What happened
Shares of Expensify (EXFY -9.12%), which helps companies and individuals track expenses, plunged today after the company reported worse-than-expected second-quarter results.
The tech stock was down by 11.1% as of 11:38 a.m. ET.
So what
Expensify's second-quarter sales of $43.2 million were up 22% from the year-ago quarter but fell just below analysts' consensus estimate of $43.7 million for the quarter.
Image source: Getty Images.
While that revenue miss was disappointing, it was the company's dismal bottom-line results that likely led to investors fleeing the stock today.
Expensify had a non-GAAP loss per share of $0.10 in the quarter, a significant drop from earnings of $0.05 in the year-ago quarter and far below Wall Street's consensus estimate of $0.09 earnings per share for the quarter.
The company said in a press release that its losses in the quarter were "primarily driven by stock-based compensation expenses" of $14 million.
Expensify CFO Ryan Schaffer said that the company "delivered great results this quarter" and is "excited by the momentum we're seeing in the business despite the challenging climate." But investors clearly disagreed with that perspective today.
Now what
With stock-based compensation weighing down the company's financial results and Expensify missing both top- and bottom-line consensus estimates for the quarter, it's no surprise to see its share price plunge today.
With tech stocks experiencing significant share price swings right now as investors process economic and inflation data, Expensify investors can likely expect more share price volatility in the near term.
