Expensify Tumbles on Big EPS Miss, Analyst Says Weakness Offers Attractive Opportunity

Shares of Expensify (NASDAQ: EXFY) have tumbled nearly 14% in premarket trading after the software company reported weak Q2 results.

EXFY reported revenue of $43.2 million, missing the estimate of $44 million. More importantly, the company reported a loss per share of $0.10, which is much worse than the analyst estimate that called for a profit of $0.09 per share.

The company maintained its long-term guidance of 25-35% revenue growth over a multi-year period.

BMO analyst Daniel Jester said Q2 results were “not enough” as the company was facing tough comps. Still, Jester sees EXFY shares supported by the company’s profitable growth over the medium term.

Bank of America analyst Koji Ikeda hiked the price target by $1 to $26 after witnessing “good” results. He says the company delivered "good Q2 results" with shares weakness in after-hours trading seen as a "particularly attractive opportunity."

“Bears may pick on the revenue miss, but we remind investors that Expensify does not provide quarterly guidance. With the business displaying a Rule of 49 profile in Q2 (22% GAAP rev growth + 27% EBITDA margins), we think the results support our long-term thesis that the business has the potential to drive an attractive growth and profitability profile in high growth and slow growth scenarios, which is an positive investment trait,” Ikeda explained to investors in a note.

By Senad Karaahmetovic

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