Expensify reports Q3 EPS (21c), consensus 2c

Reports Q3 revenue $36.5M, consensus $38.7M. The company states: “This was a challenging quarter, but I am happy to share that we are trimming costs – which should improve profitability for years to come – and we are making great strides with our SEM, SEO, and overall conversion optimization efforts. Additionally, the competitive environment is shifting back in our favor. Previously-free competitors are announcing expensive pricing plans compared to our cost of $6/employee (versus $15/employee elsewhere). (We have traditionally presented ARPU on an active-user basis, where we charge about $18 for each employee actively using the product. But only about 1/3rd of employees are active in a given month. So on an apples-to-apples, per-employee basis, we’re actually more like $6/employee.) On top of clearer skies coming into view, this quarter was one of our best ever for product development.”