Summary of Remitly Global Conference Call Company Overview - **Company**: Remitly Global (NasdaqGS: RELY) - **Industry**: Fintech, specifically focused on cross-border payments and financial services Key Points and Arguments Product Innovation and Growth - Remitly experienced a pivotal second quarter, marking an inflection point for product innovation and growth [6][5] - The company has built a global platform for cross-border finance, now serving 170 countries [6] - Introduction of **Remitly Business**, targeting freelancers and microbusinesses, which has shown strong early adoption and retention [29][32] - The company aims to expand its Total Addressable Market (TAM) from $2 trillion to $20 trillion by diversifying its offerings [19][42] Customer Trust and Technology - Remitly has established trust with 8.5 million customers, with 93% of transactions delivered in under an hour [10] - The technology platform, referred to as the **North Star architecture**, allows for rapid product development and integration of new services [11][26] - The company emphasizes its unique position to serve underserved customer segments, particularly those with limited access to traditional banking services [15][56] Financial Performance - In the first half of the year, Remitly achieved a 34% growth rate while maintaining a 16% EBITDA margin [22] - The company is focused on balancing growth, profitability, and investment in new products [22] Remitly One Membership Program - **Remitly One** is positioned as a foundational membership program, similar to Amazon Prime, offering various benefits including **Flex**, a short-term liquidity product [45][47] - The program aims to deepen customer relationships and enhance loyalty by providing valuable financial services [51][55] Market Positioning and Pricing Strategy - Remitly's pricing strategy is designed to be competitive against traditional wire transfers, focusing on microbusinesses and freelancers who are often underserved [35][38] - The company aims to disrupt the market by offering lower costs and better service compared to traditional providers [35] Wallet and Stablecoin Integration - Remitly is launching a multi-currency wallet that will support both fiat and stablecoins, enhancing its service offerings [70] - Partnerships with **Bridge** and **Circle** will facilitate stablecoin disbursements and provide customers with a stable store of value [71][73] - The demand for stablecoins is expected to grow, particularly in countries with volatile currencies [75][80] Future Outlook - The company plans to expand its services into new geographies, with launches in the U.S., U.K., and Canada already underway [42] - Remitly is committed to leveraging its existing infrastructure to support new product launches without significant incremental costs [23][40] AI and Technology Integration - The company is exploring the use of **Agentic AI** to enhance customer experience and operational efficiency [82] Additional Important Insights - Remitly's focus on underserved markets positions it uniquely to capture a significant share of the growing cross-border payments sector [12][56] - The company recognizes the importance of regulatory compliance and aims to navigate the complexities of global financial regulations effectively [79] - Customer stories, such as that of Guadalupe, highlight the real-world impact of Remitly's services on individuals' lives, reinforcing the company's mission-driven approach [51] This summary encapsulates the key points discussed during the Remitly Global conference call, highlighting the company's strategic direction, product innovations, and market positioning within the fintech industry.

Core Insights - Remitly Global, Inc. is hosting a webinar focused on product innovation and stablecoins on September 9, 2025 [1] - The company will also hold a product event named "Remitly Reimagine" on the same day, which will be available for live streaming and replay [2] - Remitly operates in over 170 countries, providing digital financial services that facilitate cross-border payments [3] Event Details - The Remitly Webinar on Product Innovation/Stablecoins is scheduled for September 9, 2025, at 11 a.m. Eastern Time [1] - The Remitly Reimagine event will take place on the same day at 5 p.m. Eastern Time [1] - Interested parties can register for the webinar or access the replay on Remitly's investor relations website [1][2] Company Overview - Remitly is recognized as a trusted provider of digital financial services, focusing on fast, reliable, and transparent money movement experiences [3] - The company is expanding its product offerings to enhance its vision and impact lives globally [3]

Core Insights - Investors should consider adding stocks with strong liquidity to their portfolios, as these stocks are associated with business growth and potential maximum returns [1][2] - Four top-ranked stocks identified for potential investment are Remitly Global, Inc. (RELY), Frontdoor, Inc. (FTDR), Pagaya Technologies Ltd. (PGY), and Willdan Group, Inc. (WLDN) [1][9] Liquidity Measures - Current Ratio: Measures current assets against current liabilities; a ratio below 1 indicates more liabilities than assets, while a range of 1-3 is ideal [4] - Quick Ratio: Indicates ability to pay short-term obligations, with a desirable ratio of more than 1 [5] - Cash Ratio: The most conservative measure, focusing on cash and equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [6] Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets; companies with a ratio higher than their industry average are considered efficient [7][8] - Growth Score: A proprietary metric added to ensure that liquid and efficient stocks also have solid growth potential [8] Company Highlights - **Remitly Global, Inc. (RELY)**: Specializes in digital financial and remittance services, with revenues of $411.9 million for Q2 2025, up 34% year over year; active customers grew 24% to over 8.5 million [12][10] - **Frontdoor, Inc. (FTDR)**: Parent company of home service plan brands, reported revenues of $617 million for Q2 2025, up 14% year over year; DTC member count increased by 9% [15][14] - **Pagaya Technologies Ltd. (PGY)**: Focuses on AI infrastructure for finance, with total revenues of $326 million for Q2 2025, a 30% increase year over year; annualized run-rate for POS and Auto segments reached $1.2 billion and $2 billion, respectively [17][18] - **Willdan Group, Inc. (WLDN)**: Provides consulting services to government and private sectors, with net revenues expected between $340 million and $350 million for 2025; contract revenues jumped 23% year over year [20][21]

Core Viewpoint - Remitly Global, Inc. (RELY) shows significant upside potential with a mean price target of $27.11, indicating a 42.3% increase from the current trading price of $19.05 [1] Price Targets and Analyst Estimates - The mean estimate consists of nine short-term price targets with a standard deviation of $3.48, suggesting a consensus among analysts [2] - The lowest estimate is $21.00, indicating a 10.2% increase, while the highest estimate is $32.00, representing a 68% surge [2] - Analysts' price targets can be misleading, as empirical research shows they rarely indicate actual stock price movements [7][10] Earnings Estimates and Analyst Agreement - Analysts are optimistic about RELY's earnings prospects, with a strong agreement in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 33.3%, with two estimates moving higher and no negative revisions [12] Zacks Rank and Investment Potential - RELY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not reliably indicate the extent of potential gains, they do suggest a positive direction for price movement [14]

Economic Overview - The global economy is currently facing challenges, including weak manufacturing activity and escalating government debt [1] - Consumer stress is becoming evident in various economic indicators [1] Analyst Insights - Saba Sadiq, a psychologist with a keen interest in finance, emphasizes the importance of a data-driven approach to guide investors through market uncertainties [1]

Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][9] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [3] - The industry is diversifying with contactless payment options such as mobile wallets, biometrics, and QR codes, enhancing the global digital payments market [4] Company Insights - **PayPal Holdings Inc. (PYPL)**: - Benefiting from robust growth in total payment volume and strengthening customer engagement [10][11] - Expected revenue and earnings growth rates of 4% and 12% respectively for the current year [12] - **JPMorgan Chase & Co. (JPM)**: - Projected net interest income (NII) growth at a CAGR of 2.9% by 2027, supported by business expansion and loan demand [13] - Expected revenue and earnings growth rates of -0.2% and -1.3% respectively for the current year [15] - **Intuit Inc. (INTU)**: - Strong momentum in Online Services revenues driven by Mailchimp, payroll, and Money [16] - Expected revenue and earnings growth rates of 11.7% and 13.7% respectively for the current year [19] - **ACI Worldwide Inc. (ACIW)**: - Powers electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [21][22] - Expected revenue and earnings growth rates of 8% and 7.6% respectively for the current year [22] - **Remitly Global Inc. (RELY)**: - Engaged in providing digital financial services, with an expected revenue growth rate of 27.9% and earnings growth of over 100% for the current year [23][24]

Core Viewpoint - Remitly Global, Inc. (RELY) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.02 per share, representing a 100.0% increase from the previous year, with a 33.33% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, the earnings estimate stands at $0.12 per share, marking a 163.2% increase from the prior year, with two estimates moving up recently and no negative revisions [7]. Zacks Rank and Performance - Remitly Global has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [3][8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][8]. Recent Stock Performance - Over the past four weeks, Remitly Global shares have increased by 9.5%, suggesting investor confidence in the company's earnings growth prospects due to the favorable estimate revisions [9].

Core Viewpoint - The article discusses the potential growth and market share gains of fintech companies SoFi Technologies and Remitly Global, suggesting they will outperform Upstart Holdings in the coming years [1][5][13]. Group 1: SoFi Technologies - SoFi Technologies has shown a strong recovery, generating positive earnings and reaching a customer base of 11.75 million, growing at a 51% compound annual rate since 2021 [3][4]. - The company's total revenue grew by 44% to $855 million in the last quarter, with net income increasing by 479% year over year to just under $100 million [4][5]. - SoFi's market cap is currently around $25 billion, with a price-to-earnings ratio (P/E) of 46, indicating potential for future growth as it expands its operations as an online bank [5]. Group 2: Remitly Global - Remitly Global, with a market cap of $3.3 billion, is a remittance services provider that has faced challenges but continues to show promise [8]. - The company reported a 34% year-over-year revenue growth to $334 million, with net income of $11 million, supported by strong unit economics and low fixed costs [11]. - With a revenue base of $1.356 billion, Remitly has the potential to achieve a market cap larger than Upstart if it continues to gain market share in the remittance sector [12]. Group 3: Upstart Holdings - Upstart Holdings has struggled to generate sufficient profit, projecting only $35 million in total net income for 2025, leading to a forward P/E of over 100 [14]. - The company has a high cost base due to significant spending on customer support, technology development, and marketing, limiting its ability to disrupt traditional lending methods [14][15]. - Upstart remains a niche player in the lending space, with a challenging path ahead compared to the brighter prospects of SoFi and Remitly [13][15].

Group 1 - Remitly Global, Inc. (RELY) closed at $18.95, with a 3.7% gain over the past four weeks, and a mean price target of $27.11 suggests a 43.1% upside potential [1] - The average price target ranges from a low of $21.00 to a high of $32.00, with a standard deviation of $3.48, indicating variability among analysts' estimates [2] - Analysts show strong agreement on RELY's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 11.1% over the past month, with no negative revisions [12] - RELY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [14]

Group 1 - Remitly Global, Inc. will present at a webinar and investor conference focusing on stablecoins and cross-border payment outlook [1] - The post-earnings webinar with Goldman Sachs is scheduled for August 13, 2025, at 1 p.m. Eastern Time [1] - The Goldman Sachs Communacopia + Technology Conference will take place on September 10, 2025, at 12:30 p.m. Eastern Time [1] Group 2 - Remitly operates in over 170 countries, providing digital financial services that facilitate cross-border payments [2] - The company aims to enhance its product offerings to fulfill its vision of transforming lives globally [2]