EXFY - Expensify drops 19% on Q1 earnings miss BMO downgrades stock
2023-05-10 11:10:31 ET
- BMO Capital Markets downgraded Expensify ( NASDAQ: EXFY ) to Market Perform from Outperform after the company's Q1 results missed estimates , given slowdown in paid subscriptions and falling revenue per user, pushing its stock down 19% .
- The research firm expects near-term growth pressure for Expensify ( EXFY ) driven by macro environment forces.
- "Given weaker than expected Q1 growth and a slow start to April, we see a greater possibility that growth decelerates further in the near-term," said analyst Daniel Jester.
- "The disconnect between management's long-term growth view, lack of guidance to anchor expectations, and recent performance make this a 'show-me' story in what we anticipate will remain an uneven macro this year," he added.
- EPS estimates for 2023/2024 were reduced to $0.27/$0.32 from prior outlook of $0.37/$0.45 ($0.32/$0.41 consensus ).
- Price target was cut to $8.50 from $12, implying 17.4% potential upside to EXFY's last close.
- Wall Street analysts on average rate EXFY Buy , but SA Quant is bearish on the stock.
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Expensify drops 19% on Q1 earnings miss, BMO downgrades stock