Expensify filed late Friday to go public, joining the growing list of technology companies that are looking to list in this time of high valuations and strong debuts.
GitLab went public last week. GitLab, a devops giant, raised its price range and was priced above this interval. Shares began trading last week, and the stock prices shot up. This is a great time for growth-oriented tech companies to go public.
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Expensify is an example of such a company, although things have been difficult over the past year. The COVID-19 cycle was a difficult one for the Portland-based expense management company. COVID had a negative impact on the company's retention and growth rates. However, things have changed thankfully.
Anna Heim, our expensify reporter, wrote the definitive series.
Let's get down to the heart of this growing, profitable technology company. It has not raised any primary capital since 2015's Series C. According to PitchBook data, the company was valued at $143 million in the $17.5million fundraise.
This valuation is out-of-date, so we will need to make some new estimates.
We also looked at the Expensify S-1 file, looking at the 2019 2020 and H1 2021 results with the lens of COVIDs effect on the companys operating results, and its rebound. We want to know how profitable the company is and how its SMB focus turned out to be more beneficial than a curse.
Let's have some fun!
Expensify: How it makes money
Let's start with Expensifys business model.
SMBs and smaller businesses are the majority of the company's customers. Venture investors view SMB-focused businesses less valuable than those that sell to larger customers. This is because the former have higher churn rates and better upsell metrics. Although this may be true, Expensifys results show that SMBs can still make a profit selling software if they have the right go to market motion.
