Expensify Inc (EXFY) 2023 Q1 法說會逐字稿

Welcome to the Q1 2023 Expensify Earnings Call. And today, you have myself, Ryan Schaffer and new Anu Muralidharan. Our CEO, David Barrett, is laser-focused right now on working with the team to get everything ready for ExpensiCon, our conference next week, and we'll be doing a number of important product announcements there, and he is working side-by-side with the team heads down to make sure everything is ready. So today, Any and I are going to take you through the slides.

歡迎參加 2023 年第一季度 Expensify 收益電話會議。今天，有我本人、瑞安·謝弗 (Ryan Schaffer) 和新任阿努·穆拉利達蘭 (Anu Muralidharan) 發言。我們的首席執行官 David Barrett 現在正專注於與團隊合作，為下週的 ExpensiCon 會議做好一切準備，我們將在那裡發布許多重要的產品，他正在並肩工作- 與團隊一起低頭確保一切準備就緒。今天，我和 Any 將帶您瀏覽這些幻燈片。

And without further ado, let me turn it over to Any to read the legalese and take us through the business section.

言歸正傳，讓我把它交給 Any 來閱讀法律術語並帶我們了解業務部分。

Thanks, Ryan. Good afternoon, everyone. So first, the boring stuff.

謝謝，瑞安。大家下午好。首先是無聊的事情。

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 federal securities 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 those described in these looking statements. 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.

在我們開始之前，請注意，今天電話會議中提供的所有信息均未經審計。在本次電話會議期間，管理層可能會做出聯邦證券法含義內的前瞻性陳述。這些陳述基於管理層當前的預期和信念，並涉及可能導致實際結果與這些前瞻性陳述中描述的結果存在重大差異的風險和不確定性。我們今天發布的收益報告中的前瞻性陳述以及對本次電話會議的評論僅在今天做出，不會隨著實際事件的發生而更新。

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.

請參閱今天的新聞稿和我們向美國證券交易委員會提交的文件，詳細討論可能導致實際結果與今天所做的任何前瞻性聲明中明示或暗示的結果存在重大差異的風險。

We 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 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 the most comparable GAAP measures.

我們還注意到，在今天的電話會議上，管理層將提及某些非公認會計準則財務指標。雖然我們相信這些非公認會計原則財務指標為投資者提供了有用的信息，但這些信息的呈現並不旨在被孤立地考慮或作為根據公認會計原則呈現的財務信息的替代品。請參閱今天的新聞稿或投資者演示文稿，了解這些非公認會計準則財務指標與最具可比性的公認會計準則財務指標的調節表。

So on that note, next slide, let's begin. I want to remind you and walk you through our long-term strategy in brief. So let's start off with the 3 secrets to Expensify's long-term success. First of all, the market is enormous. And we remind you of this every time, but almost no 1 in the market is actually using any software product, which means the primary competition is really just excel and paper.

因此，讓我們開始下一張幻燈片。我想提醒您並簡要介紹一下我們的長期戰略。那麼，讓我們從 Expensify 長期成功的 3 個秘訣開始吧。首先，市場巨大。我們每次都會提醒您這一點，但市場上幾乎沒有人真正使用任何軟件產品，這意味著主要的競爭實際上只是 Excel 和紙張。

But the opportunity when you consider the whole market isn't enterprise companies, isn't it the top of the market, rather it is all the small and medium businesses out there that have taken together the largest number of employees, and that's really the value proposition. But the difficulty is how do you acquire these very small businesses at scale. This is good and most well care secrets and why you should believe in. We are the only company out there, the only product out there, that has a viral word-of-mouth adoption model. And this allows us to absorb the lion's share of this market profitably, and that's really our ambition. We are trying to build 1 billion user platform, and we hope you will come along with us for that route.

但是你看整個市場的機會不是企業公司，不是市場的頂端，而是所有中小企業，員工人數最多，這才是真正的機會。價值主張。但困難在於如何大規模收購這些非常小的企業。這是很好的、最值得關注的秘密，也是您應該相信的原因。我們是唯一一家擁有病毒式口碑採用模式的公司、唯一的產品。這使我們能夠在有利可圖的情況下吸收這個市場的最大份額，這確實是我們的雄心。我們正在努力打造10億用戶的平台，希望您能與我們一起走這條路。

Next slide. So I'm not going to spend a ton of time on this, and we've shown this many times. This is probably by now your most favorite slide, but this illustrates again, the richness of the opportunity as you go from enterprise, which is small chain few company large insights to a huge range of small and medium businesses with a huge collection of employee taken together. Now again, reiterating, that when you look at the small and medium business market, and if you're looking at a company that has a top term sales-driven business model, it's not easy or in at all possible to profitably acquire a small medium business segment.

下一張幻燈片。因此，我不會在這方面花費大量時間，我們已經多次展示過這一點。這可能是迄今為止您最喜歡的幻燈片，但這再次說明了，當您從企業（小型連鎖企業的大型見解）到擁有大量員工的眾多中小型企業時，機會的豐富性一起。現在再次重申，當你審視中小型企業市場時，如果你正在尋找一家擁有頂級銷售驅動型商業模式的公司，那麼要盈利地收購一家小型企業並不容易或根本不可能。中型業務部門。

So you need a product-led growth model, you need a viral adoption model, and that's why we are interested.

因此，您需要以產品為主導的增長模式，需要病毒式採用模式，這就是我們感興趣的原因。

Next slide. So just a quick recap on how the bottom up adoption model work. So Expensify is 1 of the few products out there that solves a real pain point to a largely ignored segment of the market, that's the employee. So employees have a genuine need and we are the only one that built a product to continue to cater to this audience, even when their company has not adopted the product. So an employee can download the app, use it for free. And because it solves a real pain point for them and for free, they end up telling their friends, they end up telling their family or anybody that they know, who has a job, who likely have the same pain point.

下一張幻燈片。快速回顧一下自下而上的採用模型是如何工作的。因此，Expensify 是為數不多的能夠解決市場上一個很大程度上被忽視的部分（即員工）真正痛點的產品之一。因此，員工有真正的需求，我們是唯一一個開發產品來繼續迎合這一受眾的公司，即使他們的公司尚未採用該產品。因此，員工可以下載該應用程序，免費使用它。因為它免費地為他們解決了真正的痛點，所以他們最終會告訴他們的朋友，他們最終會告訴他們的家人或任何他們認識的人，誰有工作，誰可能有同樣的痛點。

So what ends up happening is large swaps of individual users are using us for a business use case, sometimes it ends up being various groups within the company. And so this is a tiny wave that ends up taking the company with it. And we are able to convert this company into same customer without ever reaching them with the salesperson. And that is really the beauty of the bottom up adoption model. It can be executed at scale across the market because it doesn't depend on increasing our headcount or spending sales stronger on it.

因此，最終發生的情況是，大量個人用戶將我們用於業務用例，有時最終是公司內的各個群體。因此，這是一個微小的浪潮，最終將公司捲入其中。我們能夠將這家公司轉變為同一客戶，而無需與銷售人員聯繫。這確實是自下而上採用模型的美妙之處。它可以在整個市場上大規模執行，因為它不依賴於增加我們的員工人數或加強其銷售支出。

Next slide. So why we acquired a company, when they are small or at least a little small, our philosophy has always been to never let a customer ever outgrow us. So we are being the only product that caters to an individual and so have consumer trade U.S. But at the same time, we also have enterprise level scale. We have a profit capabilities, so we have a rich suite of features, and we also have global reach.

下一張幻燈片。因此，為什麼我們收購一家公司，當他們很小或至少有點小時，我們的理念始終是永遠不要讓客戶超越我們。因此，我們是唯一滿足個人需求的產品，因此我們擁有美國消費者貿易，但與此同時，我們也擁有企業級規模。我們有盈利能力，所以我們有豐富的功能，而且我們也有全球影響力。

Next slide. And you've seen this slide many times, but we -- this is our robust road map. And as you see more and more, you noticed that more patients that are grey, which means they are planned, become green which means they are in beta and then go on to becoming blue, which means they are now fully launched. And the way to read this again is to go from left to right. Anything on the far left is aimed at getting more viral lead generation into the platform and anything on the far right is seen taking the product, making the subscription richer for existing and targeted companies, who are our.

下一張幻燈片。您已經多次看過這張幻燈片，但我們——這是我們穩健的路線圖。當您看到越來越多的患者時，您會注意到更多的灰色患者（這意味著他們是有計劃的）變成綠色（這意味著他們處於測試階段），然後繼續變成藍色（這意味著他們現在已全面啟動）。再次閱讀本文的方法是從左向右。最左邊的任何內容都是為了讓更多的病毒式銷售線索進入平台，而最右邊的任何內容都被認為是利用產品，使現有和目標公司（我們的）的訂閱更加豐富。

Next slide. So having a recap on the long-term strategy and the value proposition of the company, I want to give you a few strategic Q1 updates before I pass it on to -- pass it on to Ryan for financials. So there are 3 things that I want to talk about today.

下一張幻燈片。因此，回顧一下公司的長期戰略和價值主張，我想在我將其傳遞給 Ryan 之前向您提供一些第一季度戰略更新。所以今天我想談三件事。

Next slide. The first 1 is our accounting channel, and we've talked about this channel with you many times. But again, as a reminder, we consider this challenge to be our gold mine. That's because every accountant has the ability to bring us hundreds of customers who, in turn, represent thousands of paid numbers for us. Now not only is it a customer scale, it's also customer quality, because these companies generally set up by the accountant, who is well versed in industry best practices. And we also train them, so they're well versed in our product best practices. So these companies are ideally set up and so they become extremely easy to support for us and also as a result very easy to retain.

下一張幻燈片。第一個是我們的會計頻道，這個頻道我們已經和大家討論過很多次了。但再次提醒一下，我們認為這一挑戰是我們的金礦。這是因為每個會計師都有能力為我們帶來數百名客戶，而這些客戶又代表我們數千個付費號碼。現在不僅是客戶規模，更是客戶質量，因為這些公司一般都是由精通行業最佳實踐的會計師設立的。我們還對他們進行培訓，使他們精通我們的產品最佳實踐。因此，這些公司的設立非常理想，因此我們非常容易支持它們，因此也很容易留住它們。

So there's high retention in this channel. Now there are 2 things we've done and we've talked about in the past as well. One is as we've assigned a partner manager to the 500 or so accounting firms that are already on our platform. And these partner managers are all Expensify employees and their job really is to give these accountants one-on-one support as we onboard new customers and support, again, customers end up having issues or need to involve their setup because they are growing so on and so forth. So we keep this channel very warm. We can even very well supported because it is a great opportunity for us to disproportionately grow, our team members.

所以這個渠道的留存率很高。現在我們已經做了兩件事，並且我們過去也討論過。一是我們已經為我們平台上已有的 500 家左右的會計師事務所指派了一名合夥人經理。這些合作夥伴經理都是 Expensify 員工，他們的工作實際上是在我們引入新客戶和支持時為這些會計師提供一對一的支持，同樣，客戶最終會遇到問題或需要涉及他們的設置，因為他們正在成長等等等等。所以我們讓這個頻道非常溫暖。我們甚至可以得到很好的支持，因為這對我們的團隊成員來說是一個絕佳的成長機會。

We're also hosting ExpensiCon 3. And of course, as the name indicates, we've done it twice in the past. And the idea behind this is to bring and this 1 is going to bring 140 of the industry-leading experts, accountants and large funds, and we're going to bring them to Italy. And we have top leadership sessions, trading best practices, understanding their pain point even more, so we can find our product to them. And of course, have a good time because nothing else reac loyalty as a good time together, right? So that's the accounting channel.

我們還主辦了 ExpensiCon 3。當然，正如其名稱所示，我們過去已經舉辦過兩次。這背後的想法是，這1將帶來140名行業領先的專家、會計師和大型基金，我們將把他們帶到意大利。我們舉辦高層領導會議，交流最佳實踐，更多地了解他們的痛點，這樣我們就可以為他們找到我們的產品。當然，要玩得開心，因為沒有什麼比在一起的美好時光更能體現忠誠了，對吧？這就是會計渠道。

Next slide. We are also working on our sales effort and we've talked about this again in the past. Every quarter that we've been working on it quite consistently. But this effort and this uptake always leads to a lot of questions around where sales fits in with our bottom-up adoption model and product approach model. So I want to address that head on. The way to think about our growth opportunity, the shining star of our growth story is really bottom up adoption, is product-led growth. But we think product led growth in view sort of like a sail boat. When the wind is high, everything is exponentially faster and the wind really can be thought of a lot of besides a lot other things, 1 of the primary drivers is macroeconomic conditions.

下一張幻燈片。我們也在致力於銷售工作，我們過去曾再次討論過這一點。每個季度我們都在堅持不懈地努力。但這種努力和這種接受總是會引發很多關於銷售與我們自下而上的採用模型和產品方法模型之間的契合度的問題。所以我想正面解決這個問題。思考我們的增長機會的方式，我們增長故事中的閃亮之星，實際上是自下而上的採用，是產品主導的增長。但我們認為產品引領增長有點像帆船。當風很大時，一切都會以指數方式加快，除了很多其他因素之外，風確實可以被認為是很多因素，其中一個主要驅動因素是宏觀經濟條件。

So of course, right now, given the macroeconomic conditions, wind is a little bit low. And what would be great, what is a very good business is the ability to supplement that growth with something consistent, something steady and being modest, and that's what we consider our sales efforts to be. It's sort of like a motor boat that supplements the wind in our sails. And when the wind is slow, we want to be able to depend on the motor boat to keep going, and when the wind comes back, we go much faster once again.

當然，目前考慮到宏觀經濟條件，風能有點低。偉大的、非常好的企業是能夠用一致、穩定和適度的東西來補充這種增長，這就是我們認為我們的銷售努力應該做的。它有點像一艘摩托艇，為我們的船帆補充風力。當風慢時，我們希望能夠依靠摩托艇繼續前進，而當風回來時，我們又會開得更快。

So that's the strategic goal behind building the sales program. It's not intended to replay growth, it is not intended to even go head-to-head with them. It is intended to supply a consistent backup. Now all that said, let's talk a little bit about the results. We've been working on this for a little over a year. Our SDRs, who are really the agents that we've hired and we have been using a flexible outsourced model for all of them as a reminder. But our SDR story, the people that we've hired, who hit the phones and call prospect lists and get a more direct outbound lead gen volume. And we've been ramping up this program more recently.

這就是製定銷售計劃背後的戰略目標。它並不是為了重播增長，甚至不是為了與它們正面交鋒。它旨在提供一致的備份。說了這麼多，讓我們來談談結果。我們為此已經努力了一年多了。我們的特別提款權實際上是我們僱傭的代理人，作為提醒，我們一直在為他們所有人使用靈活的外包模式。但我們的 SDR 故事是我們僱用的人員，他們撥打電話並致電潛在客戶名單，並獲得更直接的出站潛在客戶開發量。我們最近一直在加強這個計劃。

And you can see they really kind of settled into a in the first quarter of 2023. And you can see here from the green bars, that our incoming lead pipeline that is growing very healthily as a result. We've also continued doubling down on our guides program, and you might know that externally our setup specialists and the their job is to absorb the incoming leads and to convert them at a better and better rates. So we've been tracking the deals that guides win and how many paid members they convert. And what would be really encouraging is every month in the first quarter of 2023, the number of paid members, the number of deals that our setup specialists have been able to convert has been persistently doubling.

你可以看到他們確實在 2023 年第一季度進入了穩定狀態。你可以從綠色條中看到，我們的引入鉛管道因此增長得非常健康。我們還繼續加倍努力我們的指南計劃，您可能知道，在外部，我們的設置專家和他們的工作是吸收傳入的潛在客戶並以越來越好的價格將其轉化。因此，我們一直在跟踪導遊贏得的交易以及他們轉化的付費會員數量。真正令人鼓舞的是，2023 年第一季度的每個月，付費會員數量、我們的設置專家能夠轉化的交易數量持續翻倍。

So every month, it doubles versus the previous month, which again is a very encouraging leading indicator for growth. And just these efforts overall.

因此，每個月它都會比上個月翻一番，這又是一個非常令人鼓舞的增長領先指標。總體來說就是這些努力。

Next slide. That lead, I wanted to come back to what we're going to do for product-led growth. Now of course, the macroeconomic conditions are not under our control, but it's cyclical and what goes down must come up, just like what goes up must come down. So ignoring that for a second, what we want to be ready with is as the market sort if recovers, we want our entire product road map to be complete, fully launched and all. Now that is a very ambitious goal because we have a pretty robust road map, as we've shared with you in the past. And so what we've done is we leaned on an external contributor community, to more outsourced engineering resources to supplement our internal engineering team.

下一張幻燈片。就這一點，我想回到我們將為產品主導的增長所做的事情。當然，現在宏觀經濟狀況不受我們控制，但它是周期性的，有跌必有漲，就像有漲必有跌一樣。因此，暫時忽略這一點，我們想要做好的準備是，隨著市場的複蘇，我們希望我們的整個產品路線圖能夠完整、全面啟動等等。現在，這是一個非常雄心勃勃的目標，因為我們有一個非常強大的路線圖，正如我們過去與您分享的那樣。因此，我們所做的就是依靠外部貢獻者社區，依靠更多的外包工程資源來補充我們的內部工程團隊。

And this graph shows you the number of jobs, the number of requests, the number of engineering hours that we have been able to use the external community for. And the idea behind this is not just us to launch new products, new features, but to also lean on them simultaneously to keep finding and fixing bugs, so that we can move fast without breaking things or at least without completely damaging the quality of the product that we're building.

該圖顯示了我們能夠使用外部社區的作業數量、請求數量以及工程小時數。這背後的想法不僅是我們推出新產品、新功能，而且同時依靠它們來不斷發現和修復錯誤，這樣我們就可以快速行動而不會破壞東西，或者至少不會完全損害產品的質量。我們正在構建的產品。

And Again, as a reminder, the point of using contributors is to go fast when we want and slow down when we don't need to go so fast. So when you hire a lot of engineers, you are kind of bearing the cost on your income statement for a really long time and at the risk of damaging morale. You can't really let employees go and hire them back as fast or as a market has shown us it doesn't work because other companies doing that make the headlines and extremely down press, too. So on this contributor community, and there are no contracts. We basically just worked with them on per job basis. So we are able to sort of expand the contract much more nimbly and that's the idea behind it.

再次提醒一下，使用貢獻者的目的是在我們想要的時候快點，在不需要的時候慢點。因此，當您僱用大量工程師時，您將在很長一段時間內在損益表上承擔成本，並且面臨士氣受損的風險。你不能真的像市場告訴我們的那樣，讓員工離開並重新僱用他們，這是行不通的，因為其他這樣做的公司也會成為頭條新聞並受到極大的壓力。所以在這個貢獻者社區中，沒有合同。我們基本上只是根據工作內容與他們合作。因此，我們能夠更靈活地擴展合同，這就是其背後的想法。

So those are the 3 major updates or group channel, our accounting channel, our sales channel and our contributor community and all of the progress we've made in the first quarter has been very encouraging, and we think of it as really setting us up for success as we go into 2022 further.

這些是 3 個主要更新或團體渠道、我們的會計渠道、我們的銷售渠道和我們的貢獻者社區，我們在第一季度取得的所有進展都非常令人鼓舞，我們認為這真正為我們奠定了基礎當我們進一步邁入 2022 年時，我們將取得成功。

So with all that out of the way, I'm going to pass it back to Ryan who is going to run us through the financials.

因此，完成所有這些工作後，我將把它轉交給瑞安，他將指導我們了解財務狀況。

Great. Thanks, Anu. All right, everyone. Happy to see everybody again. I'd love to take you through the Q1 financials. So revenue was $40.1 million, that is just a tad hair down year-over-year. But 1 thing to consider is that our cash back is contra revenue. So as the card continues to grow and it has been growing quite nicely, that actually pulls down that revenue number. If you were to adjust for cash back, you would see that revenue is actually higher. We have higher -- we have more users than we had last year. But actually, the card is more successful, that pulls down revenue. So we had a flattish, slightly down revenue year-over-year.

偉大的。謝謝，阿努。好吧，大家。很高興再次見到大家。我很樂意向您介紹第一季度的財務狀況。因此，收入為 4010 萬美元，與去年同期相比略有下降。但需要考慮的一件事是我們的現金返還是對沖收入。因此，隨著該卡的不斷增長，而且增長得相當不錯，這實際上拉低了收入數字。如果你要調整現金返還，你會發現收入實際上更高。我們的用戶比去年更多。但實際上，這張卡更成功，這拉低了收入。因此，我們的收入同比持平，略有下降。

Our average paid members were 747,000, up about 6% year-over-year, and our gross interchange is $2.3 million for the quarter, which 85% year-over-year, so the card continues to grow quite nicely despite kind of some headwinds elsewhere in the business.

我們的平均付費會員為 747,000 名，同比增長約 6%，本季度總交易額為 230 萬美元，同比增長 85%，因此儘管存在一些阻力，該卡的增長仍然相當不錯在業務的其他地方。

Next slide. Our operating cash flow was $7.6 million. Our free cash flow was $10.2 million, which we're quite happy about. Our GAAP net loss was $5.9 million. Our non-GAAP net income was $4.1 million and a difference, again, between GAAP net loss and non-GAAP net income is stock-based compensation. Our adjusted EBITDA was $8.7 million.

下一張幻燈片。我們的經營現金流為 760 萬美元。我們的自由現金流為 1020 萬美元，對此我們感到非常高興。我們的 GAAP 淨虧損為 590 萬美元。我們的非 GAAP 淨利潤為 410 萬美元，而 GAAP 淨虧損和非 GAAP 淨利潤之間的差異又是基於股票的薪酬。我們調整後的 EBITDA 為 870 萬美元。

All right. So let's talk about what happened in Q1. So our customer count was up in Q1. However, we did see activity across our customers decrease, which resulted in a net decrease in paid members from Q4. So basically what that means is, let's say, the average customer has 14 paid members, and we basically saw that decrease to 13 or 13.3, or something like that. So we saw kind of a decrease across the board, a small decrease, but we have so many customers that even a small decrease in activity kind of outstripped the increase in net new we saw. So subscription members did increase in Q1, but our pay-per-use member decreased with larger than the growth in subscription.

好的。那麼我們來談談第一季度發生的事情。所以我們的客戶數量在第一季度有所增加。然而，我們確實看到客戶的活動減少，這導致付費會員較第四季度淨減少。所以基本上這意味著，比方說，平均客戶有 14 名付費會員，而我們基本上看到該數字減少到 13 或 13.3 或類似的數量。因此，我們看到整體下降，小幅下降，但我們有如此多的客戶，即使活動的小幅下降也超過了我們看到的淨新增長。因此，訂閱會員在第一季度確實有所增加，但我們的按次付費會員的減少幅度大於訂閱的增長幅度。

So this wasn't a big churn off of customers. It was just an average decrease in activity across the board. The good news is that we believe because it's not a big churn off of customers that we believe the activity decrease is due to economic conditions. We think that is expected given the environment. And ultimately, we think it is temporary. No 1 thinks the economy is going to be bad forever. It's cyclical right, going to come back up. And as long as we retain these customers, when activity goes back up, their user counts will increase. So we want to make sure we're retaining the customers. And if there's kind of some choppiness in terms of their activity going up and down, we will weather that storm, obviously, because we are cash flow positive, and it's just kind of a sign of the times.

所以這並不是一個很大的客戶流失。這只是全面活動的平均下降。好消息是，我們認為，由於客戶流失並不是很大，因此我們認為活動減少是由於經濟狀況造成的。考慮到環境，我們認為這是預期的。最終，我們認為這是暫時的。沒有人認為經濟會永遠糟糕。這是周期性的，會回來的。只要我們留住這些客戶，當活動恢復時，他們的用戶數量就會增加。因此，我們希望確保留住客戶。如果他們的活動出現波動，顯然我們會渡過這場風暴，因為我們的現金流為正，這只是時代的標誌。

Next slide, please. All right. So we don't give guidance, but what we do, do is that we let you know how the next -- the first month in the current quarter is trending. So as you can see in April, it's the yellow bar furthest to the right. We're continuing to see some volatility. It actually looks remarkably similar to the kind of up and down we saw in 2021, if you look over on the left-hand side, but as you can see, in every single 1 of these months, we are having our subscription numbers increase, but the pay per use is kind of going up and down a lot. So we are not through the woods yet on the volatility.

請下一張幻燈片。好的。因此，我們不提供指導，但我們所做的是讓您知道下一個 - 本季度第一個月的趨勢如何。正如您在四月份所看到的，它是最右側的黃色條。我們繼續看到一些波動。如果你看左邊，它實際上看起來與我們在 2021 年看到的那種上下波動非常相似，但正如你所看到的，在這幾個月裡，我們的訂閱數量都在增加，但每次使用的費用上下浮動很大。因此，我們還沒有走出波動的困境。

Next slide, please. Let's talk about free cash flow. So we had a strong free cash flow in Q1, $10.2 million. And people say, what are you going to do with it. Great free cash flow, what do you do with it? So we obviously, we're spending it more and more on sales and marketing, but also, in Q2, we're going to take the free cash flow from Q1. We're going to do a $3 million buyback in the open market that starts tomorrow. And also, we're going to reduce our debt by $8 million.

請下一張幻燈片。我們來談談自由現金流。因此，我們在第一季度擁有強勁的自由現金流，為 1020 萬美元。人們說，你打算用它做什麼？大量的自由現金流，你用它做什麼？因此，顯然，我們在銷售和營銷上的支出越來越多，而且在第二季度，我們將從第一季度獲得自由現金流。我們將從明天開始在公開市場上進行 300 萬美元的回購。此外，我們還將減少 800 萬美元的債務。

And as Anu said, we are positioning ourselves for success in the future. Our sales efforts are starting to show some real results and pre trials have seen a huge jump. So we are optimistic in the future. We think that the investments we made there are starting to show kind of some early green shoot that makes us quite encouraged. We're well capitalized, and our free cash flow is strong, and we're using that positive free cash flow to reduce our debt, and we're also returning value to our shareholders via buybacks.

正如阿努所說，我們正在為未來的成功做好準備。我們的銷售努力開始顯現出一些實際成果，預試驗也取得了巨大的進步。所以我們對未來持樂觀態度。我們認為，我們在那裡進行的投資已經開始顯現出一些早期的萌芽，這讓我們深受鼓舞。我們資本充足，自由現金流強勁，我們正在利用積極的自由現金流來減少債務，並且我們還通過回購向股東回報價值。

And very soon, we'll be starting the migration of our users to our next-gen platform. So nothing to announce today, but expect more announcements from us soon during ExpensiCon 3, which is May 18 to 22. We have a lot of product changes that we've been in the lab cooking for a while. So we're excited to get those out in the open pretty soon.

很快，我們將開始將用戶遷移到下一代平台。因此，今天沒有什麼可宣布的，但預計我們很快會在 ExpensiCon 3（即 5 月 18 日至 22 日）期間發布更多公告。我們已經在實驗室中醞釀了很多產品變更。因此，我們很高興能盡快將這些內容公開。

Next slide. And just as a reminder, this is the future we've been building. A lot of our efforts on the engineering side have been really focused on this new platform we've been working on and not -- we've put so much work into it and not very many people have seen it yet, which is why we're so excited to start getting actual paid members on to it. And -- but as a reminder, the Superapp that we're building right now is expense management, corporate card with cashback, invoicing, billing, chat, corporate travel management, personal travel management, P2P money transfer, bill splitting, and a personal wallet, all for $9, all in 1 app and coming to you very soon.

下一張幻燈片。提醒一下，這就是我們一直在建設的未來。我們在工程方面的很多努力都真正集中在我們一直在開發的這個新平台上，而不是——我們已經投入了很多工作，但還沒有很多人看到它，這就是為什麼我們很高興開始讓真正的付費會員加入其中。而且——但提醒一下，我們現在正在構建的超級應用程序是費用管理、帶現金返還的公司卡、發票、計費、聊天、公司差旅管理、個人差旅管理、P2P 轉賬、賬單分攤和個人錢包，全部僅需 9 美元，全部集成在 1 個應用程序中，很快就會為您提供。

So we're all very excited about that.

所以我們都對此感到非常興奮。

All right. Now we'll throw it over to Q&A. And I believe our first analyst is Natalie Hao from Bank of America.

好的。現在我們將其交給問答環節。我相信我們的第一位分析師是來自美國銀行的 Nataliehao。

So my question for you guys is, so pay per user went down, and you guys have previously said that they do pay a premium price, and you're trying to find a good balance of subscriptions and pay per use. I think you guys have mentioned 20% would be your ideal number. Have the -- these trends sort of had you guys on that path? Or have you guys sort of thinking about earlier than you anticipated?

所以我想問你們的問題是，每用戶付費下降了，你們之前說過他們確實支付了溢價，並且你們正在努力找到訂閱和按使用付費之間的良好平衡。我想你們已經提到 20% 是你們的理想數字。這些趨勢是否讓你們走上了這條道路？或者你們的考慮比你們預期的要早？

Great question. So yes, we are being successful in converting people over from pay-per-use to subscription. We are seeing increases in subscription. However, we also saw a decrease in paper use this quarter. And again, that doesn't mean the customers left. It just means that they have less employees that were active. So we are seeing paper use come down. But this quarter, it was kind of a little bit of come a, little bit calm. We're moving people over to subscription, but also -- they also decreased. So yes, our pay per use percentage to go down, but part of that is attributed to general less activity and also in part because we've been successful in converting. So it's a little bit of both.

很好的問題。所以，是的，我們正在成功地將人們從按使用付費轉變為訂閱。我們看到訂閱量有所增加。然而，本季度紙張使用量也有所減少。再說一次，這並不意味著顧客離開了。這只是意味著他們活躍的員工較少。因此，我們看到紙張使用量有所下降。但這個季度，情況有點平靜。我們正在將人們轉向訂閱，但他們也減少了。所以，是的，我們的每次使用付費百分比會下降，但部分原因是活動普遍減少，部分原因是我們在轉換方面取得了成功。所以兩者兼而有之。

Okay. Cool. And then a quick follow-up. It appears that sales and marketing as a percentage of revenue went down, but you guys mentioned you're doing like more investments into that SDR program. Can you provide a bit of color there?

好的。涼爽的。然後快速跟進。銷售和營銷佔收入的百分比似乎有所下降，但你們提到你們正在對特別提款權計劃進行更多投資。你能在那裡提供一點顏色嗎？

Sure. So we've been -- we ramped down some of our marketing as we ramped our sales, but they didn't coincide perfectly. So we added 100 SDRs in Q1, but a lot of those came on board kind of towards the tail end, so the cost wasn't fully baked into the quarter. So we should expect to see an increase in sales and marketing in Q2, especially because we have ExpensiCon 3 also. So it's kind of a double whammy there. We have a big conference and then also our SDR costs are mutually baked for the full quarter. So we should expect to see an increase in sales and marketing going forward.

當然。因此，我們在增加銷量的同時也減少了一些營銷活動，但它們並不完全一致。因此，我們在第一季度添加了 100 個特​​別提款權，但其中很多是在接近尾聲時才加入的，因此成本並未完全計入本季度。因此，我們應該預計第二季度的銷售和營銷會有所增長，特別是因為我們還有 ExpensiCon 3。所以這有點雙重打擊。我們召開了一次大型會議，然後我們的特別提款權成本也被共同製定了整個季度的成本。因此，我們應該期望看到未來銷售和營銷的增長。

But that program is also getting more and more efficient. Like all of our set of specials and SDRs are getting more and more trained and becoming better and better. So we don't think that we need to keep ramping up to get a higher ROI, rather we don't need deep ramping it able to get bigger results. We can just improve the ROI. So there's a little -- so Ryan said the full cost is not maintenance, so the Q2 is going to come in a little bit higher on that cost alone. But I don't think I would expect that it's going to keep ramping up because we are investing in the channel. We're investing in the channel launch in terms growing the head count of those agents, but also making them better and more efficient.

但該計劃也變得越來越高效。就像我們所有的特價商品和特別提款權一樣，我們的訓練越來越多，變得越來越好。因此，我們認為我們不需要繼續提升以獲得更高的投資回報率，而是我們不需要深度提升以獲得更大的結果。我們可以提高投資回報率。所以有一點 - 所以瑞安說全部成本不包括維護成本，所以 Q2 僅在這一成本上就會更高一點。但我認為我不會期望它會繼續增加，因為我們正在對該渠道進行投資。我們正在對渠道啟動進行投資，以增加這些代理商的人數，同時也讓他們變得更好、更高效。

That's a good point. We added 100 SDRS in Q1, but we are now adding 100 SDRs in Q2. We are training and make it more efficient and maybe even cutting low performers. So it's not 100 per quarter, how we are at it.

那是個很好的觀點。我們在第一季度添加了 100 個特​​別提款權，但現在我們在第二季度添加了 100 個特​​別提款權。我們正在培訓並提高效率，甚至可能裁掉表現不佳的員工。所以我們的做法並不是每季度 100 個。

All right, next, we have Steven Enders from Citi.

好吧，接下來有來自花旗銀行的史蒂文·恩德斯 (Steven Enders)。

I guess I just want to ask a little bit about the new Expensify that you talked about both in the press release and in the call on the transcript here. I guess what is the biggest change that we should be, I guess, looking for and kind of any early preview for how we should be kind of thinking about what that could potentially look like as might change the business overall?

我想我只是想問一些關於您在新聞稿和電話會議記錄中談到的新 Expensify 的問題。我想我們應該尋找的最大變化是什麼，並進行任何早期預覽，以了解我們應該如何思考可能會改變整體業務的潛在變化？

Great questions. we are expanding the use cases in which you might use Expensify. So right now, people use it for expense management or if you're on a business trip. You can actually go to new expensify.com right now and sign up. There's also an app in the app store. And what is available to the public right now is basically like Slack or WhatsApp type functionality. And we have more product announcements again, the company in on ExpensiCon 3, but very we are going to be adding all of the functionality that we have in our existing Expensify product onto the new platform. And then once we have parity there and then we're going to start launching into all of our new use cases, and there's a lot of exciting new use cases you're going to have when you have all these on 1 platform.

很好的問題。我們正在擴展您可能使用 Expensify 的用例。所以現在，人們用它來管理費用或者出差。實際上，您現在就可以訪問 new expensify.com 並註冊。應用商店裡還有一個應用程序。現在向公眾提供的功能基本上類似於 Slack 或 WhatsApp 類型的功能。我們再次發布了更多產品，該公司在 ExpensiCon 3 上，但我們將把現有 Expensify 產品中的所有功能添加到新平台上。一旦我們實現了平等，我們就會開始推出所有新用例，當您在一個平台上擁有所有這些用例時，您將擁有許多令人興奮的新用例。

So it's -- it will be a mix of new functionality that we haven't had and also bringing existing functionality onto the new platform. And that will result in more activity basically. So let's say maybe you don't go on a business trip, but you do talk to someone within your business through the Expensify platform, that's activity as well. So we're trying to add use cases beyond this month. So I didn't have Expensify, I wasn't active. So we're just making -- trying to Expensify is something that you use every day instead of maybe once a month or sometimes for some people less than 1 month.

所以它是——它將是我們還沒有的新功能的組合，並將現有功能帶到新平台上。這基本上會導致更多的活動。假設您沒有出差，但您確實通過 Expensify 平台與企業內的某人交談，這也是活動。因此，我們正在嘗試添加本月之後的用例。所以我沒有 Expensify，我並不活躍。因此，我們只是嘗試將費用化為每天使用的東西，而不是每月一次，或者有時對於某些人來說不到 1 個月。

Having vital leadgen, is the goal is to have bottom-up adoption, then you want to turn every 1 of your individual users in to sort of your champion, right? And the more functionality we give them to live easier lives, the more they're going to talk about us. So that's really growth. There are some features that are in that increased activity to turn users into paid members, and there are others that are aimed at better variation to reduce individual more opportunities to talk about it. So there's a bit of a both.

擁有重要的潛在客戶，目標是自下而上的採用，那麼您希望將每一位個人用戶都變成您的擁護者，對吧？我們為他們提供的功能越多，讓他們過上更輕鬆的生活，他們就越會談論我們。所以這才是真正的成長。有些功能旨在增加活動，將用戶轉變為付費會員，還有其他功能旨在提供更好的變化，以減少個人更多談論它的機會。所以有一點兩者兼而有之。

Okay. So I guess is the view here that if they both increase growth, the viral nature but also maybe to have a more consistent subscription user number in paper use.

好的。因此，我想這裡的觀點是，如果它們都能促進增長、病毒式傳播，而且在紙張使用方面也可能擁有更一致的訂閱用戶數量。

Yes.

是的。

Okay. That's helpful. And then I wanted to ask on the credit card side. I mean it looks like pretty good growth here. But I guess where are we in terms of ramp-up curve to having that move from contra revenue to revenue and being recognized in a more traditional way.

好的。這很有幫助。然後我想問一下信用卡方面的問題。我的意思是，這裡的增長看起來相當不錯。但我想，從對沖收入轉變為收入並以更傳統的方式得到認可，我們的增長曲線處於什麼位置。

Yes, so we have all of our -- like an operational perspective, we have all our works done. So we have all the contracts done. We have the revenue recognition related like memos from the auditors. So the tough part is over. But as you probably noted, it's like this road map right in front of you. And the slide I was presenting around using contributors more and more in order to keep competing on this at a more rapid pace. The challenge is always engineering resources and sort of prioritizing what is going to be the most return to our business. So that's kind of where we are. Like we are right now on implementing the new program, but then launching it only ourselves. So like moving all of the Expensify employees of the old program, into the new program for all for.

是的，所以我們已經完成了所有工作，比如從運營角度來看，我們已經完成了所有工作。這樣我們就完成了所有的合同。我們有與審計師的備忘錄相關的收入確認。所以困難的部分已經結束了。但正如您可能注意到的，這就像您面前的路線圖。我展示的幻燈片是關於越來越多地使用貢獻者，以便以更快的速度繼續競爭。挑戰始終是工程資源，以及優先考慮對我們的業務帶來最大回報的因素。這就是我們現在的處境。就像我們現在正在實施新計劃，但隨後只由我們自己啟動。就像將舊計劃的所有 Expensify 員工轉移到新計劃中一樣。

So that will give us a good testing ground users of our products every single employee uses of the account every single day. So we are going through the motions on that right now. And then once we are done with that, I think we started to build it out or rather launch to specific company, maybe we'll launch to someone adjusting the now.

因此，這將為我們的產品用戶提供一個良好的測試場，每個員工每天都會使用該帳戶。所以我們現在正在討論這個問題。然後，一旦我們完成了這個工作，我想我們就開始構建它，或者更確切地說，向特定的公司推出，也許我們會向現在調整的人推出。

So we don't go to the recording in the side what we have to get prioritized in a sense, but everything is about like what is going to biggest bang for our buck from an engineering perspective. So that's going to be the consistent answer going forward, because we are done with everything that -- we are actually done with everything that we don't control and now we control this. So this is the priority.

因此，從某種意義上說，我們不會去記錄我們必須優先考慮的事情，但從工程角度來看，一切都像是對我們的投資產生最大影響的事情。所以這將是未來一致的答案，因為我們已經完成了所有我們無法控制的事情，現在我們控制了它。所以這是首要任務。

All right. Next, we have Mauro Molina from Piper Sandler.

好的。接下來請來 Piper Sandler 的 Mauro Molina。

So I just had a couple of questions around the SDR initiative. So just first off, what sort of drove the decision to outsource the SDR functions out of that vendor that you mentioned? And in what scenario might it make sense for Expensify to bring that sort of initiative in-house over the long term? And then the second thing around that is how long might you expect this initiative to sort of -- how long might it take to reach sort of a breakeven or flip to a positive ROI?

我只是有幾個關於特別提款權倡議的問題。首先，是什麼因素促使我們做出將 SDR 功能外包給您提到的供應商的決定？從長遠來看，在什麼情況下 Expensify 將此類舉措引入內部才有意義？接下來的第二件事是，您預計這項舉措會持續多久——需要多長時間才能達到收支平衡或轉向正投資回報率？

Yes. Good question. So let me start by just kind of commenting like our general approach to doing something in-house versus outsourcing and SDR is a classic example. Whenever we have a job that is repeatable that you can write down and it's simple and someone can execute it over and over again. The matter doing it many times. And it requires very little scale that is repeatable. That's when we outsource it because what we can do then is hire a large number of agents, giving them a very clear set of instructions, even diversify across multiple vendors, and that way, we have some negotiating power in terms of pricing and we can get better bang for our buck.

是的。好問題。因此，讓我首先評論一下我們在內部與外包之間做某事的一般方法，特別提款權（SDR）就是一個典型的例子。每當我們有一項可重複的工作時，你都可以寫下來，而且它很簡單，有人可以一遍又一遍地執行它。這件事乾了很多次。而且它只需要很小的可重複規模。這就是我們外包的時候，因為我們可以做的就是僱傭大量的代理商，給他們一套非常明確的指令，甚至跨多個供應商進行多元化，這樣我們在定價方面就有一定的談判能力，我們可以讓我們的錢更划算。

Well, what we then do is manage them internally. So we structure the sales program as we have internal employees and our sales team who do things like partner management with our accounting channels. We handle more strategic pieces of the business. And then they manage the subspecialists. And so the subspecialists have something of lower skill than our internal employees job because they are converting incoming leads. So they need to be able to anticipate and block and tackle, but it's not so high skill that they require the kind of training that and kind of experience in general tendencies that we've hired internal employees for.

那麼，我們接下來要做的就是對它們進行內部管理。因此，我們構建銷售計劃，因為我們有內部員工和銷售團隊，他們通過我們的會計渠道進行合作夥伴管理等工作。我們處理更具戰略意義的業務部分。然後他們管理專科醫生。因此，專科醫生的技能比我們內部員工的工作要低，因為他們正在轉換傳入的潛在客戶。因此，他們需要能夠預測、阻止和應對，但這並不是那麼高的技能，他們需要我們僱傭內部員工所需要的培訓和一般趨勢的經驗。

And then the question is and our internal employees, the SDR pipeline. And their job is really very repeatable and they have a script and the they hit the script and they just do it and over again. So that's sort of how we structured it and never say never, but I don't think the SDRs are the type of job requirements or the type of job profile that we would ever take internally, because we could do it much more cost effectively and ramp up and down much easily if we outsource this. So that -- let me stop there and see if that answers your question.

然後問題是我們的內部員工、特別提款權管道。他們的工作確實是非常可重複的，他們有一個腳本，他們按照腳本執行，然後一遍又一遍地做。這就是我們構建它的方式，永遠不會說永遠，但我不認為特別提款權是我們內部採用的工作要求類型或工作簡介類型，因為我們可以更具成本效益地做到這一點，並且如果我們將其外包，就可以輕鬆地上下調整。那麼——讓我停在這裡，看看這是否能回答你的問題。

Yes. That's helpful on that front. And actually, just as a follow-up to thta part before touching on the ROI, how long -- how easy is it, so to speak, to ramp up the SCR headcount month-over-month or quarter-over-quarter, and that's all I have there.

是的。這在這方面很有幫助。實際上，就像在討論投資回報率之前的後續部分一樣，可以說，逐月或逐季度增加 SCR 員工數量有多容易，以及這就是我所擁有的一切。

Yes. So that is also a very interesting question. We started this at late last year. I want to say like Q4 like October, November. And we did in fact think that it could be, like we told these centers that we started with very few just in attaching to work at all. And when we saw that it could work, we wanted to scale it to 100. So we started with like 10 and then we wanted to scale it to 100. And we did notice that it took those vendors up to a month to hire them, and then a few more weeks after that to just like give them some basic training and let them hit the firms.

是的。所以這也是一個非常有趣的問題。我們從去年年底開始這樣做。我想說的是第四季度，比如十月、十一月。事實上，我們確實認為這可能是這樣，就像我們告訴這些中心一樣，我們一開始就只專注於工作。當我們看到它可行時，我們想將其擴展到 100 個。所以我們從 10 個左右開始，然後我們想將其擴展到 100 個。我們確實注意到這些供應商花了一個月的時間才僱用他們，然後再過幾週，給他們一些基本培訓，然後讓他們進入公司。

So that's quite a while we started this initiative and kind of announced that we're ramping up in Q4, we didn't fully ramp up until maybe mid Q1. So we were -- it was a continuous process. It didn't go from 0 to 100 overnight, but it went from 10 to 25 to 45, so on and so forth. So it seems like it takes them something of a quarter to get to 100. But that said, it's also behind us and going forward, and I think we were responding to this another 1 of your questions earlier, we're not trying to keep growing the headcount. And is where maybe I'll come back to your second question.

因此，我們花了很長一段時間才開始這項計劃，並宣布我們將在第四季度加大力度，直到第一季度中期我們才完全加大力度。所以我們——這是一個持續的過程。它不是一夜之間從 0 上升到 100，而是從 10 上升到 25 再到 45，以此類推。所以看起來他們需要大約四分之一的時間才能達到 100。但是話雖如此，它也已經過去並正在向前發展，而且我認為我們之前已經回答了您的另一個問題，我們並不想保留增加員工人數。也許我會回到你的第二個問題。

The idea behind this entire arm of growth model will be to meet yield something consistent, something steady, something modest that we are happy with. And do it more and more cost effectively. So right now, we have 77 of specialists and 100 SDRs. And the idea isn't even to maintain that. The idea is to sort of deploy that, identify the real winners and then very aggressively performance manage the bottom of the team, if you will, and then keep optimizing. So we can kind of identify the 20% team that contributed to 80% of output because that's generally how it ends up being. So that's the challenge now. Like over the next few quarters, that's what we're going to be focused on identifying the winners, identifying the losers, so to speak and then being aggressive about managing this program for ROI, and I'll let Ryan add anything that he wants to as well.

整個增長模式背後的想法是滿足產出一致、穩定、適度的讓我們滿意的結果。並且越來越具有成本效益。現在，我們有 77 名專家和 100 個特​​別提款權。這個想法甚至不是為了維持這一點。我們的想法是進行部署，確定真正的贏家，然後非常積極地對團隊底層進行績效管理（如果願意的話），然後繼續優化。因此，我們可以確定貢獻 80% 產出的 20% 團隊，因為通常情況就是這樣。這就是現在的挑戰。就像接下來的幾個季度一樣，我們將重點關注確定贏家、輸家，可以這麼說，然後積極管理該計劃以實現投資回報率，我會讓 Ryan 添加他想要的任何內容至也。

Yes. I would just say it's pretty flexible and that we can drastically upscale and downscale numbers intra-quarter. So it's -- we're not locked into annual numbers or anything like that. It's very flexible, which is 1 of the reasons we like it.

是的。我只想說它非常靈活，我們可以在季度內大幅擴大和縮小數字。所以，我們並沒有被年度數字或類似的數字所束縛。它非常靈活，這是我們喜歡它的原因之一。

All right. Up next, we have Daniel Jester from BMO.

好的。接下來，我們有來自 BMO 的 Daniel Jester。

There will be some (technical difficulty) thank you. So maybe on the paid growth there (technical difficulty) had pretty strong growth (inaudible) it looks like (inaudible) really the avenue of growth (inaudible).

會有一些（技術難度）謝謝。因此，也許在付費增長方面（技術難度）有相當強勁的增長（聽不清），看起來（聽不清）確實是增長的途徑（聽不清）。

I think there's a little bit of echo. I know you talk real quick, sorry about that, Daniel. Sorry, can you repeat the question. Sorry about that.

我認為有一點迴聲。我知道你說得很快，抱歉，丹尼爾。抱歉，您能重複一下這個問題嗎？對於那個很抱歉。

Is this better now?

現在好些了嗎？

Yes. All right.

是的。好的。

So on the free product or the free trials, you talked about growth there for a while. It's been pretty good for a bit. Is that -- can you give us any sort of like color about the conversion rate of those free to subscription or is it more important to look at those free trials as drivers of growth for interchange?

因此，在免費產品或免費試用方面，您有一段時間談到了那裡的增長。有一段時間已經相當不錯了。您能給我們提供有關免費訂閱的轉化率的任何類似信息嗎？還是將這些免費試用視為交換增長的驅動力更重要？

Good question. So the free trials -- I see -- so the free trials are not related to the free plan. So there's a free plan where you can use like basic Expensify Light for free, you can run a simple business off of it for free. The free trials are for the paid -- the paid program. So what we've seen is basically we are really focusing on our sales and marketing. We've seen a substantial increase in the number of free trials for the paid product in Q1 versus previous quarters.

好問題。所以免費試用——我明白了——所以免費試用與免費計劃無關。因此，有一個免費計劃，您可以免費使用基本的 Expensify Light，您可以免費利用它運行簡單的業務。免費試用適用於付費程序。所以我們所看到的基本上是我們真正專注於我們的銷售和營銷。我們發現第一季度付費產品的免費試用數量與前幾個季度相比大幅增加。

And we basically, what we're saying is that some encouraging data because it's the huge lift in the free trials. So it's actually -- it's not related to the free plan. I understand that -- now that you say that might get it is actually kind of confusing. We have a free plan. And then when you are trying to pay for our product, we give you a free trial, and we've seen those free trials increase substantially in Q1.

基本上，我們所說的是一些令人鼓舞的數據，因為這是免費試用的巨大提升。所以它實際上與免費計劃無關。我明白——現在你說這可能會讓人感到困惑。我們有一個免費計劃。然後，當您嘗試支付我們的產品費用時，我們會為您提供免費試用，我們已經看到這些免費試用在第一季度大幅增加。

Got you. Okay. That is helpful. And then maybe philosophically, I know you're not guidance, but as you think about sort of the growth trajectory this year, obviously, the macro is what the macro is. Do you think that interchange growth is really going to be a big potential overall growth this year? Or maybe kind of walk through the puts and takes for the different variables in terms of getting the top line moving on?

明白你了。好的。這很有幫助。然後也許從哲學上講，我知道你不是指導，但當你思考今年的增長軌跡時，顯然，宏觀就是宏觀。您認為今年換乘增長真的會帶來巨大的整體增長潛力嗎？或者也許可以通過不同變量的看跌期權和看跌期權來推動營收的增長？

Yes. Great question. So yes, I think now -- the interchange isn't revenue. I know a lot of people adjust for it in their models. But by GAAP, it's not revenue, but yes, interchange is growing well. And when we do get that moved over into the interchange line item, we think that it is reaching a point where it's going to be a good contributor to the top line revenue.

是的。很好的問題。所以，是的，我現在認為——交換不是收入。我知道很多人都會在他們的模型中進行調整。但根據公認會計原則，這不是收入，但交換確實增長良好。當我們確實將其轉移到交換訂單項時，我們認為它已經達到了一個點，它將成為頂線收入的一個很好的貢獻者。

Now in terms of the subscriptions. So we're adding new customers every quarter. Subscription numbers are going up. The pay per use has just been kind of all over the place. So I think that if we continue to retain our customers and kind of continue to add more when this kind of decreased activity from economic conditions stuff, we're going to be in a much better place in the future. So we're kind of like in the waiting out the storm and making sure that we don't lose our customers and if their activity decreases, obviously, we don't love that, but we want to make sure we're holding on to the customers. And we do believe that as everything kind of opens up, people are hiring, activity overall increases also, we're adding new use cases to our platform, which gives people more opportunity to be active on our platform that we'll see those activity numbers increase.

現在就訂閱而言。因此，我們每個季度都會增加新客戶。訂閱數量正在上升。各地都是按使用付費。因此，我認為，如果我們繼續留住我們的客戶，並在經濟狀況導致活動減少的情況下繼續增加更多客戶，我們未來將會處於一個更好的境地。因此，我們有點像等待風暴過去，確保我們不會失去客戶，如果他們的活動減少，顯然，我們不喜歡這樣，但我們想確保我們能堅持下去給客戶。我們確實相信，隨著一切的開放，人們正在招聘，活動總體也在增加，我們正在向我們的平台添加新的用例，這讓人們有更多機會在我們的平台上活躍，我們將看到這些活動數字增加。

So we ultimately believe that the decrease in activity is temporary. And -- but obviously, in the short term, I think Q1 did decrease, which kind of hurts us a little bit.

所以我們最終認為活動的減少是暫時的。而且 - 但顯然，從短期來看，我認為第一季度確實下降了，這對我們造成了一點傷害。

Okay. And then 1 more, if I can squeeze it in. The product road map has been very compelling. You got -- you've made a lot of progress there. Can you just help us think about customer usage of the various products, how that has trended? I'm just trying to get a sense for what the demand pull for your customer base is for some of the new products that you're launching and some of the new pipeline that we'll hear at ExpensiCon 3.

好的。如果我能把它塞進去的話，然後還有 1 個。產品路線圖非常引人注目。你在那裡取得了很大的進步。您能否幫助我們思考一下客戶對各種產品的使用情況以及趨勢如何？我只是想了解您的客戶群對您正在推出的一些新產品以及我們將在 ExpensiCon 3 上聽到的一些新產品的需求拉動。

Yes. So I can't say too much because I do want to -- David has got all the big announcements lined up. I don't want to spoil them, but basically almost everyone uses expense management, right? It's Expensify. People know us for that. Also, we're seeing more and more people using Expensify card. Actually, all the kind of turmoil in the banking sector has been a big boon to us like card-wise. We saw a lot of customers come over to the Expensify card. After that, we are seeing people want to use the invoice and solution. I don't have any official numbers to give there. But we have -- also, we're getting a lot of good feedback from the chat product. And -- but that's currently only available if you go to new.expensify.com, so we do have people actually actively using it. But I think that's kind of all the -- all that I can say right now without spoiling -- I would say stay tuned, ExpensiCon 3 is coming up on May 18, so we're going to have a number of announcement there, but we're excited to start migrating customers over to the new platform.

是的。所以我不能說太多，因為我確實想說——大衛已經把所有重大公告都準備好了。我不想破壞它們，但基本上幾乎每個人都使用費用管理，對吧？這是費用。人們因此而認識我們。此外，我們看到越來越多的人使用 Expensify 卡。事實上，銀行業的各種動盪對我們來說就像信用卡一樣是一個巨大的福音。我們看到很多客戶都使用 Expensify 卡。之後，我們看到人們想要使用發票和解決方案。我沒有任何官方數字可以提供。但我們也從聊天產品中得到了很多好的反饋。而且——但目前只有訪問 new.expensify.com 才可用，所以我們確實有人在積極使用它。但我認為這就是我現在能說的所有內容，但不會劇透，我想說，請繼續關注，ExpensiCon 3 將於 5 月 18 日推出，所以我們將在那裡發布一些公告，但是我們很高興開始將客戶遷移到新平台。

We think it's going to be a big boon to the business, and it's something we've been working on for the last couple of years. So we're all just excited to get it in the hands of more of our customers.

我們認為這將對業務帶來巨大的好處，也是我們過去幾年一直在努力的事情。因此，我們都很高興能將它交到更多客戶手中。

All right. Next up, we have Sam Flynn from -- no, we have Mark Schappel from Loop Capital.

好的。接下來，我們有來自 Loop Capital 的 Sam Flynn，不，我們有來自 Loop Capital 的 Mark Schappel。

Can you hear me okay?

你能聽到我說話嗎？

Yes.

是的。

Perfect. Sort of 2 quick ones for you. The first thing, have you seen obviously, subs were up in the quarter, which is great. But just wondering if you've seen any turnover from your larger accounts?

完美的。為您提供 2 個快速的。首先，您顯然看到了，替補球員在本季度有所上升，這很棒。但只是想知道您的大賬戶是否有任何營業額？

So churn has been quite low. It's -- the decrease in paid members is more just kind of an overall decreasing activity across the user base. What we see actually is most churn being in the smaller segments of the business. So like the 1 and 2, 1 and 2 employee businesses. And in general, the larger the business, the less likely they are to churn and higher our net seat retention is. So I think maybe the opposite right. The bigger customers are not churning and the small customers, those are the more likely to go out of business kind of in an environment like this or kind of be there for a couple of months and bounce off type of thing, but they're also our smallest the 1 in 2 customer segment is our lowest revenue customer segment.

所以客戶流失率相當低。付費會員的減少更像是整個用戶群活動的整體減少。我們實際上看到的是，流失率最高的是較小的業務部門。就像 1 和 2、1 和 2 名員工的企業一樣。一般來說，企業規模越大，流失的可能性就越小，我們的淨席位保留率也越高。所以我認為也許恰恰相反。大客戶不會流失，而小客戶則更有可能在這樣的環境中倒閉，或者在那里呆上幾個月然後反彈之類的事情，但他們也我們最小的二分之一客戶群是我們收入最低的客戶群。

So in general, it's not from a churn off of customers. It's just the decrease in activity across the board, which we feel is attributed to the macro element.

所以總的來說，這並不是因為客​​戶流失。這只是整體活動的減少，我們認為這是宏觀因素造成的。

Perfect. That's helpful. I appreciate it. And then secondly, and then I'll hop off. Just wondering what sort of trends you're seeing in business travel recently?

完美的。這很有幫助。我很感激。然後第二，然後我就下車了。只是想知道您最近在商務旅行中看到了哪些趨勢？

I think we've seen a return in business travel, but also the -- as a reminder, business travel isn't 1 to one. We don't need people to take 2 or 3 trips a month in order to be active on the platform. We need them to expense 1 item, right? They need to buy a cup of coffee from Starbucks or a dinner with a client type of thing, and then they're actually on the platform. So it's not -- if you say travel increased 3x, that doesn't mean our subscribers can increase 3x. We need the unique number of business travelers to increase. We don't need the actual current audience of business travel to travel 3x more. So it's a little different, I think, than what people expect.

我認為我們已經看到商務旅行的回歸，但提醒一下，商務旅行並不是一對一的。我們不需要人們每月進行 2 或 3 次旅行才能在平台上保持活躍。我們需要它們來花費 1 件物品，對吧？他們需要從星巴克購買一杯咖啡或與客戶共進晚餐之類的東西，然後他們實際上就在平台上。所以，如果你說旅行增加了 3 倍，這並不意味著我們的訂閱者可以增加 3 倍。我們需要增加商務旅客的獨特數量。我們不需要當前商務旅行的實際受眾增加三倍。所以我認為這與人們的預期有點不同。

But 1 thing -- a boon business travel does for Expensify is it creates more opportunities for word-of-mouth growth because you are experiencing the pain point that we solve. So the worst part of expense management is going on that trip or maybe back-to-back trips and you have this huge pile receipts and then you start complaining to your network. And then if you're complain you have this problem, you're more likely to hear about Expensify and that creates an overall lift.

但有一點——商務旅行對 Expensify 的好處是，它為口碑增長創造了更多機會，因為您正在經歷我們解決的痛點。因此，費用管理中最糟糕的部分是進行那次旅行，或者可能是連續兩次旅行，你有一大堆收據，然後你開始向你的網絡抱怨。然後，如果您抱怨自己遇到了這個問題，您更有可能聽說 Expensify，這會帶來整體提升。

So business travel is good for the business, but it's a little different than what the way you think is. We're not like pulling transactional revenue off the business trips. We just -- business travel creates activity, and that's how we monetize.

所以商務旅行對生意有好處，但是和你想像的有點不一樣。我們不想從商務旅行中獲取交易收入。我們只是——商務旅行創造活動，這就是我們盈利的方式。

That's the end. That is operating off of old list. All right. Well, thank you, everyone, for joining the call. We really appreciate it. We love talking about the business now with you all. Just kind of as a closing, we're all very excited. I think we had a little -- a bit of a shareholder letter in our earnings release from David, but we're all very excited about the future of the business here. We've been cooking in the lab for a long time on our new platform, and it's so close to being released. So we are excited to get that in the hands of all of our users. And we'll see you all next quarter. Thank you all very much.

就這樣結束了。這是在舊列表之外操作的。好的。好的，謝謝大家加入我們的電話會議。我們真的很感激。我們現在很高興與大家談論業務。就這樣結束了，我們都非常興奮。我認為我們在財報中收到了大衛的一封股東信，但我們都對這裡業務的未來感到非常興奮。我們已經在實驗室裡在我們的新平台上進行了很長一段時間的烹飪，現在它已經接近發布了。因此，我們很高興能將其交付給所有用戶。我們下個季度再見。非常感謝大家。

Thank you. Bye.

謝謝。再見。