Expensify, Inc. (NASDAQ:EXFY) CEO David Barrett recently engaged in transactions involving the company's Class A Common Stock, according to a new SEC filing. Barrett, who also serves as a director at Expensify, sold a total of 13,268 shares over two separate transactions, netting over $30,000.
On September 16, Barrett sold 11,095 shares at an average price of $2.28 per share. The sales were executed in multiple transactions with prices ranging from $2.25 to $2.32. Following this sale, Barrett's ownership in Class A Common Stock decreased to 173,820 shares. The next day, on September 17, an additional 2,173 shares were sold at an average price of $2.27, with this batch of sales occurring within a price range of $2.23 to $2.33.
The transactions were part of tax-related sales that coincided with the vesting of Restricted Stock Units (RSUs) for certain employees of Expensify. The RSUs represent the contingent right to receive shares of Class A Common Stock upon vesting. As noted in the SEC filing footnotes, these sales were conducted to cover the taxes upon vesting of RSUs, with Barrett's pro rata portion of the total shares sold to cover these obligations.
In addition to the sales, Barrett also acquired shares through the settlement of vested RSUs, with the total number of shares acquired being listed as zero in terms of transaction value. This is a standard practice for RSUs, which are often settled in shares rather than cash.
Barrett's transactions reflect routine financial activity related to stock-based compensation and tax obligations. The SEC filing provides transparency into the executive's trading activities and ownership changes in Expensify stock.
Investors and followers of Expensify will continue to monitor insider transactions as they can provide insights into management's perspective on the company's valuation and future prospects.
In other recent news, Expensify has made significant financial strides by clearing its debt and repurchasing shares. The company has fully repaid its $15 million revolving line of credit and a $7.6 million mortgage on its Portland headquarters, ahead of the mortgage's due date in 2024. Additionally, Expensify has bought back 645,938 shares of Class A common stock at an average price of $2.34 per share. These shares are set to be retired as part of an ongoing effort to reduce share count.
Expensify also reported Q2 2024 revenue of $33.3 million and a net loss of $2.8 million. Despite the loss, the company saw growth in interchange revenue, paid memberships, and cash flow. It also launched a new card program and a partnership with Apple (NASDAQ:AAPL), which are expected to generate revenue in Q3.
On the product development front, Expensify is transitioning to a new card program, launching a super app, and planning a new payroll product. These recent developments reflect Expensify's commitment to financial prudence and shareholder value as it continues to serve over 15 million users globally with its all-in-one financial management app.
InvestingPro Insights
As investors consider the implications of CEO David Barrett's recent stock transactions, it's important to contextualize Expensify, Inc.'s (NASDAQ:EXFY) financial health and market performance. Based on the latest data from InvestingPro, here are some key metrics and insights:
The company holds a market capitalization of approximately $196.9 million, indicating its size within the market landscape. Despite challenges, Expensify maintains a strong gross profit margin of 54.42% for the last twelve months as of Q2 2024, a testament to its ability to manage costs relative to revenue. However, investors should note the company's negative operating income margin of -16.21% during the same period, reflecting expenses outpacing gross profit.
Expensify's stock price has experienced significant volatility, with a notable 75% total return over the last three months, yet a decline of 33.33% over the past year. This volatility is further highlighted by the InvestingPro Tip indicating that the stock generally trades with high price volatility. Additionally, the company has not been profitable over the last twelve months, a point that investors should weigh against the potential for profitability this year, as suggested by another InvestingPro Tip.
For investors seeking deeper insights and additional metrics, there are 12 more InvestingPro Tips available, which can offer a more comprehensive understanding of Expensify's financial position and market trends. These can be accessed through InvestingPro's platform, providing valuable information for making informed investment decisions.
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