Q1 2022 Expensify Inc Earnings Call
Brian our CFO new our.
<unk> here from technical accounting, we are here to answer the other questions that you have and so let's get started.
Second let's try this again.
First we can start with some fascinating disclaimers made by our.
Been here before.
Before we begin please note that all information presented on today's call is unaudited.
Of course of this call management may make forward looking statements within the meaning of the federal Securities laws.
These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could.
Cause actual results to differ materially from those described in these forward looking statements forward looking statements in the earnings release that we issued today along with the comments on this call are me only as of today and will not be updated as actual events unfold. Please refer to today's press release and our filings with the SEC for a detailed.
Discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward looking statements made today.
Please also note that on todays call management will refer to certain non-GAAP financial measures. While we believe these non-GAAP financial measures provide useful information for investors. The presentation of this information is not intended to be consistent.
Sorry to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please.
Please refer to today's press release or the Investor presentation for a reconciliation of these non-GAAP financial measures the most comparable GAAP measures.
But all of that kind of backs you do it right.
Alright, So we're coming to you live from the bank of expensive high here in Portland, Our lovely office up here.
And the great great North So first we're going to start off just talking about a reminder of why we're all here basically what is the heart's too expensive I sort of see success in our restaurants three major pillars. The first is that we believe the market size is.
Is enormous and the opportunity is huge.
I think that basically.
All the companies in the world virtually none of them do anything yes, almost every company in the world.
Is still struggling with expense management, and we think that that's all of them are going to switch to some platform and we're getting for it. So we think there's a huge opportunity and we have a business model that can acquire at all this business model is unique to expense all of our competition has the same classic topped out an enterprise sales model and charter it only really works in enterprise.
The vast majority of opportunities outside of that inaccessible to the traditional business models and so we think that we have a unique opportunity to capture the overwhelming majority of the market. We think this market is huge we think we can link 1 billion people together on a common platform Instagram can link 1 billion people through photos. We think we can do the same through money so to kind of dig into that a bit more there.
Market is enormous and it's not just the enterprise we think that we can go into the overwhelming opportunity size of the SMB in the SMB is by far the biggest and best part of the market the highest margin part of the market and so yes. We can go anywhere we have enterprise customers, who have all sorts of customers, but we think the greatest part of the opportunity as SMB, where we are uniquely odd.
<unk> and focus on.
Our model basically involves brand advertising and premium acquisition to create really efficient lead generation and then we have a super efficient high velocity sales model involves inside sales team our partners and of course, our just automatic self service subscriptions. We think that all of this is what leads to our super profitable growth over time.
As a reminder, our business model works by individual employees are signing up for expensive high in the company before waiting to be before being asked or asking permission is basically signing up and giving a shot just turns every expense report into a highly targeted marketing message directly to the decision maker and so this is the way that we can generate leads in the companies of all sizes basically with.
Having to pay for them and thus be able to close them. Turning every employee of other companies into a salesperson for expensive line.
Come on quicker you can do it ever again.
So a centralized model where things were the only ones who can reach the full markets. We're in.
The only ones, who can make five super important claims first we have true enterprise scale. We can go up to the very top of the market. So far at the large multinational public companies like ourselves.
And but we also have a consumer grade design, we can meet the bottom of the market and support basically the small vsp's individuals as they're just entering into the entrepreneurial space the side Hustle phase things like this we have global reach with support all currencies were also a corporate card feeds.
We have not just native corporate card by card, but also need a corporate travel as well built into our concierge and finally all of this is free.
We're the only company that can make these five claims.
We think this is very unique to expensive and this is a key part of why we think we can capture the hallmark.
We think there's a huge huge opportunity out there about uniting all these previously the spirit financial use cases into a single flow everything from unstructured chat to PDP wallet functionality like that no corporate travel invoicing adult processing corporate card payroll expense. We think we can link all of this onto a common platform.
Because they're all the same variations upon the same common theme, it's Elisa expenses that she gives us someone independent return and so we're taking it all.
So maybe just a kind of a there's a quick refresher for everyone.
It doesn't already know most of you do and just to kind of touch on a couple of different business updates first as we launched our CPA Cox C.
<unk> card is the very first corporate card build exclusively for accountants and their clients and so this card has number of perks designed specifically for accountants Spike reimbursing AICPA memberships CPE credits and things like this also has dedicated and special pricing for accountants to manage the firms and so this is the first into the industry.
We're taking this out through our extensive partner network out to all the accounting firms in the world and we're Super excited about the traction so far.
Second, let's talk about the pipeline and so the preplanned isn't new but we're going to talk about some exciting sort of growth we've had and so the free plan. We would like to say is the freest a free plans around has more functionality than anything else in the market. He has all sorts of administrative features to manage not just your expense report it and not just reimbursements, but also has a.
Corporate card you can send invoices you can pay bills. So you can collect revenue and support everything he would be corporate travel as everything built into a single platform that is completely free from the essentially free plan is designed for company is again small businesses and they started their journey when they are brand new and just getting started but as a complete platform.
For everything.
And so we like to say at this.
Free customers pay us in a few different ways first excuse expense by card you're generating interchange for us and so basically every use of defense by card is making us interchange, even though it's free for the customer it makes us cash.
They are paying us in viral Legion every time you send an invoice you are sending it to the accounts payable group are a different company and so invoicing adult processing allows us to leapfrog between the accounting department to different companies and so basically just to use the free plan you can't help but promoting everyone around your.
Third of course is users you pay us and word of mouth and branding to use expensive by it because it touches such a potent pinpoint you just can't help but talk about it and so we would much rather that youre using expense by for free and then continuing to use excel or as a competitor and so basically locks up and establish their brands amidst market.
And then of course, you know you don't say free forever. Eventually at your company is successful you keep hiring and growing our complexity hits, a certain point, where you cross one of our paywall. So they become a fully paid subscription. So the free plan has an incredible plan there were super excited about.
That I think I will turn it over to al.
Hello, everyone I'm excited to talk to you about our Q1 performance Q1 is kind of interesting in that it was the height of the pandemic so more people.
<unk> got Covid in Q1, which as you know.
Provides a kind of an interesting condition for a banner.
Better business month by actually March was our second best month in company history, and I'm going to kind of a breakdown on what that means.
So first let's get off on a let's talk about the actual results. So our range was 38% to $36 million.
Eight six to $39 6 million in revenue we came in at 44, so above expectations and then paid members were expecting 684 to 700 to we actually came in over that as well, it's seven or six so things are going great and we're excited about the performance, we're seeing and the growth of the business.
I mentioned the impact of Omicron. So we got a lot of questions about this last time. So I wanted to just explain how this all.
About a quarter kind of shook out so in December we have a great a great end of the year in January Oh, Mccrumb peaks like I said more people infected in January than any other time I independencia.
Whats great about that great.
Is that once people got affected but they got over very quickly. It didnt last as long as kind of the other spikes and we see that in our numbers. So in March we actually if you were to cut out January and February and just took March from the December it's actually consistent up into the right. However, we did have that omicron impact in the first half of the quarter.
It makes it tough, but we had a huge rebound in March so going forward, we feel great things are moving perfectly obviously I'm a crown is a bump in the road.
Okay.
We continue to demonstrate strong long term growth. So again 706000 paid members $44 million in revenue our year on year revenue growth was 36% and on an annualized basis, that's $161 6 million.
Revenue.
I also wanted to talk about kind of the profitability of the business. So we generate significant cash and profit our operating cash flow was $11 2 million.
On a GAAP net loss basis, we had negative $7 4 million that is driven primarily by the stock based comp expense. If you back out stock based comp of our non-GAAP net income was $7 3 million and just EBIT was $11 million.
Yeah.
Okay.
Oh.
Yes.
Quakers Okay.
Wi Fi.
David It's.
Talk about the free plan I wanted to actually just share some numbers. So we had over 9000, new customers sign up for the free plan, that's 183% quarter over quarter increase in free plan members. So the free plan is extremely popular and as David kind of went through how are these customers pay us either through word of mouth through actual interchange.
Or actually upgrading into a paid plan we see this as a very exciting time for things to come and this plan has not been out very long and it's it's going great. So we wanted to really just highlight some.
Exciting signs of future growth and we think that this is one of them.
We also reaffirm our long term growth guidance not only this year, but we think that we can maintain a 25% to 35% growth over multiple years going forward. So we just wanted to remind everyone of that.
And that with that we'll start our Q&A.
And he was going to come in here.
Yeah.
[laughter].
Oh, So first we have Brent from Piper Sandler.
Thank you for asking the question here and great to see the business step back from a payer perspective post the.
Amacrinal Air Pocket I guess first question is really on just this general.
General return to business travel.
But you are clearly seeing in March looks like that returned to business travel continued into April and May.
Maybe walk us through the lag or the timing of when you start to see a return to travel start to show up either in active paid member users or in kind of TPB volume just trying to.
Understand how we should connect the dots centers, we see external business trying to pick up and how that impacts your business.
So more people traveling is obviously great for us not only because they are more active on the platform, but actually we see more sign ups in times. When people are growing the reason for that is we saw that very real pinpoint and that's when.
<unk> expense reports, so people complaining more about expense reports when they're traveling so if we see more people traveling not only are they more active on our platform. Other people who are not using expensive high are complaining about expense management and because we have such a strong brand in that space are more likely to get a recommendation for expense by when we have more people actively complaining about traffic are.
Travel, which we didn't have in obviously during the Covid periods. So you asked about the lag time so.
We bill in arrears, so basically like a 30 day lag. So if we see a huge upticks, let's say in April if theres a bunch of reports that.
No travel doubled or something that that'd be wildly if that were to happen that would show up the next months in terms of.
When we would see that helpful color, there and just to be clear on that.
The Delta between the reported 706000 paid members versus the.
742000 in your slide the Delta there is just the average we should think about when you report the quarterly.
Paid members.
No such as the average over the full quarter and then.
742000 was just a snapshot is that the right way to think about it. It is a great question Brent so that the paid user number that we report every quarter that is the average of three months. So normally we don't break out months and we won't do this going forward, but we felt like this this is a very important piece of data that we need to show and if we were the average doesn't tell the whole story.
You're right we had the height of the pandemic numbers are down.
Actually the second best month in company history from paid member perspective in March but that isn't showing up in the in the average and just so you know the first best month in company history was the month prior to the pandemic. So.
The second best one we think that is actually really exciting.
But we will not be showing monthly data going forward. It just usually an average but this was important for that.
We won't complain we won't compete.
If you could choose to disclose more okay and my last question kind of a follow up here on the free plan. It sounds like really good momentum this quarter could you describe the type of.
Customers.
You landed it looked like about close to 5000 net new.
Folks going on in the free funnel. These small entrepreneur is they are just now starting out with that.
Now that our onboarding or is it a wide range I'm just trying to understand sure.
That customer profile looks like for my own PPV assumptions, yes. That's a great question I think if we got to go back to our island of markets.
This is the it shows you the beachhead as basically these are like again the sole proprietor.
Side Hustle brand, new SMB as people just entering the market. So we view it like very much top of funnel for us.
We're trying to capture every one of the very earliest points of their journey with a free product because once we're in then we stay in forever. So long as we just don't screw it up basically because it looks like if we're already there and then and invoicing solutions like if I can just use the one they already have and also like I need to start finally, I have some bills I should probably start using this dose and things like this and so I just want to be.
Have pull position for every new financial use case, they have by getting to the right and the earliest point and then we can hold on to them as they go through their journey as they go up to the you know the snow each under the north like well, we can follow up on the entire way.
Very helpful color, there ill cede the floor, but great to see the recovery of the business. Thanks.
Well, one thing to add to that the three plan metrics. So it's.
Definitely concentrated more towards the smaller customers so.
One to five employee companies, but there's actually an immaterial number of slightly larger companies in there. So I like the 10 to 20 range and that's interesting because sometimes accompany comes in onboard on the fleet plan used to sit in a very.
No control simple use case test it out.
We don't know yet how long, but like for some period of time and then decide to upgrade so theres actually whilst still an edge case, a healthy pipeline as well so.
That's exciting and we.
We look forward to talking more about.
Conversion in the coming quarters.
The next question, let's go to Koji at Bank of America.
Hey, Hey, guys can you hear me okay.
Okay.
Alright. Thank you so much thank you so much.
Boston and a couple of different calls here. So apologies it sounds like you gave some good information on on the subscriber side. So so thank you for that.
Just wanted to ask you a question on you reported the fourth quarter essentially at the end of Q1.
On March 30th, but you did beat by the subs.
The subs and the rats and it sound like you beat the rabbits in the March quarter by a lot. So just curious was that just conservatism. When you were coming out on the fourth quarter call guided to this quarter or was there something else going on that just kind of surprised you right at the end of the quarter.
So the guidance that we gave was based on how we saw the quarter coming out but.
The.
I mean March was a really big month rate was the second largest so that every single week the numbers were going.
Up and up so we gave the best guidance that we we thought at the time and maybe came in a little bit about that.
Got it.
If it isn't for the sake of it like one thing to consider is we now at the point that we get the call. We know what we know about activity, but from an accounting perspective, we havent yet.
Revenue. So we also want to make sure that we take into consideration that there might be accounting related.
You know.
Treatments that might differ based on the actual results. So that's why we do a range.
Got it got it and then just one follow up for me Yeah apologies again, if you mentioned this on the call Ryan in your commentary just any sort of change in the way youre thinking about sales and marketing spend for the rest of the year, especially given that you did had such a record quarter a record month of new and new sub adds I mean are you.
Are you thinking about sales and marketing the same as you did kind of a couple of months ago are you decided to maybe step on the gas a little bit any sort of help there and the way we should be thinking about your sales spend for marketing right.
We're not currently planning on increasing it we're still measuring the effectiveness in all these markets because remember we kind of exploded onto all of these in the top 20 largest markets in the U S and we mentioned last quarter that we are.
Layering in more of a sales function and we've had historically so I would expect a relatively.
Relatively the same amount of S M.
Were thinking before but we're actually gonna be probably adding in more sales, but less marketing and.
We have experimented with that got it. Thanks for taking my question guys I appreciate it.
You can see them.
Next we go to Tyler from Citi.
Hi, there.
Uh huh.
Hey, Thanks for taking the question I wanted to see.
If you could just comment.
Okay.
We just lost Tyler.
Well hope you back Okay that was one of them are down okay.
Can you just talk about you know clearly really nice improvement through.
Throughout the month of March to that $700.
I don't know.
I don't know if it keeps going out.
Great.
Can you talk about how thats trended through April and May has that improvement continued.
Just to make sure are you, saying.
Are you asking for insight into how pay members are looking in the.
In Q2.
So what you're asking.
Yes.
Yes, the paid member growth throughout Q2 since the end of March.
It's doing great. Obviously, we were not seen a drop like we saw in Q1. So I think that the growth has remained consistent and obviously, we're not going to give guidance here, but it's going.
Great.
Okay and.
I'm curious like with that drop how much of.
Sorry, not less.
So with the drop in paid members how much of an impact did that have on interchange revenue and would you expect that growth to accelerate.
Now that you have this free program, and obviously, where we're kind of through omicron, yeah. That's a that's a really great question. So.
If you, let's say we were to layer on the.
Interchange onto this chart.
Went down with omicron, but.
The quarter over quarter increase in interchange was 15%.
And that's despite the omicron.
Drop so obviously that did negatively impact that but.
It was still a theres a bigger growth in interchange and there was in revenue quarter over quarter. Despite that but we do believe and know that or kind of impacted the growth of the interchange to answer your question.
Yeah, I guess like just given what youre seeing in the free.
Momentum, which should help the interchange business as well now that we're post omicron like.
Should we think about year over year growth.
Accelerating kind of going forward of that interchange revenue because this was kind of such an impacted quarter.
I think one months it's Kew.
Like the one month impact is very pronounced in the quarter leave yourself, but when you look annually at a program like card, which is still kind of an evolutionary stage could be launched two years ago and it really started to kick off on post pandemic I don't think I think it's a blend in the annual Chinese so I don't think a chip fuses.
It's not going to be material to the results when you look at it year over year.
The way, we see people modeling I think is probably.
Yeah.
Okay, great. Thanks for taking my question Yeah. It maybe let's talk about this in Q2.
That's good because it's a weird quarter right so would it be.
We can talk about that alright.
Thanks.
No problem. Thank you.
And next we go to pack a T M P security.
Do we have that.
Okay. So for that to maybe later, so mark from loop capital.
There's a connection issue.
Let's try Daniel at BMO.
And can you hear me, yes, okay. It won't let me start my video so I apologize.
I'd love to see you in person but.
[laughter].
So on the buyback program right there was announced today as well it wasn't mentioned, but I'd love to kind of compare and contrast, your commentary about how impressive the market opportunity is and how it's a race to capture it and sort of the choice to do a buyback program incentive investing not for growth.
Okay.
Great question, and so I think that we're just talking about 1 billion user.
Opportunity that's.
That's not an opportunity that you capture through advertising.
The way that we grow in the long run like the bulk of the area welcome.
The bulk of our you know between now and the next billion users, there's not going to be acquired by someone like clicking on an AD or talking to sales person is going to come because we've cracked the viral codes and so all of our.
The primary driver in the long run of long term growth is going to be a product and viral and so I think that its tempting to see like basically you know there's direct correlation between spending on customer acquisition and growth but.
But I think that Ah.
And we have definitely been very aggressive when it comes to spending on advertising customer acquisition, but you Shouldnt Miss attributes.
Our current gross exclusively to our increased advertising I think the bulk of that growth as a consequence of just a better product.
Better market conditions, and our ability to capture this sort of viral loops, which is just a long way to say I think that.
There is a point of diminishing returns to advertisers like right now we buy every single.
Seaward relevance to expense management and things like everyone. Every single one like you can't 10, XD amounts of qualified inventory available.
Even if our money does tenants and so like we're in we're in a ridiculous number of cities like I see our billboards in Portland, like 10 times a day.
And it was like Okay, I can do 20, or 100 times a day, but like at some point, it's like Okay. It's just pretty saturated and so I think that like we're already one of the top advertisers in outdoor advertising and the nation.
And so I think that.
Advertising is great.
And customer acquisitions wonderful.
But we just have a business that kicks off so much cash.
At some point.
Spending on another Billboard or another add isn't the best use of funds.
No I think that also is I guess, just said, it's a crazy market conditions and so this is not an obligation to do anything but it is an opportunity and so basically we're saying it's like hey, we're authorized if conditions warranted and we think at the moment. This is the right thing to do then we can act quickly, but its not an obligation to do so any additional thoughts on that.
Yeah, I think so we have had a lot of discipline are growing sustainably over the last decade, and we've managed to grow at a great pace and also add cash in the bank.
<unk>.
The buyback would never any shares that are repurchased would not be at the expense of sales and marketing growth or anything like that it's if you have excess cash and you're just collecting interest on it.
Buy back some shares versus just having a sitting on a bigger and bigger pilot cash overtime. So.
That's kind of the thought process behind the authorization of that it's not instead of growth. It's what do we do with the cash in excess of all the money we're spending.
Great I appreciate the context and then.
It Hasnt been asked yet so I'll ask it.
Any update on the Marquette at contract. Thanks.
Actually some pretty good progress.
Progress when do you want to yeah, I mean, we're still working through it.
More of the same but we're making steady progress we still think we can get it done this year.
We are working right now to make sure you're locked and loaded on the accounting treatment, which is like the primary goal of doing it.
So we're trying to get it all right.
But great progress and we're more confident than even more confident this quarter than we were last [laughter] gotcha, and maybe I can just sneak one in one more and then how's the dip.
Penetration of the card into the non free days, how is that trending relative to your expectations. Thanks.
That's a great question. So we have done a great job of getting.
Customers signed up on the card. So I believe around the time of IPO, we were like at a four 5% or it was 5% something like that go back and check. This one so something like that and now we're looking at more at about a 9% catch rate that's customer signed up now that doesn't mean, a 9% fully penetrated process customers our job now is to.
Ah gets all of the employees.
Using the card and all of these customers, but we're actually doing.
I'm very very happy with.
Our ability to get customers signed up and are our job now is to just make sure that they fully deployed across the company because that is kind of a habit change so yeah.
And I don't know if you guys saw this but.
It may be a month.
Less than a month ago, we launched funky settlements, which we have some early results. Although we're not giving we're not talking about exact numbers yearly results have actually been super promising. So it was one of the most requested enhancements to the card, which we've got now. So we are very optimistic that didn't give us a little bit of a.
You can already.
The momentum program and let me explain a little bit what that means so they've since my car to date has been a daily settlement program, which is really great for sort of high spend.
Companies. So basically it's optimized for companies that need to turn over their credit very very quickly. So if you got like an $800000 limit or something like this for $10000 limit you can do every single day $10000. So you can spend a lot of money very quickly, but especially as we go into other companies that are more cash constrained, who actually want to sort of finance the business, they're not turning over that.
Turning over their credits correctly, they actually went extended over a longer period of time. So I think we're the only program that supports basically both monthly and daily settlement option monthly, it's really great for highest spends companies.
The daily is really good precedent claims month is really great for sort of.
Cash constrained company trying to finance or their operations and so we support both ends of that I think that we've found that actually the cash constrained at spectrum as the more attractive for the accounting community and that's why we launched it in parallel with our CPA card. Because this is something that we found that.
<unk> are no longer just trying to identify problems, but also solve problems for our clients and soon to say Hey, you are very constrained when it comes to your credit facilities now they can work through us to be extending essentially credit to their clients through the expense by CPA car. So I think that it's a new thing, but we're very very excited about it and when we know our accounting partners of our Super Duper excited about.
Great. Thank you very much everyone.
So, let's try and Mark from loop capital one more time.
We have anyone left.
Hi can you hear me okay.
Yeah.
Hi, yes so.
For taking my question Dave question for you on the last quarters call. You mentioned that you were adding outbound capabilities to your go to market motion.
Basically where you go out and call prospective customers.
Realize it's still early days for that initiative I was wondering if you just give us an update on how those efforts are going.
Yeah, I mean, I'd say, it's still early days I think that basically our philosophy overall, it's going to expand this sort of inside sales team such that we can turnaround.
<unk> within 30 seconds or so basically when anyone wants to call. It 24, seven that theres someone there who is able to pick up the phone and talk to them and gives them a demo us like you know within 30 seconds to request that sort of the main focus right now is nailing that down and in our approach towards outbound is because the way that you ensure that you can do that is you just have an excess of people sitting around at all times and then I'll.
Bound is basically how you fill in the gaps between them and so we are putting an enormous amount of effort into this is substantially size of that team and I think we're super excited about that progress still early days in terms of from a results perspective, but it's definitely something we're excited about and working on.
Okay, great. Thank you and then a question on the hiring front many software companies and tech companies out there are having.
Difficult time hiring good talent I was just wondering if you could just.
Just give us an update and discuss how the company is managing through.
Some of the hiring challenges.
That's interesting that's something we talk about a lot internally and I think that.
We have a number of ways one of which is our approach towards just.
Just building a team I think for a lot of companies hiring is you know, it's a vanity metric like basketball people like Oh, Yeah, We go higher if.
We had 500 people this quarter or something like that and they brag about it like this is a sign of success with.
We view hiring but like golf as I go to hire the fewest people necessary to solve the problems that we have but even better than the hiring is not one don't have problems to automate the way the solution to those problems and then three find some outsource provider that can actually solve that problem and for super cost effective and scalable way and then only for basically if we can't solve that.
Problem in any other way should we be expanding sort of the core team. So our core team is really just kind of the creative collaborative hub of the company and.
Expansion of the core team does not correlate directly with sort of revenue growth like we can and we've already shown that we can double <unk> revenue with the current team and so.
We hire not to just keep the business running we hire in order to pursue more opportunities and so there's kind of like there's not a direct relationship between those two hiring is basically necessary to sustain very long term growth, but it does actually have really any impact on the short term. So that's all just a long preamble to say.
We're not hiring the same kinds of people with a lot of other companies are like a lot of companies are like that it's really hard to find 500 qualified engineers since like yeah I'm sure. It is that's pretty tough.
Not looking for 500 pumping.
We're pretty much hiring one absolutely amazing person months like more or less.
And for US that's a good rate because we'd like to really.
Invest in our existing team so much to get the maximum value to everyone and so I think that the.
We hire slowly.
But that's all that's by design and we've never struggled to higher in fact, we actually just kind of have been increasing our hiring standards over across the board because we are finding it easier and easier to hire and so forth.
We're looking to hire at a very controlled rates and only the absolute best of the best and I feel like we do very well at that.
To add to that we did.
I agree with all of that but we also did hired two very seasoned individuals into an accounting team, which we're very excited about them and that is I guess, an example of a strategic hire like an area that we're picking up in fact, we.
Our paying closer attention to you and.
I'm looking forward to getting a lot of those processes well I am done.
As a great place to work so we don't really have.
Maybe the same challenges that other people that's the third point, we don't have to turnover problems either so it's not like we're replacing.
Yeah like most companies is basically like you know the average is even if like two years or something like that so it's like look to your left like you're right. One of those people started six months ago, Netherlands, Italy, even six months. It's like most companies are just frantically treading water.
Whereas we just hold onto people kind of forever and so we just don't have to have that steady replacement. You know if you have to turn over your head.
On average are inherent boy base every couple of years, but it does make it very hard to higher [laughter], we retain everyone for basically forever. So we don't struggle with that as much yep.
Great. Thank you.
One last question from Pat.
I think having technical difficulties theme park. His question is what are one or two most important things on David to do list for this year, Oh Man [laughter]. That's a great question that you're killing me.
Mostly challenge [laughter], most important thing as I get that.
I mean.
Lot of it is just the table stakes of being a public company like where a new public company and I'm like we talked about we're beefing up our accounting where are going to Sox compliance.
And there's just a lot of work to.
Just make sure that we can continue to earn the position that we have like this conversation, we're having right now with some exciting conversation, but it's also kind of a new conversation, where we're kind of working out.
We are beefing up our muscle memory for how to do this and so I'd say first is just and it's pretty boring, but just organizational excellence does like what is all the important stuff. When you do write it down get everyone trained on it getting everyone's doing it reliably and so it's.
It's not the Sexiest thing, but it's something that I care, a lot about and so I know I'm, putting a lot of personal attention that's fine.
And then second I would say is.
Finishing reunification, so I'd say like on our product roadmap.
We're.
Doing a tremendous amount of investments into this new vision of what the industry can do and it's a new thing. It takes a lot of work and so we have a huge fraction of our team are.
Working on a daily basis to imagine, especially new check centric.
First mobile first way not just your expense management, but to do all corporate finance on a single platform and no one's ever done that before and I won't even try multiple do you think it's possible, but we do and so we put a lot of thought into that and so I'd say I balance my time between on one hand, just holding the organizations our feet to the fire for like.
Incredible efficiency and just excellence across the board in the exciting things and on the boring things.
And then on the other hand participating in these very robust discussions we have but how are we going to disrupt and revolutionize this industry forever.
And that's exciting and both of those are very.
Oh, I think we're ready to wrap it up.
Well as always.
It's a pleasure so to summarize in Q1.
Remains cash flow positive and profitable despite peak COVID-19, which is a pretty exciting thing revenues up 36% essentially causes 150% pre funds up 183% from last quarter alone. So this is an exciting time for the business I'm. So I mean this is the most obvious thing in the world really excited of the Cove. It looks like maybe it's behind us kind of ish.
And so.
Well the more that's true the more things are gonna be awesome, and because we were built for good times and bad, but obviously, we like.
Good times better.
I think that's it. Thank you so much for those of you here in the next quarter.
Let's see I'm thinking.
[laughter].