Following positive momentum in Remitly Global's (NASDAQ: RELY ) stock after it posted Q1 earnings, the stock has dropped consistently, erasing all the gains. On May 7, Remitly announced quarterly revenues of $361.62 million and an adjusted EPS of $0.19, achievingHey there! My focus here is to provide you with insightful rating analysis on the world's leading financial firms to help you navigate and comprehend the latest investment opportunities while identifying potential pitfalls. My favorite picks are tho ...

Summary of Remitley Conference Call Company Overview - **Company**: Remitley - **Industry**: Remittance and Financial Services Key Financial Performance - **Q1 Earnings**: Strong top-line growth of 34% with an EBITDA margin of 16% [4][5] - **Volume Growth**: 41% growth in transaction volume [8] - **Market Share**: Less than 3% market share in a $32 trillion market [12] Core Business Insights - **Resilience**: The remittance business is non-discretionary, showing resilience despite macroeconomic fluctuations [9][10] - **Diversification**: - Geographic diversification has increased; US business reduced from 75% to less than two-thirds of total revenue [11] - Diversification across customer segments and products, including micro SMBs [5][6] - **Trust and Security**: Emphasis on building customer trust and enabling higher send limits for high dollar senders [6][34] Market Trends and Regulatory Environment - **Regulatory Concerns**: Ongoing discussions about a remittance excise tax; however, the customer profile is less impacted due to existing KYC processes [13][16] - **Competitive Landscape**: Competing against various players, including banks and digital startups, with a focus on customer experience and digital convenience [18][19] Customer Engagement and Retention - **Customer Experience**: Focus on improving transaction defect rates and enhancing customer service, resulting in 95% of transactions not requiring customer calls [23][24] - **Retention Strategy**: High revenue durability with over 90% of revenue from prior cohorts; new customer acquisition is also crucial for long-term growth [36][38] Growth Opportunities - **High Dollar Senders**: Significant growth in transactions over $1,000, with a 45% increase in volume for this category [44] - **Micro SMB Market**: Early-stage focus on micro SMBs, leveraging existing customer needs for incremental product changes [47][51] - **Geographic Expansion**: Increased corridors from 1,400 at IPO to over 5,200, with a focus on Africa [56][59] Marketing and Technology - **Holistic Marketing Approach**: Emphasis on product experience to drive word-of-mouth and customer retention [28] - **Technology Utilization**: Focus on leveraging technology for marketing efficiency and customer engagement [29] Financial Considerations - **FX Volatility**: Revenue growth impacted by currency fluctuations; constant currency growth was 36% compared to reported growth of 34% [65][66] - **M&A Strategy**: Prudent capital allocation with a high bar for acquisitions; previous successful acquisition of Rewire [69][70] Conclusion - Remitley is positioned strongly in the remittance market with robust growth, a focus on customer experience, and strategic diversification. The company is optimistic about future growth opportunities, particularly in high dollar transactions and micro SMBs, while navigating regulatory challenges and market competition.

Summary of Remitly Conference Call Company Overview - **Company**: Remitly - **Industry**: Digital Remittances and Financial Services Key Points and Arguments 1. **Company Vision and Growth**: - Remitly aims to transform lives with trusted financial services that transcend borders, focusing on remittances which total $2 trillion annually [5][11] - The company reported a **41% year-on-year volume growth** and **34% revenue growth**, achieving over **$1 billion in revenue** with **16% adjusted EBITDA margins** [11][15] 2. **Resilience in Business**: - Remitly's business model is resilient in various market conditions due to the non-discretionary nature of remittances, where customers consistently send money to loved ones regardless of economic cycles [14][56] - The company has maintained strong customer retention, with **93% of transactions delivered in less than an hour** and high app ratings (4.9 and 4.8 stars) [12][13] 3. **Foreign Exchange (FX) Management**: - Remitly has developed competitive advantages in FX treasury cash management, allowing for real-time cash balance analytics and better pricing adjustments in response to FX volatility [18][20] - The company sent over **$40 billion in volume** last year, leveraging its scale to optimize pricing and reduce FX risk [18][20] 4. **Stablecoin Potential**: - The CEO views stablecoins as a promising technology that could enhance treasury management and offer customers multi-currency accounts, although demand has not yet reached material levels [22][23] - Remitly is actively exploring partnerships and integrations related to stablecoins, but has not yet launched consumer-facing products in this area [24][25] 5. **Alternative Payment Methods**: - The introduction of alternative payment methods like Interact and Pay by Bank has enabled Remitly to reduce transaction costs and improve service speed [29][30] - The company is focusing on direct integrations with local payment rails, such as PIX in Brazil, to enhance transaction efficiency [32] 6. **High Dollar Sender Segment**: - Remitly is targeting high dollar senders by adjusting compliance policies to be more risk-based, allowing for a more seamless experience for larger transactions [37][39] - The company is also expanding into micro-SMB segments, enabling users like freelancers to send payments more easily [41][43] 7. **Market Expansion and Competitive Landscape**: - Remitly is focused on organic growth, with plans to expand its corridor offerings strategically over the long term [60][61] - The company is less than 3% of the $2 trillion remittance market, indicating significant growth potential [56] 8. **Customer Acquisition and Marketing**: - The cost to acquire customers has been trending favorably due to effective marketing strategies and strong word-of-mouth referrals [51][52] - The company is committed to investing in marketing to sustain growth in the coming quarters [53] 9. **Geopolitical Sensitivity**: - Remitly is monitoring geopolitical issues, particularly immigration policies, but believes its diversified customer base and established presence mitigate risks [54][56] - The company emphasizes the resilience of remittances during economic downturns, supported by historical data [58][59] 10. **Future Opportunities**: - The company is exploring embedded finance and additional value-added services to enhance its offerings for customers living abroad [84][85] - Remitly's technical platform has been re-architected to increase innovation speed across multiple areas [84] Other Important Content - The CEO expressed excitement about leveraging generative AI for product development and customer support, indicating a focus on enhancing operational efficiency [78][80] - Remitly's approach to acquisitions remains cautious, with a preference for organic growth unless a compelling opportunity arises [71][72]

Company Overview - Remitly Global, Inc. is a trusted provider of digital financial services that operate across borders, with a presence in over 170 countries [2] - The company offers a digitally native, cross-border payments app that provides customers with a fast, reliable, and transparent money movement experience [2] - Remitly is expanding its product suite to further its vision and transform lives globally [2] Upcoming Investor Conferences - Remitly's management team will present at the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference on May 14, 2025, at 2:20 p.m. Eastern Time [1] - The company will also present at the Barclays 15th Annual Emerging Payments and FinTech Forum on May 20, 2025, at 10:20 a.m. Eastern Time [1] - Presentations will be webcast live from Remitly's investor relations website, with replays available afterward [1]

Group 1: Earnings Performance - Remitly Global, Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, and showing improvement from a loss of $0.11 per share a year ago, resulting in an earnings surprise of 225% [1] - The company has surpassed consensus EPS estimates for the last four quarters, indicating consistent performance [2] Group 2: Revenue Performance - For the quarter ended March 2025, Remitly Global posted revenues of $361.62 million, surpassing the Zacks Consensus Estimate by 4.21%, and showing an increase from year-ago revenues of $269.12 million [2] - The company has also topped consensus revenue estimates for the last four quarters, reflecting strong revenue growth [2] Group 3: Stock Performance and Outlook - Remitly Global shares have declined approximately 6.1% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.02 on revenues of $387.63 million, and $0.02 on revenues of $1.57 billion for the current fiscal year [7] Group 4: Industry Context - The Financial Transaction Services industry, to which Remitly Global belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Remitly Global (RELY) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Stephen Shulstein - VP of Investor RelationsMatt Oppenheimer - Co-Founder and CEOVikas Mehta - Chief Financial OfficerWill Nance - Vice PresidentRamsey El-Assal - Managing DirectorAndrew Bauch - Director - Equity ResearchDarrin Peller - Managing DirectorAlexander Markgraff - Vice President, Equity Research Conference Call Participants Tien-tsin Huang - Senior AnalystAndrew Schmidt - Equity Research Analyst - FinTech, S ...

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $361.6 million, representing a 34% year-over-year increase, and adjusted EBITDA of $58.4 million, resulting in a 16% adjusted EBITDA margin, marking a "rule of 50" quarter [30][31][40] - Quarterly active customers increased by 29% year-over-year to over 8 million, with send volume per active customer growing by 9% year-over-year, the highest growth rate since 2021 [31][32] Business Line Data and Key Metrics Changes - Send volume grew by 41% to $16.2 billion, outpacing revenue growth, with a gross take rate of 2.24% [32][34] - The company saw strong growth in high amount senders, with send volume related to transactions over $1,000 accelerating to over 45% year-over-year growth [16][36] Market Data and Key Metrics Changes - U.S. revenue grew by 35%, while the rest of the world grew by 41% year-over-year, with revenue from regions outside of India, the Philippines, and Mexico increasing by 45% [33][34] - The company launched remittance services to Nigeria, Burkina Faso, and Mali, expanding its geographic footprint and enhancing financial inclusion [14][15] Company Strategy and Development Direction - The company aims to build a resilient business model that can deliver across economic cycles and geopolitical changes, focusing on diversifying its business to capture more growth and reduce risk [7][13] - The strategy includes enhancing customer experiences through technology, expanding payment options, and leveraging partnerships to improve transaction efficiency [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of remittances and the strength of the diversified business model, despite macroeconomic uncertainties [28][40] - The company raised its full-year outlook for both revenue and adjusted EBITDA, expecting revenue between $1.574 billion and $1.587 billion, reflecting a growth rate of 25% to 26% [41][42] Other Important Information - The company reported a GAAP net income of $11.4 million, a significant improvement compared to a net loss of $21.1 million in the same quarter last year [40] - The company continues to invest in technology and product innovation to enhance customer experience and drive long-term growth [90][95] Q&A Session Summary Question: What is driving the increase in send volume per active user? - Management indicated that increased engagement, higher send limits, and diversification into micro business segments are key drivers of the increase in send volume per active user [50][52][53] Question: Are there any environmental factors influencing the numbers? - Management noted that the majority of revenue comes from prior quarter cohorts, providing high visibility and confidence in revenue durability, with similar drivers expected to continue [58][59] Question: Can you elaborate on direct partner integrations? - Management highlighted that direct integrations lead to faster transactions, lower costs, and improved reliability, contributing to higher customer satisfaction and retention [63][66] Question: What is the strategy for high dollar senders and micro business customers? - The strategy involves targeting specific corridors, improving marketing efficiency, and tailoring products to meet the needs of these customer segments [78][80] Question: What is the significance of the WhatsApp partnership? - Management expressed excitement about the WhatsApp integration, viewing it as a significant opportunity for customer acquisition and improved service delivery, particularly in Latin America [83][85]

Investor Presentation First Quarter 2025 Earnings May 7, 2025 May 2025 / © 2025 Remitly Inc. Disclosures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future results of operations and financial position, including our fiscal year and seco ...

Customer Growth and Engagement - Active customers increased to approximately 8.0 million, representing a 29% growth compared to 6.2 million in the same period last year[106] - The mobile app has a 4.9 rating on the iOS App Store with over 3.4 million reviewers and a 4.8 rating on Google Play with over 1.0 million reviewers, indicating strong customer satisfaction[98] - Seasonal trends affect customer activity, with peaks typically observed during the fourth quarter around the Christmas holiday[115] Financial Performance - Revenue increased by $92.5 million, or 34%, to $361.6 million for the three months ended March 31, 2025, compared to $269.1 million for the same period in 2024[134] - Net income for the three months ended March 31, 2025, was $11.4 million, compared to a net loss of $21.1 million for the same period in 2024[132] - Adjusted EBITDA for the three months ended March 31, 2025 was $58.4 million, significantly higher than $22.8 million in the same period of 2024, reflecting improved operating performance[156] Transaction and Operational Metrics - Send volume rose 41% to $16.2 billion for the three months ended March 31, 2025, up from $11.5 billion in the same period last year[109] - The company operates in over 5,200 corridors, allowing efficient money transfers without the need for local operations in each country[98] - Transaction expenses rose by $31.5 million, or 35%, to $121.4 million for the three months ended March 31, 2025, primarily due to increased processing costs[136] Expenses and Investments - Investments in technology and development are expected to increase expenses in the short term but are aimed at long-term growth through new product innovations and enhanced customer experiences[116] - Customer support and operations expenses increased by $2.5 million, or 12%, but decreased as a percentage of revenue to 6% from 7%[138][139] - Marketing expenses increased by $5.3 million, or 8%, but decreased as a percentage of revenue to 20% from 25%[141][142] Cash Flow and Liquidity - Cash provided by operating activities for the three months ended March 31, 2025 was $132.9 million, a substantial increase from cash used in operating activities of $56.8 million in the prior year[162] - The company had cash and cash equivalents of $493.9 million as of March 31, 2025, up from $368.1 million at the end of 2024, indicating strong liquidity[158] - Future capital requirements will depend on revenue growth, sales and marketing expansion, and new product introductions, with expected increases in operating expenses to support business growth[160] Risk Management - Proprietary risk models and machine learning processes are utilized to manage fraud and other illegitimate activities, maintaining a differentiated customer experience[117] - The company engages with reputable pay-in and disbursement partners to mitigate credit risk and conducts credit reviews before onboarding[177] - The company monitors market risk exposures continuously to mitigate potential economic losses from adverse changes in market factors[176] Foreign Currency and Accounting Policies - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a fair value change of approximately $19.5 million and $17.4 million for customer transaction-related assets and liabilities as of March 31, 2025, and December 31, 2024, respectively[179] - The company does not currently use derivatives to hedge foreign currency exchange risk but may consider doing so in the future[180] - The company has not reported material changes in critical accounting policies compared to the previous annual report[174]

Customer Growth - Active customers increased to 8.0 million, up 29% from 6.2 million[4] Financial Performance - Revenue totaled $361.6 million, up 34% from $269.1 million[4] - Net income was $11.4 million, compared to a net loss of $21.1 million[4] - Adjusted EBITDA was $58.4 million, up 157% from $22.8 million[4] - Net income for the three months ended March 31, 2025, was $11,352,000, a significant improvement compared to a net loss of $21,080,000 in the same period of 2024[21] - Adjusted EBITDA for Q1 2025 was $58,428,000, compared to $22,779,000 in Q1 2024, reflecting an increase of 156%[26] Revenue Outlook - Full year 2025 revenue outlook raised to between $1.574 billion and $1.587 billion, representing a growth rate of 25% to 26% year over year[4] - Second quarter 2025 revenue expected to be between $383 million and $385 million, representing a growth rate of 25% to 26% year over year[4] Adjusted EBITDA Projections - Adjusted EBITDA for 2025 expected to be in the range of $195 million to $210 million, an increase from the prior outlook[4] - Second quarter 2025 Adjusted EBITDA expected to be in the range of $45 million to $47 million[4] Asset and Equity Growth - Total assets increased to $1,100,586,000 as of March 31, 2025, up from $1,012,871,000 at December 31, 2024, representing a growth of 8.6%[19] - Total stockholders' equity increased to $723,476,000 as of March 31, 2025, up from $665,471,000 at December 31, 2024, representing an increase of 8.7%[19] Cash and Liabilities - Cash and cash equivalents at the end of Q1 2025 were $493,905,000, up from $368,097,000 at the end of Q4 2024, marking a 34% increase[21] - Total current liabilities rose to $352,157,000 as of March 31, 2025, compared to $329,008,000 at December 31, 2024, an increase of 7%[19] Expense Management - Customer support and operations expenses for Q1 2025 were $22,573,000, up from $20,119,000 in Q1 2024, indicating an increase of 12.2%[27] - Marketing expenses increased to $73,349,000 in Q1 2025 from $68,014,000 in Q1 2024, a rise of 7.5%[27] - Technology and development expenses for Q1 2025 were $73,851,000, compared to $63,206,000 in Q1 2024, reflecting a growth of 16.8%[27] Historical Comparisons - Net income for Q1 2024 was $(21,080) thousand, showing a decrease from $(28,314) thousand in Q1 2023[31] - Adjusted EBITDA for Q1 2024 reached $22,779 thousand, compared to $7,263 thousand in Q1 2023, indicating a significant improvement[31] - Total marketing expenses for Q1 2024 were $68,014 thousand, up from $44,123 thousand in Q1 2023, reflecting a 54% increase[33] - Non-GAAP customer support and operations expenses for Q1 2024 were $18,998 thousand, slightly down from $19,695 thousand in Q1 2023[33] - Technology and development expenses for Q1 2024 amounted to $63,206 thousand, an increase from $49,376 thousand in Q1 2023, representing a 28% rise[33] - Stock-based compensation expense for Q1 2024 was $34,088 thousand, compared to $29,234 thousand in Q1 2023, showing an increase of 16%[31] - The company reported a total of $136,967 thousand in stock-based compensation expenses for the year 2023[31] - The total operating expenses for Q1 2024 were $44,173 thousand, compared to $41,408 thousand in Q1 2023, indicating a 4% increase[33] Future Plans - The company expects continued growth in adjusted EBITDA, projecting $141,204 thousand for the year 2024[31] - The company plans to maintain its focus on market expansion and new product development in the upcoming quarters[31] - The company continues to expand its suite of products to enhance its digital financial services offerings[14]