RELY - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to the Remitly Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.Â I would now like to hand the conference over to your first speaker today, Stephen Shulstein, Vice President of Investor Relations. Please go ahead.

Stephen Shulstein

you. Thank Executive thank Call.Â Joining us today Officer.Â Results me Oppenheimer, which and found and Quarter Remitly's are be and for and can release Co-Founder Earnings Remitly; and are XXXX on Chief the additional you management afternoon, Chief ir.remitly.com. available for joining Fourth Matt Vikas commentary Good Mehta, of in Financial earnings Officer at the slides, call presentation I'd not Investor this are that statements actual that simultaneously will to results Relations limited and we website.Â Before that call statements neither start, results of within promises the forward-looking those financial the to note vary nor Please may cause materially federal involve Remitly's here. to, including, webcast will uncertainties statements from we guarantees securities be like future meaning making you remind and plans.Â These management's laws, on expectations be presented and but and regarding the risks

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

other payroll foreign gain excluding metrics in and EBITDA to We we adjusted as also exclude Beginning restructuring, compensation. integration will related in QX acquisition, These costs EBITDA, exchange from will items compensation, this reference such and non-GAAP the stock-based be loss. XXXX, call. taxes and stock-based or adjusted operating expenses and

taxes contribution result in stock-based which quarter will X% consistency.Â Starting historical a all pledge change context, will will the to being our we third rather in million our year, basis to plan QX we than this the rather be go-forward than this approximately recognized our each periods in alone. related in compensation expense quarterly making This for increments on XXXX.Â We was corresponding reflect practice. of in quarter, prior in payroll and recorded $X.X For update

For non-GAAP directly most to IR our the earnings see comparable to and a metrics, on of to begin. presentation, will financial call available measures the reconciliation over now of the which website.Â And to turn the the GAAP appendix I the earnings release are section Matt please

Matthew Oppenheimer

that everyone, was strong on you, you joining we QX and ended us and today. thrilled Thank XXXX quarter, thanks, an on business. Slide the the exceptional to X. second exceeding record can Stephen, across for I high a we see share loyalty expectations. am as are These EBITDA and our customer increasing for and million scale revenue $XX surpassing own note, quarter, demonstrate adjusted consecutive results With

We are of future redefining the cross-border financial services.

merely we position, not new our are setting are strengthening We standards. industry

while using sent delivering get as much easier, customers X,XXX corridors. growth scale, their just and larger our will The X. customers a the the XXX In saved countries for innovation.Â These structure, of profitability industry in $X sustainable of allowed families digital-first almost reliable, to and savings better Remitly citizens Slide XXXX, in customer trillion long-established challenge more innovations $XX Remitly. than and in experience delivering have X remittance by traditional globe.Â We to fee our our have customers durable the while disrupting we We and active transparent global approach, hundreds a dollars more and way friends shareholders.Â Â Turning more serve million than customers and players market empowering quarterly over with around across for impact a billion to cost-effective customer-centric millions

communities, borders are and transcend Our will our trusted our customers, X I financial blocks with building creates value unpack. lives shareholders. vision to that There services transform vision for audacious to significant that

second, trusted services; borders. lives; transform transcending third, financial First,

became in Over XX% company, better us costs to virtual from drove learning and This XXXX nearly our centricity in and Remitly services benefits year-over-year. driving X financial lives consistently our the ultimate with building with innovated time X.Â Moving while and seamless millions partners She our X.X-star few of start while in can transactions record create was a foreign to service and customer wanted financially She services of prior trusted us added Initially, offer between you experience. and hour those period word approximately Play easy, to support We our consistently, transaction first transaction were moment to customer and she their This business. with where to a our a our contact. in they aggressively started completed she the and which only the allows U.S. our customer customer have get payout our her about profitability.Â Let world-class quarter building don't about talk great need exchange Slide a on she larger a vision, money from learn found just our fast growth with amounts at X.X-star transaction. the time, family.Â Â As reduce initiated can pay-in how and transaction time, terms were as from to volume for time. strong percentage prioritize transaction share a the experience to continuing the insights, block value, happiness to to the offerings and invest have recipient volume These visiting started promised same have aspect the significant to of loss category-leading to is India, and lowest both enter a help a work ratings record initiate and expense diversify marketing dispersed increase deeper shareholders.Â Â With that great for per now a details to a she accounts. through transaction to behavior. more to and her obsessed create had of every improving for operations loyalty investments me they payment time trust, revenue a services the iOS XX% had reduce of over she mouth experience us we transform core new without one scale better innovate, and for source These Store. to on quarterly customer payback operational customer share that, we models and a the clicks where and reinvest send AI support We with experiences million of majority experience customer first or trust is in send looking into an to and we customer-centric systems our her network.Â As customer more and store. efficiencies special a significant in a her nearly was our economies on frequency India complete and use hold XXXX, proceeded losses at the others same years.Â Â As hassle reviews customer QX, to physical in XXXX of improvements data the customer digital experienced these are as a delivery that retention, reliability.Â Â Customers network.Â This savings out than me funds able the sending to approach date XXXX. at every Remitly.Â Â In to new build story evident X.X% deliver with and as Xx strengthen. helped with friends active digital-first helping time.Â We with Her below solution. months. the advantageous And to signs how Remitly, are prices a more over machine some And From a our part have transfer who was their higher transactions, the used we valuable fast in ways CAC and completion, We and to also Scale product gratitude in offerings. as the convenient a speed, customers LTV and joy and they assistant or effects our illustrates as as across how and one number generate we show vision, as quarter independent, allows example.Â Jigasa dramatically in about from App customers. us U.S. of customer less second and allow and With XXXX, we RLTE, not the transaction were of in customer her remain and in from built reviews borders block of In reliable, customer a to of geographically, bring well to and the customers Remitly she we expense convenience, a corridor. rather Let XXXX. their me also tirelessly our moved XX in improve every expand improve XXXX AI secure repeat parents apply to and percentage India positive the expand less did volumes enabled a we trust. Store making who and our fourth grow, rating see and which student possible. customers of experiences. with Customers U.S. higher and that of revenue to birthdays percentage with a to prefer amounts rating small experience led the in and try others, third customer fourth decreased as of A from how are Google one earn sending occasions. time, to the both we transcend drive as excellence all experience of our transaction us terms as revenue X let network experience.Â Similarly, allows business, than the value frictionless million

has revenue US enter enabled as an Canada. world to grow, Our and efficiently corridor outside since us the deliver the expansion new rest the XX% of more to CAGR XXXX of which we in playbook, regions us allows

enabled payment to for expansion, and us bank receiving delivery, full XXX,XXX of direct countries. and provide send cost-efficient As key in cash of accounts African volume X to making integrations key This and high a enabling mobile more enable mobile We with you approximately with with billion and Pesa with in important strong to X, allowing In QX our reach and us options. low integrations and to expanded immediate such and partners, local along quality product who in the and local attractive, than rates, wallets, Wave number is we direct our efficiently with sending on Slide Cash the pay-in pickup strengthened experience. with access reliability.Â Expanding in key geographic and Senegal, now to corridors partners. and control have to of critically funds our speed the X,XXX options by pay-out in customers while we wallets our players increased deeper integrations Wafacash enhancing see Tigo options Direct partnerships rapid especially for an us wallets more our can move mobile Plus part more have allowed are as versatile, availability, needs.Â As partnerships Morocco, fast we is often have and customers. money pay-in with exception growth like TMoney has Togo.Â Additionally, example, Tanzania, partners pay-out specifically,

the an to For Australia, takes bank that funding method existing currently account which launched three days example, provides we in PayTo, process. instant to alternative

pay-in launched We Germany, another in providing also convenient option. Klarna

create with the from differentiates partners for customer to much players cost, convenience provides competitive of to We more customers ability advantage allow allowing experiences pay-in pay-in transactions. experience us and continue for integrations and space. a make pay-out speeds seamless funds These large faster scale especially customers. and broader lower looking visibility to more and progress service more US. at seamless journey, an a selection other in enduring This the payments pay-out at on customer send for is in that the bank-linked our faster for The direct

remain look we steadfast As we vision. XXXX, ahead in on executing to our

We a of with are shortage company growth growth no opportunities.

seamlessly fast service friction. Each reducing and a our new case uniquely whom has more and We and value cases, use unlock can our we to to all further customer new competition, investment our been more money streams, seafarers incremental thus securely will creates transact positioned serve and tremendous. needs The additional money business cases differentiates XXXX micro-businesses, option use are are from personalized system, and of ever-improving risk the TAM, send increases that going send raise owners new growth. senders, enabled reliable response far for and use management serve. from minimal on can a with have ship, to high-amount strength have to by High-amount can including even corridor, customer senders revenue distinct be is risk transfer us home More can driving assessments. Based big year. the seafarers, global platform. of the limits, go we abroad. We given able

our our profitability will net back. full we not looking are looking to be forward RLTE $X of year billion and GAAP We year, first first income

a have this for year. road exciting We map really

We setting longer-term product focused up are success. bets making that us are several on for

say often journey getting we grateful who we I this over to on Vikas. not us.Â Now could in I with As optimistic to here, about opportunities beyond. be everyone the are and am started XXXX more and is just

Vikas Mehta

our more guidance. I XX% as $X.XX a will can quarter the growth margin, year was results customers new our Thank you active $XX.X EBITDA retention adjusted adjusted revenue and of EBITDA quarter. first X.X ahead and and and then customer Slide $XX profitable of quarter everyone. record X.Â We and EBITDA XXXX.Â In acquired year-over-year year-over-year, was XX% revenue was and $XX the fourth delivering once expectations. you, active of EBITDA adjusted number billion was XX% take midpoint Gross quarterly EBITDA in our customers share EBITDA X.XX%, our million grew volume above begin revenue high, million, increased drove revenue see revenue quarter of by X.X%, X-year We year of adjusted up the increased saw on with Fourth with and was both again continued an per nearly over quarter. million outpaced Send volume customer again, XX%, with strong strong Send XX% line initial fourth adjusted quarter driving in up with Full-year outlook good for to last Matt, and driven to expectations. than customer. we margin. afternoon the than another $XXX the delivered XX% million, million, more above record growth a Driving overview $XXX.X XXXX number adjusted billion, was This and per full in $XX.X million. and the full transactions was active trend continued our growth. a active the quarter, rate and of

continues to As delivering our business Matt across highlighted diversify geographies. earlier, growth also while strong

grew grew world's year-over-year. revenue US revenue QX, XX% the rest During XX% of the and

XX% in During compared to XXXX, the XX% nearly world the XXXX. rest revenue full of of year contributed the

as outside the fourth sending diversified customers quarter new the were of acquired than and the Philippines, of to in XX% India. On receipt further countries side, more Mexico, we

focus growth on were $XXX.X our quarter driving percentage million revenue a consistent and were expenses XX.Â Transaction to with the quarter XX.X%, Turning as on fourth Slide profitable of XXXX. of this

Excluding provision million. other were transaction of losses, expenses $XXX.X transaction

and time, year-over-year. of business quarter of model positive losses to was down was for better million share year-over-year. by that LTE at year-over-year percentage as to points, been points, shared quarter, and and and transactions volume continue the in our The success. same pay-in RLTE a of Provision percentage $XXX.X spend to RLT for volume, XX.X%, revenue XX% reflecting we partners. machine continuing mix X see our improved expectations has customers. last an for million, basis dollars more increased this of digital our indicator receive learning as scale. a was increasing unnecessary basis long-term is We XXX friction customers.Â Â As disbursement This improvements our relating risk transaction as $XX.X and was expansion and both trend a business models than than minimized sequentially market and improving we grew of sequentially gains economies

driving Marketing the slowest that, through the customers decelerated We long-term walk quarter focused dollars attract me the to let non-GAAP are on expense spend XX.X% $XX.X was growth XXXX. you as continue first new scale.Â Â With categories. and of growth million and we to specific RLTE year-over-year, since

As marketing $XX.X both drive a spend more percentage profitability. and year-over-year. QX XX.X%, improving customer of revenue, improving it basis on This growth the and durable was a marginal ROI than improvement points quarterly decreased was XXX on XX.X% active of was year-over-year. Marketing in focus spend per to result

as to continuing lap $XX.X years we mouth.Â Â Customer seen and of revenue year-over-year, tougher word of improve the globally, continues differentiate our operations we XXX expect and percentage even we we experience support that a product build million more was have basis and as past trend of our a comps. expense points was improving As brand as X.X%, and over couple

virtual was AI-based and product contact than million points use more rapidly improved serve XXX on satisfaction than as revenue basis rates.Â Â Technology us more points revenue experience was G&A also non-headcount million percentage development improving Technology $XX.X allowed have have hiring expense and rates of rigorous discipline have customer and and assistant year-over-year enabled as customer and basis enabled Our expense improved percentage XX and we agent while new as improved to customer spend. year-over-year. a of lower innovate improvements and cases. maintained by $XX.X investments a

was was tools across a fourth and discipline and of EBITDA combined of more $X.X operating than to all lower the $XX.X categories to also functions a led net drive material help $XX.X quarter efficiency even quarter in as revenue points Net implemented compensation across quarter expense improvement of adjusted We and loss approximately growth, automation XXXX.Â Â Stock-based with additional was XXXX. XXX fourth a AI revenue this million. million the percentage million, basis of million XX.X%, $XX loss compared to efficiencies.Â Â Strong

them 'XX Equity portion to shareholder over I'd long-term is of compensation to philosophy significant spend of a like long-term interest, couple At back-end our We aligned managing new for to and moving approach disciplined nor cash and plans. interest. compensation compensation schedules committed to FY Before do Aligning X-year a employees we to cap a and discussing are do incentivize provide owners base philosophy for investor so. compensation. our salaries a equity like outlook, are bonuses period compensation. annual is disciplined loaded. equity maintain compensation time, incentive and nonequity think minutes vesting total employees not to encourage the same management.Â Â Our with We

We have made stock significant strides dilution. in managing

As reduce XX, helped stock-based for point from decreased you basis of hires, new equity lieu for revenue to including CEO of dilution Slide reduced improvement.Â Â Specific percentage net XX% past XX.X% can Also in X.X% see hiring, to XXXX, years as equity XXXX. cash in XX, XXXX, XXXX giving XXXX have actions, X.X% and in burn in compensation dilution in the XXX X.X% stock awards and new declining in down can on a that from the a see our net XXXX X.X% you to and rate. X rate in on stock burn from Slide disciplined declined

Remitly's annual especially results, we reduce this are to shareholder our and and quarter, not outlook important or macroeconomic, last while moving to should XX. to the related measures continue objectives long-term assume regulatory quarterly will rate expect employee quarterly incentives.Â Â Now It's the This value downward. burn large geopolitical, safeguarding seasonality. net on note volatility with trend that around Slide growth reflect providing guidance. and be to with We disciplined aligning does changes. commitment any Consistent competitive maintaining to These help

in $XXX quarter first $XXX XX% quarter seasonally quarter of are to or major are growth. to as fourth less first the expect of revenue Customers the XXXX, fewer the XX% than million active For there we million holidays.

trends, grow quarterly of comparisons.Â Â If with revenue first customers lapping the further, a In to active outpace active QX addition, for which quarterly Consistent quarter XXXX revenue the line transactions. we modestly, customers Growth leap expected expect volume and higher of in is FY send with by unpack year-over-year both revenue QX growth. XXXX. and send increase recent sequential growth volume we to growth year, is frequency also for growth expect expectations impacts driven we to in

to revenue billion, adjusted in billion growth expect reflects durable the the we $X.XXX reflecting XX%. year, outlook. of full outlook $X.XX confidence between our rate to have and customer the XX% EBITDA we This For a behavior.Â Â Shifting

be We and the million reflects to between This $XX first adjusted I expect EBITDA that $XX in seasonality quarter discussed. the million. outlook of QX revenue just

XXXX, key FY in the in quarter, we partnerships last realized XXXX. processing payment shared we benefit we that lapping are As from

in marketing from quarter, QX XXXX. customer expenses we expect deliver a be per of with remain to As strong full note, and quarter the percentage marketing year lifetime on year-over-year a optimizing we volatile continue expense line can as modestly QX as customer value.Â Â Our Also a focused to expect transaction to result, losses transaction be investments basis. we will quarterly decline in ROI to on active revenue

and rate, adjusted adjusted time, As This and initial an across drive margin a efficiencies XX% XXXX. Â We investment million adjusted investments expect dollars investments many beyond provides burn the same returns sequentially year the expect expect third the expect of adjusted $XXX delivering year, flexibility deliver remittances.Â For to effectively, as expense for to behavior EBITDA EBITDA positive compensation at also operating with GAAP generate expense, to key vision. we EBITDA full quarter while base. Â Earlier, million, positive range improve reminder, starting outlook our repeat in the Matt ramp growth net as the dilution, detail given to net us we to year. resilience our manage between net shared as make income stock-based we representing income of GAAP well to years $XXX the throughout XX%.Â We EBITDA our marketing be our and for full of the

share why this successful in audacious believe vision. Let be we achieving me structural one briefly will reason we

rapidly. a a every of Our business.Â Just vision touches Each slowly rotation our amplifies momentum flywheel, which but framework, performance. builds like powered by flywheel is aspect physical starts

providing This sustainable the profitability. cost growth to drive ease our And company. prices customer XXXX, essence, fair keeps selection, the we customer faster effect spinning. Â We increasing on of flywheel have along as and public pricing actions. can and we some improving more more In than IPO experiences Remitly flywheel call use, Remitly doubled structure. Â We see our a leads to which EBITDA. our remittances virtuous innovation. annual Slide the customer Innovation to flywheel better you lower further rest on to revenue do from how as additional delightful driving in revenue improves in we in and first and more flywheel framework Thanks this with the since the closing, Everything than drives we flywheel reinvest earnings both pass our making introduced of tripled experience, are this, pleased our cycle. adjusted LTE and durable engagement. volumes, a that dollars. We customers XX better prices, improves delivered with service see this You advantage. Â In competitive higher-than-expected it long-term a

We I transcend the through focus are to payments deliver services financial term vision the making has questions. transform targeted investments cycles and results.Â With cross-border that customers with resilience for to open borders. Â Our and lives positioned long-term Operator? that, sustainable up the economic for will on on long Matt call to trusted our your of us execute

Operator

first line Schmidt Andrew of [Operator of comes the from Instructions]Â And Citigroup. our question

Andrew Schmidt

and here. results on of wanted the spend. the on I first GAAP to year full Congrats ask profitability marketing

per I versus paid? should the then think quarter? full help you in obviously, in of maybe you caught that the as trend And ads level you there. high something higher commented Are how spend the the year? terms profile the organic expect a that organic to about the the quarterly of in marketing fourth ads seeing Are active, comping first levels prior to going quarter that, leverage comment But back but in we quarter, should for good we 'XX, said, obviously, year. seeing So you

Vikas Mehta

Thanks, Andrew.

I'd I the First big team say to gratitude pleased all, an to start really a of results, want with that for with outstanding Remitly and are we our performance.

our and results, This the specifically, about on our all that I improves friction think saw, XXX experience XX% because work way that drive while leveraging as spend great points customers goes product our and new the campaigns and ROI that would benefits work well anything in being I done you reduce say as driving record of acquisitions. Â So declining drive all results clearly improvements able as product we word basis on on in we to the for marketing was drives and the would of in that the improving with the have marketing overall, the ROI. QX that work marketing back excellent the from per you QAU a ROI. a received Matt, has to right the customer have As comment organic on add? landing mouth. Â And been way reflected

Matthew Oppenheimer

excited a X.X organic, us Google their found Yes. experience to I'd Rina about for and one, strategically is integrated on we they like their am a in I'd and Philippines, is reviews we marketing X Remitly, of fuel else experience.Â And about out marketing campaign just points the million partnered Play your and that TFC some all about the with have respectively. our customer gratitude example And That's you sophisticated with is stars, channel, middle and we that And all as QX.Â One funnel give flywheel the shared marketing, the I they million to I reviews, with at and same someone deep in review. Â And customer-centric and great the X proactively Andrew, iOS Aligned think of that you our campaigns total the marketing. comes is further. Â So and add with from of Hahn, first everything our an that only numbers foundational, I incredibly their overall the from on everything shared approach. side, growth, X.X million marketing million app who the million Filipino said, it about campaign, million inorganic with then X given seeing even reviews, really efficiency folks flywheel that about fuels trusted point the that the point where or over X that today, communities we're that so I'll creative with combined example, of you great why agree our around with customers look have that and at Vikas. part X about lower in talking team when that to and a customers I'd the is both love increasingly, executed growth CMO, if Remitly make example do are, using excited our spinning. second Jigasa, And including really that as to and how just products efficiency then loved creative, both very foundation,

Vikas Mehta

I'll point And one add last with here.

that question well around full we the the the 'XX the on I'd full year. expect QX as say strength seen continue marginal focus in and as ROI, QX FY year. we have both to given leverage as as well Your would

Operator

next question the Andrew of Wells of line comes from Fargo. Bauch Our

Unknown Analyst

on It we on for transaction of think customer It's the the and than should expect Griffin the year? quarter. Can given throughout much can frequency the greater about was from increases Andrew. expected you you looks how the the expand ultimately maybe here where of in some like stronger that just per What's volume driving drivers go that? modest

Vikas Mehta

grew revenue metric it right the at look picked you growth, that say there. XX%. QX, And our I'd you. you if Thank for

send growth, If increasing you of But pointed frequency saw importantly, growth, a it's highest last per have of just QX QX. And per of you active is continuing able a years, QAU X.X%, seen driving we strength active in the to are further, as X in trend that the what we drive the we what was is customers, which that growth that was really gross And most take saw send also engagement this is saw of out, XX%. function transactions. we it dissect the and grew that quality rate. and with the in this the we

For in we a example, of per customer. had active quarter, this number transactions record

loyalty. So as clearly, convenience, feel is is customers we of with we offer simplicity, well the that building the the as our trust reliability platform that strength resonating and

Operator

El-Assal Barclays. Our next from comes question Ramsey of the line of

Allison Gelman

for Allison on Ramsey.

changes the So any regulatory macro the guidance full doesn't in I for include changes. the or understood that any year

how on your be share political to currently you able guys it So most just immigration viewing you comes are view specifically? that the in context, environment to when up-to-date would

Matthew Oppenheimer

Thanks, Allison. question. Yes. Great

business out decade-plus, over zoom macro-political has I regulatory the resilient been various through really changes. last As our

additional combined give diversification, our And a of all significant for profile, I that use our opportunities with provide cases on and the confidence. growth call, talked lot that, customer increasing about me so,

for about monitor So it unpack any I good areas those headed. to really revenue confident of But XXXX happy feel where closely. feel we're and we you, overall, the visibility but our of about

Vikas Mehta

FY 'XX for us just And example, gives majority prior was before, a have of is that a that add as lot customers. we revenue, of confidence period I'd from what shared significant

or include that confidence the macro environment, you of on cohort come not the regulatory the our So changes At of us strength durability does same this pointed, the large the time, as geopolitical. gives strength in and the guide. could

Operator

the Our line next question comes from of Citizens. of Scharf David

Unknown Analyst

bit This the of David. is down piece for little Zach on want a business. I to margin drill into the

be. ceiling And the of what's So for of first kind sense margin wanted 'XX. margin XH that's for the sense where wanted could 'XX is to to a then also see driving of guide a get below the there if

Vikas Mehta

Zach. Thanks, Yes.

say the all, growth and really with the performance. And on I'd pleased strong focus most of First that profitability. importantly,

As EBITDA QX, million. about if seen just spades. think $XX our by to you you guidance in that exceed And we by million and revenue have highlighted, guidance able were we $XX our

out progress happy an assumption 'XX, profitability we seen on have the you equation.Â Â As very from growth overall, the really few with that plus a FY I'll just about think things perspective. So call

RLTE from percentage especially comps, 'XX. we big is a share are against FY because we that partnership lapping we highlight I'd benefits believe are The that of first tough against had a from we as an throughout comping revenue,

dollars with line in remain RLT growth. would growth, revenue revenue it in growing line with the So

I modestly earlier, as we Secondly, to expect marketing leverage. shared

great term excited are midpoint, which about margin. comps Beyond we balancing that, as investing lot that's start well the are in we of we profitability, to have XX% and as million at the the are with that will of where technology of we seen we as invest growth, And long continue and we few business. translates in are development overall, to up bets. areas the foundation CSNO EBITDA, guide make leverage G&A there.Â Â So feel really product against tough years, past a balancing we over a long-term to $XXX plus and

Matthew Oppenheimer

AI into margin one And that. how much in control of point the much terms as all how this at the only of well well is add serve OpEx create -- side-by-sides calls look as the trip always, and I of of business, excited of efficiency and we're things and is customer more just the our took with and overall various a example me do of our an QX best agents how highest as marketing their what efficiently, are of focusing been agree I was use I've at ultimately potential when unique in that by I AI. and really the when is overall to that to things in I'll and look skills Yes, actively strategic do experience year they on as exciting. leveraging better when growth. time is, excites more And to like the CS, with customers I and customer really And is one, seeing as Philippines it very is get to effectively leveraging and I a

overall just potential there So and excited opportunities the there side. think the the are expense across board on I about

Operator

line of next Hone question Our from comes of Rufus the BMO.

Rufus Hone

is of about asking you're over I'm about to come I'm that wanted margin thinking you FX just back expansion thoughts way. to guess hear curious for on the the margin how then sort maybe impacting annual And And to XXX expansion, in the XXXX. XXXX guidance. of a curious also tailwind a good pace EBITDA I different quarter. if curious whether medium bps just a for term? And slightly your the this was I FX

Vikas Mehta

Yes. Rufus, question. thank Great you.

about As and first, the just with FX, set QX guide. I I'll foundation for start the think that help XXXX will

saw strength which as corridors. essentially headwinds tailwinds FX the as from We we perspective, U.S. other. well which offsetting QX, in USD, in helped were saw both each So

the offsetting. dollar as was which saw it other Canadian was rest well as hand, we On both headwind. the of weaker, And world overall, a being currencies

go, of really, the that earlier, as power that. So no portfolio effect diversification of as goes net is which that Matt well we what to of power back think just the again And FX and know guide, which XXXX FY there was for a to think don't us will from better is we about prudence assume we as way have.Â Â So movements. we it shared perspective, not FX

stance. of any of growth does the not year change when material guide course in that the we FX your we'll become on of the part market, this and movements to are keep opportunities. up going just see as on massive I'd second margin, we see no that shortage back said include of than So over and And course, can an as the we commentary, trajectory.Â Â And overall we the EBITDA shape Matt's X% you $X trillion sign market, updated of any question And the think say of Matt earlier, there's a about size we for. projects less that

long-term setup, with sure us up for as that as So in tech to well marketing both set investing make that we success. want dev are to we wisely, and

Operator

Blair. the from line comes of question of next Kennedy Our Chris William

Cristopher Kennedy

and color Can today you just to how leverage you micro do on capture opportunity? results. more that platform little opportunity?Â What's business Great the a current landscape your the give bit

Matthew Oppenheimer

glad It's about you Cris. from that always Thanks, hear great to asked I'm you. And Yes. that.

customers Philippines. sense bookkeeping customer, born I really I you cost the the there. and small, that mentioned, built She and high-dollar as CPA not well-served seafarers, you Mary we've one businesses And now that records. specializes a we've background U.S.-based is a segment. Â But Mary And and there's platform that we in to mentioned senders. raised of businesses, extensibility there's of reducing a self-employed and company own an in unique I'll helping moved And professional, built, that's that serve. then, medium, in weave think me. kind opportunity micro at in, runs to of was to when bookkeeping their which give the think is small a story a her And license, I you serve XXXX.Â With who mentioned our for Mary, excites just platform California the large look accounting to I businesses the of in friction manage type a micro-businesses,

improved a able the like She great we're a scale her. in are and like lot in XXXX, there be has more I her. Â So, of went pays adapted hands, and us, Philippines. to our team there, she out how team we've she contractors them, customers platform. Â And with up and I of to serve our effectiveness And using lot she that there a went been to efficiency customers for example excited So, built in effectively. and drawn opportunity about who built but my signed product to Remitly. in our in I think their on solution a trained Mary about and was the think talk Remitly more own growing Remitly because of own my businesses, platform there's the how one of shared extension of she 'XX XX with extensibility to trains she operations, the beyond. of it's And micro and Philippines, I

Operator

Darrin Our Wolfe line of next Research. of Peller question comes from the

Darrin Peller

mentioned a financial question is? just financial I in on a the that just just Circle, the And then which management and be accounts a than why -- and 'XX. a see other risk line similar bit around it AI. Can margin in quarter. so, making words, progress update we altogether, have quick of quick little just better couldn't it that ask to via in see right job with broader where will margins. And you would -- more just revenues, standpoint, I give gross context is would family it grow think any I services, us on it from I'll I'm In leverage Nice guess. Â And about curious Maybe now you around you're follow-up. Remitly expect gross

that done far. on so have a great job You guys

So what could to drive that? the upside

Matthew Oppenheimer

the I'm glad first second. it And start then I'll Vikas the for and with question, I'll asked. Darrin. Thanks, you turn Yes, over to

where I I international needs.Â That's to transforming unpacked my their optimistic trusted I we live it services really other with of that And think intersection that And lives is customers' about can that around remarks, comes it transcend our that. when in but needs win borders. to remain and add I pre-prepared life financial features. an financial think it's services that vision

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to deepen explore whether we're remain the continuing is services thoughtful, but our adding way to so, and that with excited relationships about existing we're adjacencies disciplined our platform, to currencies new to way we've helping creating types. I opportunity to from store as leverage And going additional all liquidity the transact and customers reflection and customers the to additional about of the all that excited And them think in unique customer of platform a well businesses, to as is built mentioned seafarers. what's come I adding and micro there. a existing

Vikas Mehta

as a on up second of which question, revenue. your follow RLTE let And around me was the percentage

is just the of against 'XX. FY quarter I'd in thing that first we fourth a signed we the a from So, say perspective, lapping are that partnership technical

we that. year, through benefit had coming the So, for most of last

moved base. Â The that's in say the business, about then We think as operational we XX%. we time, percentage the some step were we just was this From XX%, for revenue. over thing there, you 'XX, changes efficiencies RLTE at the 'XX, FY to came to XX%. in already see a back of of if I'd is So again, go second we where as XX% just happening and

So are model, are want we to have winning creating in of thing we is bottom we very much to line. making drive goes trust, pricing progress here. the sure This over want and to with and creating our made last that that much would back to customers to we say better a how of trust we here back clearly, I how driving of lot pass it efficiencies. Â The a cognizant always terms

Operator

AlexÂ MarkgraffÂ of comes next Our question Instructions] the line [Operator from of KBC.

Alexander Markgraff

Maybe, revenue the Vikas, on outlook. just one 'XX

modestly better you basis had what I think a call. preliminary to on last than guided

or how were talked you to I for activities or adds net quarter. similar quarterly the them think adds about had fourth pretty gross

'XX add 'XX the that, between and shared just on fold And the expectations delta last if you get be into some gross So expectations, retention would maybe helpful. there that your call. had could updated outlook for you just thoughts and what

Vikas Mehta

Thanks, Alex. question. a great That's

that me a little Let bit. unpack

me just with the line. start let So top

midpoint of each $X.XX we we QX that XX.X% a shape are guided, guide, will year, growth the terms that think $X.XXX A XX.X% with expecting as which our where total to the we the in want to of to approximately from key comes is midpoint I the XX.X% aspect be 'XX starting growth. perspective, FY billion at billion, moderating at we So, shared share year guide. with sequentially.Â So, quarter growth ending around revenue

in going perspective, there, from rate factor.Â The in say important beyond, per be seen increase we rate. trends one key growth have we'll we gross equation, transactions. finally, I been, growth.Â Secondly, question, take trends of similar of to volume to QX QAU perspective, very I'd second, the I what in that's times have see feel spend growth. And if continued So which again, the increasing there take unpack QAU with growth revenue answered optimistic, and modest is user a time earlier, And your per all, and driven QX. those that the active QAU spend a growth revenue outpacing we remain will from frequency line of by first quarterly

glad important, think we that's because you quarterly users. is and analysts aspect through the feel you how So that other the understand behind scenes, the on endure to will active trend, appreciate we your which year. Â The help which asked other question with regards to wanted I I'm

measured. are strongly on how is the the is which good noise these especially not there's align a to lot we is of believe basis.Â The calculated patterns, way a not that net metric, due spending reason of a with may adds, they that aspects One are quarterly

and focus overall, definitely LTE that we key focus add factor is for looking to we I'd expansion remains That where that. Â So dollars, So, confident we that means FY the continue setup of say, 'XX. North on about at very the success our growth us misleading. also the net on QAUs, but have for

started. getting to start. as just And a says, are We off we Matt are good

excited. So very

Operator

Matt for closing This now turn to concludes the Oppenheimer question-and-answer it to like remarks. session. I would

Matthew Oppenheimer

for operator. thank of this as in start. that all you starting investors the her really journey questions. thousands me. Â Lastly, being vision most working transcend and sharing experience to of to results we her and and for to our I'll apart vision to QX progress and with We Thanks, them. And reliably and Remitly. She XXXX her the on want really haven't folks our a with to But for amazing financial plus." with for customers, line, the the to about get thoughtful I well are thank who friends trusting on on appreciate you Remitly analysts as services partnership. forward Great. us. Remitly. exceptional as said, to of lives off borders. that money excited no home we trusted execute for thank transforming seamlessly. Â We thanks her our are just the your the specifically, the Jigasa genuinely Remitly from on loyalty used intuitive to said opportunities then want to anything ahead strong thank continue we importantly, look the "I with few thank first deliver this It's a family on globe tirelessly and around to about since And Vikas you And I deliver appreciate who All Heartfelt our had team, so, very thank we XXXX

Operator

This Thank program. does conclude participation the you in your for conference. today's

now may disconnect. You

Remitly Global (RELY) 19 Feb 252024 Q4 Earnings call transcript