Remitly Global, Inc. Q3 FY2024 earnings call

Key Points

• Matt highlighted Q3 was exceptionally strong with exceeding top and bottom line expectations. They acquired a record number of new customers, revenue growth was 39%, and adjusted EBITDA was $46.7 million with a 14% margin.
• Market opportunity: Large addressable market for consumer cross-border payments (~$2 trillion) with only ~3% penetration. Send volume grew over 40% in Q3, outpacing market growth.
• Customer focus: Cater to distinct needs of nearly 300 million people, creating trust through fast, reliable, and transparent payments. Example of customer Sagrario who switched to Remitly for better experience.
• Structural advantages: Data-driven insights, technology platform with 99.93% uptime, global payment network with over 5 billion bank accounts/mobile wallets and 470,000 cash pickup options. AI-powered virtual assistant improved customer support.
• Vikas discussed revenue drivers: Active customers, send volume, gross take rate. Marketing spend was $70.3 million, 20.9% of revenue, improving year-over-year. Customer support and operations expense improved, technology and development expense improved as a percentage of revenue.

In the third quarter, Remitly achieved strong financial results. Third quarter revenue was $336.5 million, up 39% year-over-year. Adjusted EBITDA was $46.7 million, resulting in a nearly 14% adjusted EBITDA margin. Active customers increased 35% year-over-year to 7.3 million. Send volume grew 42% to $14.5 billion. From a geographic perspective, U.S. revenue grew 36% year-over-year, and Rest of World revenue growth accelerated to 58% year-over-year. Revenue from regions outside India, the Philippines, and Mexico increased to over 50% of total revenue in the third quarter.

Full-Year 2024

• Raised full-year revenue guidance to between $1.25 billion and $1.254 billion, increasing by $12 million at the midpoint.
• Raised full-year adjusted EBITDA guidance to a range of $108 million to $112 million, increasing by $15 million at the midpoint.

Q4 2024

• Expected revenue between $338 million and $342 million, a growth rate of approximately 28% to 29%.
• Expected adjusted EBITDA between $17 million and $21 million.

2025

• Early view: Low- to mid-20s revenue growth rate. Not assuming FX tailwinds in 2025, focusing on customer cohorts and historical trends.

Q: Great to hear you talk about RLTE and long-term margin direction?

A: Matt said RLTE is what they care about most. With digitization and access to lower costs, they expect stability to modest increase over time, with variability quarter-to-quarter as they optimize.