Expensify , Inc. (NASDAQ:EXFY) CEO David Michael Barrett recently sold 15,454 shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at a weighted average price of $2.91 per share, totaling approximately $44,971. Following this transaction, Barrett retains ownership of 2,378,319 shares indirectly and 177,451 shares directly.
The sale was conducted under a Rule 10b5-1 trading plan, which Barrett adopted on August 15, 2024. This plan allows insiders to set up a predetermined schedule for selling stocks, which can help avoid concerns about insider trading by executing trades at predetermined times. The shares were sold in multiple transactions at prices ranging from $2.83 to $2.96. Barrett's indirect ownership is held through Barrett Trust LLC, with Barrett serving as the manager and trustee.
In other recent news, Expensify, the financial services company, reported mixed Q3 2024 results. The company's total revenue for Q3 2024 was $35.4 million, a 6.3% increase from the previous quarter, but a 3% decline year-over-year. Meanwhile, the average paid members remained steady at 684,000, marking a 5% decrease from the previous year.
A key highlight from the report was the 48% year-over-year increase in interchange revenue from the Expensify Card, which totaled $4.6 million. On the back of this performance, the company has revised its free cash flow guidance for the year upwards to $19 million to $20 million.
Despite a decrease in average paid members and total revenue year-over-year, the company remains optimistic about its future growth. The new Expensify Card program has successfully migrated 94% of existing card spend and is expected to drive revenue growth. In addition, the recently launched Expensify Travel is already generating revenue and is anticipated to contribute significantly to future business growth.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Expensify's financial situation and market performance, providing context to CEO David Michael Barrett's recent stock sale.
As of the latest available data, Expensify's market capitalization stands at $246.43 million. The company's stock has shown remarkable strength recently, with InvestingPro data indicating a 67.76% price return over the past month and a 70.56% return over the last six months. This recent surge has brought the stock price to 98.56% of its 52-week high, trading near $2.77 per share.
Despite these positive price movements, InvestingPro Tips reveal some underlying challenges. The company is not currently profitable over the last twelve months, with a negative P/E ratio of -15.45. Additionally, analysts anticipate a sales decline in the current year, which aligns with the reported revenue growth of -13.53% over the last twelve months.
On a more positive note, InvestingPro Tips highlight that Expensify holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This strong financial position could provide the company with flexibility as it navigates potential headwinds.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Expensify, providing a deeper understanding of the company's financial health and market position.
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