000 | 8,204,000 | 1,486,000 | |
Stock options | ||||
Share-based Payment Arrangement, Expense | ||||
Stock-based compensation expense | 3,409,000 | 3,888,000 | 3,425,000 | |
Matching shares | ||||
Share-based Payment Arrangement, Expense | ||||
Stock-based compensation expense | 5,260,000 | 67,000 | 0 | |
Restricted stock units | ||||
Share-based Payment Arrangement, Expense | ||||
Stock-based compensation expense | $ 2,900,000 | $ 35,669,000 | $ 50,134,000 | $ 11,149,000 |
STOCK INCENTIVE PLANS - Stock_3
STOCK INCENTIVE PLANS - Stock-based Compensation Narratives (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 09, 2021 | Nov. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation capitalized as software development costs | $ 3,126 | $ 1,757 | $ 628 | ||
Stock-based compensation expense | 44,338 | 54,089 | 14,574 | ||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation expense | $ 2,900 | $ 35,669 | 50,134 | 11,149 | |
Service period (in years) | 1 year | 1 year | |||
Member of Audit Committee | Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation expense | $ 800 | 600 | 100 | ||
Service period (in years) | 3 years | ||||
Software Development | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation capitalized as software development costs | $ 3,100 | $ 1,800 | $ 600 |
INCOME TAXES - Income Before Ta
INCOME TAXES - Income Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (39,680) | $ (21,614) | $ (14,562) |
Foreign | 1,204 | 971 | 830 |
Loss before income taxes | $ (38,476) | $ (20,643) | $ (13,732) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ (624) | $ (4,052) | $ (99) |
State | (254) | (659) | (239) |
Foreign | (2,214) | (1,626) | (356) |
Current income tax expense | (3,092) | (6,337) | (694) |
Deferred: | |||
Federal | 0 | 0 | 912 |
State | 0 | 0 | (415) |
Foreign | 112 | (29) | 371 |
Deferred income tax benefit (expense) | 112 | (29) | 868 |
Total (provision for) benefit from income taxes | $ (2,980) | $ (6,366) | $ 174 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent | |||
Statutory rate | 21% | 21% | 21% |
State tax | 0.90% | (2.80%) | 4.70% |
Research and development credit | 1.40% | 1.20% | 5.10% |
GILTI | (2.20%) | (4.20%) | 0% |
Foreign tax credit | 1.40% | 4.20% | 0% |
Rate differentials for controlled foreign corporations and charitable organizations | (1.30%) | 1.90% | (1.90%) |
Permanent items and others | (0.10%) | 0.70% | 1% |
Stock-based compensation | (16.10%) | (25.30%) | 16.50% |
Change in valuation allowance | (9.70%) | (13.40%) | (18.10%) |
162(m) limitation | (3.00%) | (14.10%) | (27.00%) |
Effective income tax rate | (7.70%) | (30.80%) | 1.30% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 88 | $ 0 |
Tax credit carryforwards | 413 | 251 |
Accruals and reserves | 785 | 254 |
Stock-based compensation | 2,639 | 2,232 |
Interest expense limitation | 118 | 0 |
Lease liabilities | 1,742 | 204 |
Charitable contributions | 101 | 604 |
Property and equipment | 654 | 689 |
Capitalized research and development | 7,677 | 3,216 |
Total deferred tax assets | 14,217 | 7,450 |
Less: valuation allowance | (8,971) | (5,241) |
Deferred tax assets net of valuation allowance | 5,246 | 2,209 |
Deferred tax liabilities: | ||
Capitalized software development costs | (3,080) | (1,675) |
Operating lease right-of-use assets | (1,625) | (190) |
Capitalized commissions | (84) | 0 |
Total deferred tax liabilities | (4,789) | (1,865) |
Deferred tax assets, net | $ 457 | $ 344 |
INCOME TAXES - Narratives (Deta
INCOME TAXES - Narratives (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency | ||||
Capitalized research and development | $ 21,300 | $ 16,500 | ||
NOL carryforward, state | 1,300 | |||
Accrual for uncertain tax positions | 1,500 | 1,200 | ||
Unrecognized tax benefits | 2,050 | 1,812 | $ 1,656 | $ 1,329 |
Potential decrease in tax benefits | $ 300 | |||
Federal | ||||
Income Tax Contingency | ||||
Amortize costs for tax (in years) | 5 years | |||
Foreign | ||||
Income Tax Contingency | ||||
Amortize costs for tax (in years) | 15 years | |||
State | ||||
Income Tax Contingency | ||||
Tax credit, research | $ 1,100 | $ 900 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, | |||
Beginning balance | $ 1,812 | $ 1,656 | $ 1,329 |
Additions based on tax positions related to current year | 247 | 126 | 336 |
Additions based on tax positions of prior year | 30 | ||
Additions based on tax positions of prior year | (9) | (9) | |
Ending balance | $ 2,050 | $ 1,812 | $ 1,656 |
NET LOSS PER SHARE - Computatio
NET LOSS PER SHARE - Computation of Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | |||
Net loss, basic | $ (41,456) | $ (27,009) | $ (13,558) |
Net loss, diluted | $ (41,456) | $ (27,009) | $ (13,558) |
Denominator | |||
Weighted-average shares of common stock used to compute net loss per share, basic (in shares) | 82,493,226 | 80,786,725 | 38,039,222 |
Weighted-average shares of common stock used to compute net loss per share, diluted (in shares) | 82,493,226 | 80,786,725 | 38,039,222 |
Net loss per share, basic (in dollars per share) | $ (0.50) | $ (0.33) | $ (0.36) |
Net loss per share, diluted (in dollars per share) | $ (0.50) | $ (0.33) | $ (0.36) |
NET LOSS PER SHARE - Narrative
NET LOSS PER SHARE - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 vote shares | Nov. 14, 2021 vote | |
Common Class A | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Voting right per share (vote) | 1 | 1 |
Shares converted (in shares) | shares | 1 | |
Common Stock, LT10 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Voting right per share (vote) | 10 | 10 |
Conversion of stock, notice period (in months) | 10 months | |
Common Stock, LT50 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Voting right per share (vote) | 50 | 50 |
Conversion of stock, notice period (in months) | 50 months |
NET LOSS PER SHARE - Anti-dilut
NET LOSS PER SHARE - Anti-dilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 4,342,564 | 5,423,623 | 46,405,617 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 0 | 0 | 366,982 |
Weighted-average stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 4,334,383 | 5,406,383 | 9,419,506 |
Matching shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 8,181 | 17,240 | 0 |
Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities (in shares) | 0 | 0 | 36,619,129 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | |||
Jan. 01, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | ||||
Defined Contribution Plan | ||||
Employer discretionary matching | $ 0 | $ 0 | $ 0 | |
Employer contributions | 900,000 | 800,000 | 700,000 | |
United States | Maximum | ||||
Defined Contribution Plan | ||||
Employer contribution percentage (as a percent) | 4.50% | |||
U.K | ||||
Defined Contribution Plan | ||||
Employer discretionary matching | 0 | 0 | 0 | |
Employer contributions | $ 200,000 | $ 100,000 | $ 100,000 | |
U.K | Maximum | ||||
Defined Contribution Plan | ||||
Employer contribution percentage (as a percent) | 4.50% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction | |||
Sales and marketing | $ 44,352 | $ 49,876 | $ 27,664 |
Related Party | Expensify.Org | Commitments | |||
Related Party Transaction | |||
Related Party Transactions | 300 | 2,400 | 3,100 |
Other liabilities | $ 0 | $ 0 | |
Director | Related Party | |||
Related Party Transaction | |||
Sales and marketing | $ 400 |