Expensify falls as JPM starts coverage with "underweight"

Expensify

15/09/2023 14:22

** Shares of expense management software provider Expensify
 EXFY.O  fall ~2.9% to $3.81 premarket after J.P. Morgan starts
coverage with "underweight"
    ** With EXFY predominantly targeting small- and medium-sized
businesses, JPM sees 'limited differentiation vs. competitors'
that aid in easing expense management and bill paying
    ** Much of the EXFY customer acquisition model relies on
existing customers spreading the word on EXFY value proposition
to more senior officers with decision-making authority, says JPM
    ** Brokerage adds that about one-third of EXFY revenue being
generated from pay-per-use contracts vs. predictable annual
subscriptions
    ** "Tougher macro(conditions) creates lower visibility into
revenue due to high share of pay-per-use component and reduces
the efficiency of the word-of-mouth, bottom-up customer
acquisition model" - JPM
    ** As of last close, EXFY down 56% YTD

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))