Core Insights - Remitly Global, Inc. reported a significant increase in send volume and revenue for the second quarter of 2025, with send volume up 40% to $18.5 billion and revenue up 34% to $411.9 million year over year [1][5] - The company achieved a net income of $6.5 million and an Adjusted EBITDA of $64.0 million, reflecting a 144% increase compared to the previous year [1][5] - The Board of Directors has authorized a $200 million share repurchase program to return capital to stockholders and mitigate dilution from employee equity compensation [1][3] Financial Performance - Active customers increased to 8.5 million, a 24% rise from 6.9 million [5] - Total revenue for the fiscal year 2025 is projected to be between $1.61 billion and $1.62 billion, indicating a growth rate of 27% to 28% year over year [5] - The company expects to maintain GAAP profitability and Adjusted EBITDA in the range of $225 million to $230 million for 2025, an increase from prior estimates [5] Share Repurchase Program - The share repurchase program allows Remitly to buy back up to $200 million of its common stock, with purchases to be made based on market conditions [3][4] - The program is flexible and may be suspended or modified at the company's discretion [4] Operational Metrics - The company reported a total of $397.2 million in costs and expenses for the second quarter, compared to $322.2 million in the same period last year [16] - Key operational expenses included transaction expenses of $143.8 million and marketing expenses of $85.0 million [16] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of the second quarter were $515.9 million, up from $368.1 million at the end of the previous year [18] - The total assets of the company increased to $1.17 billion from $1.01 billion year over year [19]

Core Viewpoint - Remitly Global, Inc. will report its second quarter financial results on August 6, 2025, and will host a conference call to discuss these results with financial analysts [1]. Group 1: Financial Results Announcement - The second quarter financial results will be reported after market close on August 6, 2025 [1]. - A conference call and live webcast will take place at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [1][2]. - Participants can register for the call to receive dial-in details and a unique access code [2]. Group 2: Webcast Information - A live webcast and replay of the conference call will be available on the Investor Relations section of Remitly's website [3]. - The company recommends listening via the webcast for those not planning to ask questions [3]. Group 3: Company Overview - Remitly is a provider of digital financial services operating in over 170 countries [4]. - The company focuses on cross-border payments, offering a fast, reliable, and transparent money movement experience [4]. - Remitly is expanding its product suite to enhance its vision and impact lives globally [4].

Group 1: Remitly Global - Remitly Global is experiencing rapid growth in the remittance market, leveraging a mobile app and lower fees compared to traditional players [4][5] - The total transfer volume reached $16.2 billion last quarter, marking a 41% year-over-year increase, with a current market share of only 2%-3% [5] - Revenue grew by 34% year-over-year to $362 million, and the company achieved a positive net income of $11.4 million [5][6] - Remitly's asset-light model allows for reinvestment in product development and marketing, which is expected to drive future revenue growth [6] - As the business matures, profit margins are anticipated to expand to 20% or higher, with potential annual revenue reaching $2 billion and a long-term target of $5 billion [7] - The current market cap of Remitly is $3.77 billion, indicating a favorable valuation compared to its future earnings potential [8] Group 2: Interactive Brokers - Interactive Brokers is gaining market share in the brokerage industry by offering low-cost or free trading and a wide range of financial instruments [10][11] - Customer accounts increased by 32% last quarter to 3.62 million, with total client assets at $573.5 billion, demonstrating a high-end customer base [11] - The company boasts pre-tax profit margins of 74%, positioning it as one of the most profitable firms in the industry [12] - With a price-to-earnings ratio of 32, Interactive Brokers remains a strong hold for long-term investors as customer growth is expected to drive earnings and stock price higher [13]

Group 1 - Remitly Global's stock has experienced a consistent decline after initially posting positive momentum following its Q1 earnings report [1] - The company reported quarterly revenues of $361.62 million and an adjusted EPS of $0.19 for Q1 [1]

Group 1: Investment Potential - The power of compound interest can significantly grow an initial investment, with $25,000 potentially turning into a million dollars in 40 years at a 10% annual rate [1] - Two promising technology stocks are identified for long-term investment to help achieve the million-dollar goal [2] Group 2: Airbnb Overview - Airbnb has disrupted the travel market with its home-sharing model, achieving $81.8 billion in gross spending and $11.1 billion in total revenue in 2024 [4] - 70% of Airbnb's spending comes from Western markets, with plans to expand into travel-heavy regions like Japan and Brazil over the next five years [5] - Airbnb has launched new product categories, Experiences and Services, to enhance its platform and attract more customers away from traditional hotels [6][7] Group 3: Airbnb Financial Metrics - Airbnb's current price-to-earnings (P/E) ratio is 32, reflecting its growth potential despite appearing expensive for value-focused investors [8] - The company has an operating margin of 22%, which is lower than competitors like Booking Holdings, indicating potential for margin improvement as the platform matures [8] Group 4: Remitly Overview - Remitly Global is disrupting the international money transfer market with a mobile application that offers lower fees, achieving a 41% year-over-year growth in send volume and 34% revenue growth [9] - The platform is now profitable, posting $11.4 million in net income last quarter, while processing over $15 billion in quarterly volume for 8 million customers [9][10] Group 5: Remitly Market Position - Remitly currently holds an estimated 3% market share in remittances, with potential to grow to 5%, 10%, and eventually 20% in the long term [10] - The company has a market cap of $4.6 billion and trailing revenue of $1.4 billion, indicating significant growth potential if it continues to capture market share [11]

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.

Group 1: BILL Holdings, Inc - JP Morgan analyst Tien-tsin Huang hosted 17 payments and processing firms at the Global TMC Conference in Boston, maintaining an Overweight rating on BILL Holdings with a price target of $55 [1] - BILL is recognized as a category killer in SMB AP Automation, effectively displacing manual and legacy solutions, including paper check processing [1] - Huang sees potential for BILL to reclaim its status as a top growth name through cross-selling recent acquisitions, leveraging partnerships with banks and accountants, and helping SMBs reduce costs via automation [2] - Projected fourth-quarter revenue for BILL is $376 million with an adjusted EPS of $0.41 [2] - As of the last check, BILL's stock is down 0.41% at $46.07 [5] Group 2: Fiserv, Inc - Huang maintains an Overweight rating on Fiserv with a price target of $210, slightly down from $211 [2] - Fiserv is viewed as a dependable growth story, with mid-teens EPS growth driven by double-digit top-line growth, operating leverage, and capital deployment [3] - The company has a solid portfolio, including its Clover product, which is gaining market share and growing faster than peers [3] - Projected second-quarter revenue for Fiserv is $5.19 billion with an adjusted EPS of $2.39 [3] Group 3: Marqeta, Inc - Huang upgraded Marqeta's rating to Overweight from Neutral, with a price target of $6, up from $5 [4] - Marqeta's platform supports card programs in high-growth areas of fintech, including BNPL and digital banking, with notable clients like Block and Affirm [4] - Projected second-quarter revenue for Marqeta is $140 million with an adjusted EPS of $(0.05) [4] Group 4: Remitly Global, Inc - Huang has an Overweight rating on Remitly with a price target of $25, viewing it as a mission-driven disruptor in the remittance market [5] - Remitly is experiencing durable growth with a 34% year-to-date revenue increase and 4% market penetration [5] - Projected revenue CAGR for Remitly through 2027 is 21%, one of the highest in Huang's coverage [5] - Projected second-quarter revenue for Remitly is $385 million with an adjusted EPS of $0.19 [5]

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]