Shares of expense-management software company Expensify (NASDAQ: EXFY) plunged on Friday after the company reported financial results for the third quarter of 2022. As of 1:30 p.m. EST, Expensify stock was down 11%, having steadily clawed its way back from a 34% drop early in the session. 

In Q3, Expensify generated revenue of $42.5 million, which was up 13% year over year. This missed analysts' expectations and was a decline from the $43.2 million it generated last quarter. Moreover, it was far below management's long-term revenue guidance of 25% to 35% annual growth. This is why Expensify stock dropped so sharply this morning and even briefly hit an all-time low.

Piper Sandler analyst Brent Bracelin was quick to downgrade Expensify stock this morning in light of Q3 results. According to The Fly, Bracelin lowered his price target by 33% to just $12 per share as he fails to see a near-term catalyst for Expensify's revenue growth.

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Source Fool.com