Group 1: Industry Insights - Chinese foreign trade enterprises are actively adjusting strategies to reduce reliance on single markets, with developing countries and emerging markets presenting new opportunities [1] - The July PMI index from XTransfer indicates that African countries lead in export PMI, with notable performance in countries like Ghana and Nigeria, driven by population dividends, infrastructure needs, and consumption upgrades [1] - The export performance of "new three items" (lithium batteries, new energy vehicles, and solar cells) is strong, with export order and price indices exceeding the overall market, and diversified export destinations [1] Group 2: Company Developments - XTransfer has established itself as China's leading B2B foreign trade financial platform, enhancing risk control capabilities through AI technology and a robust cross-border risk management system [2] - The company plans to launch overseas stablecoin payment services within this year, addressing traditional cross-border payment issues such as high fees and long transaction times [3] - XTransfer aims to add 100 funding channels by 2025 to address compliance challenges for outbound enterprises, while also forming localized teams for direct communication with clients and regulatory bodies [2]

Financial Data and Key Metrics Changes - In Q4 2024, revenue reached $351.9 million, a 33% increase year-over-year, while adjusted EBITDA was $43.7 million, resulting in over a 12% adjusted EBITDA margin [35][36] - Full-year revenue for 2024 was $1.26 billion, up 34%, with adjusted EBITDA of $135 million, delivering nearly an 11% adjusted EBITDA margin [35][36] - Active customers increased by 32% year-over-year to 7.8 million, with send volume growing 39% to $15.4 billion [36][38] Business Line Data and Key Metrics Changes - The gross take rate was 2.28%, consistent with expectations, while send volume per active customer increased by 5.5%, marking a three-year high [38] - U.S. revenue grew by 33%, while revenue from the rest of the world increased by 41% year-over-year [39] - More than 60% of new customers in Q4 were sending to countries outside of Mexico, the Philippines, and India, indicating diversification in customer base [39] Market Data and Key Metrics Changes - The rest of the world contributed nearly 24% of revenue in 2024, up from 21% in 2023, reflecting strong growth in international markets [39] - The mix of digital-received transactions increased year-over-year by over 350 basis points, indicating a positive trend for the business [40] Company Strategy and Development Direction - The company aims to transform lives with trusted financial services that transcend borders, focusing on customer-centric innovations and operational efficiencies [12][13] - The corridor expansion playbook has enabled the company to achieve an 80% revenue CAGR since 2020 in regions outside the U.S. and Canada [25] - The company plans to unlock value for new customer use cases, including seafarers and micro businesses, with minimal incremental investment [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic and regulatory changes, citing resilience over the past decade [86][87] - The outlook for Q1 2025 anticipates revenue between $345 million and $348 million, reflecting a growth rate of 28% to 29% [53] - For the full year 2025, revenue is expected to be between $1.565 billion and $1.58 billion, representing a growth rate of 24% to 25% [56] Other Important Information - The company will begin excluding payroll taxes related to stock-based compensation from adjusted EBITDA starting in Q1 2025 [7] - Stock-based compensation as a percentage of revenue decreased from 14.5% in 2023 to 12% in 2024, reflecting efforts to manage dilution [50][51] Q&A Session Summary Question: Insights on marketing spend and organic ads - Management noted that product improvements have driven organic results, leading to a decline in marketing spend per quarterly active user by 16% year-over-year while acquiring a record number of new customers [71][72] Question: Drivers of increased transaction frequency - The increase in transaction frequency is attributed to the quality of customer engagement and the simplicity and reliability of the platform [82] Question: Views on the political environment regarding immigration - Management expressed confidence in the business's resilience through various macro and political changes, supported by a diversified customer profile [86][87] Question: Margin potential and drivers for 2025 - Management indicated that while margins are expected to grow in line with revenue, operational efficiencies and investments in technology will support long-term profitability [94][95] Question: Impact of foreign exchange on guidance - Management stated that foreign exchange effects were offsetting in Q4 and that the 2025 guidance does not assume any changes in FX stance [100][101] Question: Micro business opportunity - Management highlighted the extensibility of the platform to serve micro businesses, citing specific customer examples to illustrate the potential in this segment [106][109]