David Michael Barrett, CEO of Expensify , Inc. (NASDAQ:EXFY), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Barrett sold a total of 173,320 shares of Class A Common Stock over three consecutive days, from November 15 to November 19, 2024. The transactions were executed at prices ranging from $2.70 to $2.78 per share, amounting to a total sale value of $477,057.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, which Barrett adopted on August 15, 2024. Following these transactions, Barrett now holds 2,393,773 shares indirectly through Barrett Trust LLC, and an additional 177,451 shares directly.
The sales were part of Barrett's ongoing strategy to manage his investment portfolio while maintaining a substantial stake in the company he leads.
In other recent news, financial services company Expensify reported mixed Q3 results, with total revenue for Q3 2024 reaching $35.4 million, marking a 6.3% increase from the previous quarter, despite a year-over-year decline of 3%. The company's average paid members remained steady at 684,000, a 5% decrease from the prior year. A significant development was the 48% year-over-year increase in interchange revenue from the Expensify Card, totaling $4.6 million.
In light of these developments, the company has raised its free cash flow guidance for the year to $19 million to $20 million, indicating confidence in its operational efficiencies and new product offerings. The new Expensify Card program has successfully migrated 94% of existing card spend and is anticipated to drive revenue growth.
Expensify Travel, another recent development, is generating revenue and is expected to contribute significantly to future business growth. Despite some areas of the business underperforming, such as a year-over-year decrease in total revenue and average paid members, the company remains optimistic about future growth, particularly as the new platform ramps up and existing customer usage expands.
InvestingPro Insights
In light of CEO David Michael Barrett's recent stock sales, it's crucial to examine Expensify's current financial position and market performance. According to InvestingPro data, Expensify's market capitalization stands at $237.53 million, reflecting its current valuation in the market.
Despite the CEO's stock sales, InvestingPro Tips highlight that Expensify holds more cash than debt on its balance sheet, indicating a strong liquidity position. This is further supported by the fact that the company's liquid assets exceed short-term obligations, which could provide some reassurance to investors concerned about the company's financial stability.
However, it's worth noting that Expensify has not been profitable over the last twelve months, with a negative P/E ratio of -15.45. This aligns with the InvestingPro Tip indicating that the company was not profitable during this period. On a more positive note, analysts predict that Expensify will be profitable this year, which could explain the recent strong stock performance.
Indeed, Expensify has shown a strong return over the last month, with a 45.9% price increase. This short-term momentum is part of a larger trend, as the stock has seen a significant 58.93% price uptick over the last six months. However, investors should be cautious, as another InvestingPro Tip suggests that the stock's RSI indicates it may be in overbought territory.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Expensify, providing a deeper insight into the company's financial health and market position.
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