Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Expensify, Inc. (NASDAQ: EXFY) common stock pursuant to the Company’s initial public offering ("IPO") conducted on November 11, 2021. The complaint alleges violations under the Securities Act of 1933. Expensify provides a cloud-based expense management software platform to individuals, small business, and corporations in the U.S. and internationally.

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What is this Case About: Expensify, Inc. (EXFY) Failed to Disclose Material Relevant Information in Connection with its Registration Statement in Support of its IPO

According to the complaint, Expensify conducted its IPO on November 11, 2021, selling 9.73 million shares priced at $27 per share. However, the Offering Documents in support of the IPO failed to disclose that: (i) Expensify’s revenue growth was highly susceptible to structural and macroeconomic headwinds; (ii) as a result, the Company overstated the efficacy of its business model and the likelihood it would meet the long-term growth projections touted in the Offering Documents; (iii) accordingly, the Company’s post-IPO financial position and/or business prospects were overstated; and (iv) as a result, defendants’ statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Plaintiff alleges that on June 12, 2023, Morgan Stanley downgraded Expensify to Underweight from Equal-weight, citing structural headwinds and the Company’s risk-reward profile. On this news, Expensify’s stock price fell $0.45 per share, or 6.28%, to close at $6.72 per share on June 12, 2023. Then, on August 8, 2023, Expensify announced its second quarter 2023 financial and operating results. Among other items, Expensify reported GAAP EPS of -$0.14, missing consensus estimate of -$0.07, and revenue of $38.9 million, which likewise missed the consensus estimate of $41.5 million. Expensify also withdrew its previously issued revenue growth guidance. Following Expensify’s disclosures, JMP Securities downgraded the Company to Market Perform from Market Outperform. On this news, Expensify’s stock price fell $1.69 per share, or 28.55%, to close at $4.23 per share on August 9, 2023.

Finally, on November 7, 2023, Expensify announced third quarter 2023 financial and operating results that once again missed consensus estimates amid macroeconomic headwinds. Among other items, Expensify reported a Q3 GAAP loss of $0.21 per share and a 14.1% year-over-year revenue decline. On this news, Expensify’s stock price fell $1.07 per share, or 36.89%, to close at $1.83 per share on November 8, 2023.

What Now: Similarly situated shareholders may be eligible to participate in the class action against Expensify, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by January 29, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.

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