RELY - Earnings call transcript Q2 2022

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Operator

Hello, and thank you for standing by, and welcome to Remitly's Second Quarter 2022 Earnings Call. [Operator instructions] Please be advised that today's conference may be recorded. I would now like to hand the conference over to your speaker today, Stephen Shulstein, Vice President of Investor Relations. Please go ahead.

Stephen Shulstein

Thank you. you call. us thank quarter Remitly's and earnings XXXX afternoon, for for joining second Good

on call Hemanth me Executive Financial Joining the Officer and Oppenheimer, Officer. of Chief Co-Founder Remitly; and Munipalli, Chief today our are Matt

Relations results will our release in on be can found simultaneously and are note Please Investor which earnings at slides, webcast and ir.remitly.com. additional website. presentation that Our commentary be available management the this the call

making forward-looking materially you not Before guarantees be These may we nor Remitly's and promises that actual like federal and of plans. remind to I limited results are expectations those management's that regarding but cause results within start, we statements involve from securities here. would to statements future including, presented risks meaning financial neither uncertainties vary statements and the will laws, to, and

on expectations should Any conference required your following contains more whether filings forward-looking of responses any of statements. undue Please are regarding SEC to non-GAAP call, may information our place the that developments You to and in result for measures. as this current earnings except revise no statements factors as made affect update The on based assumes a today, and them, otherwise, or new by obligation not to release reliance law. including questions, our refer forward-looking as Remitly risk results. or financial presentation

measures directly our to For of on a GAAP most IR available financial release, please each the earnings the non-GAAP of website. press see is which reconciliation these of metric, comparable our section

Matt to to call I Now the will turn over begin.

Matt Oppenheimer

to which financial on public providing our To their our start, all the row most the for turn trusted of quarter company fourth the on which as in strong strong vision, and seen expectations. to quarter thank second us joining you, a services delivered you Slide to we the Stephen, results and families to like by our in fourth transform I'd a and X, lives beat that as discuss immigrants is quarter, planet. Thank

progress achieving home. making much Munipalli, vision, immigrants toward proud are joined execute families vision introduce back us let communities on that who of our the continued me to We this our new and we support and do To so for ability are month. their this last CFO, Hemanth

to scaling he We are macroeconomic second and investments our a and cost priorities with overview are money global making excited has experience and prioritize even growth years growth home our making volatile to insight the will help General leader. across with team. including as quarter against value results, I'll then execute will experience reflect shareholders. a strategic progress technology to Remitly environment discuss to Hemanth Expedia in of organizations, XX-plus our the market Hemanth and the the we growth investment be more driving drive increasing current to invaluable His our vision. welcome back capital. efficiencies continue families how to then our as deliver The Motors, are brings a on sending begin of long-term to the brief review and environment. dynamic in customers we finance and our I'll their progress companies I'll we

the for We can see Slide results results as the our to in you exceptional quarter, turn let's Now second on quarter. delivered X.

on Revenue from and repeat of revenue balance customers. increased million. a customer base transactions combination the $XXX year-over-year significant $X.X than million. XX% new have and This year-over-year for driven customer and by increased Our to growth of repeat loyal strong beyond. by XXXX was growth to active a These active customers more XX% will impact

strong outlook XXXX. for revenue we our this of performance, result increasing a As are

marketing our strong This outperformance in adjusted performance active expectation. growth. the was customer quarter Our efficiencies also in driven and above investments EBITDA by was

As has our outlook. team deliver and EBITDA how this I'm a also customers and pleased I'm our quarter, very result, promises midpoint are to with adjusted to will the executed on continue XXXX shareholders. raising our confident of we that we

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with for XX us Our almost oldest transacted have years. customers

allowing quickly, expansion expanding customers our way more is they any funds while even families footprint to geographic us receive to network serve Our customers' allows choose.

even fast Our more now customers in and localized speak. convenient is our languages and are we the service

are vast fair combining driven factors prices They we the corridors. by easy-to-use and network. with our global reflect across by deliver experience customers value Our many an to

performed As we can customers as you that Slide X. what see are to look economic around vital across has macro remittance historically relatively is our well their families. the Remittances at volatile we environment, cycles, and on know

recession low significantly rate XX% countries, to top growth. to our XX% addressable market serviceable projected inflation, Bank continue remittance middle the as estimates will grow industry and This compares in with XXXX, of as our World annual billion will of revenue the to XXXX. we income Even are mind, and in X% fears outperform war growth $XXX remittances to

to to addition overall market, to benefit remittances. we switch continuing customers growing a In digital remittance from

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As dollar strengthened, we U.S. the dollar strong -- as strength. take some customers advantage the U.S. saw of

focused behavior Slide normalize. to on in customer you remain areas We as tends see long-term, four X. the Over on can investing

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efficiency of capital the investment As our in than increased all of priorities. increased, have this were second to rates quarter has end, hurdle the we second the our while improve investments customers in cost nearly quarter the around able To acquiring in XXXX. as new marketing of our many we

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acquisition specific lifetime as have serve. as new robust optimize channels, The We customer investments metrics across the can targets customer of different more than X. LTVs historically customer on cost to see as returns, and you X,XXX and use and are various Slide we generated well the marketing channel acquisition value. Our the geographic corridors

the aim Then and the willing to scale, data we value. this. lifetime We strategy to based understand acquisition on we're cost pay have the customer match to

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customers XX% acquisition lower a able environment, adding by primarily continued in focus and improved and marketing testing scale given driven advertising was brand efficiency record marketing, payback, awareness improved the awareness potentially to driven of disciplined quarter, by improved on customer number While an The elasticity new experience. favorable the a referral by and costs sequentially. we were changing brand

record a Slide in corridors, We XXX geographic approximately our are XX. At global as continuing corridors expansion customers and territories expansion we second of second We the more than XXX than now added on served serve for seen us. end quarter, world. in the the more around countries the to invest and quarter, in network, X,XXX we geographic and quarterly

in customer because compliance, localization These with us drive the capital integration we and We more processes the technology, expansion markets customer do customers. investments to new are invested acceptance, acquisition. efficiently new to able rapidly to around enabled this and have partner support, payment deploy and allowing us attract add have appropriate to geographic and

in don't a well including our are corridors, corridors have as the There to remains quarter corridors. we in large year large add as the XX markets and of end There where speed Our expand East were new second presence, within and this of enter received XXXX. Middle has effectiveness X in quarter as the compared to improved some Asia. second in launching opportunity existing we to markets a able

have execute our our customers. scale on proposition unit infrastructure, same value in by localization corridor economics we the built and expansion way a at focusing We for to differentiated ensure current will the

network important disbursement remains grow customer driver Our global loyalty. and options of our within to an continue

them wallets our to Our quality works choose and maintains customers growing network a and network of competitive the what our locations their mobile of differentiator. pickup recipients best cash allows for banks, and

customer by XX. as in technology infrastructure, superior management and interface, products mobile-first our investments fraud drive to can experience see security Slide intuitive on and enabled Our and you support, customer risk continue

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remittance As a star of our rating a the product Play store and iOS Store. result app X.X a in the we maintained star X.X investment, Google in rating

player first a digital achievable with investments flywheel our allows of All and from these outcomes us are make network. transactions these benefit flowing being more effect to of and scale through scaled a only

few our globally, Slide past XX. remittance friction for products of one retaining complementary best the customer the our winning on In vision adding reducing and rapidly millions to Turning new corridors, the and and years, we in biggest scaled experience customers. new to of business

showed which to Building increased engagement about in has flag to new the relationships strategy we add complementary product to narrowing Passbook, have this talked our our products new Passbook from products addition been learned customers. also are space, with QX. shift lessons in our to We on deepen in remittances. focus

to with than remittance introducing allow driving believe the This long-term allow convinced even our us new toward more focus further. our complementary ever will differentiate are We products with remittance product value We our right us that product strategy. our a to the customers deepen tied will customers. is relationship proposition to relationship-based

product All remittance adding our of this customers. creates our value a more to significant around moat by

ahead Looking long-term our shareholders. our driving our on value customers focus will XX, Slide serving on and remain for

across on ROI a and in long-term leverage category. drive scale a sustainable growth Our build investments driving to we higher will profitable opportunities to business expense to double-digit high of us as the our across investments to returns and in opportunities and drive portfolio lean our continue allow

marketing unit our drive to strong and the growth Our continue beyond. and will near-term economics investments in

XXXX in see in beyond. investments We our will expansion enhancements from geographic and remittance returns and increasing product

new turn to is call outlook. customers. benefit to details as and I of Our provide financial Hemanth, will in will that, from products complementary a relationship vision returns With more with to sustainable long-term we on deeper our XXXX drive and expected beyond results our the

Hemanth Munipalli

our quarterly efficiently. executing customers by evidenced opportunities you, like scale our with about sustainable, and at our driving the for excited Matt. By I'd products core deepen deliver growth business over as also coming immense shareholders. well, continued months. excited by start Thank we with strong look the forward strong services is Remitly, future. with and to relationship complementary just why I analyst to and finance its The financial discussing I'm to and to long-term community is expect with joined improvement I growth across believe the I continuous Remitly I'm to investor getting profitable function meet and and Remitly. started,

across return results we our continued details second year, setting start and expectations midpoint will our our for more EBITDA even drivers quarter second let's detail then revenue our results. of the delivered provide Now metrics. we'll enables outlook full our XXXX. for of quarter by aggressive continued this financial Matt's momentum the investment with adjusted our us to performance and and raise performance, reviewing To more the of I and all second outlook while strong growth, very begin for thresholds strong year reiterate comments, This quarter on XXXX.

reminder, I in EBITDA exclude in These the items, and adjusted discuss Beginning remarks. $XXX by all year-over-year $X million. resulting was revenue all stock-based operating $X.X in to which XX% such earnings a Send expectations. year-over-year metrics XX% expenses compensation of periods. to volume release. As Slide than grew billion noncash million, approximately XX, active our more year-over-year included customers Reconciliations GAAP above XX% are growth totaled results in will non-GAAP on as my grew to

number you record new dollar of As number customer quarter believe with including acquiring drive XX% helped cases, new years. the high factors the active many strength Slide to U.S. of a customers customers see in who, of the and retention continue incremental We Remitly. over many some drove existing XX, a customers can transact in us growth, to a in on

in growth and our corridors, new revenue opportunities continued acquisition across saw and more broaden which create leverage us time. also over customer our We operating helps portfolio

remain and Our as resulting customer new highly acquisitions marketing Matt discussed. as we economics drive in unit CAC, lower compelling efficiencies

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of active XX% revenue Turning to that quarter higher and we record Slide scale. XX. continue the customers double-digit multiyear retention healthy drove the delivered our growth in at revenue in Strong we growth as track year-over-year growth

costs to XX. Slide Turning on

the The and was XX% to QX points in of scale visible benefit expense continue of last fraud We revenue risk of increasing line. XX% and on year. transaction are million of most revenue, $XX our benefits this improvements in from of from over expense an systems. improvement or basis Transaction XXX

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to from although precision losses expect quarter to from scale on some expect increasing We fraud and transaction continue variability expense improved to benefit in we quarter.

the serving our services on execute are operating expenses Now us the reflects trusted allow we I financial planet. of to investments non-GAAP on XX, our will Slide to turn most vision business to making with and our long-term scale their which immigrants families remittance the and on

made compared strong lower our which when Our the we clear, The majority total new efforts. in first record marketing teams investment have $XX efficiencies at quarter to expense and vast drive to unit new the of be XX% represented returns. customers delivered even the operating acquisition largest number to customers as CAC is marketing at active by investment thresholds. higher a operating million identify more grown related To acquired economics expenses. raising expense even we or is quarter XX% could of our This of customer decision marketing,

or operations a basis. of $XX flat drive was light the marketing of spend to actively expense focus while expenses customer operating million We strong revenue support to in XX% higher of was growth. and second total returns, year-over-year monitor and percentage our driving on our quarter in Customer continue

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expect we level help Our cost scale, by be initial as in customer new support active customer time, to customers, the smaller customers we new customer are in of adds support tend new leverage which proportion have customers also drive as costs. support Over a influenced quarter contacts. a to should of higher

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payment at as us add market us allow scale corridors, allowing methods share. also rapid to investments to we localize pace, options at and more faster much more new disbursement capture a Our

For were add quarter, we're added that the have possible able investments we example, without not have technology approximately in would a the XXX scaling second a in we to making platform. most in of level growth our quarter, corridors, been the

mentioned we development revenue our corridor percentage product XXXX we of G&A and expense new the allow and effectively additional an as us expense human XXXX $XX to in costs, on investments, a as will expect total compared XX% and last includes in additions. product teams which technology increase was we call, As expenses. initiatives. investment second development to support our with scale million our or public This quarter company resources, operating growth and to finance operating legal prioritize of in

G&A as year. see and this expense in expect year-over-year G&A moderate the we in to quarter later expect We costs we fourth anniversary of company to XXXX, begin the to growth public in leverage

excludes XX. Slide was in which XXXX. quarter second million $X.X stock-based EBITDA, the compensation to expense, negative Adjusted Turning of

returns primarily investments. due expected, to our was Our adjusted EBITDA and we higher-than-expected improving acquisition performance customer than on better revenue

unit our high I our progress ROI summarize opportunity expense I company. like and a provides to would forward trajectory. to first head that significant to as profitability as economics thoughts into a accelerate strong look on revenue sharing other as base, to and our turning marketing across scaling line growing Before we categories we shape results, bottom public anniversary additional

the line. to turning bottom Now

loss GAAP was primarily of $X $XX execute The quarter expense quarter our net Second on loss hiring was driven compensation million XXXX. million, million top-tier in to a stock-based a due loss by increase to net the to compared net priorities. talent second incremental in $XX strategic of

adjustment we Additionally, million $X periods. prior related recognized a to

of compensation the in quarters amount stock in expense second $X with XXXX we excluding second quarter, the we recognized be consistent the the of remaining quarterly expect the period We million in relatively recognized to quarter. prior adjustments

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Slide XXXX to Moving on XX. our outlook

million near strong mid-term, reflect rate and XX%. and benefit of million expect year-over-year second delivered from through growth a beyond. This We XXXX the new In quarter. the we between increase in we expect revenue of to prior $XXX increased and We're performance the XX% customers our outlook outlook to increasing transactions from the us to rest to $XXX implies the our is a and $XX.X midpoint at be million.

between Operator? Matt to we our outlook open performance for $XX quarter, our from questions. negative have million than narrowing and seasonality and of EBITDA the between quarter. be negative customer outlook result better-than-expected adjusted negative up I expect million are $XX of for a we your call of acquisition, the million As the negative the With $XX adjusted fourth and million. will quarter raising of the to new to prior that, and Due second third our XXXX the EBITDA lower $XX midpoint in

Operator

El-Assal Ramsey instructions] Our [Operator question with first Barclays. comes from

may with You your proceed question.

Allison Gelman

This Hemanth. and on all Allison Ramsey. Hey, for well, is is guys. Hope welcome,

is words, when do where Just on thinking win about the you a in are Or competitive how market share? environment, are -- you other really, they what from? customer, coming remittances? here you are platform? So brick-and-mortar? Or guys a Thanks. really color most helpful. new they using they common there to digital just previously would they were Were that completely Some using be different

Matt Oppenheimer

Yes, Allison, and Great. to, happy thanks the question. for

you industry market. we if we an growth -- market the look the faster compared rate as in are XX%, opening gaining, guiding that X%, are share mentioned remarks, XX% of think I the the to the at I growing much in that

And a of coming given via legacy on are from, solution. the remittances the our a terms digital sent market as risk where combination a strategically mix customer invest players, lot as with share in based because in of more our have reason the think the I superior is players, being and legacy invest I In network, think players it's is that enables still experience. of that of structurally of we a are well more where us our systems, in majority invest or to data digital-first offline more scale we distribution that gaining that much player

which new are maintains ultimately to customers, customers as relationship, that of brings we All less record and which not mind to more peace we attracts long-term that but see. only also continuing of friction mentioned,

Allison Gelman

Great. That's helpful. really Thanks.

Operator

Thank moment you. for One questions.

Schmidt question Andrew next Our from Citi. with comes

You proceed. may

Andrew Schmidt

have Matt, Hey, Stephen, on. Good and to Hemanth. you welcome,

wondering then of maybe delevering the elaborate about the organic adds paid. more of lot. two little I'm just step a on over longer strategy be CAC. those sustainability to would elaborate question customer talk to you versus if could see perhaps helpful. insight Thanks lower on customer more And levels intermediate costs. Any to First term, you just the the and acquisition on a bit But create on good about sustainability down.

Matt Oppenheimer

Thanks, Yes. Andrew.

XX% increase of if it's a you that think in factors. at we're in due cash what variety sequentially, seeing -- improvement -- the I to look reasons the or why

been that at at promoted we When look think if CMO you you brand execution due I cash of stronger. never Hahn, variety a internally, team the and it's to Rina our sequentially, has look creative factors. our

When our CMO team you we at never stronger. think has been look Hahn. Rina promoted I our internally, that

If and brand execution at you look the and creative velocity.

at environment, are ability we external favorable, at the for about If we we when have the look look ultimately, think, -- been you that's think And think advertising us. CAC, I ultimately I that from deploy efficiently. a handle on we return make very it a doing good payback we around And and dollars we investment it standpoint. sure guardrails how that marketing have to

And certainly the that mentioned, continue but around ability so the the side lot we seeing And payback equation, period acquisition costs of meaning the value investments. see lifetime globe. those I of the of to marketing about across unit only that to our we have the excited we sustainability that I are are really a paying economics, because not variables customer are

about excited excited overall. about QX that and So the we place are in

Andrew Schmidt

path you big on Very to a get timeline we I profitability put then, announcements don't any if don't investors Obviously, if And expect is spot. big here. clear. the you Very mind question Hemanth, and from helpful. and

in Any would just You’ve too you business investments balancing think But you versus on only how you us just about for for just there the of color Thanks. sort and maybe how haven't you framework helpful. growth? -- long. could and be think been a tell profitability about returns

Hemanth Munipalli

for think know couple And would for that, well. improved creation. certainly about long-term little thresholds that the in our Thanks focused there's of QX think a in CAC terms we of in I the we're terms which of value also started things in bit we've one, reflective thanks for a I on and here investors. certainly say the our mind, I I of are performance Yes. ROI, on increasing as we doing, talked welcome question, was top

share. we mode things how in -- as certain will days us to terms here us give of little there's business learn From of obviously, a think about a that talk So path about coming up getting discipline profitability. the we look forward investments are as understand in and perspective, bit efficient of better very put on as and the public get we certain more in and areas We for my and we did our probably our to that early to more business processes we planning days financial yet, early topic. us, we us or get on company terms year can soon, again, a looking pretty at more have mind that to into opportunity there's and come being scale. start a we for top our in get to strategic But there's look and of will place

Andrew Schmidt

Thank helpful. Very you Good much. quarter, very guys.

Operator

for moment One you. Thank questions.

next comes Our from Securities. with Scharf JMP question David

You may proceed.

David Scharf

their were afternoon, and you I Matt, can little is was at I a a CAC favorable Or specifically, of the trends step Good sort to back demand? there. question. it expand Hey, a competitors notes in quarter, apologize putting guys experiencing for this also seeing in my Thanks are terms everyone. bit not redundant, was quarter bit it of channels. taking more. competition whether And from Great. of actually dig looking last little if is acquisition And I purely you pressure wanted know or on more trends digital CAC most my digital the just you some specific into are I'm some there of a organic? comment of this result that

Matt Oppenheimer

Yes. Thanks, QX. the pertains into David, depth and CAC happy as it to go more especially side, on to

I was to that experienced the think, in QX. think we comments more specific what I QX, and

acquisition while mentioned, and we I you customer of a are bring able look number to new we QX both, the customers. down are think costs that at general adding record seeing, trend as we that if

is the -- XXXX. in many new we than entire If look, QX mentioned nearly customers marketing I channel think both customers in of, I creative as at and of you did payback the execution, And lot new a that in as geographic our terms the control are on as opening -- remarks, as we mentioned, for reason that I within channel many variables of 'XX year perspective. focus and rigorous of brand added the

leverage there's environment less I elasticity and that that digital the in effective. how I test way channels we to being But advertising terms of very is that think think a some in to competitive. know how that

market. And results. we compared so to of But the our really proud be why think out may others stand that stay there, in to obviously. we're I Hard

We first the about period. these And I us also again, those But a that X-year have approximately and of the customers. growth around a new that you cost come, is revenue because on making indicator marketing for investments of quarters bellwether good handle, as in a just as then, the may good it to But thing revenue cohorts is payback that well is it the in of when year, the at kind of customer it's add you adds the look new return is examples. more one good given that. leading that mentioned, we have growth that we're

So customer cost with the unit and overall both economics pleased in numbers QX. and acquisition, really

David Scharf

maybe know of I about strong mix even a in the players. has #X That's been then next very that just and Got your likely their of Mexico? is detail. the sort it. quarters, in lately at all going impacted change you've geographic sense among kind getting a most the of nature performer a and recently as helpful. also, I -- general and are where very of LatAm as of any look lot there of feel the as growth? you specifically, impact appreciate sort customers is anything of three. the And might change there it mix just interested big that added, India -- as corridor alter But the mix follow-up, for maybe is Mexico impact for growth Philippines, And importantly, -- that over how as remittances walk-in the might for well few tradition traditional

Matt Oppenheimer

Yes. Thanks, David.

geographic that customer contribute or not we're this XXX for until of the the -- future our of perspective, well of the two in And quarter. materially next think to mix punch to reasons, revenue gotten sustainable that not we've really a quarter, out that's, to that investment is a increasing Latin X,XXX in kind expansion. the point as and -- last last Remitly's both I growth. long-term which primarily of the from be a at intentional meaning terms to the think we now well that we exciting we line added contribute like going corridors. years And ago benefiting year I are which quarters whole meaning is planting to because is think, quarter, They're compounding Asia, revenue send come. And revenue geographic those there's just come. years but the corridors well and context over contribute how -- corridors over that area, increased send America, that's mix will new is that's at would they a between said you're Africa the America. growth for is rate perspective, we lot o launched in which host now to to really of just underappreciated, part that when North quarter, base, launches. that's corridors and process corridors from corridors launched new methodological seeds XXX strategy of and high seeing rolling growth receive multiyear we I kind unique think, most of And importantly, that And often, X,XXX from Europe going I this as Asia, a revenue second double-digit

context, increasing seeds what So double-digit Hopefully, line planting geographic that is provides punch the and expansion some is for growth. say And I'd revenue multiyear David. the

David Scharf

Got it. Thanks much, Matt. Understood. so

Operator

you. Thank

William Our next question comes Bob from Blair. with Napoli

You may proceed.

Noah Katz

Remitly there Thank on But is Napoli. guys, tell you, Passbook Bob more quarter. Noah for us Congrats this great a I think any about that great, stands Hey, as Previously, percent Katz bit where color revenue, telling would the on be a the of us is anything it it can for sizing on gave developer some initiative? today. about initiative. but you you for us a on little

Matt Oppenheimer

Great see continue -- we are for Noah. to developers. Yes. excited Remitly about And to you, be we

need we’ve in of that. to the announced But funds have emerging a pipeline to able couple it's As pipeline you a you partnerships disperse of if crypto there in space. be markets, than know, broader much companies a look the that at

our companies our and wide size lot risk including remits often international the the they and a fraud, proposition, And excited interested, Once theme which so about both are And actually range FX complexity the of of types good management, uptick of disbursement a is appreciate a excited businesses of those about the that of as options, well get a network lot scale the includes Once folks again under unique of companies. complexity, value disbursement the sense as complexity of other have pricing. looked of seeing at businesses. we're a payments there.

companies. to way continuing a to that a of specific range partnerships of lot in interest wide and seeing but disciplined from a no area of new announce in types invest So

Noah Katz

my Great. are do too send It expanded any markets they're be newly five that guys know might more you more question. have observations your from fit how in? one in. I answering markets could I entered you to markets throughout but last you stable these early, guys Thanks initial Europe. year for If and into guys new comparing

Matt Oppenheimer

out continuing corridor that think at the to new if same I you look the expansion markets, of Yes, roll Playbook. are we kind

that punch might acquisition can sense the those behaviors. the look in given value markets then that we the value many good indicators and amount at of customers mirror pay so and now, of to that launched lifetime so a active the from of But you a we've willing we is get look they the leading the to of and we're cost. we're customers markets rates at And and customer metrics lifetime estimate pretty when other some kind at of early other look line

question things, getting we terms just also to out than And are so in faster of the similarities markets seeds differences. or at of get future the it more David's to ties earlier growth, so verification acceptance, new rolling and do and verification, those just And experience a planting because pattern bit for those all you many identity matching, there's to identity start payment ways only compliance payments. collect

with still to needs but each some gets it market. done, optimization there's be incremental that faster So

the given we're faster that send matching getting And new markets in is thing that different pattern markets. so among the have do can we those and that probably five notable only would be the scale we that

Noah Katz

again. Congrats you. Thank

Matt Oppenheimer

Noah. Thanks,

Operator

Thank Our Markgraff you. from Mark with question [Operator comes next instructions] KeyBanc.

proceed. You may

Alex Markgraff

speak to nice Hemanth, guys. This Alex nice meet you. Matt, you. to with Hey, Markgraff. is

Just me. from a couple of quick ones

implied the quarter? transaction be some around guidance. on based half you of Can benefit expense? anticipate versus What second what's kind and we about of talk assumed to the kind leverage thinking in about realized second of seen should the First, the what was

Hemanth Munipalli

Yes, level there welcome piece. of and thanks the margin question, variability for we out, for as well. I'd we say expenses the is transaction when at some around the look called thanks

improvements We fraud technology, on side the of things, using continued making cetera. are et

how stable. continued is that So be current same And level but margins expectation expectation the around of relatively for in balance to for year. mostly we improvements, the we -- the can make built but progress is at the the

Alex Markgraff

Great. I one appreciate for then, And detail the maybe there. Matt, extra you.

comments your terms if I that, mind this were I when complementary around thinking missed detail last some just expanding about in you but perhaps the products. Passbook? of change kind your we how year Just of on apologize about on narrowing focus would time versus has speaking

Matt Oppenheimer

our think offer was the happy products I'm up used which the And ones you the on customers, very And about broader absolutely. picked can that word you complementary, we intentionally. that Yes, I Yes. think when the add relationship, they customer increase believe we up and in the products complementary the remittances. form to rates, will we show increase and where most should deepen value via is active which of and engagement can

the should but a in in that, terms deepen broadly problems adjacent space. now to in long-term products more rapidly them with able with future and the remittance million customers X.X we that that about growing to relationship share that remittances customers to that forward being in and the are looking relationship to establish of as launch you, there's Passbook value us And with think, expect to obviously, think aspect other more so to store I

Alex Markgraff

you. Understood. Thank

Operator

Thank for questions. you. One moment

from with comes question Ramsey Barclays. next Our El-Assal

proceed. You may

please your is line the unmute. to Oppenheimer for closing remarks. turn like to I'd on Matt call If mute, back now

Matt Oppenheimer

so Thanks much, Great. operator.

-- for thoughtful all joining today. So you for and the thank questions and

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And sharing we Remitly to and are Bibi important progress very and continue Remitly we execute to XXXX our forward vision. as thank beyond very family on others. So and our and using we to her for look about recommending excited

Operator

This participating. concludes you call. Thank conference for you. Thank today’s

disconnect. may You now

Remitly Global (RELY) 6 Aug 222022 Q2 Earnings call transcript