Summary of Remitly Global Investor Day 2025 Company Overview - **Company**: Remitly Global (NasdaqGS: RELY) - **Event**: First-ever Investor Day held on December 9, 2025 - **Key Speakers**: - Matt Oppenheimer (CEO) - Pankaj Sharma (Chief Business Officer) - Ankur Sinha (Chief Product and Technology Officer) - Vikas Mehta (CFO) Core Industry Insights - **Industry**: Cross-border financial services and remittances - **Market Size**: The global cross-border payments market is over $22 trillion annually, with the consumer segment alone around $2 trillion [16][16] - **Growth Potential**: Remitly is currently capturing only 3% of the consumer cross-border payments volume, indicating significant room for growth [36][36] Key Points and Arguments - **Vision**: Remitly aims to "transform lives with trusted financial services that transcend borders," focusing on trust, reliability, and customer-centric solutions [7][7][8][8] - **Business Model**: The company has a structurally advantaged business model that is GAAP profitable, with projections of nearly $3 billion in revenue and close to $600 million in adjusted EBITDA by 2028 [7][7][30][30] - **Customer Growth**: Active users increased from 1.9 million in 2020 to 9 million in 2025, with send volume growing from $12.1 billion to $70 billion in the same period [16][16][17][17] - **Core Strengths**: - **Trust**: Essential for customer retention, evidenced by high app ratings and Trustpilot scores [19][19] - **Network**: A proprietary global partner and payout network covering over 5,300 corridors and 100 currencies, ensuring fast and reliable transfers [20][20] - **Scale**: Achieved through operational efficiencies and a flywheel effect that enhances free cash flow [22][22][23][23] Technology Trends - **Stablecoins**: Present a significant opportunity for Remitly, allowing customers in emerging markets to hold USD stablecoins as a store of value [24][24][25][25] - **Artificial Intelligence (AI)**: Enhances customer support and operational efficiency, with AI resolving one-third of customer support chats faster than human agents [26][26][27][27] Customer Experience and Retention - **Customer Satisfaction**: High retention rates and customer lifetime value (LTV) driven by trust, speed, and simplicity in service [48][48][49][49] - **Pricing Strategy**: Cost-plus pricing model that balances affordability for customers with sustainable returns for the company [54][54][55][55] Future Growth Strategy - **Geographic Expansion**: Plans to enter new markets, including Saudi Arabia, and expand into high-amount transfers and small-medium businesses [38][38][39][39] - **Product Diversification**: Introduction of new products like Remitly One and Send Now, Pay Later, aimed at enhancing customer relationships and expanding the addressable market [12][12][13][13] Conclusion - **Long-term Vision**: Remitly is positioned for significant growth by leveraging its strengths in trust, network, and scale, while also embracing emerging technologies like stablecoins and AI to enhance customer experience and operational efficiency [28][28][30][30]

Core Insights - Remitly Global has established itself as a leader in the global remittance market, with a total addressable market of $22 trillion [4] - The company reported strong growth in Q3, with active customers increasing by 21% to 8.9 million, send volume rising by 35% to $19.5 million, and revenue growing by 25% to $419.5 million, surpassing estimates [5] - Despite strong performance, Remitly's stock fell 25% following the earnings report due to guidance indicating a slowdown in revenue growth [8] Company Performance - Remitly's adjusted EBITDA rose by 29% to $61.2 million, and GAAP earnings per share increased from $0.01 to $0.04 year-over-year [7] - The company is launching new products, including Remitly One, aimed at expanding its customer base and increasing engagement [6] - The stock is currently trading at a price-to-sales ratio of 1.7 and 11 times its EBITDA forecast for the year, indicating it may be undervalued [9] Market Context - The fintech sector is experiencing a downturn, with many stocks declining due to concerns over loan losses and consumer confidence [2] - Remitly's business model, which primarily generates income from transaction fees, presents a lower credit risk compared to other fintech companies [10] - The overall housing market remains weak, and consumer discretionary spending is declining, impacting various sectors [2]

Core Viewpoint - Remitly Global is experiencing strong financial performance despite concerns over immigration changes, making it a compelling growth stock opportunity [1][2]. Financial Performance - Remitly's transfer volume grew 35% year-over-year to $19.5 billion, while revenue increased by 25% to $420 million [4]. - The company has an operating margin of 2.5% and a gross profit margin of 58%, indicating potential for margin expansion over time [6]. - The company expects to generate $1.62 billion in revenue this year, with forecasts for high-teens percentage revenue growth in 2026 [11]. Market Position - Remitly is rapidly gaining market share from traditional players like Western Union, even as the overall remittance market shows minimal growth due to U.S. immigration crackdowns [5]. - The company is expanding its offerings to small businesses, increasing its addressable market from $2 trillion to $22 trillion [7]. Product Expansion - Remitly has launched the Remitly One subscription service, which includes a wallet, debit card, and flexible payment options, enhancing customer engagement and revenue potential [8][9]. - The introduction of Remitly One allows the company to build a banking relationship with its customers, offering rewards and bonuses [8]. Investment Potential - The stock has declined significantly, down 55% from highs earlier this year and 75% since its IPO in 2021, presenting a buying opportunity [2][11]. - With potential profit margins of 20% or higher as the business matures, the forward price-to-earnings ratio could be as low as 6.5 based on projected earnings [12][13].

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $419.5 million, reflecting a 25% year-over-year growth, while adjusted EBITDA was $61.2 million, representing a 15% margin [18][34] - Send volume grew 35% to $19.5 billion, with send volume per active customer increasing 11% year-over-year [18][19] - Quarterly active customers increased by 21% year-over-year to nearly 8.9 million, maintaining strong retention levels with a day rate of 2.15% [19] Business Line Data and Key Metrics Changes - Remitly Business saw a near doubling of business send volume sequentially in Q3, with nearly 10,000 businesses now using the platform [9][21] - High-amount senders experienced over 40% year-over-year send volume growth for customers sending more than $1,000, with a mix increase of over 200 basis points [12][21] - Flex, the flexible funding solution, had over 100,000 active users by the end of Q3, with revenue nearly doubling sequentially [13][22] Market Data and Key Metrics Changes - U.S. revenue grew 28%, while the rest of the world grew 20% year-over-year, reflecting a sequential deceleration due to tough comparisons [19][20] - Revenue from regions outside of India, the Philippines, and Mexico grew 31% year-over-year, with Mexico's receive revenue growth outpacing overall revenue growth [20][21] Company Strategy and Development Direction - The company aims to expand from being a leader in money movement to capturing a larger portion of the $22 trillion total addressable market [6][8] - Strategic investments in new customer categories and products, such as Remitly Business and Flex, are expected to drive sustainable revenue growth and margin expansion [10][16] - The upcoming federal remittance tax on cash transfers is anticipated to benefit the digital-first model, enhancing the competitive advantage [16][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position and growth potential, highlighting the strong foundation built in 2025 [16][33] - The company expects revenue growth in the high teens range for 2026, influenced by new products and customer categories, despite potential immigration headwinds [33][34] - Management emphasized the importance of balancing growth with disciplined execution and maintaining profitability [39][40] Other Important Information - The company reported a GAAP net income of $8.8 million, a significant improvement from the previous year [29] - Stock-based compensation was $40 million, approximately 9.5% of revenue, reflecting a decrease compared to the previous year [29] - The company repurchased $11.9 million of shares under its $200 million authorization, demonstrating confidence in future growth [29] Q&A Session Summary Question: Insights on 2026 outlook and assumptions - Management highlighted strong execution in 2025 as a foundation for 2026, with optimism about the remittance tax and new product contributions [36][37] Question: Incremental margins and spending strategies - Management discussed maintaining a balanced approach to capital deployment, focusing on driving growth while managing expenses [39][40] Question: Economics of new products like Flex - Management provided insights on the credit profile of Flex, noting a 90% current balance and minimal charge-offs, indicating strong performance [51][54] Question: Comparison of Remitly Business to high-dollar senders - Management explained that Remitly Business has seen significant growth, with average transaction sizes roughly double those of core consumer categories [58]

Group 1 - Remitly Global Inc. is identified as a strong growth stock under $30, despite a price target reduction from Citizens JMP to $23 from $32 while maintaining an Outperform rating [1] - In Q2 2025, Remitly reported revenue of $411.9 million, reflecting a 34.4% year-on-year increase, and raised its full-year revenue and EBITDA guidance [2] - The company has a growing customer base of 8.51 million active customers, an increase of 1.66 million year-on-year, supported by a 3.6% operating margin [2] Group 2 - Remitly's future growth strategy includes product expansion and the introduction of the Remitly One membership platform, which aims to enhance customer engagement and lifetime value [3] - The company provides digital financial services across the US, Canada, and internationally [3]

Core Insights - Remitly has launched a tiered membership structure called Remitly One, allowing select U.S. customers to subscribe for $9.99 per month, which includes various financial products [1][7] - The new offerings include Remitly Flex, a "send-now-pay-later" tool, and Remitly Wallet, which provides a digital wallet and a debit card for international purchases [2][3] - Additional features are set to launch later this year, including multi-currency support and a line of credit for U.S. customers [4][5] Group 1 - Remitly Flex allows users to send interest-free advance payments, with instant access for Remitly One subscribers compared to a three-day wait for free users [2] - The Remitly Wallet will be available to all users, but the digital debit card that bypasses foreign transaction fees is exclusive to Remitly One members [3] - The company aims to help users build a recognized credit profile by reporting activity to a U.S. credit bureau, which can facilitate future financial opportunities [5] Group 2 - The launch event on September 9 highlighted the changes teased during the August earnings call, emphasizing the importance of the new features [6] - Remitly's CEO noted that the $9.99 monthly fee is seen as acceptable by customers due to the benefits offered, including $5 monthly cash back and a 4% cash boost on U.S. dollar balances [7]

Group 1 - Remitly Global Inc. has launched a new financial membership called Remitly One, aimed at helping customers manage, move, and grow their money across borders for a monthly fee of $9.99 [1][2] - The membership offers benefits such as instant access to funds, multiple withdrawals, and flexible repayment options, significantly improving the service compared to non-members who receive funds in 3 days [3] - Remitly One includes features like Remitly Flex, allowing eligible customers to access up to $250 with no interest, and a Remitly Wallet that offers a 4% annual cash reward on USD balances [2][3] Group 2 - The company is expanding its services beyond remittances, with broader US availability expected by the end of the year and plans to explore support for additional countries in 2026 and beyond [2] - Remitly Global Inc. provides digital financial services in the US, Canada, and internationally, focusing on cross-border remittances and complementary financial services through its mobile application and website [4]

Core Insights - The recent quarter is described as a defining moment and a major inflection point for the company, indicating significant changes and growth potential ahead [1] - The company aims to transform lives with trusted financial services that transcend borders, highlighting its commitment to a broader vision [2] Financial Performance - The second quarter was solid from a financial standpoint, suggesting strong performance metrics that support the company's growth narrative [2] Product Development - The introduction of Remitly One, which encompasses products like Remitly Flex and Remitly Wallet, signifies a strategic shift from a transactional business model to a comprehensive suite of financial services [2] - The company targets 300 million individuals living and working outside their country of birth, indicating a large potential customer base for its services [2]

Financial Data and Key Metrics Changes - The company reported a defining quarter with 34% growth and 16% EBITDA, achieving GAAP profitability for two consecutive quarters [10][11] - The growth is expected to moderate in the second half of the year due to strong comparisons from the previous year [10][11] Business Line Data and Key Metrics Changes - The core immigrant-centric remittances business continues to show strong momentum, with high-dollar senders growing in volume by over 45% [15] - The company is expanding its product offerings, including Remitly Business, which targets micro-businesses and freelancers, indicating a significant total addressable market (TAM) expansion from $2 trillion to $22 trillion [22] Market Data and Key Metrics Changes - The company operates across 170 countries, with 93% of transactions completed in less than an hour, showcasing the efficiency of its global payment platform [6][64] - The company is focusing on deepening relationships with customers and expanding its market reach, particularly in underserved segments [20][22] Company Strategy and Development Direction - The company aims to transform lives with trusted financial services that transcend borders, moving from a transactional business model to a broader range of financial services [5][18] - New initiatives include Remitly One, a membership product that offers various financial services, and Remitly Flex, a send now, pay later solution [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, emphasizing a balanced approach to growth, profitability, and investment [72] - The company is optimistic about the adoption of new products and the overall market demand, particularly in the high-dollar sender segment [15][22] Other Important Information - The company is leveraging its proprietary data for improved risk management and fraud prevention, which is critical for its credit-related products [46] - The Remitly Wallet is set to launch stablecoin features, addressing customer needs in emerging markets with unstable currencies [53][54] Q&A Session Summary Question: What are the growth opportunities in the high-dollar sender market? - Management noted that high-dollar senders are present in every corridor, and the company is customizing its platform to handle larger transactions efficiently [17] Question: How is the company addressing the needs of micro-businesses? - The company is focusing on features like eKYB and bulk payouts to cater to micro-businesses, which are currently underserved [20] Question: What is the vision for the Remitly Wallet? - The Remitly Wallet aims to provide a stable currency option for customers in emerging markets, with plans to expand its functionality globally [52][54] Question: How does the company plan to ensure long-term profitability? - Management emphasized a focus on profitable growth, balancing investments with sustainable profitability strategies [72]

Remitly Global (NasdaqGS:RELY) Update Summary Company Overview - **Company**: Remitly Global - **Event**: First product launch event titled "Remitly Reimagined" held on September 9, 2025 - **Focus**: Transforming lives through trusted financial services for global migration and remittances Core Industry Insights - **Industry**: Financial services, specifically focused on cross-border payments and remittances - **Market Position**: Remitly has built a robust global payout network, connecting billions of bank accounts and mobile wallets across over 170 countries, with a focus on regulatory compliance and customer trust [4][14][38] Key Product Launches - **Remitly One**: A financial membership designed for global life, offering a suite of products to help customers manage their finances across borders [15][19] - **Core Products**: - **Remitly Flex**: A flexible funding solution allowing customers to send money now and pay later, with a no-interest cash advance up to $250 [22][24] - **Remitly Wallet**: A secure store of value product offering a 4% annual cash reward on USD balances, with plans for multi-currency accounts [26][37] - **Remitly Card**: A debit card for seamless spending without foreign transaction fees, integrated with Apple and Google Pay [29][30] Customer-Centric Approach - **Customer Stories**: Real-life examples illustrate how Remitly's services address urgent financial needs and help customers manage their money effectively [5][23][28] - **Trust and Relationship Building**: Emphasis on earning customer trust through reliable service and personalized experiences, which is crucial in consumer financial services [15][39] Technological Innovations - **AI Integration**: Utilization of AI to enhance customer support, fraud protection, and personalized experiences, with a proprietary AI assistant already in use [7][12] - **Stablecoins**: Introduction of stablecoins to provide a stable value for customers, particularly in emerging markets where local currencies may be volatile [13][37] Future Outlook - **Credit Building**: Plans to help customers establish credit histories through everyday financial activities, addressing the issue of credit invisibility for many immigrants [35][36] - **Expansion of Services**: Continuous development of new rewards and benefits, including identity protection and credit monitoring, to deepen customer engagement [33][39] Financial Model - **Membership Cost**: Remitly One is priced at just under $10 per month, aiming to enhance customer retention and engagement [39] Conclusion - **Vision**: Remitly aims to evolve from a cross-border payments provider to a comprehensive financial partner, helping customers move, manage, and grow their money with confidence [14][39]