Q2 2024 Expensify Inc Earnings Call

We have our founder and CEO and co founder.

David Barrett.

Speaker Change: But before we begin please note that all the information presented on today's call is unaudited and during the course of this call management may make forward looking statements within the meaning of the.

Speaker Change: The federal security laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ.

Speaker Change: Differ materially from those described in these forward looking statements forward looking statements in the earnings release that we issued today along with our comments on this call are made only as of today and will not be updated as actual events unfold.

Speaker Change: 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 today's call management will refer to certain non-GAAP financial measure measures. While we believe these non-GAAP financial measures.

Speaker Change: Useful information for investors. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to today's press release or the Investor presentation for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures.

With that out of the way, let's talk about the financials.

Speaker Change: In Q2, our revenue was $33 3 million.

Speaker Change: Our average paid members were 684000.

Speaker Change: These numbers have basically leveled off there effectively flat quarter over quarter. They are both within 1% of Q1.

Speaker Change: And also our interchange was $4 million, which is a 14% quarter over quarter increase and a 48% year over year.

Speaker Change: Our.

Operating cash flow was $9 3 million again operating cash flow includes timing of customer funds, which can.

Speaker Change: Very depending on when the quarter ends are.

Speaker Change: Our free cash flow, which excludes the timing of customer funds was $5 seven.

Speaker Change: $7 million, which is a 10% quarter over quarter increase something we're very happy about we've talked a lot about our cost cutting measures and we're pleased with the results that we're seeing.

Speaker Change: Our net loss of $2 8 million, but our non-GAAP net income was $5 6 million and our adjusted EBITDA was $10 2 million, it's something we're very happy about.

Unknown Executive: I have our founder and CEO, not co-founder, David Barrett.

Unknown Executive: I have our founder and CEO, not co-founder, David Barrett. Before we begin, please note that all the information presented on today's call is unhaunted and during the course of this call, management may make forward-looking statements within the meaning of the federal security 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 the described in this forward-looking statement.

[music].

Unknown Executive: Before we begin, please note that all the information presented on today's call is unhaunted, and during the course of this call, management may make forward-looking statements within the meaning of the federal security 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 the described in this forward-looking statement. Forward-looking statements in the earnings release that we issued today, along with the comments on this call, are made only as of today and will not be updated as actual events unfold.

Unknown Executive: Forward-looking statements in the earnings release that we issued today, along with the comments on this call, are made only as up 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 statement made today. Please also note that on today's call, management will refer to certain non-gath financial measures.

Speaker Change: Alright, and my favorite topic expenses my card.

Speaker Change: The interchange from the card grew 48% year over year to a $4 million.

Speaker Change: And now my favorite subject is the program manager issue. So as you know we've been transitioning our members from our old card program to our new car program. The New card program. It has two benefits one we earned 20% more interchange on every transaction and also under the new program our interchange will be.

Unknown Executive: 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 statement made today. Please also note that on today's 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 considered in isolation or the substitute for the financial information presented in accordance with GAAP.

Speaker Change: <unk> considered revenue instead of a contra expense in cost of revenue. So it cleans up the financial story makes financials easier to understand so our net interchange was $3 5 million or interchange and revenue is $5 million.

Unknown Executive: While we believe these non-gath financial measures provide useful information for investors, the presentation of this information is not intended to be considered an isolation or the substitute for the financial information presented in accordance with GAP. Please refer to today's press release or the investor presentation for a reconciliation of these non-gath financial measures to their most comparable GAP measures.

For total interchange a $4 million so the way to kind of read this is $3 5 million on the old program 5 billion or <unk> 5 billion on the new program totaled $4 million.

Speaker Change: We're also increasing our free cash flow guidance previously.

Unknown Executive: Please refer to today's press release or the investor presentation for a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures.

Speaker Change: Our guidance was a 10 million to $12 million for the year last quarter, we increased that to $11 million to $13 million and now we are increasing our annual guidance to $15 million to $16 million, which is a big jump and I think a testament to the effectiveness of the discipline that we've put into reducing our costs.

Ryan Schaffer: With that out of the way, let's talk about the financials. In Q2, our revenue was 33.3 million. Our average paid members were 684,000. So these numbers have basically leveled off; they're effectively flat. A quarter of a quarter; they're both within 1% of Q1. And also our interchange was 4 million, which is a 14% quarter of a quarter increase and a 48% year of a year increase. Our operating cash flow was 9.3 million. Again, operating cash will include the timing of customer funds, which can vary many on the quarter ends. Our free cash flow, which excludes the timing of customer funds, was 5.7 million, which is a 10% quarter-over-quarter increase.

Ryan Schaffer: With that out of the way, let's talk about the financials. In Q2, our revenue was 33.3 million. Our average paid members were 684,000. So these numbers have basically leveled off, they're effectively flat. A quarter of a quarter they're both within 1% of Q1. And also our interchange was 4 million, which is a 14% quarter of a quarter increase and a 48% year of a year increase. Our operating cash flow was 9.3 million.

Speaker Change: Again, our free cash flow was $5 7 million, which is a 10% increase from Q1.

Speaker Change: As you know, we don't give a paid member guidance, but we do show you the actuals from how the current quarter's going.

Speaker Change: So in July our paid members were up to 689000, if you look at the pink bars they show.

Ryan Schaffer: Again, operating cash will include the timing of customer funds, which can vary many on the quarter ends. Our free cash flow, which excludes the timing of customer funds, was 5.7 million, which is a 10% quarter of a quarter increase. Something we're very happy about.

Speaker Change: As current July and then every July in the past and normally July is a bit of a soft month youll see that we generally see a month over month decrease but this month were actually up so.

Ryan Schaffer: Something we're very happy about. We've talked a lot about our cost-cutting measures, and we're pleased with the results that we're seeing. Our net loss was $2.8 million. Our non-GAAP net income was 5.6 million, and our adjusted EBITDA was 10.2 million. Something we're very happy about.

Speaker Change: Things.

Speaker Change: That's good news so we're excited about that.

Ryan Schaffer: We've talked a lot about our cost-cutting measures, and we're pleased with the results that we're seeing. Our net loss was 2.8 million. Our non-gap net income was 5.6 million, and our adjusted EBITDA was 10.2 million. Something we're very happy about.

Speaker Change: All right now, let's talk about some business highlights.

Speaker Change: Our C O keywords and increased 122% year over year. This is important because it's top of funnel basically in order to be on the first page you have to work your way there so the progress across our long tailed keywords.

Ryan Schaffer: All right, now my favorite topic: expense by car. Quarterly interchange from the car to 48% year of year to 4 million.

Ryan Schaffer: All right, now my favorite topic, expense by car. Quarterly interchange from the car to 48% year of a year to 4 million.

Increasing quarter over quarter. So were encouraged by the progress we're seeing there and this is the more actual results. These are the keyword there on the.

Ryan Schaffer: And now my favorite subject is the program manager issue. As you know, we've been transitioning our members from our old car program to our new car program. The new car program has two benefits. One, we earn 20% more interchange on every transaction, and also, under the new program, our interchange will be considered revenue instead of a contract expense and cost of revenue. It cleans up the financial story, makes the financial easier to understand. Our net interchange was 3.5 million. Our interchange of revenue is 5 million for a total interchange of 4 million. So the way to kind of read this is 3.5 million on the old program, 5 million or 0.5 million on the new program, total 4 million.

Ryan Schaffer: And now my favorite subject is the program manager issue. As you know, we've been transitioning our members from our old car program to our new car program. The new car program has two benefits. One, we earn 20% more interchange on every transaction, and also, under the new program, our interchange will be considered revenue instead of a contract expense and cost of revenue. It cleans up the financial story, makes the financial easier to understand.

Speaker Change: First page, which get almost all of the clicks. So we've seen a 57% increase quarter over quarter and our first patient.

Speaker Change: Oh keywords so our.

Speaker Change: Content marketing strategy is working and working well.

Speaker Change: Well and quickly so that's something to be encouraged by.

Speaker Change: Also we continue to see a brisk.

Speaker Change: Improvement in our number of global reimbursement customers global reimbursement is important because we're a global company and our customers want to reimburse their employees no matter what country. They are in and these are generally larger customers have been in many oh for there in the U S School reimbursement it is important for large enterprise.

Ryan Schaffer: Our net interchange was 3.5 million. Our interchange of revenue is 5 million for a total interchange of 4 million. So the way to kind of read this is 3.5 million on the old program, 5 million or 0.5 million on the new program, total 4 million.

Speaker Change: Customers, but it's also important because it allows us to expand globally in countries that we normally struggled or we have historically struggled to grow into this kind of unlocks.

Ryan Schaffer: We're also increasing our free cash flow guidance. Previously, our guidance. was 10 million to 12 million for the year. Last quarter we increased that to 11 to 13 million, and now we're increasing our angler guidance to 15 to 16 million, which is a big jump and I think testament to the effectiveness of the disciplining that we put into reducing our cost. Again, our free cash flow is 5.7 million, which is a 10% increase from Q1. As you know, we don't give paid member guidance, but we do show you the actuals from how the current quarter is going.

Ryan Schaffer: We're also increasing our free cash flow guidance. Previously, our guidance, was 10 million to 12 million for the year, last quarter we increased that to 11 to 13 million and now we're increasing our angler guidance to 15 to 16 million which is a big jump and I think testament to the effectiveness of the disciplining that we put into reducing our cost. Again, our free cash flow is 5.7 million which is a 10% increase from Q1.

Speaker Change: More global opportunity.

Speaker Change: Additionally, you might have seen that we announced our partnership with Apple for their upcoming 2025 film F. One which is expected to be a very successful blockbuster where the title team sponsor in that film. So as you can see in this Instagram posts on the right you see Mr. Brad Pitt with.

Expense Fi crosses check. So we are our name is on the car. It's on all the jerseys that it has a very big placement within the film something we're very excited by.

Ryan Schaffer: As you know, we don't give paid member guidance but we do show you the actuals from how the current quarter is going. So in July our paid members were up to 689,000. If you look at the pink bars, they show this current July and then every July in the past and normally July is a bit of a soft month, you'll see that it's, we generally see a month over a month decrease but this month we're actually up so things, that's good news so we're excited about that.

Ryan Schaffer: So in July, our paid members were up to 689,000. If you look at the pink bars, they show this current July and then every July in the past, and normally July is a bit of a soft month. You'll see that it's, we generally see a month-over-month decrease, but this month we're actually up, so things, that's good news, so we're excited about that.

Speaker Change: Hi, Doug.

Speaker Change: Movie is still filming it doesn't come out until next year, and we've already gotten such a great coverage in television.

Speaker Change: Television and online that we've reached over 600 million impressions. Additionally.

Speaker Change: Additionally, the pattern.

Speaker Change: Due to the fact that we have such crazy good placement on all across the movie and how much but this movie is generating our earned media coverage is estimated to be over $100 million point for those of you not familiar with the term earned media what that means is.

Ryan Schaffer: All right, now let's talk about some business highlights. Our SEO keywords have increased 122% year by year. This is important because it's top of funnel. Basically, in order to be on the first page, you have to work your way there. So the progress across our long tail keywords has been increasing quarter of a quarter, so we're encouraged by the progress we've seen there, and this is the more actual results. These are the keywords that are on the first page, which gets almost all to click. So we've seen a 57% increased quarter of a quarter in our first page SEO keywords, so our content marketing strategy is working and working well and quickly. So that's something to be encouraged by.

Ryan Schaffer: All right now let's talk about some business highlights. Our SEO keywords have increased 122% year by year. This is important because it's top of funnel basically in order to be on the first page you have to work your way there so the progress across our long tail keywords has been increasing quarter of a quarter so we're encouraged by the progress we've seen there and this is the more actual results. These are the keywords that are on the first page which gets almost all to click.

What would be the financial equivalent you get all the placements that we have gotten effectively for free due to all the buzz.

Speaker Change: If you think about how much does it cost to kind of one of the biggest stars in the world.

Speaker Change: There are name on their.

Speaker Change: Their chests for months and months can be filmed by the paparazzi and covered on the news across the World also all the placement were getting during heckmann races, and all of the Youtube videos and everything that people are creating they also really up trailer which has been seen.

Ryan Schaffer: So we've seen a 57% increased quarter of a quarter in our first page SEO keywords so our content marketing strategy is working and working well and quickly so that's something to be encouraged by. Also we continue to see a brisk improvement in our number of global reimbursement customers. Global reimbursement is important because we're a global company and our customers want to reimburse their employees no matter what country they're in and these are generally larger customers being in many, or further in the US, global reimbursement is important for a large average customers but it's also important because it normally struggles or we have historically struggled to grow in so this kind of unlocks a more global opportunity.

Speaker Change: Over 10 million times on Youtube alone also across acts and other social media so the.

Ryan Schaffer: Also, we continue to see a brisk improvement in our number of global reimbursement customers. Global reimbursement is important because we're a global company and our customers want to reimburse their employees no matter what country they're in, and these are generally larger customers being in many, or further in the US. Global reimbursement is important for a large average customers, but it's also important because it normally struggles, or we have historically struggled to grow in, so this kind of unlocks a more global opportunity.

Speaker Change: [music].

Speaker Change: The coverage that this has generated thus far is estimated to.

Speaker Change: It would have cost us 100 million to get that obviously would be a $200 million, that's why our media mix.

David area: With that I'm going to hand, it over to our CEO David area right.

David area: Very excited about the F. One movie I think that we've been talking about trying to create a roadmap that builds a sort of mixed consumer business application and I think the timing is really worked out perfect for us. That's good alright, so last quarter, we talked about a bunch of functional theyre going to build.

Ryan Schaffer: Additionally, you might have seen that we announced our partnership with Apple for their upcoming 2025 film F1, which is expected to be a very successful blockbuster. We are the title team sponsor in that film, so as you can see in this Instagram post on the right, you see Mr. Brad Pitt with expense 5 across this chip. So we are our name is on the car, it's on all the jerseys, it has a very big placement within the film, something worth very excited by. The movie is still filming; it doesn't come out until next year, and we've already gotten such great coverage and TV on Book TV and online that we've reached over 600 million impressions. Additionally, due to the fact that we have such crazy good placement all across the movie and how much buzz this movie is generating, our earned media coverage is estimated to be over a hundred million dollars at a point.

Ryan Schaffer: Additionally you might have seen that we announced our partnership with Apple for their upcoming 2025 Film F1 which is expected to be a very successful blockbuster. We are the title team sponsor in that film so as you can see in this Instagram post on the right you see Mr. Brad Pitt with expense 5 across this chip so we are our name is on the car it's on all the jerseys it has a very big placement within the film something worth very excited by.

David area: And so pretty much I don't have a lot to talk about other than to say like we've done pretty much with us do kind of walk through some highlights there.

Speaker Change: So to start first Halliburton is kind of a reminder of the overall strategy now many of you have already seen this before but there's always some new viewers, let's just start with kind of the three secrets to a centralized success first we're trying to capture the 99% of the untapped market just the other 300 million businesses in the World you know less than a million actually use anything today and so we're trying to do.

Speaker Change: Are they a huge huge global opportunity as Ryan mentioned earlier.

Ryan Schaffer: The movie is still filming it doesn't come out until next year and we've already gotten such great coverage and TV on book TV and online that we've reached over 600 million impressions additionally do the fact that we have such crazy good placement on all across the movie and how much buzz this movie is generating our earned media coverage is estimated to be over a hundred million dollars at a point. For those of you not familiar with the term earned media what that means is what would be the financial equivalent to get all the placements that we have gotten effectively for free due to all the buzz so if you think about How much does it cost to have one of the biggest stars in the world?

Speaker Change: The other way to do that is through a viral bottom up word of mouth legions vendors you can't just top down a sale your way into 300 million businesses. There's just not enough sales people in the world to do that and so there are lots of companies that have gotten to a billion users and the way. They do that is with a viral synergy and that's why we're all in on sort of the viral dynamics that are built in inherently to Incent management.

Speaker Change: And of course, we monetize that with high margin monthly subscription that's been our strategy. All along has worked really well for us.

Ryan Schaffer: For those of you not familiar with the term earned media, what that means is what would be the financial equivalent to get all the placements that we have gotten effectively for free due to all the buzz. So if you think about how much does it cost to have one of the biggest stars in the world? Our name on their chest for months and months can be filled by the paparazzi and covered on the news across the world. Also, all the placements we're getting during HEP-1 races and all the YouTube videos and everything that people are creating.

So kind of like break into that market that $1 3 billion ungass users there.

Speaker Change: A huge fraction of the market, that's basically under 250 employees.

Speaker Change: Huge market is under a 10 employees and so forth and so what kind of gun.

For this giant DSV SMB market now of course, we still have enterprise customers and growing there and so forth, but we think the much bigger opportunity is actually to you know 100 extra market size itself.

Ryan Schaffer: Our name on their chest for months and months can be filled by the paparazzi and covered on the news across the world. Also, all the placements we're getting during HEP-1 races and all the YouTube videos and everything that people are creating. They also really, up a trailer which has been seen over 10 million times on YouTube alone and also across acts and other social media. The coverage that this is, generally thus far, is estimated to, I would have cost us 100 million to get that. Obviously, we have 800 million for that, but that's what our media means.

Speaker Change: And the way, we do that is by leveraging the natural inherent inherent viral so a component of the various use cases of expense management expense by as fundamentally.

Ryan Schaffer: They also really, up a trailer which has been seen over 10 million times on YouTube alone and also across acts and other social media. The coverage that this is, generally thus far, is estimated to, I would have cost us 100 million to get that. Obviously, we have 800 million for that, but that's what our media means.

Speaker Change: Cat application mixed with the payment application mix with the document sharing application and notably all three of those are the most vital applications on the internet and so we think that we can find these viral then sort of then overlap between these three different use cases, and that's where it's going to propel us into.

David Barrett: With that, I want to hand it over to our CEO, David Barrett.

David Barrett: With that, I want to hand it over to our CEO, David Barrett. Right. Yeah, very kind of about the F1 movie. I think that we've been talking about trying to create a roadmap that builds a sort of mixed consumer business application and it's going to be a timing that's really work out perfect for us. All right. So last goal, we talked about a bunch of functions now that we're going to build. And so pretty much, I don't have a lot to talk about other than to say like we've done pretty much what we set up to do and kind of walked into some highlights there.

Speaker Change: Massive scale opportunity.

David Barrett: Right. Yeah, very kind of about the F1 movie. I think that we've been talking about trying to create a roadmap that builds a sort of mixed consumer business application, and it's going to be a timing that's really work out perfect for us.

Matt: And so the way, we do that and it's kind of like Matt. How that works is we can say something like Alice and individual consumer or an employee submitted in defense of Bob who basically turns around and send an invoice to Kathy who splits of invoice with her roommates and then maybe one of those roommates books travel with their company every time you use it.

David Barrett: All right. So last goal, we talked about a bunch of functions. Now that we're going to build. And so pretty much, I don't have a lot to talk about other than to say like we've done pretty much what we set up to do and kind of walked into some highlights there.

Speaker Change: <unk> is a product you can't help them promote us to the people around you letters of the viral dynamic we're leaning into and by building a super App that can leverage all of these different applications in a single App package, making it sort of a supervisor LD attack, that's sort of going forward to kind of walk through some highlights of that so first.

David Barrett: So, to start first, however, it's kind of a reminder of the overall strategy. Now, many of you have already seen this before, but there's always some new viewers. So to start, we're going to think there's a three-secret sequence by success. First, we're trying to capture the 99% of the untapped market: just the 300 million businesses in the world; less than a million actually use anything today. And so we're trying to go after; she's global opportunity as Ryan mentioned earlier. The only way to do that is through a viral bottom-up word-of-mouth legend strategy. You can't just top down sale your way into 300 million businesses; there's not enough sales people in the world to do that.

David Barrett: So to start first, however, it's kind of a reminder of the overall strategy. Now, many of you have already seen this before, but there's always some new viewers. So to start, we're going to think there's a three-secret sequence by success. First, we're trying to capture the 99% of the untapped market, just the 300 million businesses in the world, less than a million actually use anything today. And so we're trying to go after, she's global opportunity as Ryan mentioned earlier.

Speaker Change: We've been building this for a long time, and we're getting to the point, where we're launching it we're testing with real users and we are preparing for it it's a much bigger migration away from our classic messaging in the past and towards our new messaging and towards that we are just about as it relates to new homepage spend when AAV testing 1 million variations for a long time and most exciting.

David Barrett: The only way to do that is through a viral bottom-up word of mouth-legend strategy. You can't just top down sale your way into 300 million businesses, there's not enough sales people in the world to do that. And so there are lots of companies that have gotten to a billion users, and the way they do that is with a viral strategy, and that's why we're all in on sort of the viral dynamics that are built in inherently to sit to management.

David Barrett: And so there are lots of companies that have gotten to a billion users, and the way they do that is with a viral strategy, and that's why we're all in on sort of the viral dynamics that are built in inherently to sit to management. And of course, we monetize that with a high margin of subscription. It's been our strategy all along, and it's worked really well for us. It's kind of like breaking into that market, that 1.3 billion untapped users. There is a huge fraction of the market that's basically under 250 employees. A huge market is under like 10 employees and so forth.

Speaker Change: Thing in the world, but it is a highly visible things I was wondering give you a heads up.

Speaker Change: Also I would say one of the most exciting thing which is kind of subtle is we've built them into the cloud hybrid app now recall that we have millions of users on our existing app isn't the classic experience and so in order to migrate them to the new experience. We don't want to have to download an entirely new app lose all of the SCO and review history, and so forth, we have but the new.

David Barrett: And of course, we monetize that with high margin of subscription. It's been our strategy all along, and it's worked really well for us. It's kind of like breaking into that market, that 1.3 billion untapped users. There is a huge fraction of the market, that's basically under 250 employees. A huge market is under like 10 employees and so forth. And so we're kind of going for this giant VSB SMB market. Now of course, we still have enterprise customers and grow in there and so forth, but we think that much bigger opportunity is actually to, you know, 100x to market size itself.

Speaker Change: <unk> is a complete rewrites completely different technology stack and everything and so the way that we're sort of bridging that gap is we've made a hybrid we're in the process of upgrading all customers today.

David Barrett: And so we're kind of going for this giant VSB SMB market.

David Barrett: Now, of course, we still have enterprise customers and grow in there and so forth, but we think that a much bigger opportunity is actually to, you know, 100x the market size itself. And the way we do that is by leveraging the natural inherent viral sort of component of the various use cases of accepting management. It expensively is fundamentally a chat application mixed with a payment application mixed with a document sharing application, and notably all three of those are the most viral applications on the internet. And so we think that we can find these viral then sort of then overlap between these three different use cases, and that's what we're just going to propel us into, you know, the massive scale opportunity.

Speaker Change: To this new App that actually have both apps package inside of it that you can switch back and forth between now that sounds really easy it's actually Super Duper hard and so we've worked very hard on that we're very proud of it and we're launching that right now and that's basically a key part of allowing for a a reunification or basically it's process take.

David Barrett: And the way we do that is by leveraging the natural inherent viral sort of component of the various use cases of accepting management. It expensively is fundamentally a chat application mixed with a payment application mixed with a document sharing application, and notably all three of those are the most viral applications on the internet. And so we think that we can find these viral then sort of then overlap between these three different use cases, and that's what we're just going to propel us into, you know, the massive scale opportunity.

Speaker Change: Taking old customers and moving them to new experience.

Speaker Change: Next to Neal have been talking about Super excited about we launched a full fledged travel management system built into new expensive by and so travel management, obviously, you know travel and expense accusing case they go together.

Speaker Change: As dawn of time, and so we have brought the travel management experience into the product, which is incredibly powerful we think that it can scale up to up to the top of the market has very very powerful functionality that can go head to head with anyone else out there and it's built into the same super App experience everything else. Additionally, we bring our unique flavor to it as well.

David Barrett: And so the way we do that is kind of like max how that works is. We can say something like, you know, Alice, an individual consumer or an employee, submits an expense to Bob, who basically turns around and sends an invoice to Kathy, who splits the invoice with her roommates, and then maybe that one of those roommates, you know, books travel with their company. Every time you use expensive products, you can't help or promote us to the people around you. That's the viral dynamically. into. And by building a super app that can leverage all these different applications in a single app package, then making it sort of a super viral effect that's we're going for.

David Barrett: And so the way we do that is kind of like max how that works is. We can say something like, you know, Alice, an individual consumer or an employee, submits an expense to Bob, who basically turns around and sends an invoice to Kathy, who splits the invoice with her roommates, and then maybe that one of those roommates, you know, books travel with their company. Every time you use expensive products, you can't help or promote us to the people around you.

Speaker Change: And that we are.

Speaker Change: Chat, enabling all the functionality and what that means is.

Speaker Change: Typically like lead with.

Speaker Change: I'd like to say that we do with travel and expense and the speed of chat because historically, if you're doing any kind of a collaborative application online you can only go as fast as the other person in the collaboration and if that collaboration is happening over email, let means you're collaborating with a speed of E Mail and I don't know about you I'm always days or maybe even weeks behind on my email.

David Barrett: That's the viral dynamically, and David Barrett. [inaudible] David Barrett, David Barrett Paul Axascher, and that's where the new design really shines. Also, a lot of nuts and bolts work, you know. This might sound kind of boring, but now you can enter a billing card in New Expensify. Up until this point, it just wasn't possible to actually buy, but now you can buy. And so, what's exciting about this is we are in a position to begin genuine revenue from New Expensify starting with Q3.

Speaker Change: [music].

David Barrett: To kind of, you know, walk through some highlights of that. So first, we've been building this for a long time, and we're getting to the point where we're launching it, we're testing with real users, and we are preparing toward a much bigger migration away from our classic messaging of the past and towards our new messaging. And towards that, we're just about to release a new homepage. It's been going to be testing a million variations for a long time. That's a lot of exciting things in the world, but it is a highly visible thing. I just want to give you a heads up.

Speaker Change: So that means that any collaboration and someone wants to do with media E. Mail is super Duper slow extensive high as a real time chat application and we're bringing that real time chat functionality to all of our approval flows, especially travel approval. So for example, imagine you need to.

Speaker Change: Someone's requesting a flight and.

Speaker Change: In the United States every flight, it's 24 hour free cancellations, but only to cancel and that 24 hours and so it's in the businesses interests to have those approvals have been incredibly fast faster than you can realistically get done via E Mail and so that's what we mean about moving it check speed not just for travel but for all of our expense management is just removing the delay in all of the collaboration process.

David Barrett: Also, I would say one of the most exciting things, which is kind of subtle, is we're building something we call our hybrid app. Now, recall that we have millions of users on an existing app. We're using the classic experience. And so, in order to migrate them to the new experience, we don't want them to have to download an entirely new app, lose all of the SBO and review history, and so forth that we have. But the new app is a complete rewrite; it's completely different technology stack and everything. And so, the way that we're sort of bridging that gap is we've made a hybrid app, where, in the process of upgrading all customers today to this new app, that actually has both apps packaged inside of it, that you can switch back and forth between.

Speaker Change: And bringing it onto a single platform that unless it happens so much faster because the only way to make expense management faster.

Speaker Change: Making the button click faster when you think the people involved act faster and Thats, where the new design really shine.

Speaker Change: Also just a lot of nuts and bolts work.

Speaker Change: As my sounds kind of boring, but now you can enter a building card in new expensive high up until this point it just wasn't possible to actually buy but now you can buy and so what's exciting about this is we are in a position to begin generating revenue from new expenses by starting in Q3. So we're very excited.

David Barrett: Now, that sounds really easy. It's actually super duper hard. And so we worked very hard on that. We're very proud of it.

David Barrett: And we're launching that right now. And that's basically a key part of allowing for a reunification or basically its processes, taking old customers and moving them to new experience.

David Barrett: Next, something else we've been talking about: super excited about. We've launched a full, large travel management system built into a new extension by. And so, travel management obviously, travel and expense, like, even care. They go together to the dawn of time. And so, we have brought the travel management experience into the product, which is incredibly powerful. We think that it can scale up to the top of the market. It has very, very powerful functionality. It can go ahead to head with anyone else out there. And it's built into the same super app experience that is affecting us.

Speaker Change: Looking forward and optimistic for the future for adding new expensive high as a new revenue stream as well as adding a travel bookings as a new revenue stream.

Speaker Change:

Speaker Change: On top of that more to sort of like nuts and bolts expenses is historical strength has been our incredibly good accounting connections and so we're migrating all of that over to new expensive by now you can connect a zero net suite.

Speaker Change: Quickbooks intact all of these basically directly from inside of a new expensive.

David Barrett: Additionally, we bring our unique flavor to it as well, in that we are enabling all this functionality. And what that means is, typically, we like to say that we do travel and expense the speed of chat because historically, if you're doing any kind of collaborative application online, you can only go as fast as the other person in the collaboration. And if that collaboration is happening over email, that means that you're collaborating with the speed of email. And I don't know about you. I am always days or maybe even weeks behind on my email. And so that means that any collaboration someone wants to do with me, the email is super duper slow.

Speaker Change: One of the most exciting features I would say it's got to be our search platform now we've always been talking about search in this idea of universal search and how cool. It is but you really get to get a sense of how cool is we sit down to use it and that is there's a lot of competitors out there that has a suite of kind of disconnected application that means like travel over here the new site.

Speaker Change: And to a different place for invoices and maybe it's kind of like you know the same sign in to get to different places, but the fundamentally different experiences.

Speaker Change: <unk> is very different it's a super app, meaning that all of these different data types and all these different applications exist within the same app container and that means because we've combined all the data together, we can search of anger universal fashion and wonder if I can just like very simple search, but definitely like Gmail style Boolean search logic, where you can custom craft and very very specific searches for <unk>.

David Barrett: Expensify the real-time chat application. And we're bringing that real-time chat functionality to all of our approval flows, especially travel approval. So, for example, imagine you need to, someone's requesting a flight. And in the United States, every flight gets 24-hour free cancellations. But only if you cancel them at 24 hours. And so it's in the business of interest to have those approvals happen incredibly fast. Faster than you can realistically get done via email. And so that's what I mean about moving at chat speed. Not just for travel, but for all of our expense management, is just removing the delay in all the collaboration process.

Speaker Change: Lastly, what you want and then save those searches for use later and so we think that we're going to bring the most powerful search experience across any expense management solutions are not and we're doing it because the super apps design allows us to combine data into a single place such that it can be searched together in a single place.

Speaker Change: Yeah.

Speaker Change: And then maybe finally as we're talking about essentially onboard and that because we're getting to a point where the core functionality is starting to work pretty good we're spending more and more time on just the onboard until it themselves. They started talking to the homepage, but also.

David Barrett: And bringing it onto a single platform that, unless it happens, so much faster. Because the only way to make expense management faster is not by making the button click faster. We need to make the people involved. Paul Axascher, and that's where the new design really shines.

Speaker Change: When you sign up we're adding things like welcome videos concierge is assigning a specific tasks based upon what you've indicated you want to do and things like this and so we're just very excited to.

David Barrett: Also, a lot of nuts and bolts work, you know. This might sound kind of boring, but now you can enter a billing card in New Expensify. Up until this point, it just wasn't possible to actually buy; but now you can buy. And so, what's exciting about this is we are in a position to begin genuine revenue from New Expensify starting with Q3. It's very excited and looking forward and optimistic for the future for adding New Expensify as a new revenue stream, as well as adding a travel bookings as a new revenue stream.

Speaker Change: Be moving out of the <unk>.

Speaker Change: R&D mode and more into a go to market mode and so that's a pretty exciting thing that we're going to talk more about in coming quarters.

Speaker Change: Overall, I would say that.

David Barrett: It's very excited and looking forward and optimistic for the future for adding New Expensify as a new revenue stream, as well as adding a travel bookings as a new revenue stream. On top of that, more to sort of like nuts and bolts, Expensify's historical strength has been our incredibly good accounting connections, and so we're migrating all of that over to New Expensify. Now you can connect to zero next week, you know, QuickBooks, Intact, all of these basically directly from inside of New Expensify.

Speaker Change: It's been a great quarter like Q1 was good Q2s, even better and I think that it's nice that sort of.

Speaker Change: Brian mentioned the core business itself is stable basically likelihood things are are a strong foundation and also our cash flow is growing which is fantastic I think we've delivered a tremendous amount of engineering progress on new expensive Hi, Andrew.

David Barrett: On top of that, more to sort of like nuts and bolts, Expensify's historical strength has been our incredibly good accounting connections, and so we're migrating all of that over to New Expensify. Now you can connect to Zero next week, you know, QuickBooks, Intact, all of these basically directly from inside of New Expensify.

Andrew: And we're in the process of actually rolling it out to existing customers new customers.

Andrew: And also in rolling it out in new travel markets, which is great.

David Barrett: One of the most exciting features, I would say, has got to be our search platform. Now we've always been talking about search and this idea of universal search and how cool it is, but you really get the sense of how cool it is when you sit down to use it. And that is there's a lot of competitors out there that have a suite of kind of disconnected applications. That means like travel over here, then you sign into a different place for invoices, and maybe it's kind of like, you know, the same sign in to get the different places, but they're fundamentally different experiences.

David Barrett: One of the most exciting features, I would say, has got to be our search platform. Now we've always been talking about search and this idea of universal search and how cool it is, but you really get the sense of how cool it is when you sit down to use it. And that is there's a lot of competitors out there that have a suite of kind of disconnected applications. That means like travel over here, then you sign into a different place for invoices, and maybe it's kind of like, you know, the same sign in to get the different places, but they're fundamentally different experiences.

I would say looking forward to Q3.

Ryan: We hope that <unk> is adding an entirely new revenue stream, we hope that new since my travel is that entirely new revenue stream and we think that kind of as Ryan mentioned that we can be making tremendous progress in migrating our existing expense by card spend.

Speaker Change: Onto our newest since like card program, which is treated as revenue and also around 20% more.

Ryan: Entry in interchange and so it's a lot of really exciting things in the works.

David Barrett: Expensify is very different. It's a super app, meaning that all of these different data types and all these different applications exist within the same app container. And that means because we've combined all the data together, we can search in a universal fashion. And we're not talking just like very simple search; we're talking like Gmail style Boolean search logic, where you can custom craft very, very specific searches for exactly what you want, and then save those searches for use later. And so we think that we're going to bring the most powerful search experience across any expense management solution, bar none.

David Barrett: Expensify is very different. It's a super app, meaning that all of these different data types and all these different applications exist within the same app container. And that means because we've combined all the data together, we can search at a universal fashion. And we're not talking just like very simple search, we're talking like Gmail style Boolean search logic, where you can custom craft very, very specific searches for exactly what you want, and then save those searches for use later.

Speaker Change: As always our product managers are able to talk more about any of this in me too. So just like scan the QR code could this link and come talk to us.

Speaker Change: And with that I think we'll open up to questions.

David Barrett: And so we think that we're going to bring the most powerful search experience across any expense management solution bar none. And we're doing it because the super app design allows us to combine data into a single place, such as they can be searched together in a single place.

David Barrett: And we're doing it because the super app design allows us to combine data into a single place, such as they can be searched together in a single place.

Speaker Change: Perfect Okay.

David Barrett: Then maybe finally, as we're talking about essentially onward, and that because we're getting to a point where the core functionality is starting to work pretty good, we're spending more and more time with just the onboarding tools themselves. They started talking to the homepage, but also when you sign up, we're adding things like welcome videos, concierge as a signing you specific tasks based upon what you've indicated you want to do in things like this. And so we're just very excited to be moving out of the sort of R&D mode and more into a go-to-market mode.

Speaker Change: Let's start with J P. Morgan.

David Barrett: Then maybe finally, as we're talking about essentially onward, and that because we're getting to a point where the core functionality is starting to work pretty good, we're spending more and more time with just the onboarding tools themselves. They started talking to the homepage, but also when you sign up, we're adding things like welcome videos, concierge as a signing you specific tasks based upon what you've indicated you want to do in things like this.

Speaker Change: Hi, David Hi, Ryan.

Speaker Change: I'm wondering if you could comment a bit.

Speaker Change: More on the dynamics that you've seen in July.

Speaker Change: It could be a slight uptick.

Speaker Change: Customer numbers as I mentioned in Nevada, it could be a.

Speaker Change: Slow month more drove the improvement.

Speaker Change: Yes, it's a great question and also good to see you again.

David Barrett: And so we're just very excited to be moving out of the sort of R&D mode and more into a go-to market mode. And so that's pretty exciting thing that we're going to talk more about in upcoming quarters.

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: In terms of what drove it it's I don't think it's any one thing we've been talking for a lot of quarters about how we're making a lot of small changes and I think it's it's not one specific thing, it's not just travel or or anything like that.

David Barrett: And so that's a pretty exciting thing that we're going to talk more about in upcoming quarters.

David Barrett: So overall, I would say that it's been a great quarter. I mean, the Q1 was good; Q2 has even better. And I think that it's nice that, sort of as Ryan mentioned, the core business itself is safe, basically likely. Things are a strong foundation, and also our cash flow is growing, which is fantastic. I think we've delivered a tremendous amount of engineering progress on new expensive high, and we're in the process of actually rolling it out to existing customers, new customers, and also in rolling it out in new travel markets, which is great.

David Barrett: So overall, I would say that it's been a great quarter. I mean, the Q1 was good, Q2 has even better. And I think that it's nice that sort of as Ryan mentioned, the core business itself is safe, basically likely. Things are a strong foundation, and also our cash flow is growing, which is fantastic. I think we've delivered a tremendous amount of engineering progress on new expensive high, and we're in the process of actually rolling it out to existing customers, new customers, and also in rolling it out in new travel markets, which is great.

Speaker Change: We are.

Speaker Change: The sum of a.

Speaker Change: Thousands steps basically and.

Speaker Change: We think that.

Speaker Change: I'm not going to say that.

Speaker Change: We wont see decreasing users going forward, but I think we're pretty encourage on kind of leveling off and what we're seeing in July. So yes, I mean, we didn't go to new conferences as well and so we've been constant messaging users and just you know just given and service to the people who use us. So I think that all of that is that we've.

David Barrett: I would say looking forward to Q3. We hope that new, expensive high is adding an entirely new revenue stream. We hope that new contract travel is adding entirely new revenue stream. And we think that, as Ryan mentioned, that we can be making tremendous progress in migrating our existing expensive high card. And we hope that we can be making a tremendous progress in migrating our existing expensive high card. Ben, on to a new simplified card program, which is treated as revenue and also earned 20% more in inter-stage.

David Barrett: I would say looking forward to Q3. We hope that new expensive high is adding an entirely new revenue stream. We hope that new contract travel is adding entirely new revenue stream. And we think that, as Ryan mentioned, that we can be making tremendous progress in migrating our existing expensive high card. [inaudible] Ben, on to a new simplified card program, which is treated as revenue and also earned 20% more in inter-stage. And so it's a lot of really exciting things in the works.

Speaker Change: We've been.

Speaker Change: And a lot of buzz from that.

Speaker Change: Couple movies that doesn't appear to have again, a lot of things that's going on and it makes sense by land.

Speaker Change: Would you mind, providing them with more detail on.

Speaker Change: The initiatives.

Speaker Change: So when do you think we'll see.

David Barrett: And so it's a lot of really exciting things in the works.

Speaker Change: <unk> related to the sponsorship.

David Barrett: As always, where our product managers are available to talk more about any of this, and me too. So just like scan the QR code, click this link, and come talk to us.

Speaker Change: If the PMO.

Unknown Executive: As always, where our product managers are available to talk more about any of this and me too, so just like scan the QR code, click this link and come talk to us.

Speaker Change: So it's recognized when the movie comes out.

Speaker Change: Oh <unk>.

Unknown Executive: And with that, I think we'll look at questions. Perfect.

Speaker Change: Yes, that's going to come out in June of next year, yes.

Unknown Executive: And with that, I think we'll look at questions. Perfect. Okay.

Speaker Change: Okay. Perfect then will you be able to quantify or at least ballpark.

Speaker Change: Okay.

Speaker Change: I am unable to do that unfortunately.

Speaker Change: Great.

Speaker Change: And.

Speaker Change: It sounds like there has been quite a lot of investment.

To ensure that they have.

Speaker Change: The two apps.

Speaker Change: Working together the retail travel caught up.

Unknown Executive: Okay. Let's start with JP Morgan.

Speaker Change: And we talk about moving out of the R&D mode.

Unknown Executive: Let's start with JP Morgan. Hi David, hi Ryan. I was wondering if you could comment more on the dynamics that you've seen in July related to the flight uptick and customer numbers.

Unknown Executive: Hi David, hi Ryan. I was wondering if you could comment more on the dynamics that you've seen in July related to the flight uptick and customer numbers. As we mentioned in the past, it's particularly a slow month or growth, the inclusion. Yeah, it's a great question. Also good to see you again. In terms of what drove it, I don't think it's any one thing. We've been talking for a lot of how we're making a lot of small changes. And I think it's not one specific thing. It's not, you know, just travel or anything like that.

Speaker Change: When do you think we'll see more pronounced optimization of the R&D expense.

Speaker Change: Oh interesting or more or are you talking about how do we optimize the R&D expense itself.

Speaker Change: Well Youre common David about the fact that you're coming out of the RMB mode does that imply that R&D.

Ryan Schaffer: As we mentioned in the past, it's particularly a slow month or growth, the inclusion. Yeah, it's a great question. Also good to see you again. In terms of what drove it, I don't think it's any one thing we've been talking for a lot of how we're making a lot of small changes. And I think it's not one specific thing. It's not, you know, just travel or anything like that. It's that we, the sum of, you know, a thousand steps, basically.

Speaker Change: Great question I didn't mean to suggest.

Speaker Change: Suggest anything specific about R&D expenses, I, just mean that because I think.

Speaker Change: Midnight, you're referring to an accounting term I just mean in terms of the sales process, which involves a different kind of R&D. It's basically R&D for streamlining the ability for people to onboard as opposed to R&D to enable people to make payments just kind of different in that way.

David Barrett: It's that we, the sum of, you know, a thousand steps, basically. And we think that, you know, we're not going to say that we won't see degrees and users going forward, but I think we're pretty encouraged on the level and off. And what we're seeing in July. So, yeah, I mean, we did go to new conferences as well. And so we've been constantly messaging users and just, you know, just giving fan service to the people who use us. So I think that all ends up, yeah, we've been. And a lot of us from the, you know, Apple Movies.

Speaker Change: Yes.

Speaker Change: Further.

Speaker Change: Most of you probably understand this but for people that don't when.

Speaker Change: When you launch a product and you keep working on it. It is no longer considered R&D. It's considered a cost cost of revenues are the same people who are fixing things 1 billion things on yeah.

Ryan Schaffer: And we think that, you know, we're not going to say that we won't see degrees and users going forward, but I think we're pretty encouraged on the level and off. And what we're seeing in July. So, yeah, I mean, we did go to new conferences as well. And so we've been constantly messaging users and just, you know, just giving fan service to the people who use us. So I think that all ends up, yeah, we've been. And a lot of us from the, you know, Apple movies. Well, that doesn't hurt us. I can. A lot of fags are going on in the expensive land.

The day before and then they have to take on the day after that it's no longer in R&D expense, but internally, we still would consider that person.

Speaker Change: Building, a new product.

Speaker Change: Okay.

Speaker Change: Then if I may squeeze one more question. Please.

David Barrett: Well, that doesn't hurt us. I can. A lot of fags are going on in the expensive land.

Speaker Change: A comment about <unk>.

Speaker Change: Revenue coming in and thank you for your exemplify would you be able to quantify your estimate on that and maybe a more broader question what sort of metrics are you looking at.

David Barrett: Would you mind providing a bit more detail on the initiative. So when do you think we will see, you know, the expense related to sponsorship. It's the TML. So it's recognized when the movie comes out. So the. To clear up next year. Yes, that's really glad in June of next year, yeah. Perfect. And will you be able to quantify it, at least for Park? I am unable to do that, unfortunately. Great.

Ryan Schaffer: Would you mind providing a bit more detail on the initiative. So when do you think we will see, you know, the expense related to sponsorship. It's the TML. So it's recognized when the movie comes out. So the. To clear up next year. Yes, that's really glad in June of next year, yeah. Perfect. And will you be able to quantify it, at least for Park? I am unable to do that unfortunately. Great.

To give you some comfort.

Speaker Change: This will provide longer term guidance for revenue and EBITDA.

Speaker Change: So I think it's too early to.

Speaker Change: Give a revenue number on new expense Si.

Speaker Change: Less than $1 million.

Speaker Change: Alright.

Brown: Brown, Okay, I'm not going to do it.

Speaker Change: Yes.

Speaker Change: And huge amount right.

David Barrett: And it sounds like there has been quite a lot of investments done to ensure that they set the two apps working together. The release of new trial product. And we talked about moving out of our new mode. So when do you think we'll see more pronounced optimization of the on the expense. Oh, interesting. A more segment. How are we optimizing R&D's expense itself? Well, your comment, David, about the fact that you're coming out of the R&D mode. Does that imply that R&D may? Great question. I didn't mean to suggest anything specific about R&D expenses. I just mean that because I think.

Unknown Executive: And it sounds like there has been quite a lot of investments done to ensure that they set the two apps working together.

Speaker Change: But way more than different anyway.

Speaker Change: Okay.

Speaker Change: I'm sorry, what was the second part of the question. The long term guide that you stopped providing.

David Barrett: The release of new trial product. And we talked about moving out of our new mode. So when do you think we'll see more pronounced optimization of the on the expense. Oh, interesting. A more segment. How are we optimizing R&D's expense itself? Well, your comment, David, about the fact that you're coming out of the R&D mode. Does that imply that R&D may? Great question. I didn't mean to suggest anything specific about R&D expenses.

Speaker Change: Oh, yes, okay.

Speaker Change: I think it as the business becomes.

Speaker Change: More predictable.

Speaker Change: Honestly, we started giving some guidance on free cash flow and I think our goal is to provide more guidance in general.

Speaker Change: We aggregate you'd see a little bit more stabilization or a longer period of stabilization in the business before we feel comfortable doing that but.

Speaker Change: That's top of mind for us for sure.

Speaker Change: Any specific metrics if any.

David Barrett: I just mean that because I think. Maybe a night you refer into an accounting term. I just mean in terms of like, we're optimizing the sales process which involves a different kind of R&D. It's basically R&D for a streamlining the ability for people to onboard as opposed to R&D to enable people to make payments. This is kind of different in that way. I don't know if that's. Yeah, for most people probably understand this, but for people who don't, when you launch a product and you keep working on it, that's no longer considered R&D.

David Barrett: Maybe a night you refer to in an accounting term. I just mean in terms of like, we're optimizing the sales process, which involves a different kind of R&D. It's basically R&D for a streamlining the ability for people to onboard, as opposed to R&D to enable people to make payments. This is kind of different in that way. I don't know if that's. Yeah, for most people probably understand this, but for people who don't, when you launch a product and you keep working on it, that's no longer considered R&D. It's considered because lots of revenues are the same people who are fixing things or building things on, you know, the day before and then they have a fix on the day after that no longer an R&D expense, but internally we still would consider that person, you know, building a new product.

Speaker Change: How do we measure the success of new expenses, yes, okay. So.

Speaker Change: Good.

Speaker Change: Essentially we are measuring there's kind of two flows for that we get business, if there's bottom up where they employ downloads at first brings it in.

Speaker Change: The business that they convert.

David Barrett: It's considered because lots of revenues are the same people who are fixing things or building things on, you know, the day before and then they have a fix on the day after that no longer an R&D expense, but internally we still would consider that person, you know, building a new product. Yeah, then.

Speaker Change: Generally doesn't involve any sale of employee basically acts as the sales person there and then top down which is the more traditional SaaS.

Speaker Change: Process, where someone at the top toxic salesperson. So we are tracking both conversion both of those flows.

Speaker Change: And then doing that for our two payment plans, which are collected control. So there's basically two different segments.

David Barrett: Yeah, then.

Speaker Change: Smaller businesses and larger businesses.

David Barrett: And then, if I may explain one more question to you, the comment about revenue coming in particular for you to simplify. You'd be able to quantify your estimate on that and maybe a more voter question. What sort of metrics are you looking at to get you some comfort. So I think it's too early to give a revenue number on new expense five less than a million like significantly. I'm not going to do it, but it's not going to be a huge amount, right. But way more than any way. What was the second part of the question?

David Barrett: And then if I may explain one more question to you, the comment about revenue coming in particular for you to simplify. You'd be able to quantify your estimate on that and maybe a more voter question. What sort of metrics are you looking at to get you some comfort.

Speaker Change: We are both of them.

Speaker Change: Degree those are the four yes, I mean, there's a lot of different ways at all kind of added together like different.

Speaker Change: Freaks all flowing to the same river, but maybe we can follow up more in different colors.

Speaker Change: Oh, great. Thank you very much early on.

Speaker Change: Got it okay.

Speaker Change: Perfect next step we have city.

David Barrett: So I think it's too early to give a revenue number on new expense five less than a million like significantly. I'm not going to do it, but it's not going to be a huge amount, right. But way more than any way.

Hey, Thanks. This is George on for Steve Thanks for taking the questions, David and Nick I wanted to ask about the knick your favorite topic. The new expense by card program are really exciting that it throwing out I did wanted to get some clarity.

Speaker Change: The 34% of spend and migrating that's a really helpful. Disclosure I did notice that you also disclose kind of point 5 million out of four from the new program, which seems like less than a third I mean, maybe there's some complications with timing, but I would I guess I would have to do we expect it to be higher given your.

David Barrett: What was the second part of the question? The long term guide that you stopped providing. Oh, yes, okay. I think it is that business becomes more predictable. Well, obviously we've started giving some guidance on cash flow and I think our goal is to provide more guidance in general. We I think we need to see a little bit more stabilization or a longer period of stabilization in business before we feel comfortable doing that, but that's top of mind for us for sure.

David Barrett: The long term guide that you stopped providing. Oh, yes, okay. I think it is that business becomes more predictable. Well, obviously we've started giving some guidance on cash flow, and I think our goal is to provide more guidance in general. We I think we need to see a little bit more stabilization or a longer period of stabilization in business before we feel comfortable doing that, but that's top of mind for us for sure.

Speaker Change: Electing more interchange.

Speaker Change: Square the circle here.

Speaker Change: Absolutely and just for the transcripts or anything.

Speaker Change: Hi, This is Ryan it makes our head of IR, sorry, Ryan and David.

Speaker Change: I don't want the transcripts get compute.

Speaker Change: Great question, I thought we might actually get that comparison so.

Speaker Change: The 34% is representative of what percentage of our spend had been transitioned over at the end of Q2.

David Barrett: Any specific metrics and a. How do we measure success in this? Yes, okay, so. Essentially, we are measuring. There's kind of two flows for that we get business. There's bottom up where the employee downloads the first, brings it in to the business, and they convert. And that generally doesn't involve any sales employee. Basically, access the sales person there. And then a top down, which is more traditional staff process, where someone at the top talks to the salesperson. So we are tracking both conversion up both of those flows. And then doing that for our two planning plans, which are a collective control.

Speaker Change: But in order for it to be exactly 30% total revenue, we would've had to start the quarter, there because and being in the quarter. It was like 10%. So it's a transition over a three months period. So at the end of the quarter, we've transitioned 34% of spend but.

David Barrett: Any specific metrics and a. How do we measure success in this? Yes, okay, so. Essentially, we are measuring. There's kind of two flows for that we get business. There's bottom up where the employee download the first brings it in to the business and they convert. And that generally doesn't involve any sales employee basically access the sales person there. And then a top down which is more traditional staff process where someone at the top talks to sales person.

A lot of it actually happened in the last.

Speaker Change: I think like 25 days of the quarter. So you can kind of that's why it looks like it does.

Speaker Change: Because we put out some banner.

Speaker Change: Notices and certification stuff and they have no super.

David Barrett: So we are tracking both conversion up both of those flows. And then doing that for our two planning plans, which are a collective control. So there's basically two different segments. Small businesses and larger businesses. So we are those of those degree, those are the four. Yeah, I mean, there's a lot of different ways that all kind of add together like different, you know, creeps all flowing to the same river.

Speaker Change: Effectively pushing people over.

Speaker Change: That makes sense.

Speaker Change: Okay, Yeah that makes perfect sense I figured it was just the timing thing and then in terms of that spend it's migrated over I know kind of baseline we would expect a 20% uplift, but I'm kind of wondering part of the appeal here is that Theres more features on the new card program do you notice any kind of change in terms of like transaction volumes from people who have migrated over.

David Barrett: So there's basically two different segments. Small businesses and larger businesses. So we are those of those degree; those are the four. Yeah, I mean, there's a lot of different ways that all kind of add together, like different, you know, creeps all flowing to the same river.

David Barrett: But maybe we can follow up more in different questions. Great. Thank you very much. Perfect.

Speaker Change: Maybe a bit early for that.

Unknown Executive: But maybe we can follow up more in different questions. Great. Thank you very much.

Speaker Change: Yeah.

Unknown Executive: Perfect.

Speaker Change: Most of the people have migrated over in Atlanta like 60 days, So it's tough bad thing to draw.

Unknown Executive: Next up we have City. Hey, thanks.

Speaker Change: Some sort of trend there, but when I look at.

Unknown Executive: Next up we have city. Hey, thanks.

Unknown Executive: This is George on for Steve. Thanks for taking the questions, David and Nick. I wanted to ask about Nick, your favorite topic: the new Expensify Card Program. Really exciting that it's rolling out. I did want to get some clarity. The 34% of spend migrating that's a really helpful disclosure. I did notice that you also disclosed kind of 0.5 million out of four from the new program, which seems like less than a third. I mean, maybe there's some complications with timing, but I guess I would intuitively expect it to be higher, giving your collecting more interchange.

Speaker Change: In general.

Unknown Executive: This is George on for Steve. Thanks for taking the questions, David and Nick.

Speaker Change: I mean.

Speaker Change: I think when we get the company spend we get most of their spend yes, it's pretty all or nothing.

Ryan Schaffer: I wanted to ask about Nick, your favorite topic, the new Expensify Card Program. Really exciting that it's rolling out. I did want to get some clarity. The 34% of spend migrating that's a really helpful disclosure. I did notice that you also disclosed kind of 0.5 million out of four from the new program, which seems like less than a third. I mean, maybe there's some complications with timing, but I guess I would intuitively expect it to be higher, giving your collecting more interchange. Can you help square the circle there?

Speaker Change: Okay that makes sense and then just one last one for me on the <unk>.

Speaker Change: Decision to kind of come back into the conference Circuit, maybe you could talk about maybe the history of why you left that channel in the first place you obviously have a lot more product in your expense by a lot of exciting stuff to talk about just maybe the decision to come back there and any kind of implications from an opex standpoint.

Ryan Schaffer: Can you help square the circle there? Absolutely.

Speaker Change: So the pattern.

Speaker Change: We have never stopped going to conferences, we did stop going to this one.

Ryan Schaffer: And just for the transcripts and everything, this is Ryan. Nick's our head of an IR. Sorry, Ryan and David. I don't want the transcripts to be confused. Great question. I thought we might actually get that question. So the 34% is representative of what percentage of our spend have been transitioned over at the end of Q2. But in order for that to be exact 30% total revenue, we would have had to start the quarter there because, in the quarter, it was like 10%. So it's a transition over a three-month period. So at the end of the quarter, we've transitioned 34% of spend.

Ryan Schaffer: Absolutely. And just for the transcripts and everything, this is Ryan. Nick's our head of an IR. Sorry, Ryan and David. I don't want the transcripts to be confused. Great question. I thought we might actually get that question. So the 34% is representative of what percentage of our spend have been transitioned over at the end of Q2. But in order for that to be exact 30% total revenue, we would have had to start the quarter there because in the quarter, it was like 10%.

Speaker Change: Just going to travel corporate travel conferences, so back in 2016.

Speaker Change: Ish, maybe 2017, we were going to travel conferences, because we have integrations with people like Gensia, which.

Speaker Change: I'll buy amex and we were we.

Speaker Change: We're trying to do the expense partner to a whole bunch of travel booking tools and that was.

Speaker Change: Moderately successful I'd family generated business, but.

Speaker Change: The next box off so are we.

Speaker Change: We stopped going to those and now we have around booking tools that were read.

Speaker Change: Re engaging.

Speaker Change: On the travel side after taking a hit.

Ryan Schaffer: So it's a transition over a three month period. So at the end of the quarter, we've transitioned 34% of spend. But a lot of it actually happened in the last, I think like 25 days of the quarter. So it's kind of, but that's why it looks like it does. Because we put out some banner notices and push notifications stuff in the app. No super effective pushing people over it. Yeah. So that makes sense.

Speaker Change: Eight years.

Speaker Change: And in terms of.

Ryan Schaffer: But a lot of it actually happened in the last, I think, like 25 days of the quarter. So it's kind of, but that's why it looks like it does. Because we put out some banner notices and push notifications stuff in the app. No super effective pushing people over it. Yeah. So that makes sense. Yeah, that makes perfect sense. Figurator is just a timing thing. And then, in terms of that spend that's migrated over, I know, kind of baseline, we'd expect a 20% uplift. But I'm kind of wondering part of the appeal here is that there's more features on the new card program.

Speaker Change: Yeah.

Speaker Change: I don't see a dramatically changing anything there's not a ton of travel conferences theres a ton of accounting conferences, but not as many travel conferences. So I don't think it really.

Speaker Change: Shifting any I don't think you'll notice it really probably not.

Speaker Change: Great. Thanks for taking the questions.

Speaker Change: Thank you.

Speaker Change: Perfect. We've got J M T up next.

Ryan Schaffer: Yeah, that makes perfect sense. Figurator is just a timing thing. And then in terms of that spend that's migrated over, I know kind of baseline, we'd expect a 20% uplift. But I'm kind of wondering part of the appeal here is that there's more features on the new card program. Do you notice any kind of change in terms of like transaction volumes from people who have migrated over? Question. Maybe a bit early for that.

Speaker Change: Hey, Thanks for the question on guidance.

Speaker Change: So the first one how much of the initial demand you're seeing for travel is greenfield versus replacing another vendor and where are you bumping into there when it is competitive.

Ryan Schaffer: Do you notice any kind of change in terms of like transaction volumes from people who have migrated over? Question. Maybe a bit early for that. Most of the people have migrated over in the last like 60 days. So it's tough, I think, to draw some sort of trend there. But that's what I look at. In general, I mean, I think when we get a company spend, we get most of their spend. Yeah, it's pretty all or nothing. Okay, that makes sense.

Speaker Change: Got it.

Speaker Change: First of all great to hear from you herein Hope you enjoyed in New York.

Ryan Schaffer: Most of the people have migrated over in the last like 60 days. So it's tough, I think, to draw some sort of trend there. But that's what I look at. In general, I mean, I think when we get a company spend, we get most there spend. Yeah, it's pretty all or nothing. Okay, that makes sense.

Speaker Change: It's a great question, so we're actually seeing better so.

Obviously greenfield is an easier sale.

Speaker Change: They see it allowed us incredible how do we start.

Speaker Change: The sale of little slower when you have.

Speaker Change: When youre doing a rip and replace but we're getting a lot of enthusiasm from.

Ryan Schaffer: And then just one last one for me on the decision to kind of come back into the conference circuit. Maybe you could talk about maybe the history of why you left that channel in the first place. Obviously, you have a lot more product, and you expensive a lot of exciting stuff to talk about. So just maybe the decision to come back there in any kind of implications from an op-ex standpoint. So the, we never stopped going to conferences. We were going to travel corporate travel conferences. So back in 2016-ish, maybe 2017, we were going to travel conferences because we had integrations with people like agency at which, you know, not a lot of amics.

Ryan Schaffer: And then just one last one for me on the decision to kind of come back into the conference circuit. Maybe you could talk about maybe the history of why you left that channel in the first place. Obviously, you have a lot more product and you expensive a lot of exciting stuff to talk about. So just maybe the decision to come back there in any kind of implications from an op-ex standpoint. So the, we never stopped going to conferences.

Speaker Change: Even people who currently have a current travel tool. So it's and also we're seeing a lot of companies.

Speaker Change: New leads come to us because it's only travel announcement and I think it's.

Speaker Change: And the 2010.

Speaker Change: It was very.

Speaker Change: Popular or Inbev too.

Speaker Change: We have a whole bunch of different point solutions.

And breed of it and this and this.

Ryan Schaffer: We were going to travel corporate travel conferences. So back in 2016-ish, maybe 2017, we were going to travel conferences because we had integrations with people like agency at which, you know, not a lot of amics. And we were trying to be the expense partner to a whole bunch of travel booking tools. And that was moderately successful, I'd say. I mean, it generated business. But yeah, in Microsoft's off. So we stopped going to those.

Speaker Change: And fast.

Speaker Change: Fast forward 10, 12 years, the technology has gotten easier than having a platform doesn't necessarily mean your product stocks in 2010. If you have multiple products. Your products were pretty terrible that's not really the case anymore and I think platform players are becoming more popular and since we've announced T and E.

Ryan Schaffer: And we were trying to be the expense partner to a whole bunch of travel booking tools. And that was moderately successful, I'd say. I mean, it generated business. But yeah, in Microsoft's off. So we stopped going to those. And now we have our own booking tools. So we're really kind of re-engaging on the travel side after taking a. I don't see it dramatically changing anything; there's not a ton of travel conferences, there's a ton of accounting conferences, but not. It has made travel conferences, so I don't think it's really shifting; I don't think you'll notice it really, probably not.

Speaker Change: Traveling expense we're seeing.

A lot of customers kind of or a lot of leads come out of woodwork being we want both so I think it's.

Ryan Schaffer: And now we have our own booking tools. So we're really kind of re-engaging on the travel side after taking a I don't see it dramatically changing anything, there's not a ton of travel conferences, there's a ton of accounting conferences, but not it has made travel conferences, so I don't think it's really shifting, I don't think you'll notice it really, probably not.

Speaker Change: It's not just about cross selling it's also just been great from bringing new eyes on too expensive I am yes.

Speaker Change: A lot of.

Speaker Change: Brand strength and recognition, but we didn't do travel and for a lot of companies that's kind of a deal breaker and how would you track so they're engaging.

Speaker Change: Awesome, that's really helpful and New York is wonderful, but like you know Ryan there is no place like Ohio.

Speaker Change: Yes.

Speaker Change: Question can you clarify for us on the public call you have a stock repurchase plan authorized youre generating cash to have over $30 million of net cash on the balance sheet valuations still near an all time well how does the covenant with your lender that restrict share repurchases work, what's the waiver you've received from the lender and is buying.

Unknown Executive: Great, thanks for taking the questions. Thank you.

Unknown Executive: Great, thanks for taking the questions. Thank you.

Unknown Executive: Perfect, we've got JMP up next. Okay, thanks for the question, guys.

Unknown Executive: Perfect, we've got JMP up next. Okay, thanks for the question, guys.

Unknown Executive: So the first one, how much of the initial demand you're seeing for travel is Greenfield versus replacing another vendor, and where are you pumping into there when it is competitive? First of all, great to hear from you, Aaron. Hope you're enjoying New York. It's, that's a great question. So we actually seem though, so obviously Greenfield is in easier sale. I don't know if they see it, but wow, it's incredible. How do we start the sales will slower when you have, when you're doing a rip in replace, but we're getting a lot of enthusiasm from even people who currently have a current travel tool.

Aaron Kimson: So the first one, how much of the initial demand you're seeing for travel is Greenfield versus replacing another vendor, and where are you pumping into there when it is competitive? First of all, great to hear from you, Aaron. Hope you're enjoying New York. It's, that's a great question. So we actually seem though, so obviously Greenfield is in easier sale. I don't know if they see it but wow, it's incredible. How do we start the sales will slower when you have, when you're doing a rip in replace, but we're getting a lot of enthusiasm from even people who currently have a current travel tool.

Speaker Change: Back shares right now something that you can do with that covenant and something that you're considering.

Speaker Change: Okay, Great question so.

Speaker Change: For.

Speaker Change: But people that Josh dig into our.

Speaker Change: Deepen scored disclosures, we our covenants with our lender that limit how much we can.

Speaker Change: How many shares we can buy back now.

Speaker Change: Currently it's quite low because it's based on a 12.

Speaker Change: Month look back on.

Speaker Change: Free cash flow and when asked Q3.

David Barrett: So it's, and also we're seeing a lot of companies, new leads come to us because it's only travel announcements, and I think it's, in the 2010s, I think it was very popular or info to have a whole bunch of different point solutions. Yeah, it's the best and breed of it and this and, you know, fast forward 10, 12 years, the technology's gotten easier, and having a platform doesn't necessarily mean your product sucks. In 2010, if you had multiple products, products were pretty terrible. That's not really the case anymore, and I think platform plays are becoming more popular.

Aaron Kimson: So it's, and also we're seeing a lot of companies, new leads come to us because it's only travel announcements and I think it's, in the 2010s, I think it was very popular or info to have a whole bunch of different point solutions. Yeah, it's the best and breed of it and this and, you know, fast forward 10, 12 years, the technology's gotten easier and having a platform doesn't necessarily mean your product sucks.

Speaker Change: We spent a lot of money so that's kind of pulling that down so we expect.

After this next Q3 well.

Speaker Change: That kind of it won't be loosened up and we'll have the ability to buy back more.

Speaker Change: Got it. Thank you so much Brian here, but.

Speaker Change #100: Good capability.

Speaker Change #100: Yeah.

Speaker Change #101: Great next step way of BMO.

Aaron Kimson: In 2010, if you had multiple products, products were pretty terrible. That's not really the case anymore, and I think platform plays are becoming more popular. And since we've announced key and e. Travel and expense, we're seeing a lot of customers kind of, or a lot of leads come out of what we want both. So I think it's, it's not just a cross selling, it's also just been great from bringing new eyes on to expensive. Yeah, we have a lot of brain strength and recognition, but we do travel and for a lot of companies, that's kind of a deal breaker. And now we do travel. So, you know, they're engaging. Awesome.

Speaker Change #100: Okay, Daniel Kyle on the line.

David Barrett: And since we've announced key and E. Travel and expense, we're seeing a lot of customers kind of, or a lot of leads come out of what we want both. So I think it's not just a cross selling, it's also just been great from bringing new eyes on to expensive. Yeah, we have a lot of brain strength and recognition, but we do travel, and for a lot of companies, that's kind of a deal breaker. And now we do travel. So, you know, they're engaging. Awesome.

Speaker Change #100: Alright, let's hop over to Ft partners.

Speaker Change #101: Hey, there guys. Thanks for taking the question here.

Speaker Change #103: Just wanted to ask on the cards I think in the press release. It was said that Youre planning on getting 100% by the end of the year. So is the plan then to whatever cards haven't been converted to basically forcibly shut them off and ship out new cards or kind of what's the strategy here to get to that $100.

David Barrett: That's really helpful, and New York is wonderful, but like, you know, Ryan, there's no place like Ohio.

Speaker Change #101: <unk> conversion rate.

Unknown Executive: That's really helpful and New York is wonderful, but like, you know, Ryan, there's no place like Ohio. Let's take a question.

Speaker Change #103: Great question, So we're seeing.

David Barrett: Let's take a question. Can you clarify for us on the public call? You have a stock repurchase plan authorized. You're generating cash to have over 30 million in that cash on the balance sheet, valuation still near an all time. Well, how does the covenant with your lender that restricts share repurchases work? What's the waiver you've received from Melender? And is buying back shares right now something that you can do with that covenant and something that you're considering it's so. Okay, great question. So for the people that don't dig into our deep into our disclosures, we have a covenant with our lender that limits how much we can.

Speaker Change #103: So the number we said was at the end of Q2 right. So that's like a 45 day old numbers that we're seeing great progress even infant even since then and we do think we're probably going.

Unknown Executive: Can you clarify for us on the public call? You have a stock repurchase plan authorized. You're generating cash to have over 30 million in that cash on the balance sheet, valuation still near and all time.

Speaker Change #103: But you're basically English <unk>, we'll probably get to a very high percentage and then some percentage will not do anything right.

Ryan Schaffer: Well, how does the covenant with your lender that restrict share repurchases work? What's the waiver you've received from Melender? And is buying back shares right now, something that you can do with that covenant and something that you're considering it's so. Okay, great question. So for the people that don't dig into our deep into our disclosures, we have a covenant with our lender that limits how much we can. How many shares we can buy back now we've.

Speaker Change #103: So.

Speaker Change #101: Okay.

Speaker Change #101: We haven't decided if we're going to shut off the cards or not I really don't want to but I think we're gonna try to get there just through selling aggressive.

Speaker Change #104: I believe you're not listening, but more products.

Speaker Change #104: Yeah don't tell them, but we're going to just try to you know the account managers and how aggressively.

Speaker Change #104: We shipped the number because we lastly, we wanted to disrupt some business operations with minimal angry that name.

David Barrett: How many shares we can buy back now we've. Currently, it's quite low because it's based on a 12 month look back on pre cashflow, and last Q3, we spent a lot of money, so it's kind of pulling it down. So we expect after this next Q3, will that coming will be loosened up and will have the ability to buy back more.

Speaker Change #104: In fact will be vessel or something like that right. So we're trying to move everyone with smiles in carrots and spare the thick, yes, I mean ultimately these cards do eventually expire and so they will be forced to migrate over one way or another we're just trying to accelerate it's sort of inevitable timeframe.

Ryan Schaffer: Currently, it's quite low because it's based on a 12 month look back on pre cashflow and last Q3, we spent a lot of money so it's kind of pulling it down so we expect after this next Q3 will that coming will be loosened up and will have the ability to buy back more.

Speaker Change #106: Got it that makes sense.

Speaker Change #106: And then I was just wondering if there's any update on payroll I think that that was a discussion a few quarters ago looking at specific license says and so I just wanted to see if there's any updates there sure I mean, it's a payroll we still use internally we've got all the we've got most of the money.

Unknown Executive: Got to thank you so much for coming here, but good, good, good, yeah.

Unknown Executive: Got to thank you so much for coming here, but good, good, good, yeah.

Speaker Change #108: Transition licensing in place I think right now where it is primarily focused on the core business we have begun.

Unknown Executive: Great, next up we have BMO. Do you have Daniel or Kyle in the line?

Unknown Executive: Great, next up we have BMO.

Speaker Change #108: Basically the technology and the accounting basically in place, but there's a lot of front end work that needs to happen to make it truly competitive in this market and there is no interest in like launching uncompetitive product as Ryan mentioned earlier, it's one thing to be able to like you know check the boxes that you like technically you've got a product.

Unknown Executive: Do you have Daniel or Kyle in the line?

Unknown Executive: All right, let's hop over to F.T.

Ryan Schaffer: All right, let's hop over to F.T, partners. Hey there guys, thanks for taking the question here. I just wanted to ask on the cards. I think in the press release, it was said that you're planning on getting 100% by the end of the year. So it's a plan then to whatever cards haven't been converted to basically forcefully shut them off and ship out new cards and kind of what's the strategy to get to that 100% conversion rate.

Unknown Executive: partners. Hey there, guys. Thanks for taking the question here. I just wanted to ask on the cards. I think in the press release, it was said that you're planning on getting 100% by the end of the year.

Ryan Schaffer: Great question, so we're seeing, so the number we said was at the end of Q2, right, so that's like a 45 day old numbers. We're seeing great progress even since then, would you think we're probably doing, I think what you're basically angling at is we'll probably get to a very high percentage and then some percentage will not do anything, right. So we haven't decided if we're going to shut off the cards or not.

Speaker Change #111: And then it's the thing that's the first 90% of the work if you will but then like the second 90% of the work is actually making it really good end market with competitive and so I think we're in that a second 90% right now and.

Ryan Schaffer: So it's a plan then to whatever cards haven't been converted to basically forcefully shut them off and ship out new cards and kind of what's the strategy to get to that 100% conversion rate. Great question, so we're seeing. So the number we said was at the end of Q2, right? So that's like a 45-day-old number. We're seeing great progress even since then. Would you think we're probably doing, I think what you're basically angling at is we'll probably get to a very high percentage and then some percentage will not do anything, right. So we haven't decided if we're going to shut off the cards or not.

Speaker Change #108: And I don't think we have an exact estimate of when we'll be launching a truly competitive product, but when we do launch it it's going to be good.

Speaker Change #108: We're also adding two MTO.

Speaker Change #109: Collapses interbank one for Pam.

Speaker Change #110: So I think last we titles and New York and maybe one other small things hope that makes sense. Okay. That's all for me thanks guys.

Speaker Change #110: Yeah.

Speaker Change #110: Great that wraps the Q&A section.

Speaker Change #114: Alright. Thank you all very much and David mentioned, we are actually in the expense. This expense my chat room, if you want to.

Speaker Change #113: Discuss with US further I know in the past we've had a lot of retail traders come in and talk to space you don't be retailed come and talked with anyone can so we welcome our institutional friends as well but.

Ryan Schaffer: We don't want to, but I think we're going to try to get there just through some aggressive. Probably we're listening, but we're probably not going to tell them. But we're going to just try to, you know, recount managers and kind of aggressively be like, all right, we got to we shift them over because we, less than we want to do is disrupt some business operations, get them all angry and then they. In fact, leave us or something like that, right? So we're trying to move everyone with smiles and carrots and, you know, spare the stick.

Ryan Schaffer: We don't want to, but I think it we're going to try to get there just through some aggressive. Probably we're listening, but we're probably not going to tell them. But we're going to just try to, you know, recount managers and kind of aggressively be like, all right, we got to we shift them over because we, less than we want to do is disrupt some business operations, get them all angry and then they.

Speaker Change #113: We're actually in there. So if you want to talk to the CEO go to this link and we're there to engage with all of our customers our shareholders. So thank.

Speaker Change #115: Violence, the next quarter alright, thanks, everyone.

Speaker Change #115: Goodbye.

Ryan Schaffer: In fact, leave us or something like that, right, so we're trying to move everyone with smiles and carrots and, you know, spare the stick. Yeah, I mean, ultimately these cards do eventually expire and so they'll be forced to migrate over one way or another, we're just trying to accelerate sort of the inevitable timeframe. Got it, that makes sense.

Ryan Schaffer: Yeah, I mean, ultimately these cards do eventually expire, and so they'll be forced to migrate over one way or another. We're just trying to accelerate sort of the inevitable timeframe. Got it, that makes sense.

David Barrett: And then I was just wondering if there's any update on payroll. I think that that was a discussion of you. Of course, go looking at, you know, specific licenses. And so just wanted to see if there's any updates there. Sure, I mean, it's a payroll. We see use internally. We've got all of the, we've got most of the money, money transition licensing in place. I think right now we're just primarily focused on the core business. We have the. Based on the technology and the accounting basically in place, but there's a lot of friends and work that needs to have to make it truly competitive in this market.

David Barrett: And then I was just wondering if there's any update on payroll. I think that that was a discussion of you. Of course, go looking at, you know, specific licenses. And so just wanted to see if there's any updates there. Sure, I mean, it's a payroll. We see use internally. We've got all the, we've got most of the money, money transition licensing in place. I think right now we're just primarily focused on the core business.

David Barrett: We have the. Based on the technology and the accounting basically in place, but there's a lot of friends and work that needs to have to make it truly competitive in this market. And there's no interest in like launching an uncompetitive product as Ryan mentioned earlier. It's one thing to be able to like, you know, check the boxes that you like technically you've got a product. And then it's the first 90% of the work, if you will, but then like the second 90% of the work is actually making it really good in market competitive.

David Barrett: And there's no interest in like launching an uncompetitive product, as Ryan mentioned earlier. It's one thing to be able to like, you know, check the boxes that you like technically you've got a product. And then it's the first 90% of the work, if you will, but then, like the second 90% of the work is actually making it really good in market competitive. And so I think we're in that second 90% right now. And I don't think we have the exact estimate of when one will be launching a truly competitive product, but when we do launch it, it's going to be.

David Barrett: And so I think we're in that second 90% right now. And I don't think we have the exact estimate of one will be launching a truly competitive product, but when we do launch it, it's going to be. I think last week I was New York and maybe one other still saying so that makes sense.

David Barrett: I think last week I was New York and maybe one other still saying, so that makes sense.

Unknown Executive: Okay, that's all from me. Thanks, guys. Thank you.

Unknown Executive: Okay that's all from me. Thanks guys. Thank you.

Unknown Executive: Great! That wraps the Q&A section. All right. Thank you all very much.

Unknown Executive: Great that wraps the Q&A section. All right. Thank you all very much.

Unknown Executive: As David mentioned, we are actually in this exercise interim. If you want to discuss with us further, I know in the past we've had a lot of retail traders come in and talk to us, but you don't have to be retail to come and talk to us; anyone can. So we can welcome our institutional friends as well, but we're actually in there. So if you want to talk to the CEO, go to this link, and we're there to engage with our customers or shareholders. So thanks a lot.

Unknown Executive: As David mentioned, we are actually in the this exercise interim. If you want to discuss with us further, I know in the past we've had a lot of retail traders come in and talk to us but you don't have to be retail to come and talk to us anyone can. So we can welcome our institutional friends as well but we're actually in there. So if you want to talk to the CEO, go to this link and we're there to engage with our customers or shareholders. So thanks a lot.

Unknown Executive: We'll see you next quarter. Thanks everyone. Goodbye. Bye.

Unknown Executive: We'll see you next quarter. Thanks everyone. Goodbye.

Unknown Executive: Bye.