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]

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 [32][33] - 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 [33][34] - Send volume grew 41% to $16.2 billion, outpacing revenue growth, with a gross take rate of 2.24% [34][35] Business Line Data and Key Metrics Changes - The U.S. revenue grew 35%, accelerating from 33% in the previous quarter, while revenue from regions outside of India, the Philippines, and Mexico grew 45% year-over-year [35][36] - The company launched remittance services to Nigeria, Burkina Faso, and Mali, expanding its geographic footprint and increasing pay-in and payout options [15][16] Market Data and Key Metrics Changes - Revenue from the rest of the world grew 41% year-over-year, indicating strong performance outside of traditional markets [36] - The company reported that over 93% of transactions were dispersed in less than an hour, and more than 95% of transactions proceeded without customer support contact [25][26] Company Strategy and Development Direction - The company aims to diversify its business across various dimensions, including geographic expansion and new product offerings, to capture more growth and reduce risk [14][15] - The focus on building trust with customers is central to the company's strategy, as evidenced by high transaction reliability and customer satisfaction metrics [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of remittances amid macroeconomic uncertainties, highlighting the essential role of remittances in household stability [11][29] - The company raised its full-year outlook for both revenue and adjusted EBITDA, reflecting strong customer engagement and retention [9][44] Other Important Information - The company has embedded resilience into its foreign exchange management, which has become a competitive advantage [12][13] - The company continues to innovate and explore adjacent offerings, such as faster cross-border payments and fund storage solutions [21][22] 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 growth in high dollar senders contributed to the increase in send volume per active user [53][54][55] Question: Are there any environmental factors affecting the numbers? - Management noted that the majority of revenue comes from prior quarter cohorts, providing high visibility and confidence in future growth [62][63] Question: Can you elaborate on direct partner integrations? - Management highlighted that direct integrations lead to faster transactions, lower costs, and improved reliability, contributing to customer satisfaction [66][67][68] Question: What is the strategy for high dollar senders and micro business customers? - The company plans to tailor products and marketing strategies to effectively serve high dollar senders and micro business customers, capitalizing on existing demand [82][83][84] 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 [86][87][88]

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]

Financial Performance - Remitly's Q1 2025 revenue reached $362 million, a 34% year-over-year increase[11] - Send volume grew by 41% year-over-year, reaching $162 billion in Q1 2025[37] - Quarterly active customers increased by 29% year-over-year, totaling 8 million[37] - GAAP Net Income was $11 million in Q1 2025[11] - Adjusted EBITDA for Q1 2025 was $58 million, representing a 162% margin[11] Future Outlook - Remitly projects 2025 revenue between $1574 billion and $1587 billion, indicating a 25% to 26% year-over-year growth[49] - The company anticipates 2025 Adjusted EBITDA to be in the range of $195 million to $210 million[49] - For Q2 2025, Remitly forecasts revenue between $383 million and $385 million, a 25% to 26% year-over-year increase[52] - Q2 2025 Adjusted EBITDA is projected to be between $45 million and $47 million[52] Strategic Initiatives - Remitly experiences over 45% year-over-year growth in send volume from transactions exceeding $1000[21] - The company highlights that over 93% of transactions are disbursed in less than 1 hour[29]

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]

Core Insights - Remitly Global, Inc. reported strong financial results for Q1 2025, significantly exceeding expectations and raising its full-year outlook for revenue and Adjusted EBITDA [2][11]. Financial Performance - Active customers increased to 8.0 million, up 29% from 6.2 million in Q1 2024 [11]. - Send volume rose to $16.2 billion, a 41% increase from $11.5 billion [11]. - Revenue for Q1 2025 totaled $361.6 million, compared to $269.1 million in Q1 2024, reflecting a 34% growth [11]. - Net income was $11.4 million, a turnaround from a net loss of $21.1 million in the previous year [11]. - Adjusted EBITDA reached $58.4 million, up 157% from $22.8 million in Q1 2024 [11]. Financial Outlook - For fiscal year 2025, total revenue is expected to be in the range of $1.574 billion to $1.587 billion, representing a year-over-year growth rate of 25% to 26% [11]. - The company anticipates a positive GAAP net income for 2025 and Adjusted EBITDA in the range of $195 million to $210 million, an increase from the prior outlook of $180 million to $200 million [11]. - For Q2 2025, total revenue is projected to be between $383 million and $385 million, also indicating a growth rate of 25% to 26% year over year [11]. Operational Metrics - The company updated its non-GAAP financial measures to exclude payroll taxes related to stock-based compensation, enhancing the evaluation of underlying operating performance [3][24]. - Remitly's total costs and expenses for Q1 2025 were $349.4 million, compared to $289.1 million in Q1 2024 [15].

Company Overview - Remitly Global is a remittance provider with a market cap of $4.1 billion, experiencing significant growth and market share gains [2][4]. - The company has 7.8 million active customers as of Q4 2024, reflecting a year-over-year growth of 32% [3]. Market Position - Remitly is gaining customers from Western Union due to lower fees and user-friendly services, targeting key immigrant groups in the U.S. [4]. - The company currently holds approximately 3% market share in the remittance sector, processing $15.4 billion in volume in Q4 of the previous year [4]. Growth Potential - The remittance market is expanding, providing Remitly with a dual advantage of market share growth and sector growth, leading to a cumulative revenue increase of 130% over the last three years [6]. - Revenue growth is expected to continue, with projections indicating that Remitly could achieve over $3 billion in annual sales within five years [11]. Profitability and Financials - Remitly's gross margin is approaching 60%, despite posting a slight operating loss last year due to high spending on marketing and technology [7][8]. - The company is expected to reach operating leverage as it scales, with potential profit margins approaching 20% in the next five years [9]. Investment Appeal - The current market cap undervalues Remitly's profit potential, with a projected P/E ratio dropping below 10 if revenue growth continues [12]. - Investing $2,000 today could yield 100 shares of a fast-growing company at a reasonable price compared to other high-growth stocks [2][12].

Core Viewpoint - Remitly Global, Inc. will report its first quarter financial results on May 7, 2025, and will host a conference call to discuss these results with financial analysts [1]. Group 1: Financial Results Announcement - The company will announce its first quarter financial results after market close on May 7, 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]. Group 2: Conference Call Details - To access the conference call, participants must register through a provided link, after which they will receive dial-in details and a unique access code [2]. - The company recommends registering at least 10 minutes before the call starts to ensure connection [2]. Group 3: Webcast Information - A live webcast and replay of the conference call will be available on the Investor Relations section of Remitly's website [3]. - For those not asking questions, listening via the webcast is recommended [3]. Group 4: Company Overview - Remitly is a provider of digital financial services operating in over 170 countries, focusing on cross-border payments [4]. - The company aims to enhance its product offerings to fulfill its vision of transforming lives globally [4].