Expensify

Expensify ($UCHAN): A cloud-based expense management software platform that allows organizations to scan and refund receipts, including from flights, hotels, cafes, stationery and travel. Since its inception, the company has added more than 10 million members to its community, and has processed and automated more than 1.1 billion transactions. For the quarter ended June 30, 2021, Expensify was used by an average of 639,000 paid members from 53,000 companies and more than 200 countries and territories.

Revenue concentration

The customer base is very diversified, and in 2019 and 2020, none of the clients brought in more than 1% of revenue.

Market size

Uniqueness of the idea and competitive advantage

* Increased focus on improving the experience for participants. Since its inception, the main goal has been to offer a single, intuitive and powerful platform with features designed for real end users of software for managing the expenses of ordinary employees.

* Viral bottom-up business model. An effective self-service business model is used, based on a viral transition to the platform from the bottom up by employees.

* Recognized market consensus and effective word of mouth. Participants contribute to the implementation and expansion of Expensify in organizations, and the platform and business model are largely focused on improving their daily experience.

* Employee-oriented legal structure and database design. The platform is built on Bedrock, a private distributed database that allows you to combine all participants into a single database and maintain direct legal relations with each of them, where they own all their basic data and control the status of their account. This unsectioned design of an employee-owned account is at the heart of success through bottom-up adoption.

* A nimble and extremely loyal team with a common long-term vision. An effective business model allows you to prioritize resources in order to attract, retain and inspire a much more talented team than competitors. The company has achieved impressive retention levels, which provides the necessary corporate patience and ambition to realize a truly ambitious and long-term vision.

Competitors

Bento, Brex, Divvy, Emburse (Certify, Abacus и Nexonia), Expensya, Fyle, Happay, Pleo, Ramp, Spendesk, TravelBank, Webexpenses и Zoho Expense.

Monetization model

The platform's strategy allows the use of a bottom-up viral business model, which is capital-efficient and extremely scalable. The implementation of Expensify in an organization often begins with an individual employee who downloads a mobile application or registers for free on a website and uses it to easily send expenses to his manager with a few taps. Once an employee realizes the benefits of the platform, he will become a champion of Expensify and often distributes it to other employees within the company. When several employees use Expensify, and valuable functions that simplify the work of the manager, the decision maker acquires a subscription to Expensify and becomes a paid client with several participants.

The company offers simple, transparent and flexible subscription plans for both individuals and businesses that are completely self-service and paid by credit card. In the quarter ended June 30, 2021, 95% of revenue was generated through regular automatic monthly payments using credit cards. The company has developed tariff plans to facilitate the implementation of the platform by the smallest family stores for the largest and most complex organizations.

Guide

David Barrett founded Expensify and has been Chief Executive Officer and board member since 2009. Prior to Expensify, Mr. Barrett led development at Red Swoosh, Inc., a peer-to-peer file sharing company. which was acquired by Akamai Technologies, Inc. in 2007. Mr. Barrett holds a Bachelor's degree in engineering from the University of Michigan. Barrett is qualified to serve as a member of the board of directors due to his strategic vision and leadership in the conceptualization and development of the brand and business, his knowledge of technology, as well as the perspectives and experience he brings as a founder and leader.

Ryan Shaffer has served as CFO and member of the Board of Directors since 2017, and previously served as Director of Marketing and Strategy from 2013 to 2017. Prior to joining Expensify, Mr. Shaffer worked in marketing for various companies. Mr. Shaffer holds a bachelor's degree in Business from the University of Dayton. Shaffer is qualified to serve as a member of the board of directors due to his vision and experience as a CFO, his experience leading board meetings since 2019, as well as his considerable knowledge.

Anu Muralidharan Ms. Muralidharan previously held the position of Director of Product Production from January 2018 to January 2021 and Head of the division. Payment transactions from August 2015 to January 2018. Prior to joining Expensify, she held the positions of vice president at Citibank and Marqeta Inc., as well as various engineering positions at Oracle. Ms. Muralidharan holds a Bachelor's degree in Electrical and Electronics Engineering from Birla Institute of Technology and Science, Pilani, India, and a Master's degree in Business Administration from Cornell University. Muralidharan is qualified to work as a member of the Board of Directors due to her long history and experience in the payment industry, comprehensive knowledge of payment systems.