EXFY - Expensify under pressure after disappointing Q3 Piper Sandler downgrade

• Expensify ( NASDAQ: EXFY ) is trading around -20% following a Q3 performance that fell below analysts' expectations and a subsequent downgrade from Piper Sandler.
• Revenue was up 13% Y/Y to $42.5 million but fell short of the consensus estimate, and Expensify noted some expected but temporary downward pressure on ARPU. The top line was also hurt by some currency headwinds with a stronger U.S. dollar and cashback from growing card volumes.
• Expensify also posted a net loss of $8.2M, wider than the $6.3M loss reported in Q3 of 2021.
• Piper Sandler responded with a downgrade to Neutral from Overweight, noting the gap between Q3 numbers and estimates “has clouded visibility into the growth trajectory next year” and higher near-term execution risk.
• Other investment firms also weighed in, with Citi raising concerns over macro conditions and and execution.
• BMO Capital Markets called the results "below expectations on most key metrics, but underlying growth was better than reported adjusting for interchange, card rewards, and FX."
• Loop Capital called Q3 a disappointing quarter but suggested the risk profile looks more attractive.

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