Remitly (US:RELY)2025-11-05 21:13Customer Growth - Active customers increased to approximately 8.9 million, representing a 21% growth for the three months ended September 30, 2025, compared to the same period in 2024[125] - Active customers increased by 21% year-over-year, contributing to revenue growth and retention of existing customers[155] Send Volume - Send volume rose 35% to $19.5 billion for the three months ended September 30, 2025, up from $14.5 billion in the same period in 2024[128] - For the nine months ended September 30, 2025, send volume increased 38% to $54.2 billion, compared to $39.2 billion for the same period in 2024[128] - Send volume rose by 35% to $19.5 billion for the three months ended September 30, 2025, and by 38% to $54.2 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[156] Revenue Performance - Revenue increased by 25% to $419.5 million for the three months ended September 30, 2025, and by 31% to $1.19 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[153] Expenses and Costs - Transaction expenses increased by 27% to $146.7 million for the three months ended September 30, 2025, and by 31% to $411.9 million for the nine months ended September 30, 2025, primarily due to higher processing costs[157][158] - As a percentage of revenue, transaction expenses remained stable at 35% for both the three and nine months ended September 30, 2025[159] - Customer support and operations expenses increased by 21% to $26.4 million for the three months ended September 30, 2025, and by 20% to $74.0 million for the nine months ended September 30, 2025[160][161] - Customer support and operations expenses decreased as a percentage of revenue to 6% for both the three and nine months ended September 30, 2025, down from 7% in the same periods in 2024[162] - Marketing expenses increased by $17.0 million, or 23%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $13.3 million increase in advertising and targeted marketing expenses[163] - Technology and development expenses rose by $12.0 million, or 17%, for the three months ended September 30, 2025, primarily due to an $8.7 million increase in personnel-related expenses[166] - General and administrative expenses increased by $5.1 million, or 10%, for the three months ended September 30, 2025, driven by a $2.3 million increase in provisions related to collectability from processing partners[169] Profitability and Cash Flow - Adjusted EBITDA for the three months ended September 30, 2025, was $61.2 million, compared to $47.4 million for the same period in 2024, reflecting a significant increase in operating performance[180] - As of September 30, 2025, cash and cash equivalents were $476.9 million, up from $368.1 million as of December 31, 2024, indicating improved liquidity[182] - For the nine months ended September 30, 2025, net cash provided by operating activities was $175.5 million, an increase from $138.9 million in the same period of 2024[188][189] - The cash generated from operations for the nine months ended September 30, 2025, included a net income of $26.7 million, excluding $142.0 million of noncash charges[188] - The company experienced a decrease in cash flow due to customer funds working capital changes of $38.0 million for the nine months ended September 30, 2025[188] Shareholder Actions - The company repurchased $11.9 million of its common stock during the three months ended September 30, 2025, as part of a $200 million share repurchase program approved in July 2025[183] Technology and Development - Investments in technology and development are expected to increase expenses but are projected to contribute to long-term growth[135] - The company expects to continue investing in technology and development to enhance customer experience and attract new customers[146] - Technology and development expenses as a percentage of revenue decreased to 19% for both the three and nine months ended September 30, 2025, from 20% and 22% in the same periods of 2024, respectively[168] Risk Management - The company’s risk management includes proprietary models and machine learning processes to address fraud and compliance risks[136] - The company mitigates foreign currency exchange rate risk by maintaining natural hedges and deploying derivatives, which have not materially impacted operations[205] Regulatory Environment - The impact of recent regulatory changes, including the One Big Beautiful Bill Act, is being evaluated, but no significant impact on business is anticipated[139][140] Financial Position - The company maintains a diversified cash balance portfolio to mitigate foreign currency risks associated with its international operations[138] - Net cash used in investing activities was $51.6 million for the nine months ended September 30, 2025, compared to $12.5 million for the same period in 2024, reflecting a $39.1 million increase[191] - Net cash used in financing activities decreased to $23.7 million for the nine months ended September 30, 2025, down from $128.9 million in 2024, a reduction of $105.2 million[193] - The company had no material off-balance sheet arrangements as of September 30, 2025, that would materially affect its financial condition[198] Currency Impact - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a fair value change of approximately $25.4 million for customer transaction-related assets and liabilities as of September 30, 2025[204]