Expensify, Inc. (NASDAQ:EXFY) Q3 2023 Earnings Call Transcript

Anu Muralidharan: Paid AdWords.

Ryan Schaffer : Right, get us versus a dollar towards in outbound. Sales representative and the economics that we’re seeing. We made some really big improvements kind of in our in our marketing efficiency. So the — we’ve just determined — it wasn’t a very hard decision. So we just determined that dollar spent in column A is way more than — way better bang for a buck than a dollar spend in column B. So that’s how we made that decision.

Unidentified Analyst : Okay. Great. And then, yes, I realized the company doesn’t publish retention metrics, but I was wondering if you can just comment on churn in the business and how that’s trending? I mean, is it relatively consistent with the decline in paid members?

Ryan Schaffer : No. We because we’re seeing paid customers stay with us, decrease their activity. So the — a decrease in users is not like a one to one correlation in decrease in customers because customers are staying with us, but their activity is decreasing.

Anu Muralidharan: And that’s the biggest swing. That’s always the thing that is responsible for growth, and it’s always the thing that is responsible for lack of growth. Because there’s a base of — at last count 45,000 companies, 50,000 companies that pay us, so that’s a big base. So if you onboard, I don’t know, even 3,000 — I’m making these numbers up. If you onboard even 3,000 companies, their first couple of months, they’re not going to deploy it to the entire company. They will start team by team. So no amount of new acquisition will ever be big enough compared to usage expansion in my existing customers because the base of customers is very diversified and quite large. I’m guessing it does.

Operator: Next, we have FT Partners. Matthew, are you still on the line? Okay. Well, we will see you in the follow-up calls then.

Operator: That is everybody.

Ryan Schaffer : All right. Thank you all very much for joining us.

Anu Muralidharan : Appreciate it.

Ryan Schaffer : We’ll see you next quarter.

Anu Muralidharan : Bye.

Operator: Good bye.