Expensify Q2 2024 Earnings Call Transcript

Quartr
Provided by Quartr
August 8, 2024

There are 7 speakers on the call.

Operator

Welcome to the Q2 2024 Expensify Earnings. I'm Expensify's CFO, Ryan Schafer. And with me, I have our Co Founder and CEO sorry, I have our Founder and CEO, not Co Founder, David Barrick. But before we begin, please note that all the information presented on today's call is unaudited. And during the course of this call, management may make forward looking statements within the meaning of the federal security laws.

Operator

These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from these described in these forward looking statements. Forward looking statements in the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold. Please refer to today's press release and our filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today. Please also note that on today's call, management will refer to certain non GAAP financial measures. While we believe these non GAAP financial measures provide useful information for investors, presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.

Operator

Please refer to today's press release or the investor presentation for a reconciliation of these non GAAP financial measures to their most comparable GAAP measures. With that out of the way, let's talk about the financials. In Q2, our revenue was 33,300,000 dollars Our average paid members were 684,000. So these numbers have basically leveled off. They're effectively flat quarter over quarter.

Operator

They're both within 1% of Q1. And also, our interchange was $4,000,000 which is a 14% quarter over quarter increase and a 48% year over year increase. Our operating cash flow was $9,300,000 Again, operating cash flow includes timing of customer funds, which can vary depending on when the quarter ends. Our free cash flow, which excludes the timing of customer funds, was 5 point $7,000,000 which is a 10% quarter over quarter increase, something we're very happy about. We've talked a lot about our cost cutting measures, and we're pleased with the results that we're seeing.

Operator

Our net loss was $2,800,000 but our non GAAP net income was $5,600,000 and our adjusted EBITDA was 10,200,000 dollars something we're very happy about. All right. Now my favorite topic, expense by card. Quarterly interchange from the card grew 48% year over year to $4,000,000 And now my favorite subject is the program manager issue. So as you know, we've been transitioning our members from our old card program to our new card program.

Operator

The new card program has 2 benefits. 1, we earn 20% more interchange on every transaction. And also, under the new program, our interchange will be considered revenue instead of a contract expense and cost of revenue. So it cleans up the financial story, makes the financials easier to understand. So our net interchange was $3,500,000 Our interchange in revenue is $5,000,000 for a total interchange of $4,000,000 So the way to kind of read this is $3,500,000 on the old program, dollars 5,000,000 or $500,000 on the new program, total $4,000,000 dollars We're also increasing our free cash flow guidance.

Operator

Previously, our guidance was $10,000,000 to $12,000,000 for the year. Last quarter, we increased that to $11,000,000 to $13,000,000 And now we're increasing our annual year guidance to $15,000,000 to $16,000,000 which is a big jump and I think a testament to the effectiveness of the discipline that we put into reducing our costs. Again, our free cash flow is $5,700,000 which is a 10% increase from Q1. As you know, we don't give paid member guidance, but we do show you the actuals from how the current quarter is going. So in July, our paid members were up to 689,000.

Operator

If you look at the pink bars, they show this current July and then every July in the past. And normally, July is a bit of a soft month. You'll see that it's we generally see a month over month decrease. But this month, we're actually up. So things that's good news.

Operator

So we're excited about that. All right. Now let's talk about some business highlights. Our SEO keywords have increased 122% year over year. This is important because it's top of funnel.

Operator

Basically, in order to be on the first page, you have to work your way there. So the progress across our long tail keywords has been increasing quarter over quarter. So we're encouraged by the progress we're seeing there. And this is the more actual results. These are the keywords that are on the first page, which get almost all the clicks.

Operator

We've seen a 57% increase quarter over quarter in our first page SEO keywords. So our content marketing strategy is working and working well and quickly. So that's something to be encouraged by. Also, we continue to see a brisk improvement in our number of global reimbursement customers. Global reimbursement is important because we're a global company and our customers want to reimburse their employees no matter what country they're in.

Operator

And these are generally larger customers being in many or if they're in the U. S, global reimbursement is important for large enterprise customers. But it's also important because it allows us to expand globally in countries that we normally struggled or we have historically struggled to grow in. So this kind of unlocks a more global opportunity. Additionally, you might have seen that we announced our partnership with Apple for their upcoming 2025 film F1, which is expected to be a very successful blockbuster.

Operator

We are the title team sponsor in that film. So as you can see in this Instagram post on the right, you see Mr. Brad Pitt with Expensify across his chest. So we are our name is on the car. It's on all the jerseys.

Operator

It has a very big placement within the film, something we're very excited by. The movie is still filming. It doesn't come out until next year. And we've already gotten such great coverage in TV on both TV and online that we've reached over 600,000,000 impressions. Additionally, due

Speaker 1

to the fact

Operator

that we have such crazy good placements on all across the movie and how much buzz this movie is generating, our earned media coverage is estimated to be over $100,000,000 at this point. For those of you not familiar with the term earned media, what that means is what would be the financial equivalent to get all the placements that we have gotten effectively for free due to all the buzz. So if you think about how much does it cost to have one of the biggest stars in the world have their our name on their chest for months months and be filmed by the paparazzi and covered on the news across the world. Also, all the placement we're getting during F1 races and all the YouTube videos and everything that people are creating. They also released OpEx trailer, which has been seen over 10,000,000 times on YouTube alone also across HEX and other social media.

Operator

So the coverage that this has generated thus far is estimated to it would have cost us $100,000,000 to get that. Obviously, we have paid $100,000,000 for that. So that's what earned media means. With that, I want to hand it over to our CEO, Dave Viguer.

Speaker 1

All right. Yeah, very excited about the F1 movie. I think that we've been talking about trying to create a road map that builds a sort of mixed consumer business application, and I think the timing has really worked out perfect for us. That's good. Alright.

Speaker 1

So, last quarter, we talked about just a bunch of functionality we're going to build. And so pretty much, I don't have a lot to talk about other than to say, like, we've done pretty what we set out to do and we kind of walk through some highlights there. So to start first, however, is just kind of a reminder of the overall strategy. Now many of you have already seen First, we're trying to capture the 99% of the untapped market. You'll see of the 300,000,000 businesses in the world, less than a 1000000 actually use anything today.

Speaker 1

And so we're trying to go after a huge, huge global opportunity, as Ryan mentioned earlier. The only way to do that is through a viral bottom up, word-of-mouth lead gen strategy. You can't just top down sale your way into 300,000,000 businesses. There's just not enough salespeople in the world to do that. And so there are lots of companies that have gotten 2,000,000,000 users.

Speaker 1

And the way they do that is with a viral strategy, and that's why we're all in on sort of the viral dynamics that are built in inherently to expense management. And of course, we monetize that with high margin monthly subscription. It's been our strategy all along and it's worked really well for us. It's kind of like breaking into that market, that 1,300,000,000 untapped users. There's a huge fraction of the market that's basically under 250 employees.

Speaker 1

A huge market is under like 10 employees and so forth. And so we're kind of going for this giant VSB SMB market. Now, of course, we still have enterprise customers and growing there and so forth, but we think the much bigger opportunity is actually to 100x the market size itself. And the way we do that is by leveraging the natural, inherent viral sort of component of the various use cases of expense management. ExpenseFi is fundamentally a chat application mixed with a payment application mixed with a document sharing application.

Speaker 1

And notably, all three of those are the most viral applications on the Internet. And so we think that we can find the viral VIN sort of VIN overlap between these 3 different use cases, and that's what's going to propel us into this massive scale opportunity. And so the way we do that is just kind of like math how that works is we can say something like, you know, Alice, an individual consumer or an employee, submits an expense to Bob who basically turns around and sends an invoice to Kathy who splits the invoice with her roommates and then maybe that one of those roommates, you know, books travel with their company. Every time you use Expensify as a product, you can't help or promote us to the people around you. That's the sort of the viral dynamic we're leaning into.

Speaker 1

And by building a super app that can leverage all these different applications in a single app package, they're making it sort of a super virality effect. That's what we're going for. So kind of walk through some highlights of that. So first, we've been building this for a long time and we're getting to the point where we're launching it, we're testing with real users and we are preparing for a much bigger migration of away from our classic messaging of the past and towards our new messaging. And towards that, we're just about to release a new homepage.

Speaker 1

It's been AB testing a 1000000 variations for a long time. Not the most exciting thing in the world, but it is a highly visible thing. So I just want to give you a heads up. Also, I would say one of the most exciting things, which is kind of subtle, is we've built something we call our hybrid app. Now, recall, we have millions of users on our existing app.

Speaker 1

We're using the classic experience. And so in order to migrate them to the new experience, we don't want them to have to download an entirely new app, lose all of the SEO and review history and so forth that we have. But the new app is a complete rewrite. It's completely different technology stack and everything. And so the way that we're sort of bridging that gap is we've made a hybrid app.

Speaker 1

We're in the process of upgrading all customers today to this new app that actually has both apps packaged inside of it that you can switch back and forth between. Now that sounds really easy. It's actually super duper hard. And so we worked very hard on that. We're very proud of it and we're launching that right now.

Speaker 1

And that's basically a key part of allowing for reunification or basically this process of taking old customers and moving them to new experience. Next, something else we've been talking about, super excited about, we launched a full fledged travel management system built into new Expensive Buy. And so travel management, obviously, travel and expense, it's like peas and carrots. They go together to the dawn of time. And so we have brought the travel management experience into the product, which is incredibly powerful.

Speaker 1

We think that it can scale up the top of the market. It has very, very powerful functionality that can go head to head with anyone else out there, and it's built into the same super app experience than everything else. Additionally, we bring our unique flavor to it as well and that we are chat enabling all this functionality. And what that means is typically, like we like to say that we do, we travel at expense at the speed of chat. Because historically, if you're doing any kind of collaborative application online, you can only go as fast as the other person in the collaboration.

Speaker 1

And if that collaboration is happening over email, that means that you're collaborating with the speed of email. And I don't know about you, I'm always days or maybe even weeks behind on my email. And so that means that any collaboration someone wants to do with me via email is super duper slow. Expensify is a real time chat application and we're bringing that real time chat functionality to all of our approval flows, especially travel approval. So for example, imagine you need to someone's requesting a flight and in the United States, every flight gets 24 hour free cancellations, but only to cancel in that 24 hours.

Speaker 1

And so it's in the business' interest to have those approvals happen incredibly fast, faster than you can realistically get done via email. And so that's what I mean about moving at chat speed, not just for travel, but for all of our expense management is just removing the delay in all of the collaboration process and bringing it onto a single platform that lets it happen so much faster. Because the only way to make expense management faster is not by just making the button click faster, we need to make the people involved act faster. And that's where the new design really shines. Also, just a lot of nuts and bolts work.

Speaker 1

This might sound kind of boring, but now you can enter a billing card in new Expensify. Up until this point, it just was impossible to actually buy, but now you can buy. And so what's exciting about this is we are in a position to begin generating revenue from new Expensify starting in Q3. So we're very excited and looking forward and optimistic for the future for adding new Expensify as a new revenue stream as well as adding travel bookings as a new revenue stream. On top of that, more just sort of like nuts and bolts, Expensify's historical strength has been our incredibly good accounting connections.

Speaker 1

And so we're migrating all of that over to new Expensify. Now you can connect to Xero, NetSuite, QuickBooks, Intact, all of these basically directly from inside of New Expensify. One of the most exciting features, I would say, has got to be our search platform. Now we've always been talking about search and this idea of universal search and how cool it is. But you really get to get a sense of how cool it is when you sit down to use it.

Speaker 1

And that is there's a lot of competitors out there that have a suite of kind of disconnected applications. That means, like, travel over here and you sign into a different place for invoices. And maybe it's kind of like the same sign in to get different places, but they're fundamentally different experiences. Expensify is very different. It's a super app, meaning that all of these different data types and all these different applications exist within the same app container.

Speaker 1

And that means because we've combined all the data together, we can search it in a universal fashion. And we're not having just like very simple search. We're talking like Gmail style, Boolean search logic, where you can custom craft very, very specific searches for exactly what you want and then save those searches for use later. And so we think that we're going to bring the most powerful search experience across any expense management solution, bar none. And we're doing it because the super app design allows us to combine data into a single place such that they can be searched together in a single place.

Speaker 1

Then maybe finally, as we're talking about essentially onboarding and that because we're getting to a point where the core functionality is starting to work pretty good, we're spending more and more time on just the onboarding flows themselves. I started talking to the homepage, but also when you sign up, we're adding things like welcome videos, concierge is assigning you specific tasks based upon what you've indicated you want to do and things like this. And so we're just very excited to be moving out of the sort of R and D mode and more into a go to market mode. And so that's a pretty exciting thing that we're going to talk more about in upcoming quarters. So overall, I would say that it's been a great quarter.

Speaker 1

I mean, Q1 was good, Q2 is even better. And I think that it's nice that sort of, as Ryan mentioned, the core business itself is stable. It's basically like real. Do. Things are a strong foundation and also our cash flow is growing, which is fantastic.

Speaker 1

I think we've delivered a tremendous amount of engineering progress on new Expensify and we're in the process of actually rolling it out to existing customers, new customers and also enrolling it out in new travel markets, which is great. I would say looking forward to Q3, we hope that New Expensify is adding an entirely new revenue stream. We hope that new Expensify Travel is adding entirely new revenue stream. And we think that, as Ryan mentioned, that we can be making tremendous progress in migrating our existing Expensify Card spend onto a new Expensify Card program, which is treated as revenue and also earns 20% more in free interchange. And so it's a lot of really exciting things in

Operator

the works.

Speaker 1

As always, our product managers are available to talk more about any of this and me too. So just like scan this QR code, click this link and come talk to us. And with that, I think we'll open up to questions.

Speaker 2

Perfect. Okay. Let's start with JPMorgan.

Speaker 3

Hi, David. Hi, Ryan. I was wondering if you could comment a bit more on the dynamics that you've seen in July related to the slight uptick in customer numbers? As we mentioned in the past, it would typically be a slow month. What drove the improvement?

Operator

Yes, it's a great question. Also good to see you again. In terms of what drove it, it's I don't think it's any one thing. We've been talking for a lot of quarters about how we're making a lot of small changes. And I think it's not one specific thing.

Operator

It's not just travel or anything like that. It's that we it's the sum of 1,000 steps basically. And we think that I'm not going to say that we won't see decreasing users going forward, but I think we're pretty encouraged on kind of leveling off and what we're seeing in July. So

Speaker 1

Yes, I mean, we did go to new conferences as well. And so we've been constantly messaging users and just giving fan service to the people who use us.

Operator

So I think that all adds up. Yes. We've been had a lot of buzz from the Apple movie as well.

Speaker 1

Yes. That hasn't hurt us again.

Operator

A lot of setting stuff going on in the expense by the end.

Speaker 3

Would you mind providing a bit more detail on this initiative? So when do you think we will see the expense related to the sponsorship hit the P and L?

Operator

So it's recognized when movie comes out. So

Speaker 3

the So 2Q of next year?

Operator

Yes. That's going to come out in June of next year.

Speaker 3

Okay. Perfect. And would you be able to quantify it at least ballpark?

Operator

I am unable to do that, unfortunately.

Speaker 3

Okay. And it sounds like there has been quite a lot of investment done to ensure that, as David said, the 2 apps are working together, the release of new trial product. And you talked about moving out of the R and D mode. When do you think we'll see more pronounced optimization of the R and D expense?

Speaker 1

Interesting. Amor, are you talking about how are we optimizing the R and D expense itself?

Speaker 3

Well, your comment, David, about the fact that you're coming out of the R and D model, does that imply that R and D may

Speaker 1

Great question. I didn't mean to suggest anything specific about R and D expenses. I just mean that because I think maybe not you're referring to an accounting term. I just mean in terms of like we're optimizing the sales process, which involves a different kind of R and D. It's basically R and D for streamlining the ability for people to onboard as opposed to R and D to enable people to make payments.

Speaker 1

This is kind of different

Operator

in that way.

Speaker 4

I don't

Operator

know if that Yes. Just for most people probably understand this, but for people that don't, when you launch a product and you keep working on it, that's no longer considered R and D, it's considered a cost of revenue. So the same people who are fixing things or building things on the day before and then they have to fix them the day after that it's no longer an R and D expense. But internally, we still would consider that person building a new product.

Speaker 3

Yes. And then if I may squeeze one more question, please. The comment about revenue coming in 3Q for new Expensify, would you be able to quantify your estimate on that? And maybe a more broader question, what sort of metrics are you looking at to get you some comfort in order to provide longer term guidance for the revenue embedded in core?

Operator

So I think it's too early to give a revenue number on new Expensify, less than $1,000,000 like significantly around I'm not going to do it, but

Speaker 1

if not, it could be a huge

Operator

amount, right? But way more than 2, anyways. What was the second part of the question?

Speaker 3

The long term guide that you stopped providing.

Operator

Yes, okay. I think as the business becomes more predictable, we'll obviously, we've started giving some guidance on free cash flow, and I think our goal is to provide more guidance in general. We I think we need to see a little bit more stabilization or a longer period of stabilization in the business before we feel comfortable doing that, but that's top of mind for us for sure.

Speaker 3

Any specific metric, if any?

Operator

How do we measure the success in new expense side? Yes. Okay. So essentially, we are measuring there's kind of 2 flows for that we get business. There is bottom up, where the employee downloads it first, brings it in to the business, then they convert.

Operator

And that generally doesn't involve any sales. The employee basically access the salesperson there. And then a top down, which is the more traditional SaaS process where someone at the top talks to a salesperson. So we are tracking both conversion of both of those flows and then doing that for our 2 payment plans, which are collective control. So there's basically 2 different segments, smaller businesses and larger businesses.

Operator

So we are those are the degree, those are the 4.

Speaker 1

Yes. I mean, there's a lot of different ways that all kind of adds together, like different, you know, peaks all flowing to the same river. But maybe we can follow-up more in different colors.

Speaker 2

Sounds great. Thank you very much

Speaker 3

for all your answers. I'll jump back and talk to you.

Speaker 2

Perfect. Next up, we have Citi.

Speaker 5

Hey, thanks. This is George on for Steve. Thanks for taking the questions, David and Nick. I wanted to ask about, Nick, your favorite topic, the new Expensify Card program, really exciting that it's rolling out. I did want to get some clarity.

Speaker 5

The 34% of spend migrating, that's a really helpful disclosure. I did notice that you also disclosed kind of $500,000 out of 4 from the new program, which seems like less than a third. I mean, maybe there's some complications with timing, but I guess I would intuitively expect it to be higher given you're collecting more interchange. Can you help square the circle there?

Operator

Absolutely. And just for the transcripts and everything, this is Ryan. The Knicks are ahead of it, IR.

Speaker 5

Sorry, Ryan and David.

Operator

I don't want the transcripts to get confused. Great question. I thought we might actually get that question. So the 34% is representative of what percentage of our spend have been transitioned over at the end of Q2. But in order for it to be exactly 30% total revenue, we would have had to start the quarter there, because at the beginning of the quarter, it was like 10%.

Operator

So it's a transition over a 3 month period. So at the end of the quarter, we've transitioned 34% of spend, but a lot of it actually happened in the last, I think, like 25 days of the quarter. So it's kind of that's why it looks like it does because we put out some banner notices and push notification stuff in the app and that was super effective at pushing people over. So that's does that make sense?

Speaker 5

Yes, that makes perfect sense. I figured it was just a timing thing. And then in terms of that spend that's migrated over, I know kind of baseline, we would expect a 20% uplift. But I'm kind of wondering, part of the appeal here is that there's more features on the new card program. Do you notice any kind of change in terms of like transaction volumes from people who have migrated over?

Speaker 1

Question, maybe a bit early for that.

Operator

Most of the people have migrated over in the last like 60 days. So it's tough, I think, to draw some sort of trend there, but in general, I mean, I think when we get a company's spend, we get most of their spend.

Speaker 1

Yes, it's pretty all or nothing.

Speaker 5

Okay. That makes sense. And then just one last one for me on the decision to kind of come back into the conference circuit. Maybe you could talk about maybe the history of why you left that channel in the 1st place? Obviously, you have a lot more products and expense, a lot of exciting stuff to talk about.

Speaker 5

So just maybe the decision to come back there and any kind of implications from an OpEx standpoint?

Operator

So the we never stopped going to conferences. We did stop going to this one's to going to travel, corporate travel conferences. So back in 2016 ish, maybe 2017, we were going to travel conferences because we had integrations with people like Egencia, which bought by AmEx. And we were trying to be the expense partner to a whole bunch of travel booking tools and that was moderately successful, I'd say. I mean, it generated business, but didn't knock our socks off.

Operator

So we stopped going to those. And now we have our own booking tools, so we're kind of reengaging on the travel side after taking a year hiatus. And in terms of OpEx, I don't see it dramatically changing anything. There's not a ton of travel conferences. There's a ton of accounting conferences, but not as many travel conferences.

Operator

So I don't think it really shifting the I don't think you'll notice it really.

Speaker 2

Perfect. We've got JMP up next.

Speaker 6

Hey, thanks for the questions guys. A few for me. So, the first one, how much of the initial demand you're seeing for travel is greenfield versus replacing another vendor? And who are you bumping into there when it is competitive?

Operator

First of all, great to hear from you, Aaron. Hope you're enjoying New York. It's a great question. So we're actually seeing both. So obviously, Greenfield is an easier sale.

Operator

They see it, thought about us incredible. How do we start? The sales will slower when you have when you're doing a rip and replace, but we're getting a lot of enthusiasm from even people who currently have a current travel tool.

Speaker 6

So

Operator

it's and also we're seeing a lot of companies, new leads come to us because they saw a travel announcement and I think it's in the 2010s, I think it was very popular or in vogue to have a whole bunch of different point solutions. This is the best in breed of this and this and this and this. And fast forward 10, 12 years, the technology has gotten easier and having a platform doesn't necessarily mean your product sucks. In 2010, if you had multiple products, your products were pretty terrible. That's not really the case anymore.

Operator

And I think platform plays are becoming more popular. And since we've announced T and E, Trail and Expense, we're seeing a lot of customers kind of or a lot of leads come out of the woodwork being we want both. So I think it's not just about cross selling, it's also just been great from bringing new eyes onto Expensify. So we have a lot of brand strength and recognition, but we didn't do travel. And for a lot of companies, that's kind of a deal breaker and now we do travel.

Operator

So they're engaging.

Speaker 6

Awesome. That's really helpful. And New York is wonderful, but like Ryan, there's no place like Ohio. The second question, can you clarify for us on the public call, you have a stock repurchase plan authorized, you're generating cash, have over $30,000,000 in net cash on the balance sheet. Valuation is still near an all time low.

Speaker 6

How does the covenant with your lender that restricts share repurchases work? What's the waiver you've received from the lender? And is buying back shares right now something that you can do with that covenant and something that you're considering, if so?

Operator

Okay. Great question. So for the people that don't dig into our deep into our disclosures. We have a covenant with our lender that limits how much we can how many shares we can buy back. Now we've currently, it's quite low because it's based on a 12 month look back on free cash flow.

Operator

And last Q3, we spent a lot of money. So that's kind of pulling it down. So we expect after this next Q3, we'll that covenant will be loosened up and we'll have the ability to buy back more.

Speaker 6

Got it. Thank you

Operator

so much. We should comment that we're going to, but it's

Speaker 1

Capability. Yes.

Speaker 2

Great. Next up, we have BMO.

Speaker 1

Do we

Speaker 2

have Daniel or Kyle on the line? All right. Let's hop over to Feet Partners.

Speaker 4

Hey there, guys. Thanks for taking the question here. I just wanted to ask on the cards. I think in the press release, it was said that you're planning on getting 100% by the end of the year. So is the plan then to whatever cards haven't been converted to basically forcefully shut them off and ship out new cards?

Speaker 4

And kind of what's the strategy to get to that 100% conversion rate?

Operator

Yes. Great question. So we're seeing so the number we said was at the end of Q2, right? So that's like a 45 day old number. So we're seeing great progress even since then.

Operator

We do think we're probably going I think what you're basically angling at is we'll probably get to a very high percentage and then some percentage will not do anything, right. So we haven't decided if we're going to shut off the cards or not. We don't want to, but I think we're going to try to get there just through some aggressive, hopefully they're not listening, but we're probably not going to shut the cards off. Don't tell them. Yes, don't tell them.

Operator

But we're going to just try to, for account managers and kind of aggressively be like, all right, we got to, we ship them over, because we, last thing we want to do is disrupt some business operations, get them all angry and then they decide to leave us or something like that, right? So we're trying to move everyone with smiles and carrots and spare the stick.

Speaker 1

Yes, I mean, ultimately, these cards do eventually expire and so they'll be forced to migrate over one way or another. We're just trying to accelerate sort of the inevitable timeframe.

Speaker 4

Got it. That makes sense. And then I was just wondering if there's any update on payroll. I think that was a discussion a few quarters ago looking at specific licenses. And so just wanted to see if there's any updates there.

Speaker 1

Sure. I mean, it's a payroll we still use internally. We've got all the we've got most of the moneyless mining transmission licensing in place. I think right now we're just primarily focused on the core business. We have basically the technology and the accounting basically in place, but there's a lot of front end work that needs to happen to make it truly competitive in this market.

Speaker 1

And there's no interest in like launching uncompetitive products. As Ryan mentioned earlier, it's one thing to be able to like, you know, check the boxes that you like technically you've got our products. And then it's that's the first 90% of the work, if you will. But then like the second 90% of the work is actually making it really good and market competitive. And so I think we're in that second 90% right now.

Speaker 1

And I don't think we have an exact estimate of when we'll be launching a truly competitive product, but when we do launch it, it's going to be good.

Operator

We're also waiting 2 NTLs. And there

Speaker 1

are a couple of assets, and they're big ones.

Speaker 4

Right. So I think last we talked it was New York and maybe one other style of thing. So that makes sense. Okay. That's all for me.

Speaker 4

Thanks guys.

Operator

Thank you.

Speaker 2

Great. That wraps the Q and A section.

Operator

All right. Thank you to all very much. As David mentioned, we are actually in the expense this is Expensify chat room. If you want to discuss with us further, I know in the past we had a lot of retail traders come in and talk to us, but you don't have to be retail to come and talk to us, anyone can. So we welcome our institutional friends as well, but we're actually in there.

Operator

So if you want to talk to the CEO, go to this link and we're there to engage with all of our customers or shareholders. So thanks a lot. We'll see you next quarter. Okay. Thanks, everyone.

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Earnings Conference Call
Expensify Q2 2024
00:00 / 00:00