Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40822 | |
Entity Registrant Name | Remitly Global, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-2301143 | |
Entity Address, Address Line One | 1111 Third Avenue, | |
Entity Address, Address Line Two | Suite 2100 | |
Entity Address, City or Town | Seattle, | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | 888 | |
Local Phone Number | 736-4859 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | RELY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 192,480,627 | |
Entity Central Index Key | 0001782170 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 285,997 | $ 323,710 |
Disbursement prefunding | 202,042 | 195,848 |
Customer funds receivable, net | 439,183 | 379,417 |
Prepaid expenses and other current assets | 44,789 | 33,143 |
Total current assets | 972,011 | 932,118 |
Property and equipment, net | 19,335 | 16,010 |
Operating lease right-of-use assets | 10,315 | 9,525 |
Goodwill | 54,940 | 54,940 |
Intangible assets, net | 15,427 | 16,642 |
Other noncurrent assets, net | 7,173 | 7,071 |
Total assets | 1,079,201 | 1,036,306 |
Current liabilities | ||
Accounts payable | 12,278 | 35,051 |
Customer liabilities | 192,296 | 177,473 |
Short-term debt | 2,445 | 2,481 |
Accrued expenses and other current liabilities | 155,080 | 145,802 |
Operating lease liabilities | 5,746 | 6,032 |
Total current liabilities | 367,845 | 366,839 |
Operating lease liabilities, noncurrent | 5,345 | 4,477 |
Long-term debt | 150,000 | 130,000 |
Other noncurrent liabilities | 6,653 | 5,653 |
Total liabilities | 529,843 | 506,969 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value; 725,000,000 shares authorized as of March 31, 2024 and December 31, 2023 both; 192,311,050 and 188,435,952 shares issued and outstanding, as of March 31, 2024 and December 31, 2023, respectively | 19 | 19 |
Additional paid-in capital | 1,062,029 | 1,020,286 |
Accumulated other comprehensive (loss) income | (307) | 335 |
Accumulated deficit | (512,383) | (491,303) |
Total stockholders’ equity | 549,358 | 529,337 |
Total liabilities and stockholders’ equity | $ 1,079,201 | $ 1,036,306 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 725,000,000 | 725,000,000 |
Common stock, issued (in shares) | 192,311,050 | 188,435,952 |
Common stock, outstanding (in shares) | 192,311,050 | 188,435,952 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Revenue | $ 269,118 | $ 203,865 | |
Costs and expenses | |||
Marketing | [1] | 68,014 | 44,123 |
Technology and development | [1] | 63,206 | 49,376 |
General and administrative | [1] | 44,173 | 41,408 |
Depreciation and amortization | 3,678 | 3,029 | |
Total costs and expenses | 289,071 | 231,933 | |
Loss from operations | (19,953) | (28,068) | |
Interest income | 2,226 | 2,024 | |
Interest expense | (769) | (389) | |
Other expense, net | (1,586) | (1,511) | |
Loss before provision for income taxes | (20,082) | (27,944) | |
Provision for income taxes | 998 | 370 | |
Net loss | $ (21,080) | $ (28,314) | |
Net loss per share attributable to common stockholders: | |||
Basic (in dollars per share) | $ (0.11) | $ (0.16) | |
Diluted (in dollars per share) | $ (0.11) | $ (0.16) | |
Weighted-average shares used in computing net loss per share attributable to common stockholders: | |||
Basic (in shares) | 189,848,799 | 175,113,904 | |
Diluted (in shares) | 189,848,799 | 175,113,904 | |
Transaction expenses | |||
Costs and expenses | |||
Cost of revenue | [1] | $ 89,881 | $ 74,066 |
Customer support and operations | |||
Costs and expenses | |||
Cost of revenue | [1] | $ 20,119 | $ 19,931 |
[1] Exclusive of depreciation and amortization, shown separately, above. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (21,080) | $ (28,314) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (642) | 348 |
Comprehensive loss | $ (21,722) | $ (27,966) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Stockholders' Equity | |||||
Beginning balance | $ 480,087 | $ 17 | $ 854,276 | $ (743) | $ (373,463) |
Beginning balance (in shares) at Dec. 31, 2022 | 173,250,865 | ||||
Stockholders' Equity | |||||
Issuance of common stock in connection with ESPP (in shares) | 297,095 | ||||
Issuance of common stock in connection with ESPP | 2,729 | 2,729 | |||
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares) | 3,589,965 | ||||
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units | 4,993 | $ 1 | 4,992 | ||
Issuance of common stock for acquisition consideration (in shares) | 590,838 | ||||
Issuance of common stock for acquisition consideration | 6,635 | 6,635 | |||
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition (in shares) | 104,080 | ||||
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition | 581 | 581 | |||
Taxes paid related to net share settlement of equity awards (in shares) | (99,550) | ||||
Taxes paid related to net shares settlement of equity awards | (1,413) | (1,413) | |||
Stock-based compensation expense | 29,775 | 29,775 | |||
Other comprehensive loss | 348 | 348 | |||
Net loss | (28,314) | (28,314) | |||
Ending balance (in shares) at Mar. 31, 2023 | 177,733,293 | ||||
Ending balance at Mar. 31, 2023 | 495,421 | $ 18 | 897,575 | (395) | (401,777) |
Stockholders' Equity | |||||
Beginning balance | 495,421 | 18 | 897,575 | (395) | (401,777) |
Beginning balance | 529,337 | $ 19 | 1,020,286 | 335 | (491,303) |
Beginning balance (in shares) at Dec. 31, 2023 | 188,435,952 | ||||
Stockholders' Equity | |||||
Issuance of common stock in connection with ESPP (in shares) | 439,247 | ||||
Issuance of common stock in connection with ESPP | 5,004 | 5,004 | |||
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares) | 3,500,485 | ||||
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units | 2,530 | 2,530 | |||
Taxes paid related to net share settlement of equity awards (in shares) | (64,634) | ||||
Taxes paid related to net shares settlement of equity awards | (1,366) | (1,366) | |||
Stock-based compensation expense | 35,575 | 35,575 | |||
Other comprehensive loss | (642) | (642) | |||
Net loss | (21,080) | (21,080) | |||
Ending balance (in shares) at Mar. 31, 2024 | 192,311,050 | ||||
Ending balance at Mar. 31, 2024 | 549,358 | $ 19 | 1,062,029 | (307) | (512,383) |
Stockholders' Equity | |||||
Beginning balance | $ 549,358 | $ 19 | $ 1,062,029 | $ (307) | $ (512,383) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (21,080) | $ (28,314) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 3,678 | 3,029 |
Stock-based compensation expense, net | 34,088 | 29,234 |
Other | 249 | 1,083 |
Changes in operating assets and liabilities: | ||
Disbursement prefunding | (6,194) | (44,157) |
Customer funds receivable | (59,432) | 69,608 |
Prepaid expenses and other assets | (10,377) | (12,078) |
Operating lease right-of-use assets | 1,392 | 1,184 |
Accounts payable | (22,707) | (4,512) |
Customer liabilities | 14,744 | (7,448) |
Accrued expenses and other liabilities | 10,429 | (9,570) |
Operating lease liabilities | (1,598) | (355) |
Net cash used in operating activities | (56,808) | (2,296) |
Cash flows from investing activities | ||
Purchases of property and equipment | (945) | (864) |
Capitalized internal-use software costs | (3,369) | (1,296) |
Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash | 0 | (40,933) |
Net cash used in investing activities | (4,314) | (43,093) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 2,483 | 4,844 |
Proceeds from issuance of common stock in connection with ESPP | 5,004 | 2,729 |
Proceeds from revolving credit facility borrowings | 275,000 | 75,000 |
Repayments of revolving credit facility borrowings | (255,000) | (75,000) |
Taxes paid related to net share settlement of equity awards | (1,366) | (1,413) |
Repayment of assumed indebtedness | 0 | (17,068) |
Net cash provided by (used in) financing activities | 26,121 | (10,908) |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | (1,099) | 219 |
Net decrease in cash, cash equivalents, and restricted cash | (36,100) | (56,078) |
Cash, cash equivalents, and restricted cash at beginning of period | 325,029 | 300,735 |
Cash, cash equivalents, and restricted cash at end of period | 288,929 | 244,657 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 285,997 | 244,159 |
Restricted cash included in prepaid expenses and other current assets | 2,190 | 444 |
Restricted cash included in other noncurrent assets, net | 742 | 54 |
Total cash, cash equivalents, and restricted cash | $ 288,929 | $ 244,657 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Remitly Global, Inc. (the “Company” or “Remitly”) was incorporated in the State of Delaware in October 2018 and is headquartered in Seattle, Washington, with various other global office locations. Remitly was founded and incorporated in the State of Delaware in 2011 under the name of Remitly, Inc., and is a wholly-owned subsidiary of Remitly Global, Inc. Remitly is a leading digital financial services provider for immigrants, their families, and other global citizens in over 170 countries, helping customers send money internationally in a quick, reliable, and more cost-effective manner, by leveraging digital channels and supporting cross-border transmissions across the globe. Unless otherwise expressly stated or the context otherwise requires, the terms “Remitly” and the “Company” within these notes to the condensed consolidated financial statements refer to Remitly Global, Inc. and its wholly-owned subsidiaries. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end data within the Condensed Consolidated Balance Sheets was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. The interim results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, or for any other future annual or interim period. Principles of Consolidation The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Reclassification The condensed consolidated financial statements and accompanying notes have been prepared consistently, with the exception of certain prior year amounts which have been reclassified to conform with the current period presentation. Reclassifications include a change in presentation of shares purchased under the ESPP within the Company’s Condensed Consolidated Statements of Cash Flows. Beginning in the year ended December 31, 2023, the Company changed the presentation of shares purchased under the ESPP to reflect an operating cash outflow for compensation paid to employees and a financing cash inflow for cash paid by employees in exchange for shares. Previously, such activity was treated and disclosed as noncash activity for the three months ended March 31, 2023. The Company has conformed the prior period statement of cash flows to the current period presentation to enhance transparency and provide comparability. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed within the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense, the carrying value of operating lease right-of-use assets, the recoverability of deferred tax assets, capitalization of software development costs, goodwill, and the recoverability of intangible assets. The key assumptions applied for value of the intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the condensed consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which are typically located in India, Mexico, and the Philippines. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash, or customer funds receivable in the three months ended March 31, 2024 and 2023. For the three months ended March 31, 2024 and 2023, no individual customer represented 10% or more of the Company’s total revenues or the Company’s customer funds receivable. Advertising Advertising expenses are charged to operations as incurred and are included as a component of ‘ Marketing expenses ’ within the Condensed Consolidated Statements of Operations. Advertising expenses are used primarily to attract new customers. Advertising expenses totaled $51.7 million and $34.6 million during the three months ended March 31, 2024 and 2023, respectively. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to these policies during the three months ended March 31, 2024, except as noted above. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable. The Company does not believe any of these accounting pronouncements have had, or will have, a material impact on the condensed consolidated financial statements or disclosures. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which includes the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Customers engage the Company to perform one integrated service — collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions. Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, the disbursement method chosen by the customer, and the countries to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided. The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contains a significant financing component. The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as ‘ Transaction expenses ’ within the Condensed Consolidated Statements of Operations. The Company does not have any capitalized contract acquisition costs. Deferred Revenue The deferred revenue balances from contracts with customers were as follows for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Deferred revenue, beginning of the period $ 1,124 $ 1,108 Deferred revenue, end of the period 1,250 833 Revenue recognized from amounts included in deferred revenue at the beginning of the period $ 824 $ 553 Deferred revenue represents amounts received from customers for which the performance obligations are not yet fulfilled. Deferred revenue is primarily included within ‘ Accrued expenses and other current liabilities ’ on the Condensed Consolidated Balance Sheets, as the performance obligations are expected to be fulfilled within the next year. Sales Incentives The Company provides sales incentives to customers in a variety of forms, including promotions, discounts, and other sales incentives. Evaluating whether a sales incentive is a payment to a customer requires judgment. Sales incentives determined to be consideration payable to a customer or paid on behalf of a customer are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of ‘ Marketing expenses ’ within the Condensed Consolidated Statements of Operations. In addition, referral credits given to a referrer are classified as ‘ Marketing expenses ,’ as these incentives are paid in exchange for a distinct service. The following table presents the Company’s sales incentives for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Reduction to revenue $ 8,778 $ 7,555 Marketing expenses 6,619 4,227 Total sales incentives $ 15,397 $ 11,782 Revenue by Geography The following table presents the Company’s revenue disaggregated by primary geographical location for the three months ended March 31, 2024 and 2023, attributed to the country in which the sending customer is located: Three Months Ended March 31, (in thousands) 2024 2023 United States $ 175,393 $ 139,092 Canada 32,949 24,859 Rest of world 60,776 39,914 Total revenue $ 269,118 $ 203,865 |
Prepaid Expenses & Other Curren
Prepaid Expenses & Other Current Assets | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses & Other Current Assets | Prepaid Expenses & Other Current Assets Prepaid expenses and other current assets consisted of the following: March 31, December 31, (in thousands) 2024 2023 Prepaid expenses $ 22,728 $ 11,122 Payment card receivable 8,258 15,599 Tax receivable 4,390 2,813 Other receivables 4,025 — Restricted cash 2,190 774 Prepaid compensation arrangements 2,038 1,518 Other prepaid expenses and other current assets 1,160 1,317 Prepaid expenses and other current assets $ 44,789 $ 33,143 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Capitalized internal-use software $ 28,051 $ 23,195 Computer and office equipment 8,541 8,529 Furniture and fixtures 2,721 2,636 Leasehold improvements 8,109 8,080 Projects in process 98 — Total gross property and equipment 47,520 42,440 Less: Accumulated depreciation and amortization (28,185) (26,430) Property and equipment, net $ 19,335 $ 16,010 Depreciation and amortization expense related to property and equipment was $2.5 million and $1.8 million for the three months ended March 31, 2024 and 2023, respectively. Capitalized Internal-Use Software Costs The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Total capitalized internal-use software costs (1) $ 4,856 $ 1,606 Stock-based compensation costs capitalized to internal-use software 1,487 541 Amortization expense (2) 1,649 929 __________ (1) Amounts are inclusive of stock-based compensation costs capitalized denoted below. (2) Amounts are included within ‘ Depreciation and amortization ’ within the Company’s Condensed Consolidated Statements of Operations. Capitalized Costs of Cloud Computing Arrangements The following table presents the Company’s capitalized costs related to the implementation of cloud computing arrangements, including amortization expense recognized, for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Total capitalized cloud computing arrangement costs $ 529 $ 902 Technology and development $ 497 $ 327 General and administrative 90 24 Total amortization expense $ 587 $ 351 The following table presents the Company’s total capitalized cloud computing arrangement costs, net of accumulated amortization, on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Prepaid expenses and other current assets $ 2,281 $ 2,220 Other noncurrent assets, net 1,692 1,811 Total capitalized cloud computing arrangement costs, net $ 3,973 $ 4,031 |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations There were no acquisitions accounted for as business combinations or divestitures completed in the three months ended March 31, 2024. Acquisition Completed in 2023 The Company completed its acquisition of Rewire (O.S.G.) Research and Development Ltd. (“Rewire”) on January 5, 2023 by acquiring all outstanding equity interests of Rewire in exchange for cash and equity consideration, described below. The acquisition of Rewire allows the Company to accelerate its opportunity to differentiate the remittance experience with complementary products, by bringing together its remittance businesses in new geographies, along with a strong team that is culturally aligned with the Company. The acquisition met the criteria to be accounted for as a business combination in accordance with ASC 805, Business Combinations (“ASC 805”). This method required, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the difference between the fair value of the consideration paid for the acquired entity and the fair value of the net assets acquired be recorded as goodwill, which is not amortized but is tested at least annually for impairment. Consideration Transferred The acquisition date fair value of consideration transferred for the acquisition totaled $77.9 million, as follows: (in thousands) Amount Cash paid to selling shareholders $ 56,398 Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services 7,216 Holdback liability to be settled in cash and Company equity 11,899 Effective settlement of pre-existing net receivable owed to the Company 2,401 Total consideration transferred $ 77,914 The fair value of equity was determined based on the closing price of the Company’s common stock immediately prior to acquisition, and includes 694,918 shares issued in Company common stock, inclusive of 104,080 shares which are subject to service-based vesting conditions over a two-year period. Approximately $0.6 million of these proceeds were accounted for as pre-combination expense, and included within the total consideration transferred noted above, with the remaining $0.9 million to be recognized as post-combination share-based compensation expense over the requisite service period. The equity issued excluded 133,309 shares and restricted stock units held back and not legally issued at acquisition date, as further discussed below. Approximately $11.9 million of the cash and equity proceeds were held back to satisfy any necessary adjustments, including without limitation, indemnification claims related to general representations and warranties, and any net working capital adjustments. As of the acquisition date, the majority of this holdback was expected to be settled in cash, with the remainder in 133,309 shares of Company common stock and restricted stock units. Such amounts were subject to a 15-month holdback period, net of any amounts necessary to satisfy all unsatisfied or disputed claims for indemnification and net working capital adjustments. As of the acquisition date, this represented approximately $10.4 million in cash and $1.5 million in equity, as discussed above, issuable at the end of the holdback period in Company common stock, subject to the aforementioned adjustments. Refer to the discussion below regarding the settlement of the holdback consideration subsequent to March 31, 2024. Included in consideration transferred is the settlement of a pre-existing net receivable owed to the Company by Rewire, which was effectively settled and became intercompany arrangements as of the closing of the transaction. Excluding the impact of the outstanding net receivable owed to the Company by Rewire, the Company would have paid $2.4 million more for the business at closing, and therefore the GAAP purchase price reflects an increase in that amount. The settlement of pre-existing relationships between the Company and Rewire did not result in any material gain or loss. The change in the pre-existing receivable to an intercompany receivable has been considered as a noncash activity reflected within the operating activities of the Condensed Consolidated Statements of Cash Flows. Holdback Liability The holdback of cash and equity proceeds discussed above was recorded at its acquisition date fair value and was classified as a liability within ‘ Other noncurrent liabilities ’ on the Company’s Condensed Consolidated Balance Sheets at the acquisition date. The portion of the holdback settled in Company shares continues to be recorded at its fair value through its settlement date, with changes recorded to earnings. The estimated fair value of the portion of the holdback liability settled in equity uses both observable and unobservable inputs, specifically considering the price of the Company’s common stock, as well as the probability of payout at the end of the holdback period, and is considered a Level 3 measurement, as defined in ASC 820, Fair Value Measurement (“ASC 820”). As of March 31, 2024, the holdback liability was recorded within ‘ Accrued expenses and other current liabilities ’ on the Company’s Condensed Consolidated Balance Sheets as the liability was fulfilled within twelve months of the balance sheet date, as further discussed below. The Company recorded $0.2 million and $0.8 million during the three months ended March 31, 2024 and 2023, respectively, to reflect the change in the fair value of the holdback liability, recorded within “ General and Administrative Expenses ” within the Condensed Consolidated Statements of Operations. As of March 31, 2024, the fair value of the holdback liability was $13.2 million, of which $10.4 million was set to be paid in cash with the remainder in equity, as further discussed below. The holdback of cash and equity consideration discussed above was paid by the Company subsequent to the balance sheet date in April 2024, adjusted for immaterial post-closing net purchase price adjustments identified during the period. These proceeds were inclusive of $10.3 million in cash and 131,507 shares of Company common stock and restricted stock units. Fair Value of Assets Acquired and Liabilities Assumed The identifiable assets acquired and liabilities assumed of Rewire were recorded at their preliminary fair values as of the acquisition date and consolidated with those of the Company. Assigning fair market values to the assets acquired and liabilities assumed at the date of an acquisition requires the use of significant judgments regarding estimates and assumptions. The fair values of intangible assets were estimated using inputs classified as Level 3 under the income and cost approaches, including the multi-period excess earnings method for developed technology. The key assumptions in applying the income approach used in valuing the identified intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their acquisition-date fair values: (in thousands) Purchase Price Allocation Cash, cash equivalents, and restricted cash $ 15,465 Disbursement prefunding 6,016 Customer funds receivable, net 3,423 Prepaid expenses and other assets, net 1,187 Intangible Assets Trade name 1,000 Customer relationships 8,500 Developed technology 12,000 Goodwill 54,940 Customer liabilities (3,075) Advance for future deposits (2,550) Other assumed indebtedness (16,234) Other liabilities, net (2,758) Total consideration transferred $ 77,914 As of December 31, 2023, the valuation of assets acquired and liabilities assumed of Rewire was complete. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill and is primarily attributable to the revenue and cost synergies expected to arise from the acquisition through continued geographic expansion and product differentiation, along with the acquired workforce of Rewire. Goodwill is deductible for income tax purposes. The acquisition did not change the Company’s one operating segment. Acquired Receivables The fair value of the financial assets acquired include ‘ Disbursement prefunding’ and ‘ Customer funds receivable, ne t,’ with a fair value of $6.0 million and $3.4 million, respectively, as disclosed above. The Company has collected substantially all of these receivables. Transaction Costs Transaction costs totaled $0.2 million and $1.2 million for the three months ended March 31, 2024 and 2023, respectively, which included $0.2 million and $0.8 million, respectively, for the change in the fair value of the holdback liability. Other Disclosures The results of operations of Rewire are included within the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss since the date of the acquisition. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The components of identifiable intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Estimated Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Estimated Remaining Useful Life (in years) Trade name $ 1,000 $ (417) $ 583 1.8 $ 1,000 $ (333) $ 667 2.0 Customer relationships 8,500 (2,656) 5,844 2.8 8,500 (2,125) 6,375 3.0 Developed technology 12,000 (3,000) 9,000 3.8 12,000 (2,400) 9,600 4.0 Total $ 21,500 $ (6,073) $ 15,427 $ 21,500 $ (4,858) $ 16,642 The acquired identified intangible assets have estimated useful lives ranging from three Expected future intangible asset amortization as of March 31, 2024 was as follows: (in thousands) Amount Remainder of 2024 3,643 2025 4,858 2026 4,525 2027 2,401 Total $ 15,427 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Except for the holdback liability related to the Rewire acquisition discussed in Note 6. Business Combinations , there were no financial assets and liabilities that were measured at f air value on a recurring basis as of March 31, 2024 and December 31, 2023. The carrying values of certain financial instruments, including disbursement prefunding, customer funds receivable, accounts payable, accrued expenses and other current liabilities, customer liabilities, short-term debt, and long-term debt approximate their respective fair values due to their relative short maturities. If these financial instruments were measured at fair value in the financial statements, they would be classified as Level 2. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Secured Revolving Credit Facility 2021 Revolving Credit Facility On September 13, 2021, Remitly Global, Inc. and Remitly, Inc., a wholly-owned subsidiary of Remitly Global, Inc., as co-borrowers, entered into a credit agreement (the “2021 Revolving Credit Facility”) with certain lenders and JPMorgan Chase Bank, N.A. acting as administrative agent and collateral agent, that provided for revolving commitments of $250.0 million (including a $60.0 million letter of credit sub-facility) and terminated its then-existing 2020 Credit Agreement. The 2021 Revolving Credit Facility was amended on June 26, 2023 to reflect changes in the applicable interest rate as a result of the sunsetting of the LIBOR interest rate, as noted below. The 2021 Revolving Credit Facility was further amended o n December 20, 2023 to increase the revolving commitments from $250.0 million (including a $60.0 million letter of credit sub-facility) to $325.0 million . All other terms of the 2021 Revolving Credit Facility remained unchanged. As of March 31, 2024 and December 31, 2023, $1.1 million and $1.2 million, respectively, of unamortized debt issuance costs were included within ‘ Other noncurrent assets ’ on the Condensed Consolidated Balance Sheets. The 2021 Revolving Credit Facility has a maturity date of September 13, 2026. Borrowings under the 2021 Revolving Credit Facility after the June 26, 2023 amendment accrue interest at a floating rate per annum equal to, at the Company’s option, (1) the Alternate Base Rate (defined in the 2021 Revolving Credit Facility as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect for such day plus 0.50% and, (c) the Adjusted Term SOFR Rate for an interest period of one month plus 1.00% (subject to a floor of 1.00%) plus 0.50% per annum) or (2) the Adjusted Term SOFR Rate (subject to a floor of 0.00%) plus 1.50% per annum. Such interest is payable (a) with respect to loans bearing interest based on the Alternate Base Rate, the last day of each March, June, September, and December and (b) with respect to loans bearing interest based on the Adjusted Term SOFR Rate, at the end of each applicable interest period, but in no event less frequently than every three months. In addition, an unused commitment fee, which accrues at a rate per annum equal to 0.25% of the unused portion of the revolving commitments, is payable on the last day of each March, June, September, and December. The 2021 Revolving Credit Facility contains customary conditions to borrowing, events of default, and covenants, including covenants that restrict the ability to dispose of assets, merge with other entities, incur indebtedness, grant liens, pay dividends or make other distributions to holders of its capital stock, make investments, enter into restrictive agreements, or engage in transactions with affiliates. As of March 31, 2024 and December 31, 2023, financial covenants in the 2021 Revolving Credit Facility include (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which is tested quarterly and (2) a requirement to maintain a minimum Liquidity of $100.0 million, which is tested quarterly. The Company was in compliance with all financial covenants under the 2021 Revolving Credit Facility as of March 31, 2024 and December 31, 2023 . The obligations under the 2021 Revolving Credit Facility are guaranteed by the material domestic subsidiaries of Remitly Global, Inc., subject to customary exceptions, and are secured by substantially all of the assets of the borrowers and guarantors thereunder, subject to customary exceptions. Amounts of borrowings under the 2021 Revolving Credit Facility may fluctuate depending upon transaction volumes and seasonality. As of March 31, 2024 and December 31, 2023, the Company had $150.0 million and $130.0 million outstanding, respectively, under the 2021 Revolving Credit Facility. As of both March 31, 2024 and December 31, 2023, the weighted-average interest rate was 9.0%. As of March 31, 2024 and December 31, 2023, the Company had unused borrowing capacity o f $126.9 million and $146.8 million, respectively, under the 2021 Revolving Credit Facility. As of March 31, 2024 and December 31, 2023, the Company had $50.3 million and $49.4 million, respectively, in issued, but undrawn, standby letters of credit. Advance for Future Deposits As part of the acquisition of Rewire, the Company assumed short-term indebtedness of Rewire that represents an advance for future deposits from Rewire’s amended agreement with one of its financial partners (the “Amendment” and the “Depositor,” respectively) entered into in October 2021. The Amendment has a maturity date of November 2024. The Depositor made an advance payment to Rewire with respect to future deposits (the “Advance for Future Deposits”). The original amount of 9.0 million Israeli shekel, approximately $2.8 million, was transferred as an advance under the Amendment. As of March 31, 2024 and December 31, 2023, the Company had $2.4 million and $2.5 million outstanding under the Amendment, respectively, and was included within ‘ Short-term debt ’ on the Condensed Consolidated Balance Sheets. The change in the outstanding balance is driven by the change in the foreign exchange conversion rate. The Advance for Future Deposits bears a floating interest rate of 1.4%+ Israeli Prime per annum, paid on a monthly basis. The Israeli Prime rate is defined as the Bank of Israel rate + 1.5%. As of both March 31, 2024 and December 31, 2023, the weighted-average interest rate was 3.0%. Assumed Short-term Debt of Rewire As part of the acquisition of Rewire, the Company assumed the amounts due on a revolving credit line that Rewire had entered into in 2021 and the amounts due on a bridge loan that Rewire had entered into in 2022. The total outstanding amounts were repaid during the three months ended March 31, 2023, along with certain other acquired indebtedness, subsequent to the Company’s acquisition of Rewire and were included within the Condensed Consolidated Statements of Cash Flows as a financing activity. |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Net Loss Per Common Share The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders for the periods indicated. As the Company reported a net loss, diluted net loss per share was the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive for all periods presented. Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Numerator: Net loss $ (21,080) $ (28,314) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic and diluted 189,848,799 175,113,904 Net loss per share attributable to common stockholders: Basic and diluted $ (0.11) $ (0.16) |
Common Stock
Common Stock | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Common Stock | Common StockAs of March 31, 2024, the Company has authorized 725,000,000 shares of common stock with a par value of $0.0001 per share. Each holder of a share of common stock is entitled to one vote for each share held at all meetings of stockholders and is entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors. No dividends have been declared or paid by the Company during the three months ended March 31, 2024 and March 31, 2023. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Shares Available for Issuance As of March 31, 2024 , 19,332,356 and 7,308,767 awards remain available for issuance under the 2021 Plan and the ESPP, respectively. Stock Options The following is a summary of the Company’s stock option activity during the three months ended March 31, 2024: Stock Options (in thousands, except share and per share data) Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balances as of January 1, 2024 10,801,396 $ 4.46 5.87 $ 161,603 Exercised (819,904) 3.05 14,413 Forfeited (74,084) 6.54 Balances as of March 31, 2024 9,907,408 4.56 5.61 160,301 Vested and exercisable as of March 31, 2024 8,193,954 3.40 5.27 142,117 Vested and expected to vest as of March 31, 2024 9,863,138 $ 4.58 5.62 $ 159,412 _________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock. No stock options were granted during the three months ended March 31, 2024 and 2023. The following is a summary of the Company’s stock option activity during the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Aggregate grant-date fair value of options vested $ 2,258 $ 2,172 Intrinsic value of options exercised 14,413 19,007 Restricted Stock Units Restricted stock unit activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted-Average Grant-Date Fair Value Per Share Unvested at January 1, 2024 23,555,665 $ 14.67 Granted 1,870,851 18.63 Vested (2,680,581) 12.97 Cancelled/forfeited (821,150) 14.90 Unvested at March 31, 2024 21,924,785 $ 15.20 The following is a summary of the Company’s restricted stock unit activity during the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Weighted-average grant date fair value of RSUs granted $ 18.63 $ 12.41 Aggregate grant-date fair value of RSUs vested 34,767 24,193 Employee Stock Purchase Plan (“ESPP”) The offering period that commenced on September 1, 2023 ended on February 29, 2024, due to a decline in the Company’s stock price at the end of the purchase period, triggering a new offering period, as required by the ESPP plan documents. A new 24-month offering period commenced on March 1, 2024. This event, inclusive of the impact of employees who elected to increase their withholding percentages, was accounted for as a modification under GAAP in the first quarter of 2024, whereby the fair value of the ESPP offering was measured immediately before and after modification, resulting in incremental stock-based compensation expense of $1.7 million, which is being recognized over the new offering period, which is deemed to be the requisite service period. A new subsequent 24-month offering period commences on March 1 and September 1 of each fiscal year. The fair value of the ESPP offerings, including those described above, were estimated using the Black-Scholes option-pricing model as of the respective offering dates, using the following assumptions. These assumptions represent the grant date fair value inputs for new offerings which commenced during the three months ended March 31, 2024 and 2023, as well as updated valuation information as of the modification date for any offerings for which a modification occurred during the periods presented herein: Three Months Ended March 31, 2024 2023 Risk-free interest rates 4.49% to 5.20% 4.83% to 5.13% Expected term (in years) 0.5 to 2.0 years 0.5 to 2.0 years Volatility 52.9% to 61.3% 48.9% to 59.5% Dividend rate — % — % Stock-Based Compensation Expense Stock-based compensation expense for stock options, RSUs, and ESPP, included within the Condensed Consolidated Statements of Operations, net of amounts capitalized to internal-use software, as described in Note 5. Property and Equipment , was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Customer support and operations $ 353 $ 205 Marketing 3,979 2,983 Technology and development 19,627 16,631 General and administrative 10,129 9,415 Total $ 34,088 $ 29,234 As of March 31, 2024, the total unamortized compensation cost related to all non-vested equity awards, including options and RSUs, was $290.7 million, which will be amortized over a weighted-average remaining requisite service period of approximately 2.7 years. As of March 31, 2024, the total unrecognized compensation expense related to the ESPP was $9.8 million, which is expected to be amortized over the next 1.9 years. |
Restructuring Initiatives
Restructuring Initiatives | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Initiatives | Restructuring Initiatives In the three months ended March 31, 2024, as a result of simplifying and scaling certain processes, functions, and team capabilities, the Company continued restructuring initiatives that commenced within the three months ended September 30, 2023 in order to better serve the Company's customers and allow the Company to centralize, transform, and automate global operations. Restructuring costs incurred primarily included severance and certain other associated costs. These specific restructuring initiatives are substantially complete. The Company incurred charges of $0.8 million for the three months ended March 31, 2024. There were no charges incurred related to restructuring initiatives for the three months ended March 31, 2023. The following table presents the restructuring costs included within the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2024: (in thousands) Amount Customer support and operations $ 758 General and administrative 34 Total restructuring costs $ 792 The following table presents the changes in liabilities, including expenses incurred and cash payments resulting from the restructuring costs and related accruals, during the three months ended March 31, 2024: (in thousands) Amount Balance as of December 31, 2023 $ 78 Expenses incurred 792 Cash payments (870) Balance as of March 31, 2024 $ — |
Related Party Arrangements
Related Party Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements There were no significant related party transactions for the three months ended March 31, 2024 and 2023 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter. The Company’s effective tax rates on pre-tax income wer e (5.0)% and (1.3)% for the three months ended March 31, 2024 and 2023, respectively . The difference between the effective tax rate and the U.S. federal statutory rate of 21% in both periods was primarily the result of foreign income taxed at different rates and changes in the U.S. valuation allowance. In addition, during the three months ended March 31, 2024 , the Company recognized a discrete income tax benefit related to excess stock-based compensation deductions. The Company maintains a full valuation allowance against the U.S. net deferred tax assets, as it believes that these deferred tax assets do not meet the more likely than not threshold. |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnification In the ordinary course of business to facilitate sales of its services, the Company has entered into agreements with, among others, suppliers and partners that include guarantees or indemnity provisions. The Company also enters into indemnification agreements with its officers and directors, and the Company’s amended and restated certificate of incorporation and amended and restated bylaws include similar indemnification obligations to its officers and directors. To date, there have been no claims under any indemnification provisions; therefore, no such amounts have been accrued as of March 31, 2024 and December 31, 2023. Litigation and Loss Contingencies Litigation From time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, threatened claims, breach of contract claims, and other matters. The Company accrues estimates for resolution of legal and other contingencies when losses are probable, as defined under GAAP, and estimable. Although the results of litigation and claims are inherently unpredictable, the Company does not believe that there was a reasonable possibility that it had incurred a material loss with respect to such loss contingencies as of March 31, 2024 and December 31, 2023. Indirect taxes The Company is subject to indirect taxation in various states and foreign jurisdictions in which it conducts business. The Company continually evaluates those jurisdictions in which indirect tax obligations exist to determine whether a loss is probable, as defined under GAAP, and the amount can be estimated. Determination of whether a loss is probable, and an estimate can be made, is a complex undertaking and takes into account the judgment of management, third-party research, and the potential outcome of negotiation and interpretations by regulators and courts, among other information. Such assessments include consideration of management’s evaluation of domestic and international tax laws and regulations, external legal advice, and the extent to which they may apply to the Company’s business and industry. The Company’s assessment of probability includes consideration of recent inquiries, potential or actual self-disclosure, and applicability of tax rules. As a result of this assessment, management accrued an estimated liability of approximately $7.6 million and $6.4 million as of March 31, 2024 and December 31, 2023, respectively, reflecting the amount that the Company believes is probable and estimable. The estimated liability is recorded within ‘ Accrued expenses and other current liabilities ’ on the Company’s Condensed Consolidated Balance Sheets. Although the Company believes its indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits or settlements could be materially different than the amounts recorded. Reserve for Transaction Losses The table below summarizes the Company’s reserve for transaction losses for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Beginning balance $ 3,359 $ 3,762 Provisions for transaction losses 11,368 10,108 Losses incurred, net of recoveries (11,339) (10,801) Ending balance $ 3,388 $ 3,069 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses & Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: March 31, December 31, (in thousands) 2024 2023 Trade settlement liability (1) $ 67,160 $ 58,950 Accrued transaction expense 20,634 18,500 Accrued marketing expense 16,286 13,633 Holdback liability (2) 13,166 12,990 Accrued salary, benefits, and related taxes 10,582 10,251 Accrued taxes and taxes payable (3) 8,739 9,259 Reserve for transaction losses 3,388 3,359 ESPP employee contributions 1,088 3,565 Other accrued expenses 14,037 15,295 Total $ 155,080 $ 145,802 _________________ (1) The trade settlement liability amount represents the total of disbursement postfunding liabilities and book overdrafts owed to the Company’s disbursement partners. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion. (2) Refer to Note 6. Business Combinations for further detail on the Holdback liability. (3) The accrued taxes and taxes payable amount is inclusive of indirect taxes of approximately $7.6 million and $6.4 million as of March 31, 2024 and December 31, 2023, respectively. Refer to Note 16. Commitments and Contingencies for further detail. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information The supplemental disclosures of cash flow information consisted of the following: Three Months Ended March 31, (in thousands) 2024 2023 Supplemental disclosure of cash flow information Cash paid for interest $ 602 $ 341 Cash paid for income taxes 910 124 Supplemental disclosure of noncash investing and financing activities Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 2,214 $ 5,414 Vesting of early exercised options 47 149 Stock-based compensation expense capitalized to internal-use software 1,487 541 Issuance of common stock for acquisition consideration — 6,635 Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition — 581 Amounts held back for acquisition consideration — 11,899 Settlement of preexisting net receivable in exchange for net assets acquired in business combination — 2,401 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (21,080) | $ (28,314) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rene Yoakum [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 12, 2024, Rene Yoakum, our EVP, Customer and Culture, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1 of the Exchange Act. Ms. Yoakum’s plan is for the sale of up to 180,000 shares of our common stock and terminates on the earlier of the date all the shares under the plan are sold and June 30, 2025. |
Name | Rene Yoakum |
Title | EVP, Customer and Culture |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 12, 2024 |
Arrangement Duration | 475 days |
Aggregate Available | 180,000 |
Hemanth Munipalli [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Hemanth Munipalli, our Chief Financial Officer, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1 of the Exchange Act. Mr. Munipalli’s plan is for the sale of up to 110,000 shares of our common stock, the actual amount of which may be less based on tax withholdings of RSUs, and terminates on the earlier of the date all the shares under the plan are sold and June 30, 2025. |
Name | Hemanth Munipalli |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 15, 2024 |
Arrangement Duration | 472 days |
Aggregate Available | 110,000 |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end data within the Condensed Consolidated Balance Sheets was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. The interim results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, or for any other future annual or interim period. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Reclassification | Reclassification The condensed consolidated financial statements and accompanying notes have been prepared consistently, with the exception of certain prior year amounts which have been reclassified to conform with the current period presentation. Reclassifications include a change in presentation of shares purchased under the ESPP within the Company’s Condensed Consolidated Statements of Cash Flows. Beginning in the year ended December 31, 2023, the Company changed the presentation of shares purchased under the ESPP to reflect an operating cash outflow for compensation paid to employees and a financing cash inflow for cash paid by employees in exchange for shares. Previously, such activity was treated and disclosed as noncash activity for the three months ended March 31, 2023. The Company has conformed the prior period statement of cash flows to the current period presentation to enhance transparency and provide comparability. |
Use of Estimates | Use of Estimates |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which are typically located in India, Mexico, and the Philippines. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash, or customer funds receivable in the three months ended March 31, 2024 and 2023. |
Advertising Expense | Advertising Advertising expenses are charged to operations as incurred and are included as a component of ‘ Marketing expenses |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable. The Company does not believe any of these accounting pronouncements have had, or will have, a material impact on the condensed consolidated financial statements or disclosures. |
Revenue | Revenue The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers , which includes the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation. Customers engage the Company to perform one integrated service — collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions. Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, the disbursement method chosen by the customer, and the countries to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided. The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contains a significant financing component. The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as ‘ Transaction expenses ’ within the Condensed Consolidated Statements of Operations. The Company does not have any capitalized contract acquisition costs. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Deferred Revenue | The deferred revenue balances from contracts with customers were as follows for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Deferred revenue, beginning of the period $ 1,124 $ 1,108 Deferred revenue, end of the period 1,250 833 Revenue recognized from amounts included in deferred revenue at the beginning of the period $ 824 $ 553 |
Schedule of Sales Incentives | The following table presents the Company’s sales incentives for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Reduction to revenue $ 8,778 $ 7,555 Marketing expenses 6,619 4,227 Total sales incentives $ 15,397 $ 11,782 |
Schedule of Revenue by Geographic Area | The following table presents the Company’s revenue disaggregated by primary geographical location for the three months ended March 31, 2024 and 2023, attributed to the country in which the sending customer is located: Three Months Ended March 31, (in thousands) 2024 2023 United States $ 175,393 $ 139,092 Canada 32,949 24,859 Rest of world 60,776 39,914 Total revenue $ 269,118 $ 203,865 |
Prepaid Expenses & Other Curr_2
Prepaid Expenses & Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expense and Other Current Assets | Prepaid expenses and other current assets consisted of the following: March 31, December 31, (in thousands) 2024 2023 Prepaid expenses $ 22,728 $ 11,122 Payment card receivable 8,258 15,599 Tax receivable 4,390 2,813 Other receivables 4,025 — Restricted cash 2,190 774 Prepaid compensation arrangements 2,038 1,518 Other prepaid expenses and other current assets 1,160 1,317 Prepaid expenses and other current assets $ 44,789 $ 33,143 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Capitalized internal-use software $ 28,051 $ 23,195 Computer and office equipment 8,541 8,529 Furniture and fixtures 2,721 2,636 Leasehold improvements 8,109 8,080 Projects in process 98 — Total gross property and equipment 47,520 42,440 Less: Accumulated depreciation and amortization (28,185) (26,430) Property and equipment, net $ 19,335 $ 16,010 The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Total capitalized internal-use software costs (1) $ 4,856 $ 1,606 Stock-based compensation costs capitalized to internal-use software 1,487 541 Amortization expense (2) 1,649 929 __________ (1) Amounts are inclusive of stock-based compensation costs capitalized denoted below. (2) Amounts are included within ‘ Depreciation and amortization ’ within the Company’s Condensed Consolidated Statements of Operations. |
Schedule of Hosting Arrangements | The following table presents the Company’s capitalized costs related to the implementation of cloud computing arrangements, including amortization expense recognized, for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Total capitalized cloud computing arrangement costs $ 529 $ 902 Technology and development $ 497 $ 327 General and administrative 90 24 Total amortization expense $ 587 $ 351 The following table presents the Company’s total capitalized cloud computing arrangement costs, net of accumulated amortization, on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023: March 31, December 31, (in thousands) 2024 2023 Prepaid expenses and other current assets $ 2,281 $ 2,220 Other noncurrent assets, net 1,692 1,811 Total capitalized cloud computing arrangement costs, net $ 3,973 $ 4,031 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Transferred | The acquisition date fair value of consideration transferred for the acquisition totaled $77.9 million, as follows: (in thousands) Amount Cash paid to selling shareholders $ 56,398 Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services 7,216 Holdback liability to be settled in cash and Company equity 11,899 Effective settlement of pre-existing net receivable owed to the Company 2,401 Total consideration transferred $ 77,914 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their acquisition-date fair values: (in thousands) Purchase Price Allocation Cash, cash equivalents, and restricted cash $ 15,465 Disbursement prefunding 6,016 Customer funds receivable, net 3,423 Prepaid expenses and other assets, net 1,187 Intangible Assets Trade name 1,000 Customer relationships 8,500 Developed technology 12,000 Goodwill 54,940 Customer liabilities (3,075) Advance for future deposits (2,550) Other assumed indebtedness (16,234) Other liabilities, net (2,758) Total consideration transferred $ 77,914 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The components of identifiable intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Estimated Remaining Useful Life (in years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Estimated Remaining Useful Life (in years) Trade name $ 1,000 $ (417) $ 583 1.8 $ 1,000 $ (333) $ 667 2.0 Customer relationships 8,500 (2,656) 5,844 2.8 8,500 (2,125) 6,375 3.0 Developed technology 12,000 (3,000) 9,000 3.8 12,000 (2,400) 9,600 4.0 Total $ 21,500 $ (6,073) $ 15,427 $ 21,500 $ (4,858) $ 16,642 |
Schedule of Future Amortization Expense | Expected future intangible asset amortization as of March 31, 2024 was as follows: (in thousands) Amount Remainder of 2024 3,643 2025 4,858 2026 4,525 2027 2,401 Total $ 15,427 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders for the periods indicated. As the Company reported a net loss, diluted net loss per share was the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive for all periods presented. Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Numerator: Net loss $ (21,080) $ (28,314) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders: Basic and diluted 189,848,799 175,113,904 Net loss per share attributable to common stockholders: Basic and diluted $ (0.11) $ (0.16) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been anti-dilutive: As of March 31, 2024 2023 Stock options outstanding 9,907,408 14,074,783 RSUs outstanding 21,924,785 23,910,861 ESPP 1,199,367 1,175,687 Shares subject to repurchase 730 61,683 Unvested common stock, subject to service-based vesting conditions, issued in connection with acquisition (1) 52,040 104,080 Equity issuable in connection with acquisition (1) 131,507 133,309 Total 33,215,837 39,460,403 __________ (1) Refer to Note 6. Business Combinations |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following is a summary of the Company’s stock option activity during the three months ended March 31, 2024: Stock Options (in thousands, except share and per share data) Number of Options Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Balances as of January 1, 2024 10,801,396 $ 4.46 5.87 $ 161,603 Exercised (819,904) 3.05 14,413 Forfeited (74,084) 6.54 Balances as of March 31, 2024 9,907,408 4.56 5.61 160,301 Vested and exercisable as of March 31, 2024 8,193,954 3.40 5.27 142,117 Vested and expected to vest as of March 31, 2024 9,863,138 $ 4.58 5.62 $ 159,412 _________________ (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock. The following is a summary of the Company’s stock option activity during the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Aggregate grant-date fair value of options vested $ 2,258 $ 2,172 Intrinsic value of options exercised 14,413 19,007 |
Schedule of Restricted Stock Award Activity | Restricted stock unit activity during the three months ended March 31, 2024 was as follows: Number of Shares Weighted-Average Grant-Date Fair Value Per Share Unvested at January 1, 2024 23,555,665 $ 14.67 Granted 1,870,851 18.63 Vested (2,680,581) 12.97 Cancelled/forfeited (821,150) 14.90 Unvested at March 31, 2024 21,924,785 $ 15.20 The following is a summary of the Company’s restricted stock unit activity during the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands, except share and per share data) 2024 2023 Weighted-average grant date fair value of RSUs granted $ 18.63 $ 12.41 Aggregate grant-date fair value of RSUs vested 34,767 24,193 |
Schedule of ESPP Valuation Assumptions | The fair value of the ESPP offerings, including those described above, were estimated using the Black-Scholes option-pricing model as of the respective offering dates, using the following assumptions. These assumptions represent the grant date fair value inputs for new offerings which commenced during the three months ended March 31, 2024 and 2023, as well as updated valuation information as of the modification date for any offerings for which a modification occurred during the periods presented herein: Three Months Ended March 31, 2024 2023 Risk-free interest rates 4.49% to 5.20% 4.83% to 5.13% Expected term (in years) 0.5 to 2.0 years 0.5 to 2.0 years Volatility 52.9% to 61.3% 48.9% to 59.5% Dividend rate — % — % |
Schedule of Share-based Compensation Expense | Stock-based compensation expense for stock options, RSUs, and ESPP, included within the Condensed Consolidated Statements of Operations, net of amounts capitalized to internal-use software, as described in Note 5. Property and Equipment , was as follows: Three Months Ended March 31, (in thousands) 2024 2023 Customer support and operations $ 353 $ 205 Marketing 3,979 2,983 Technology and development 19,627 16,631 General and administrative 10,129 9,415 Total $ 34,088 $ 29,234 |
Restructuring Initiatives (Tabl
Restructuring Initiatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Severance and Related Charges | The following table presents the restructuring costs included within the Company’s Condensed Consolidated Statements of Operations for the three months ended March 31, 2024: (in thousands) Amount Customer support and operations $ 758 General and administrative 34 Total restructuring costs $ 792 |
Schedule of Restructuring Reserve | The following table presents the changes in liabilities, including expenses incurred and cash payments resulting from the restructuring costs and related accruals, during the three months ended March 31, 2024: (in thousands) Amount Balance as of December 31, 2023 $ 78 Expenses incurred 792 Cash payments (870) Balance as of March 31, 2024 $ — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reserve for Transaction Losses | The table below summarizes the Company’s reserve for transaction losses for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Beginning balance $ 3,359 $ 3,762 Provisions for transaction losses 11,368 10,108 Losses incurred, net of recoveries (11,339) (10,801) Ending balance $ 3,388 $ 3,069 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: March 31, December 31, (in thousands) 2024 2023 Trade settlement liability (1) $ 67,160 $ 58,950 Accrued transaction expense 20,634 18,500 Accrued marketing expense 16,286 13,633 Holdback liability (2) 13,166 12,990 Accrued salary, benefits, and related taxes 10,582 10,251 Accrued taxes and taxes payable (3) 8,739 9,259 Reserve for transaction losses 3,388 3,359 ESPP employee contributions 1,088 3,565 Other accrued expenses 14,037 15,295 Total $ 155,080 $ 145,802 _________________ (1) The trade settlement liability amount represents the total of disbursement postfunding liabilities and book overdrafts owed to the Company’s disbursement partners. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion. (2) Refer to Note 6. Business Combinations for further detail on the Holdback liability. (3) The accrued taxes and taxes payable amount is inclusive of indirect taxes of approximately $7.6 million and $6.4 million as of March 31, 2024 and December 31, 2023, respectively. Refer to Note 16. Commitments and Contingencies for further detail. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The supplemental disclosures of cash flow information consisted of the following: Three Months Ended March 31, (in thousands) 2024 2023 Supplemental disclosure of cash flow information Cash paid for interest $ 602 $ 341 Cash paid for income taxes 910 124 Supplemental disclosure of noncash investing and financing activities Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 2,214 $ 5,414 Vesting of early exercised options 47 149 Stock-based compensation expense capitalized to internal-use software 1,487 541 Issuance of common stock for acquisition consideration — 6,635 Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition — 581 Amounts held back for acquisition consideration — 11,899 Settlement of preexisting net receivable in exchange for net assets acquired in business combination — 2,401 |
Organization and Description _2
Organization and Description of Business (Details) | Mar. 31, 2024 country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries in which entity operates (over) | 170 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||
Advertising expense | $ 51.7 | $ 34.6 |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, beginning of the period | $ 1,124 | $ 1,108 |
Deferred revenue, end of the period | 1,250 | 833 |
Revenue recognized, deferred revenue | $ 824 | $ 553 |
Revenue - Revenue by Geography
Revenue - Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 269,118 | $ 203,865 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 175,393 | 139,092 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 32,949 | 24,859 |
Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 60,776 | $ 39,914 |
Revenue - Schedule of Sales Inc
Revenue - Schedule of Sales Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Sales incentives | $ 15,397 | $ 11,782 |
Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Sales incentives | 8,778 | 7,555 |
Marketing | ||
Disaggregation of Revenue [Line Items] | ||
Sales incentives | $ 6,619 | $ 4,227 |
Prepaid Expenses & Other Curr_3
Prepaid Expenses & Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid expenses | $ 22,728 | $ 11,122 | |
Payment card receivable | 8,258 | 15,599 | |
Tax receivable | 4,390 | 2,813 | |
Other receivables | 4,025 | 0 | |
Restricted cash | 2,190 | 774 | $ 444 |
Prepaid compensation arrangements | 2,038 | 1,518 | |
Other prepaid expenses and other current assets | 1,160 | 1,317 | |
Prepaid expenses and other current assets | $ 44,789 | $ 33,143 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 47,520 | $ 42,440 |
Less: Accumulated depreciation and amortization | (28,185) | (26,430) |
Property and equipment, net | 19,335 | 16,010 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,051 | 23,195 |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,541 | 8,529 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,721 | 2,636 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,109 | 8,080 |
Projects in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 98 | $ 0 |
Property and Equipment- Narrati
Property and Equipment- Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 2.5 | $ 1.8 |
Property and Equipment - Capita
Property and Equipment - Capitalized Internal-Use Software Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Stock-based compensation expense capitalized to internal-use software | $ 1,487 | $ 541 |
Depreciation and amortization | 2,500 | 1,800 |
Capitalized internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Total capitalized internal-use software costs | 4,856 | 1,606 |
Stock-based compensation expense capitalized to internal-use software | 1,487 | 541 |
Depreciation and amortization | $ 1,649 | $ 929 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Hosting Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Line Items] | |||
Total capitalized cloud computing arrangement costs | $ 529 | $ 902 | |
Internal-use software costs, amortization | 587 | 351 | |
Capitalized cost, net | 3,973 | $ 4,031 | |
Prepaid expenses and other current assets | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized cost, net | 2,281 | 2,220 | |
Other noncurrent assets, net | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized cost, net | 1,692 | $ 1,811 | |
Technology and development | |||
Property, Plant and Equipment [Line Items] | |||
Internal-use software costs, amortization | 497 | 327 | |
General and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Internal-use software costs, amortization | $ 90 | $ 24 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Jun. 30, 2023 USD ($) | Jan. 05, 2023 USD ($) shares | Apr. 30, 2024 USD ($) shares | Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||||
Holdback liability to be settled in cash and Company equity | $ 0 | $ 11,899 | ||||
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | 0 | 2,401 | ||||
Holdback liability | $ 13,166 | $ 12,990 | ||||
Number of operating segments | segment | 1 | |||||
Acquisition related costs | $ 200 | 1,200 | ||||
Rewire | ||||||
Business Acquisition [Line Items] | ||||||
Purchase consideration | $ 77,914 | |||||
Equity issued (in shares) | shares | 694,918 | |||||
Pre-combination expense, equity issued | $ 7,216 | |||||
Number of shares held back | shares | 133,309 | |||||
Holdback liability to be settled in cash and Company equity | $ 11,899 | |||||
Hold back period | 15 months | |||||
Amount held back, cash | $ 10,400 | |||||
Amount held back, equity | $ 1,500 | |||||
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | $ 2,401 | |||||
Holdback liability, change in fair value | 200 | $ 800 | ||||
Holdback liability | $ 13,200 | |||||
Rewire | Subsequent event | ||||||
Business Acquisition [Line Items] | ||||||
Amount held back, cash | $ 10,400 | |||||
Payment for holdback liability | $ 10,300 | |||||
Stock issued for holdback liability (in shares) | shares | 131,507 | |||||
Rewire | Service-based vesting | ||||||
Business Acquisition [Line Items] | ||||||
Equity issued (in shares) | shares | 104,080 | |||||
Equity issued, vesting period | 2 years | |||||
Pre-combination expense, equity issued | $ 600 | |||||
Post-combination acquisition costs | 900 | |||||
Rewire | Disbursement prefunding | ||||||
Business Acquisition [Line Items] | ||||||
Acquired receivables | 6,016 | |||||
Rewire | Customer funds receivable, net | ||||||
Business Acquisition [Line Items] | ||||||
Acquired receivables | $ 3,423 |
Business Combinations - Schedul
Business Combinations - Schedule of Consideration Transferred (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 05, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | |||
Holdback liability to be settled in cash and Company equity | $ 0 | $ 11,899 | |
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | $ 0 | $ 2,401 | |
Rewire | |||
Business Acquisition [Line Items] | |||
Cash paid to selling shareholders | $ 56,398 | ||
Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services | 7,216 | ||
Holdback liability to be settled in cash and Company equity | 11,899 | ||
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | 2,401 | ||
Purchase consideration | $ 77,914 |
Business Combinations - Sched_2
Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jan. 05, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 54,940 | $ 54,940 | |
Rewire | |||
Business Acquisition [Line Items] | |||
Cash, cash equivalents, and restricted cash | $ 15,465 | ||
Prepaid expenses and other assets, net | 1,187 | ||
Goodwill | 54,940 | ||
Customer liabilities | (3,075) | ||
Advance for future deposits | (2,550) | ||
Other assumed indebtedness | (16,234) | ||
Other liabilities, net | (2,758) | ||
Total consideration transferred | 77,914 | ||
Rewire | Disbursement prefunding | |||
Business Acquisition [Line Items] | |||
Receivables | 6,016 | ||
Rewire | Customer funds receivable, net | |||
Business Acquisition [Line Items] | |||
Receivables | 3,423 | ||
Rewire | Trade name | |||
Business Acquisition [Line Items] | |||
Intangible Assets | 1,000 | ||
Rewire | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangible Assets | 8,500 | ||
Rewire | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangible Assets | $ 12,000 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,500 | $ 21,500 |
Accumulated Amortization | (6,073) | (4,858) |
Net Carrying Amount | 15,427 | 16,642 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,000 | 1,000 |
Accumulated Amortization | (417) | (333) |
Net Carrying Amount | $ 583 | $ 667 |
Weighted Average Estimated Remaining Useful Life (in years) | 1 year 9 months 18 days | 2 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,500 | $ 8,500 |
Accumulated Amortization | (2,656) | (2,125) |
Net Carrying Amount | $ 5,844 | $ 6,375 |
Weighted Average Estimated Remaining Useful Life (in years) | 2 years 9 months 18 days | 3 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,000 | $ 12,000 |
Accumulated Amortization | (3,000) | (2,400) |
Net Carrying Amount | $ 9,000 | $ 9,600 |
Weighted Average Estimated Remaining Useful Life (in years) | 3 years 9 months 18 days | 4 years |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 05, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 1.2 | $ 1.2 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Estimated Remaining Useful Life (in years) | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Average Estimated Remaining Useful Life (in years) | 3 years |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2024 | $ 3,643 | |
2025 | 4,858 | |
2026 | 4,525 | |
2027 | 2,401 | |
Net Carrying Amount | $ 15,427 | $ 16,642 |
Debt (Details)
Debt (Details) $ in Thousands, ₪ in Millions | Sep. 13, 2021 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 20, 2023 USD ($) | Jan. 05, 2023 USD ($) | Jan. 05, 2023 ILS (₪) |
Debt Instrument [Line Items] | ||||||
Debt issuance costs, net | $ 1,100 | $ 1,200 | ||||
Letters of credit outstanding | 50,300 | 49,400 | ||||
Short-term debt | 2,445 | 2,481 | ||||
Advance for Future Deposits | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 2,800 | ₪ 9 | ||||
Short-term debt | $ 2,400 | 2,500 | ||||
Effective interest rate | 3% | |||||
Advance for Future Deposits | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Basis Spread on Variable Rate | 1.40% | 1.40% | ||||
Advance for Future Deposits | Israeli Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Basis Spread on Variable Rate | 1.50% | 1.50% | ||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 250,000 | $ 325,000 | ||||
Unused commitment fee percentage | 0.25% | |||||
Adjusted quick ratio | 1.50 | |||||
Minimum liquidity | $ 100,000 | |||||
Outstanding borrowings | $ 150,000 | 130,000 | ||||
Weighted average interest rate | 9% | |||||
Remaining borrowing capacity | $ 126,900 | $ 146,800 | ||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | NYFRB Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate, base | 0.50% | |||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Adjusted LIBOR, 1.00% Floor | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate, base | 1% | |||||
Floor rate | 1% | |||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate, spread on variable rate | 0.50% | |||||
Line of credit | Revolving credit facility | New Revolving Credit Facility | Adjusted LIBOR, 0.00% Floor | ||||||
Debt Instrument [Line Items] | ||||||
Floor rate | 0% | |||||
Variable rate, spread on variable rate | 1.50% | |||||
Line of credit | Letter of credit | New Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 60,000 |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss attributable to common stockholders | $ (21,080) | $ (28,314) |
Denominator: | ||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) | 189,848,799 | 175,113,904 |
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) | 189,848,799 | 175,113,904 |
Net loss per share attributable to common stockholders: | ||
Basic (in dollars per share) | $ (0.11) | $ (0.16) |
Diluted (in dollars per share) | $ (0.11) | $ (0.16) |
Net Loss Per Common Share - S_2
Net Loss Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 33,215,837 | 39,460,403 |
Stock options outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 9,907,408 | 14,074,783 |
RSUs outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 21,924,785 | 23,910,861 |
ESPP | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 1,199,367 | 1,175,687 |
Shares subject to repurchase | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 730 | 61,683 |
Unvested common stock, subject to service-based vesting conditions, issued in connection with acquisition | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 52,040 | 104,080 |
Equity issuable in connection with acquisition | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation (in shares) | 131,507 | 133,309 |
Common Stock (Details)
Common Stock (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) vote $ / shares shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 $ / shares shares | |
Equity [Abstract] | |||
Common stock, authorized (in shares) | shares | 725,000,000 | 725,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |
Voting rights, number of votes | vote | 1 | ||
Dividends declared, paid and unpaid | $ | $ 0 | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options granted during period (in shares) | 0 | 0 |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unamortized compensation cost | $ 290.7 | |
Unamortized compensation cost, recognition period | 2 years 8 months 12 days | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Consecutive offering period | 24 months | |
Plan modification, incremental cost | $ 1.7 | |
Unamortized compensation cost | $ 9.8 | |
Unamortized compensation cost, recognition period | 1 year 10 months 24 days | |
ESPP | ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, reserved (in shares) | 7,308,767 | |
Stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, reserved (in shares) | 19,332,356 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Number of Options Outstanding | |||
Beginning balance (in shares) | 10,801,396 | ||
Exercised (in shares) | (819,904) | ||
Forfeited (in shares) | (74,084) | ||
Ending balance (in shares) | 9,907,408 | 10,801,396 | |
Vested and exercisable (in shares) | 8,193,954 | ||
Vested and expected to vest (in shares) | 9,863,138 | ||
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 4.46 | ||
Exercised (in dollars per share) | 3.05 | ||
Forfeited (in dollars per share) | 6.54 | ||
Ending balance (in dollars per share) | 4.56 | $ 4.46 | |
Vested and exercisable (in dollars per share) | 3.40 | ||
Vested and expected to vest (in dollars per share) | $ 4.58 | ||
Weighted-Average Remaining Contractual Life (Years) | |||
Outstanding | 5 years 7 months 9 days | 5 years 10 months 13 days | |
Vested and exercisable | 5 years 3 months 7 days | ||
Vested and expected to vest | 5 years 7 months 13 days | ||
Aggregate Intrinsic Value | |||
Outstanding | $ 160,301 | $ 161,603 | |
Exercised | 14,413 | $ 19,007 | |
Vested and exercisable | 142,117 | ||
Vested and expected to vest | 159,412 | ||
Aggregate grant-date fair value, options | $ 2,258 | $ 2,172 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - ESPP | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend rate | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rates | 4.49% | 4.83% |
Expected term (in years) | 6 months | 6 months |
Volatility | 52.90% | 48.90% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rates | 5.20% | 5.13% |
Expected term (in years) | 2 years | 2 years |
Volatility | 61.30% | 59.50% |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Award Activity (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Number of Shares | ||
Unvested, beginning balance (in shares) | 23,555,665 | |
Granted (in shares) | 1,870,851 | |
Vested (in shares) | (2,680,581) | |
Cancelled/forfeited (in shares) | (821,150) | |
Unvested, ending balance (in shares) | 21,924,785 | |
Weighted-Average Grant-Date Fair Value Per Share | ||
Unvested, beginning balance (in dollars per share) | $ 14.67 | |
Granted (in dollars per share) | 18.63 | $ 12.41 |
Vested (in dollars per share) | 12.97 | |
Cancelled/forfeited (in dollars per share) | 14.90 | |
Unvested, ending balance (in dollars per share) | $ 15.20 | |
Weighted-average aggregate grant date fair value, vested | $ 34,767 | $ 24,193 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 34,088 | $ 29,234 |
Customer support and operations | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 353 | 205 |
Marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 3,979 | 2,983 |
Technology and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | 19,627 | 16,631 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-based compensation expense | $ 10,129 | $ 9,415 |
Restructuring Initiatives - Nar
Restructuring Initiatives - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Incurred charges | $ 0.8 |
Restructuring Initiatives - Sch
Restructuring Initiatives - Schedule of Severance and Related Charges (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Expenses incurred | $ 792 |
Customer support and operations | |
Restructuring Cost and Reserve [Line Items] | |
Expenses incurred | 758 |
General and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Expenses incurred | $ 34 |
Restructuring Initiatives - S_2
Restructuring Initiatives - Schedule of Restructuring Reserve (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring and Related Activities [Abstract] | |
Balance as of December 31, 2023 | $ 78 |
Expenses incurred | 792 |
Cash payments | (870) |
Balance as of March 31, 2024 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | (5.00%) | (1.30%) |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) | Mar. 31, 2024 USD ($) claim | Dec. 31, 2023 USD ($) |
Loss Contingencies [Line Items] | ||
Loss contingency accrual, current | $ 3,388,000 | $ 3,359,000 |
Indemnification agreement | ||
Loss Contingencies [Line Items] | ||
Loss contingency, number of claims | claim | 0 | |
Loss contingency accrual | $ 0 | 0 |
VAT Inquiry from Ireland Revenue | ||
Loss Contingencies [Line Items] | ||
Loss contingency accrual, current | $ 7,600,000 | $ 6,400,000 |
Commitment and Contingencies _2
Commitment and Contingencies - Schedule of Reserve for Transaction Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | $ 3,359 | |
Ending balance | 3,388 | |
Transaction losses | ||
Loss Contingency Accrual [Roll Forward] | ||
Beginning balance | 3,359 | $ 3,762 |
Provisions for transaction losses | 11,368 | 10,108 |
Losses incurred, net of recoveries | (11,339) | (10,801) |
Ending balance | $ 3,388 | $ 3,069 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||||
Trade settlement liability | $ 67,160 | $ 58,950 | ||
Accrued transaction expense | 20,634 | 18,500 | ||
Accrued marketing expense | 16,286 | 13,633 | ||
Accrued salary, benefits, and related taxes | 10,582 | 10,251 | ||
Holdback liability | 13,166 | 12,990 | ||
Accrued taxes and taxes payable(3) | 8,739 | 9,259 | ||
ESPP employee contributions | 3,388 | 3,359 | ||
Other accrued expenses | 14,037 | 15,295 | ||
Total | 155,080 | 145,802 | ||
Transaction losses | ||||
Loss Contingencies [Line Items] | ||||
ESPP employee contributions | 3,388 | 3,359 | $ 3,069 | $ 3,762 |
Reserve for transaction losses | $ 1,088 | $ 3,565 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | $ 602 | $ 341 |
Cash paid for income taxes | 910 | 124 |
Supplemental disclosure of noncash investing and financing activities | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 2,214 | 5,414 |
Vesting of early exercised options | 47 | 149 |
Stock-based compensation expense capitalized to internal-use software | 1,487 | 541 |
Issuance of common stock for acquisition consideration | 0 | 6,635 |
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition | 0 | 581 |
Amounts held back for acquisition consideration | 0 | 11,899 |
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | $ 0 | $ 2,401 |