Bank of America has recommended Expensify, Inc. (NASDAQ: EXFY), an invoice processing service provider. This was the basis for a 12.34 percent increase in EXFY prices to $19.66 during the trading on July 18. $1.58 billion was the market capitalization.
EXFY, according to Bank of America analyst Koji Ikeda, may become an innovation leader in its services industry category. According to the analyst, a solid business strategy will assist Expensify in transitioning from high to rapid margin development.
Furthermore, this approach is perfectly suited for clients of various sizes, ranging from individual entrepreneurs to huge corporations. Simultaneously, small businesses are now more prepared for a prospective recession than they were in 2020, lowering Expensify, Inc. (EXFY)’s risks. In light of this, the analyst upgraded EXFY shares from neutral to “buy” and increased the target price from $20 to $25.
It should be noted that EXFY is currently trading 61% lower than its 52-week high and 44.7 percent higher than its 52-week low. Expensify’s principal business is providing services and solutions to help businesses streamline the processing of expense bills.
The firm transitioned to a freemium model in October 2021, which means that individual consumers can access portions of Expensify, Inc. (EXFY)’s services. This allowed the firm to rapidly expand its audience: by the end of the first quarter of 2022, it had more than 9,000 free users. Even though they do not yet pay for services, this is a good element because such users frequently migrate to a paid membership.
Furthermore, the freemium model functions similarly to free advertising, allowing Expensify to keep marketing expenditures low. During the previous year, the corporation spent only 19% of its revenue, or $27.7 million, on this. As a result, Expensify, Inc. (EXFY) effectively competes with larger competitors that spend far more money on user acquisition.
In August, EXFY will release its second-quarter report.
