Remitly (US:RELY)2026-02-18 23:02Financial Data and Key Metrics Changes - The company reported a revenue growth of 29% year-over-year, reaching $1.635 billion for the full year 2025, with a fourth-quarter revenue of $442 million, up 26% year-over-year [8][44] - Adjusted EBITDA for the full year was $272 million, resulting in an Adjusted EBITDA margin of nearly 17%, an increase of over 500 basis points year-over-year [8][44] - The company achieved its first full year of cash profitability with a net income of $68 million, compared to a net loss of $37 million the previous year [19][44] Business Line Data and Key Metrics Changes - The core money movement product saw significant growth, with over 9 million quarterly active users and nearly $75 billion in annual send volume [14] - High amount senders, defined as those sending over $1,000 per transaction, grew 40% year-over-year, contributing to nearly 50% of total send volume [46][47] - New products, including Remitly Business and Send Now, Pay Later, are gaining traction, with Remitly Business attracting over 15,000 business customers [49][50] Market Data and Key Metrics Changes - U.S. revenue grew by 28%, while revenue from the rest of the world increased by 26% year-over-year, showcasing geographic diversification [48] - The company experienced strong adoption in the U.A.E., with over 160% quarter-over-quarter growth in new customers [48] - Revenue from transactions to regions outside of India, the Philippines, and Mexico now comprises over half of the total revenue mix [48] Company Strategy and Development Direction - The company aims to generate up to $3 billion in revenue and $600 million in Adjusted EBITDA by 2028, focusing on expanding its product offerings and customer base [13][22] - AI is seen as a significant enabler for improving operational efficiency and product development, with plans to expand its use across the organization [23][28] - The company plans to continue geographical expansion, with upcoming launches in Japan and potential services in Saudi Arabia and Brazil [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base despite geopolitical volatility, supported by strong execution and marketing efficiencies [76] - The introduction of a 1% remittance tax on cash remittances is expected to provide a tailwind for growth in early 2026 [76] - The company anticipates continued momentum among high amount senders and businesses, with revenue growth expected to be between 19% and 20% for the full year 2026 [63] Other Important Information - The company successfully managed to triple its Free Cash Flow to $283 million in 2025, with a disciplined approach to hiring and resource allocation [60] - Stock-based compensation as a percentage of revenue decreased to 9.5% for the full year, reflecting improved dilution management [61] - The transition of leadership to Sebastian Gunningham is expected to accelerate product delivery and operational execution [29][36] Q&A Session Summary Question: How does Sebastian's prior experience prepare him for leading Remitly? - Sebastian highlighted his extensive experience in leading product and engineering organizations, including running the payments business at Amazon, which positions him well for Remitly's next chapter [70][71] Question: What macro impacts is the company seeing on its business? - Vikas noted that the company had an exceptional year, with strong execution driving record revenue and EBITDA, and emphasized the resilience of customers despite geopolitical volatility [75][76] Question: Can you discuss the revenue cadence for 2026 and the expected EBITDA margin? - Vikas explained that Q1 is expected to show faster growth due to the 1% remittance tax, while the full year EBITDA margin is projected to be lower than Q4 due to ongoing investments in new products [78]