BUZZ-Expensify falls as JPM starts coverage with "underweight"

** Shares of expense management software provider Expensify EXFY.O fall ~2.9% to $3.81 premarket after J.P. Morgan starts coverage with "underweight"

** With EXFY predominantly targeting small- and medium-sized businesses, JPM sees 'limited differentiation vs. competitors' that aid in easing expense management and bill paying

** Much of the EXFY customer acquisition model relies on existing customers spreading the word on EXFY value proposition to more senior officers with decision-making authority, says JPM

** Brokerage adds that about one-third of EXFY revenue being generated from pay-per-use contracts vs. predictable annual subscriptions

** "Tougher macro(conditions) creates lower visibility into revenue due to high share of pay-per-use component and reduces the efficiency of the word-of-mouth, bottom-up customer acquisition model" - JPM

** As of last close, EXFY down 56% YTD

(Reporting by Siddarth S in Bengaluru)

((Siddarth.s@thomsonreuters.com;))