Expensify, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Oregon on behalf of those who acquired Expensify, Inc. (“Expensify” or the “Company) (NASDAQ: EXFY) securities in connection with the Company’s initial public offering (“IPO”) on November 11, 2021. Investors have until January 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On October 15, 2021, Expensify filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Company’s IPO, which, after several amendments, was declared effective by the SEC on November 9, 2021. On or about November 11, 2021, pursuant to its offering documents, Expensify conducted its IPO, selling 9.73 million shares priced at $27.00 per share. On November 12, 2021, Expensify filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement.
On June 12, 2023, Morgan Stanley downgraded Expensify to Underweight from Equal-weight, citing structural headwinds and the Company’s risk-reward profile. On this news, the price of Expensify shares declined by $0.45 per share, or approximately 6.28%, from $7.17 per share to close at $6.72 on June 12, 2023.
On August 8, 2023, Expensify announced its second quarter 2023 financial and operating results. Among other items, Expensify reported GAAP EPS of negative $0.14, missing consensus estimate of negative $0.07, and revenue of $38.9 million, which likewise missed the consensus estimate of $41.5 million. Expensify also withdrew its previously issued revenue growth guidance. Following Expensify’s disclosures, JMP Securities downgraded the Company to Market Perform from Market Outperform. On this news, the price of Expensify shares declined by $1.69 per share, or approximately 28.55%, from $5.92 per share to close at $4.23 on August 9, 2023.
On November 7, 2023, Expensify announced third quarter 2023 financial and operating results that once again missed consensus estimates amid macroeconomic headwinds. Among other items, Expensify reported a third quarter GAAP loss of $0.21 per share and a 14.1% year-over-year revenue decline. On this news, the price of Expensify shares declined by $1.07 per share, or approximately 36.89%, from $2.90 per share to close at $1.83 on November 8, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Expensify’s revenue growth was highly susceptible to structural and macroeconomic headwinds; (ii) as a result, the Company overstated the efficacy of its business model and the likelihood it would meet the long-term growth projections touted in the Offering Documents; (iii) accordingly, the Company’s post-IPO financial position and/or business prospects were overstated; and (iv) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 15, 2021, Expensify filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Company’s IPO, which, after several amendments, was declared effective by the SEC on November 9, 2021. On or about November 11, 2021, pursuant to its offering documents, Expensify conducted its IPO, selling 9.73 million shares priced at $27.00 per share. On November 12, 2021, Expensify filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement.
On June 12, 2023, Morgan Stanley downgraded Expensify to Underweight from Equal-weight, citing structural headwinds and the Company’s risk-reward profile. On this news, the price of Expensify shares declined by $0.45 per share, or approximately 6.28%, from $7.17 per share to close at $6.72 on June 12, 2023.
On August 8, 2023, Expensify announced its second quarter 2023 financial and operating results. Among other items, Expensify reported GAAP EPS of negative $0.14, missing consensus estimate of negative $0.07, and revenue of $38.9 million, which likewise missed the consensus estimate of $41.5 million. Expensify also withdrew its previously issued revenue growth guidance. Following Expensify’s disclosures, JMP Securities downgraded the Company to Market Perform from Market Outperform. On this news, the price of Expensify shares declined by $1.69 per share, or approximately 28.55%, from $5.92 per share to close at $4.23 on August 9, 2023.
On November 7, 2023, Expensify announced third quarter 2023 financial and operating results that once again missed consensus estimates amid macroeconomic headwinds. Among other items, Expensify reported a third quarter GAAP loss of $0.21 per share and a 14.1% year-over-year revenue decline. On this news, the price of Expensify shares declined by $1.07 per share, or approximately 36.89%, from $2.90 per share to close at $1.83 on November 8, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Expensify’s revenue growth was highly susceptible to structural and macroeconomic headwinds; (ii) as a result, the Company overstated the efficacy of its business model and the likelihood it would meet the long-term growth projections touted in the Offering Documents; (iii) accordingly, the Company’s post-IPO financial position and/or business prospects were overstated; and (iv) as a result, Defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.