Remitly (US:RELY)2025-08-06 22:00Financial Data and Key Metrics Changes - In Q2 2025, revenue reached $411.9 million, a 34% year-over-year increase, and adjusted EBITDA was $64 million, representing a 16% margin [30] - The company achieved GAAP profitability with a net income of $6.5 million, a significant improvement from a net loss of $12.1 million in 2024 [44] - Send volume grew by 40% to $18.5 billion, with SAN volume per active customer increasing by 12% year-over-year [32][30] Business Line Data and Key Metrics Changes - Remitly Business expanded its total addressable market (TAM) from approximately $2 trillion to over $22 trillion, targeting freelancers and small businesses [10] - The average transaction size for Remitly Business customers is nearly double that of core consumers, with retention signals tracking ahead of expectations [12] - The company onboarded thousands of businesses in Q2, indicating strong early momentum for Remitly Business [12] Market Data and Key Metrics Changes - Revenue from regions outside of India, the Philippines, and Mexico grew by 41% year-over-year, with the Mexican received business revenue growth outpacing overall revenue growth [34] - The U.S. revenue grew by 35%, driven by continued share gains, while the rest of the world grew by 40% year-over-year [34] - High amount senders saw a record year-over-year send volume growth of over 45%, with the volume mix from these customers increasing by 300 basis points [35] Company Strategy and Development Direction - The company aims to transform lives with trusted financial services that transcend borders, focusing on product innovation and expanding its customer base [7][26] - Key initiatives include the launch of Remitly One, a membership program, and the introduction of stablecoin capabilities to enhance cross-border financial services [13][20] - The company is leveraging AI to improve customer experience and drive revenue growth, with a focus on reducing friction in transactions [23][24] Management's Comments on Operating Environment and Future Outlook - Management views the upcoming remittance tax legislation as a tailwind for the business, expecting it to accelerate the shift from offline to online transactions [31] - The company is confident in its ability to sustain revenue growth and profitability, with a full-year revenue outlook of $1.61 billion to $1.62 billion, reflecting a growth rate of 27% to 28% [46] - Management emphasized the importance of innovation and customer engagement in driving long-term growth and shareholder value [28][52] Other Important Information - The company closed on a $550 million secured revolving credit facility to support rising customer transaction volumes [51] - A share repurchase program of $200 million was authorized to manage dilution and build long-term value for shareholders [51] Q&A Session Summary Question: Timeline and geographic phasing for new products - Management expressed excitement about expanding to new customer segments and does not expect new initiatives to impact marketing line items [55][57] Question: Customer profile for Remitly Wallet - The company aims to serve existing customers and capture demand from new customers moving to different countries, addressing their financial service needs [62][64] Question: Marketplace demand for stablecoins - Management noted a modest current demand for stablecoins but sees potential for future adoption, particularly in emerging markets [67][71] Question: Unit economics of stablecoin transactions - The revenue model for stablecoin transactions is expected to remain similar, leveraging the company's existing infrastructure and regulatory expertise [76][78] Question: Competition and pricing dynamics in remittances - Management highlighted the optimization of unit economics for small businesses and the potential to move upmarket over time [80][83]