Remitly (US:RELY)2024-08-01 02:27Financial Data and Key Metrics Changes - The company reported revenue of $306 million, a 31% increase year-over-year, exceeding expectations [7][28] - Adjusted EBITDA was $25 million, benefiting from strong top-line growth and scale efficiencies [7][28] - Quarterly active customers grew by 36% year-over-year to approximately 6.9 million [7][27] - Send volume increased by 38% year-over-year to approximately $13.2 billion [27] Business Line Data and Key Metrics Changes - The company experienced robust growth in both new customer acquisition and engagement of existing customers, with predictable sending patterns driven by product quality and necessity [8][26] - Transaction expenses as a percentage of revenue increased by 90 basis points year-over-year, primarily due to higher fraud losses [29] - Customer support expenses declined year-over-year in absolute dollar terms, despite a 36% increase in active customers [31] Market Data and Key Metrics Changes - The company noted strength in customer activity during the second quarter, driven by seasonal sending occasions [8][9] - The majority of new customers acquired in the second quarter sent money to markets outside the top three receive markets of India, Mexico, and the Philippines, indicating market diversification [20] Company Strategy and Development Direction - The company aims to transform international payments by providing seamless financial services and is focused on long-term strategic priorities to drive growth and market share [5][6] - Investments in technology and product enhancements are expected to drive operational efficiencies and improve customer experience [10][34] - The company plans to expand its corridor offerings from 5,000 to 15,000-20,000 globally over time, while focusing on growth in existing corridors [73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain strong growth and operational efficiencies, with an improved outlook for 2024 [36][38] - The company expects revenue for 2024 to be between $1.23 billion and $1.25 billion, reflecting strong execution and customer activity [36][37] - Management acknowledged the temporary nature of recent fraud increases and emphasized the effectiveness of their risk management strategies [41][65] Other Important Information - The CFO announced his departure for family reasons, with a new CFO set to take over, indicating a transition in leadership [23][24] - The company launched a new product tailored for seafarers, highlighting its ability to adapt offerings to meet specific customer needs [15][16] Q&A Session Summary Question: Customer growth and fraud relationship - Management clarified that the growth in customers was not related to the increase in fraud, which was temporary and quickly addressed [41] Question: Take rate changes - Management explained that the take rate is influenced by various factors and does not directly reflect pricing pressure [42][43] Question: EBITDA outlook and customer acquisition - Management discussed the balance between marketing spend and profitability, emphasizing the importance of unit economics [46][48] Question: Seafarer product and scalability - Management expressed excitement about the seafarer product and its potential for replication across other customer segments [54][55] Question: Customer profile shifts - Management noted that the customer profile has not changed significantly, but the portfolio has diversified, enhancing predictability [60] Question: Fraud costs and future expectations - Management confirmed that the recent fraud losses were not linked to higher dollar senders and expect normalization in the back half of the year [64][65] Question: Market share and profitability focus - Management indicated ambitions to become the largest remittance company while maintaining leverage on the bottom line [68]