0001782170FALSE00017821702024-07-312024-07-31

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
  
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 31, 2024
 
REMITLY GLOBAL, INC.
(Exact Name of Registrant as Specified in Its Charter)
  
Delaware001-4082283-2301143
(State or Other Jurisdiction
of Incorporation)		(Commission File Number)(IRS Employer
Identification No.)
1111 Third Avenue, Suite 2100
Seattle, WA 98101
(Address of Principal Executive Offices and Zip Code)
(888) 736-4859
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Trading Symbol(s): Name of each exchange on which registered:
 Common Stock, par value $0.0001 per share RELY NASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 
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Item 2.02    Results of Operations and Financial Condition.
On July 31, 2024, Remitly Global, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.
Item 7.01   Regulation FD Disclosure.
On July 31, 2024, the Company provided an investor presentation that will be made available on the investor relations section of the Company’s website at https://ir.remitly.com/. The investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in Items 2.02 and 7.01 of this Current Report, including the accompanying Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Items 2.02 and 7.01 of this Current Report, including the accompanying Exhibit 99.1 and Exhibit 99.2, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing.
Item 9.01    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit No.Description
99.1 
99.2 
104 Cover page interactive data file (embedded with the inline XBRL document)

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Remitly Global, Inc.
  
Date: July 31, 2024
By:
/s/ Hemanth Munipalli
Hemanth Munipalli
Chief Financial Officer
(Principal Financial Officer)
Date: July 31, 2024
By:/s/ Gail Miller
Gail Miller
Chief Accounting Officer
(Principal Accounting Officer)
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remitly-horizontalxbluea.jpg
Remitly Reports Second Quarter 2024 Results
Active customers up 36% year over year
Revenue up 31% year over year
Net loss improved 36% year over year; Adjusted EBITDA up 23% year over year

SEATTLE, WA / July 31, 2024 / GlobeNewswire / - Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the second quarter ended June 30, 2024.
“We are pleased with our second quarter performance as our product experience delights both new and existing customers,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “Our differentiated positioning, focus on building long-term customer trust, and our increasing global scale enabled these strong results. Looking ahead, we are pleased to raise our 2024 outlook for revenue and Adjusted EBITDA.”
Second Quarter 2024 Highlights and Key Operating Data
(All comparisons relative to the second quarter of 2023)
•Active customers increased to 6.9 million, from 5.0 million, up 36%.
•Send volume increased to $13.2 billion, from $9.6 billion, up 38%.
•Revenue totaled $306.4 million, compared to $234.0 million, up 31%.
•Net loss was $12.1 million, compared to $18.9 million, an improvement of 36%.
•Adjusted EBITDA was $25.1 million, compared to $20.4 million, up 23%.
2024 Financial Outlook
For fiscal year 2024, Remitly currently expects:
•Total revenue in the range of $1,230 million to $1,250 million, representing a growth rate of 30% to 32% year over year. This outlook reflects an increase at the midpoint from our prior revenue outlook in the range of $1,225 million to $1,250 million.
•To remain in a GAAP net loss position for 2024 and for Adjusted EBITDA to be in the range of $90 million to $100 million. This outlook reflects an increase from our prior Adjusted EBITDA outlook in the range of $85 million and $95 million.
Reconciliation of GAAP to Non-GAAP Financial Measures
A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes and stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.
Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings.
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Webcast Information
Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, July 31, 2024 to discuss its second quarter 2024 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event.
We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial Measures
Some of the financial information and data contained in this earnings release, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”).
We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.
We calculate Adjusted EBITDA as net loss adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, and (vii) certain acquisition, integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iii) certain acquisition, integration, restructuring, and other costs.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, including our fiscal year 2024 financial outlook, including forecasted fiscal year 2024 revenue and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, market growth, our market position and potential market opportunities, and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our ability to successfully execute our business and growth strategy, our ability to achieve and maintain future profitability, our ability to further penetrate our existing customer base and expand our customer base in existing and new corridors, our ability to expand into broader financial services, our ability to expand internationally, the effects of seasonal trends on our results of operations, the current inflationary environment, our expectations concerning relationships with third parties, including strategic, banking, and disbursement partners, our ability to obtain, maintain, protect, and enhance our intellectual property and other proprietary rights, our ability to maintain the security and availability of our solutions, the success of any acquisitions or investments that we make, our ability to compete effectively, our ability to stay in compliance with applicable laws and regulations, our ability to buy foreign currency at generally advantageous rates, and the effects of macroeconomic and geopolitical conditions, including regulatory changes, on our customers and business operations. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our quarterly report on Form 10-Q for the quarter ended June 30, 2024 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
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About Remitly
Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.





Contacts

Media:
Kendall Sadler
kendall@remitly.com

Investor Relations:
Stephen Shulstein
stephens@remitly.com
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(unaudited)

Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except share and per share data)2024202320242023
Revenue$306,423 $234,033 $575,541 $437,898 
Costs and expenses
Transaction expenses(1)
107,780 80,187 197,661 154,253 
Customer support and operations(1)
19,999 21,483 40,118 41,414 
Marketing(1)
77,056 53,600 145,070 97,723 
Technology and development(1)
67,554 54,309 130,760 103,685 
General and administrative(1)
45,889 39,490 90,062 80,898 
Depreciation and amortization3,907 3,187 7,585 6,216 
Total costs and expenses322,185 252,256 611,256 484,189 
Loss from operations(15,762)(18,223)(35,715)(46,291)
Interest income1,942 1,368 4,168 3,392 
Interest expense(745)(592)(1,514)(981)
Other income (expense), net5,764 (1,546)4,178 (3,057)
Loss before provision (benefit) for income taxes
(8,801)(18,993)(28,883)(46,937)
Provision (benefit) for income taxes
3,290 (143)4,288 227 
Net loss
$(12,091)$(18,850)$(33,171)$(47,164)
Net loss per share attributable to common stockholders:
Basic and diluted$(0.06)$(0.11)$(0.17)$(0.27)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted193,452,628 179,076,496 191,650,713 177,105,720 
(1) Exclusive of depreciation and amortization, shown separately.

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REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)

June 30,December 31,
(in thousands)20242023
Assets
Current assets
Cash and cash equivalents$185,187 $323,710 
Disbursement prefunding150,710 195,848 
Customer funds receivable, net461,797 379,417 
Prepaid expenses and other current assets42,860 33,143 
Total current assets840,554 932,118 
Property and equipment, net22,178 16,010 
Operating lease right-of-use assets11,905 9,525 
Goodwill54,940 54,940 
Intangible assets, net14,212 16,642 
Other noncurrent assets, net6,404 7,071 
Total assets$950,193 $1,036,306 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable$20,926 $35,051 
Customer liabilities166,840 177,473 
Short-term debt2,394 2,481 
Accrued expenses and other current liabilities145,451 145,802 
Operating lease liabilities6,235 6,032 
Total current liabilities341,846 366,839 
Operating lease liabilities, noncurrent6,189 4,477 
Long-term debt15,000 130,000 
Other noncurrent liabilities8,256 5,653 
Total liabilities371,291 506,969 
Commitments and contingencies
Stockholders’ equity
Common stock20 19 
Additional paid-in capital1,103,760 1,020,286 
Accumulated other comprehensive (loss) income(404)335 
Accumulated deficit(524,474)(491,303)
Total stockholders’ equity578,902 529,337 
Total liabilities and stockholders’ equity$950,193 $1,036,306 
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended June 30,
(in thousands)20242023
Cash flows from operating activities
Net loss$(33,171)$(47,164)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization7,585 6,216 
Stock-based compensation expense, net71,245 64,434 
Other195 2,203 
Changes in operating assets and liabilities:
Disbursement prefunding45,138 (117,870)
Customer funds receivable(82,079)54,245 
Prepaid expenses and other assets(7,237)(10,344)
Operating lease right-of-use assets2,895 2,434 
Accounts payable(14,041)10,180 
Customer liabilities(10,701)(12,477)
Accrued expenses and other liabilities15,621 (4,247)
Operating lease liabilities(3,359)(1,806)
Net cash used in operating activities(7,909)(54,196)
Cash flows from investing activities
Purchases of property and equipment(2,076)(1,566)
Capitalized internal-use software costs(6,494)(2,344)
Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash— (40,933)
Net cash used in investing activities(8,570)(44,843)
Cash flows from financing activities
Proceeds from exercise of stock options4,194 8,333 
Proceeds from issuance of common stock in connection with ESPP(1)
5,004 2,729 
Proceeds from revolving credit facility borrowings570,000 334,000 
Repayments of revolving credit facility borrowings(685,000)(300,000)
Taxes paid related to net share settlement of equity awards(2,568)(2,111)
Cash paid for settlement of amounts previously held back for acquisition consideration
(10,261)— 
Repayment of assumed indebtedness— (17,068)
Net cash (used in) provided by financing activities(118,631)25,883 
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash(1,229)663 
Net decrease in cash, cash equivalents, and restricted cash(136,339)(72,493)
Cash, cash equivalents, and restricted cash at beginning of period325,029 300,734 
Cash, cash equivalents, and restricted cash at end of period$188,690 $228,241 
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents$185,187 $227,507 
Restricted cash included in prepaid expenses and other current assets2,693 680 
Restricted cash included in other noncurrent assets, net810 54 
Total cash, cash equivalents, and restricted cash$188,690 $228,241 
(1) Beginning with the fourth quarter of 2023, the Company changed the presentation of shares purchased under the Employee Stock Purchase Plan ("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 six months ended June 30, 2023.


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REMITLY GLOBAL, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)

Reconciliation of net loss to Adjusted EBITDA:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Net loss$(12,091)$(18,850)$(33,171)$(47,164)
Add:
Interest income, net
(1,197)(776)(2,654)(2,411)
Provision (benefit) for income taxes
3,290 (143)4,288 227 
Depreciation and amortization3,907 3,187 7,585 6,216 
Foreign exchange (gain) loss
(5,962)1,482 (4,393)2,987 
Stock-based compensation expense, net37,157 35,200 71,245 64,434 
Acquisition, integration, restructuring, and other costs(1)
— 316 1,468 1,489 
Adjusted EBITDA$25,104 $20,416 $44,368 $25,778 
(1) Acquisition, integration, restructuring, and other costs for the six months ended June 30, 2024 consisted primarily of $0.8 million in restructuring charges incurred, $0.5 million of non-recurring legal charges, and $0.2 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire (O.S.G.) Research and Development Ltd. ("Rewire"). Acquisition, integration, restructuring, and other costs for the three months ended June 30, 2023 consisted primarily of $0.2 million related to the change in the fair value of the holdback liability. Acquisition, integration, restructuring, and other costs for the six months ended June 30, 2023 consisted primarily of $1.0 million related to the change in the fair value of the holdback liability and $0.5 million of expenses incurred in connection with the acquisition and integration of Rewire.
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Reconciliation of operating expenses to non-GAAP operating expenses:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Customer support and operations$19,999 $21,483 $40,118 $41,414 
Excluding: Stock-based compensation expense, net259 419 612 624 
Excluding: Acquisition, integration, restructuring, and other costs
— — 758 — 
Non-GAAP customer support and operations$19,740 $21,064 $38,748 $40,790 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Marketing$77,056 $53,600 $145,070 $97,723 
Excluding: Stock-based compensation expense, net4,521 4,727 8,500 7,710 
Non-GAAP marketing$72,535 $48,873 $136,570 $90,013 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Technology and development$67,554 $54,309 $130,760 $103,685 
Excluding: Stock-based compensation expense, net20,354 18,588 39,981 35,219 
Non-GAAP technology and development$47,200 $35,721 $90,779 $68,466 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
General and administrative$45,889 $39,490 $90,062 $80,898 
Excluding: Stock-based compensation expense, net12,023 11,466 22,152 20,881 
Excluding: Acquisition, integration, restructuring, and other costs
— 316 710 1,489 
Non-GAAP general and administrative$33,866 $27,708 $67,200 $58,528 
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July 2024 / © 2024 Remitly Inc. 1 Investor Presentation Second Quarter 2024 Earnings July 31, 2024

 
July 2024 / © 2024 Remitly Inc. 2 Disclosures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, including our fiscal year 2024 financial outlook, forecasted fiscal year 2024 revenue and Adjusted EBITDA, seasonality in customer activity, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, market growth, our market position and potential market opportunities, and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, without limitation, risks and uncertainties related to: our ability to successfully execute our business and growth strategy, our ability to achieve and maintain future profitability, our ability to further penetrate our existing customer base and expand our customer base in existing and new corridors, our ability to expand into broader financial services, our ability to expand internationally, the effects of seasonal trends on our results of operations, the current inflationary environment, our expectations concerning relationships with third parties, including strategic, banking and disbursement partners, our ability to obtain, maintain, protect, and enhance our intellectual property and other proprietary rights, our ability to maintain the security and availability of our solutions, the success of any acquisitions or investments that we make, our ability to compete effectively, our ability to stay in compliance with applicable laws and regulations, our ability to buy foreign currency at generally advantageous rates, and the effects of macroeconomic and geopolitical conditions, including regulatory changes, on our customers and business operations. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results are included in our quarterly report on Form 10-Q for the quarter ended June 30, 2024 and in our annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC, which are available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. The forward-looking statements in this presentation speak only as of the date of this presentation and except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. The guidance in this presentation is only effective as of the date given, July 31, 2024, and will not be updated or affirmed unless and until we publicly announce updated or affirmed guidance. Distribution of or reference to this deck following July 31, 2024 does not constitute re-affirming guidance by Remitly. Non-GAAP Financial Measures A reconciliation of GAAP to non-GAAP financial measures has been provided in the Appendix included in this presentation. An explanation of these measures is also included in the Appendix within this presentation under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this presentation because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include but are not limited to income taxes and stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.

 
July 2024 / © 2024 Remitly Inc. 2Q Strategic Overview 3 Matt Oppenheimer Co-Founder & CEO

 
July 2024 / © 2024 Remitly Inc. Localized marketing at attractive unit economics Unlock incremental customers and geographies Delight customers with fast, reliable and seamless experience Deepen customer relationships 4 1. Source: FXC Intelligence 2. Calculated using trailing twelve month send volume as of June 30, 2024 Consistent strategy to drive near and long-term growth and high returns Consumer Cross-Border TAM ~$1.8t1 Current Remitly Share2 ~2.5% 1

 
July 2024 / © 2024 Remitly Inc. 2Q24 Revenue $306m 31% Y/Y — 2Q24 Profitability ($12m) GAAP Net Loss $25m Adjusted EBITDA* 5 *Adjusted EBITDA is a non-GAAP measure. Please see reconciliation of non-GAAP measures to the most comparable GAAP measures in the Appendix. Second quarter results above expectations Vision Transform lives with trusted financial services that transcend borders

 
July 2024 / © 2024 Remitly Inc. 6 Quarterly Active Customers (thousands) Delivered strong quarterly active customer growth 5,033 +36% YoY 5,409 Record number of new customers Increasing customer engagement 5,911 1.8m increase 6,209 6,851 Predictable and durable customer behavior

 
July 2024 / © 2024 Remitly Inc. 7 1. Remitly internal data for 2Q 2024. 2. Disbursement speed reflects the time between when Remitly has the customer funds and when the funds are successfully disbursed (e.g., completed or available for pickup). * Please see reconciliation of non-GAAP measures to the most comparable GAAP measures in the appendix. Deep focus on end-to-end experience drives customer growth and lowers costs >90% Customer transactions disbursed in less than an hour1,2 >95% Transactions without customer support contact1 260 bps YoY 2Q24 non-GAAP customer support expense* as a % of revenue Focus areas across transaction lifecycle ● AI-driven virtual assistant ● Tailored onboarding for different customer needs—launched seafarer experience ● Additional lower cost and convenient pay in options ● Replace static transaction dollar limits with dynamic risk scoring Key outcomes

 
July 2024 / © 2024 Remitly Inc. 8 Record new customers efficiently acquired Deep data insights allow us to optimize CAC with customer lifetime value Increasing number of new customers from unpaid channels Elasticity testing driving incremental efficiencies Global payback 12 months <

 
July 2024 / © 2024 Remitly Inc. 9 2Q Financial Results Hemanth Munipalli CFO

 
July 2024 / © 2024 Remitly Inc. 2Q — Strong execution Scale 6.9m 36% growth in quarterly active customers over 2Q 2023 $13.2b 38% growth in send volume over 2Q 2023 Revenue $306m 31% growth in revenue over 2Q 2023 10 Profitability ($12m) GAAP Net Loss $25m Adjusted EBITDA* *Adjusted EBITDA is a non-GAAP measure. Please see reconciliation of non-GAAP measures to the most comparable GAAP measures in the Appendix.

 
July 2024 / © 2024 Remitly Inc. 11 Strong Revenue Growth Note: $ in millions. 1) Marketing expense and other operating expenses are non-GAAP measures. Other operating expenses include non-GAAP customer support and operations expense, non-GAAP general and administrative expense and non-GAAP technology and development expense. Please see reconciliation of non-GAAP measures to the most comparable GAAP measures in the Appendix. YoY % Growth 49% 43% 39% 32% 31% Marketing Investments to Drive Growth1 % of Revenue 21% 24% 27% 24% 24% % of Revenue 34% 35% 34% 33% 35% Improve Transaction Expense as a % of Revenue Four key focus areas to drive sustainable, long-term returns Deliver Scale Benefits in Other Opex1 % of Revenue 36% 37% 36% 36% 33%

 
July 2024 / © 2024 Remitly Inc. 2Q24 Year-over-Year Change Performance Drivers Revenue Growth 31% ● Strong existing customer activity ● Record new customers ● Geographic expansion diversifying revenue Transaction Expense as a % of Revenue 90 bps ● Reducing costs across pay in and disbursement network ● Temporary increase in fraud — expect normalization in back half of the year Selected Non-GAAP Operating Expenses as a % of Revenue1 CS 260 bps ● Product improvements driving lower contact rates ● Increasing automation including AI-driven virtual assistant G&A 80 bps ● Continued focus on operational efficiencies 12 Delivering operating efficiencies 1. Operating expenses are non-GAAP measures. Please see reconciliation of non-GAAP measures to the most comparable GAAP measures in the Appendix.

 
July 2024 / © 2024 Remitly Inc. 2024 Outlook Raising revenue and Adjusted EBITDA outlook Key 2024 Assumptions ● Macro and FX environment consistent with 2Q24 ● Predictable and durable active customer trends ● Consistent seasonal patterns ● Third quarter year over year revenue growth of ~32% ● Adjusted EBITDA dollars balanced between third and fourth quarters $1,230m-$1,250m 2024E Revenue 30% to 32% YoY growth — $90m-$100m 2024E Adjusted EBITDA 13 Note: We expect to remain in a GAAP net-loss position in 2024. This guidance is only effective as of the date given, July 31, 2024, and will not be updated or affirmed unless and until we publicly announce updated or affirmed guidance. Distribution or reference of this deck following July 31, 2024 does not constitute re-affirming guidance.

 
July 2024 / © 2024 Remitly Inc. Q & A 14

 
July 2024 / © 2024 Remitly Inc. “ Kyong M. Remitly customer since 2024 Sends money from United States to South KoreaI love Remitly. I have recommended it to a few friends and they love it too. It’s convenient and safe. You can view the current exchange rates in real time and sending funds is right at your fingertips. 15 US image US image South Korea image South Korea image

 
July 2024 / © 2024 Remitly Inc. Appendix 16

 
July 2024 / © 2024 Remitly Inc. Some of the financial information and data contained in this presentation, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this presentation for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP. We calculate Adjusted EBITDA as net loss adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, and (vii) certain acquisition, integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iii) certain acquisition, integration, restructuring, and other costs. We calculate revenue growth on a constant currency basis by translating current period GAAP revenue from foreign currency denominated subsidiary revenue at an exchange rate consistent with the prior period's average monthly rates, and then comparing it to the prior period reported GAAP revenue. Fluctuations in the United States Dollar compared to foreign currency resulted in a decrease to revenue of approximately $0.5 million for the three months ended June 30, 2024, when compared to foreign currency rates in the prior period. On a constant currency basis, revenue would have been up 31% as compared to the same quarter in the prior year. 17 Non-GAAP Financial Measures

 
July 2024 / © 2024 Remitly Inc. Reconciliation of operating expenses to non-GAAP operating expenses (in thousands) 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023 Customer support and operations $19,999 $20,119 $19,917 $21,190 $21,483 Excluding: Stock-based compensation expense, net 259 353 394 386 419 Excluding: Acquisition, integration, restructuring, and other costs - 758 - 749 - Non-GAAP customer support and operations $19,740 $19,008 $19,523 $20,055 $21,064 Marketing $77,056 $68,014 $75,343 $61,351 $53,600 Excluding: Stock-based compensation expense, net 4,521 3,979 3,930 4,525 4,727 Non-GAAP marketing $72,535 $64,035 $71,413 $56,826 $48,873 Technology and development $67,554 $63,206 $59,240 $57,014 $54,309 Excluding: Stock-based compensation expense, net 20,354 19,627 19,920 19,828 18,588 Excluding: Acquisition, integration, restructuring, and other costs - - 700 510 - Non-GAAP technology and development $47,200 $43,579 $38,620 $36,676 $35,721 General and administrative $45,889 $44,173 $48,657 $49,817 $39,490 Excluding: Stock-based compensation expense, net 12,023 10,129 11,716 11,834 11,466 Excluding: Donation of common stock - - - 4,600 - Excluding: Acquisition, integration, restructuring, and other costs - 710 (893) 1,642 316 Non-GAAP general and administrative $33,866 $33,334 $37,834 $31,741 $27,708 18 Non-GAAP Reconciliation

 
July 2024 / © 2024 Remitly Inc. 19 Non-GAAP Reconciliation Net loss ($12,091) ($21,080) ($35,021) ($35,655) ($18,850) Add: Interest income, net (1,197) (1,457) (1,461) (1,223) (776) Provision (Benefit) for income taxes 3,290 998 5,417 258 (143) Depreciation and amortization 3,907 3,678 3,484 3,418 3,187 Foreign exchange loss (gain) (5,962) 1,569 (8) (376) 1,482 Donation of common stock - - - 4,600 - Stock-based compensation expense, net 37,157 34,088 35,960 36,573 35,200 Acquisition, integration, restructuring, and other costs - 1,468 (193) 2,901 316 Adjusted EBITDA $25,104 $19,264 $8,178 $10,496 $20,416 Revenue $306,423 $269,118 $264,758 $241,629 $234,033 Adjusted EBITDA margin 8.2% 7.2% 3.1% 4.3% 8.7% Note: Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. Reconciliation of net loss to Adjusted EBITDA and calculation of Adjusted EBITDA Margin (in thousands, except for percentages) 2Q 2024 1Q 2024 4Q 2023 3Q 2023 2Q 2023

 
July 2024 / © 2024 Remitly Inc. Thank you.

 
v3.24.2
Cover
Jul. 31, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 31, 2024
Entity Registrant Name REMITLY GLOBAL, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-40822
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, par value $0.0001 per share
Trading Symbol RELY
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001782170
Amendment Flag false
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