Expensify is making bold moves in AI-driven financial management, as highlighted during its latest earnings call. The company reported significant AI advancements, financial improvements, and debt reduction.
While missing Wall Street estimates, Expensify saw a rise in after-hours stock trading, reflecting investor confidence. The company generated $23.9 million in free cash flow for 2024 and increased Q4 revenue by 5% from the previous quarter. Additionally, it paid off $22.7 million in debt, becoming debt-free.
CEO David Barrett emphasized the company’s commitment to integrating deep AI beyond basic automation, enhancing efficiency and reducing operational costs. Expensify has leveraged AI to improve customer support, automating 80% of tier 1 inquiries through OpenAI-powered AI, which has minimized human intervention and optimized response times. Its AI-driven SmartScan technology has cut operational costs by 75% while improving accuracy and multilingual capabilities.
AI is also revolutionizing Expensify’s internal processes, with automated call analysis boosting sales and support team performance. Barrett remains confident in the company’s AI leadership, positioning Expensify as a frontrunner in AI-powered FinTech solutions. Despite an 8% annual revenue decline, Expensify achieved a substantial improvement in profitability, reducing net losses from $41.5 million in 2023 to $10.1 million in 2024. Adjusted EBITDA surged 199% year-over-year, reaching $39.4 million.
The Expensify Card also performed well, with a 44% increase in spending and a 54% rise in interchange revenue. During Q4, interchange revenue hit $5.1 million, marking a 62% increase from the previous year, thanks to a completed migration to a new card program that improved per-swipe earnings.
As Expensify moves into 2025, it projects free cash flow between $16 million and $20 million. The company remains focused on evolving its AI capabilities, with Barrett envisioning an AI-first experience for users, setting the stage for long-term FinTech innovation.
