2. Expensify
Another stock struck down by the pandemic lockdowns and the subsequent collapse in business travel, expense management software provider
Expensify (
EXFY 1.45%) is another relatively new entrant to the market following its
November 2021 IPO. It's lost nearly two-thirds of its value over the ensuing months as management's uncertainty over economic conditions caused it to say it will stop providing quarterly guidance. But that should actually be seen as a feature, not a bug.
Management prefers to focus on the long-range outlook for its business, not short-term fixes. On that front, Expensify sees revenue growing sustainably at a rate of 2% to 3% every month, giving it confidence to predict long-term growth of 25% to 30% over multiyear periods.
NASDAQ: EXFY
Expensify, Inc.
Current Price
$17.50
EXFY
Expensify thinks its stock is discounted, having authorized a $50 million buyback program, and paid user growth exceeded expectations, coming in at 706,000 members. While that's still below what it ended 2021 with, at the end of March that figure spiked to 742,000 members, the second-best month in the company's history.
While analysts have lowered their price targets for Expensify in recent months, it's still seen as having good growth prospects because of what
JMP Securities analyst Patrick Walravens calls "super easy-to-use" software and a viral business model.
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