On Friday, JMP Securities raised its rating on Expensify Inc (NASDAQ:EXFY) stock to Market Outperform, previously at Market Perform, alongside setting a new price target of $2.50. This adjustment followed the company’s announcement of mixed results for the second quarter of 2024.
Expensify reported its adjusted EBITDA at $10.2 million, surpassing the consensus estimate of $6.6 million. However, the company’s GAAP revenue came in at $33.3 million, which fell short of the expected $36.2 million. Despite a year-over-year decrease of 14% in revenue, this marked an improvement from the previous quarter’s 16% year-over-year decline.
The company ended the quarter with 684,000 paid members, which was a decrease of 8% from the same period last year but remained consistent with the first quarter’s numbers. The paid membership count slightly exceeded the estimate of 673,000 by Citizens JMPe.
Following the earnings report, Expensify’s stock experienced an approximate 8% increase in the aftermarket. This uptick came as a positive change for the stock, which had seen a significant 38% drop year-to-date, in stark contrast to the Russell 3000’s 10% rise over the same period.
InvestingPro Insights
In light of Expensify Inc’s (NASDAQ:EXFY) recent earnings report and the subsequent upgrade by JMP Securities, several metrics from InvestingPro provide additional context for investors considering the company’s financial health and stock performance. Despite surpassing adjusted EBITDA estimates, Expensify’s revenue decline is echoed in the InvestingPro data, which shows a -14.84% revenue growth over the last twelve months as of Q1 2024. Moreover, the company’s stock has struggled with a -63.59% one-year price total return, highlighting the challenges it faces in the market.
InvestingPro Tips reveal that analysts have revised their earnings downwards for the upcoming period, possibly reflecting concerns over the company’s future profitability. However, it’s noteworthy that Expensify holds more cash than debt, which could provide some financial stability. For investors seeking a deeper dive into Expensify’s potential, there are additional InvestingPro Tips available that could shed light on the company’s prospects.
Another key point from InvestingPro is the fair value estimation. While JMP Securities set a new price target of $2.50, InvestingPro’s fair value assessment stands at $2.03, offering a slightly more conservative perspective on the stock’s valuation. This difference may be significant for investors weighing the potential for growth against the backdrop of recent stock performance and revenue trends.
For those interested in a comprehensive analysis of Expensify, including further InvestingPro Tips that could inform investment decisions, additional resources are available at https://www.investing.com/pro/EXFY.
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