Remitly Global (RELY) 2 Nov 222022 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Remitly's Q3 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Shulstein, conference Vice like host to now Stephen today, President, would hand over the your I Investor Relations. ahead. go Please

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

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

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

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

forward-looking place not should You undue on any statements. reliance

as our earnings in on no to this whether filings may Remitly to Any law. made statements refer them risk for forward-looking and affect call, our Please including that the are regarding release your conference current responses obligation or factors them, to of of as information results. as more SEC or assumes revise new result by required based update a developments expectations except today, questions otherwise, and

The following financial presentation non-GAAP contains measures.

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

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

results as progress our for execution. our all record we on of strong you our thank third us joining and priorities Stephen, to you, track consistent continue strategic discuss and quarter Thank

stakeholders. has Our focus our the sustainable for long-term economic and results customers of us all cycles resilience of on to through well positioned deliver remittances our

Remitly come, time, at We outsized for the many are to returns ensuring revenue our is benefit expense scale from delivering and increasing positioned years while across committed to to same growth base.

we've progress since We are IPO. made our the proud very of

you across since our Slide active We million that IPO. more see million X.X have we of X.X now dimensions quarterly great serve strides On than business. our X, users, can made adding many

geographic is We XXX. over provide up Our corridors to alone. an X,XXX countries, X,XXX XXX the corridors, of now footprint past increase from approximately service in year

largest at Our has their This stands products resulted and third we annualized significant with immigrants complementary as now $XX scale the quarter growth volume remittance send for in look to billion. provider families. become

maintaining we consistent our We across done execution have all have of on focus finally, of culture business. And versus an this customer delivered track centric priorities a expectations. ESG record with while our authentic unique

let's results. a of brief overview Now, to our turn quarter third

solid of on quarter execution in as continuing X. record track shown the Our Slide third

informal increased remittance digital. to from to XX% is growth growth exceptionally providers more This more we and legacy million, as in shift year-over-year year-over-year increased continue customers driven to by digital Our active the X.X base million. customer strong market was subscale our increases at scale. active above take transactions $XXX XX% by Revenue than as providers, expectations. share This our

customers loyal growth. Repeat transactions also from contributed to

repeat to Remitly come. offering growth that product usage, that strong drives the only a with revenue global new very these many quarters Given remittance for market, X% combined has and repeat will of customers drive

nature due Our high transactions. to the revenue loyalty remittance highly continues be predictable of nondiscretionary customer to and visible and

XXXX. revenue this outlook fourth outlook again for performance result strong top increasing our we the and quarter, of As are a once our line for

active the adjusted was performance our customer investments Our expectations. marketing delivered in We above EBITDA third strong also robust quarter in efficiencies and growth.

outlook. opportunity more economics, we XXXX unit to the our are quarter fourth new customers the greatest EBITDA that maintaining strong provides seasonal at adjusted even acquire Given

their the in we cycles and volatile of can a economic to what with across a resilient for see our well on cycles digital tailwind send to face back customers remain remains non-discretionary customers and the function Remitly. they tend performed X. well macro regular face. quarter, economic home to perform no of Slide Consistent determination the The reasons remittances saw Remittances as adoption over due money basis, is last on that you environment, a long-term obstacles our matter

this We saw COVID. clearly during

The in risks other occupations collar the who shutdowns, XX such from many of jobs blue were than we're now when send potential by work white able more example, to For income, of to diversity of as countries, various impacted areas across pivot changes food specific such hospitality our delivery. of our in lower finding customers to collar economies. and that local in sources as of quickly customers

monitor in transactions prioritizing consistently per friends have the trends transactions and to family volume in underlying spending. and average We back or believe base send and reductions and more do customer sending resilience continued customer loyalty customers We our by in transaction to that to see not customer driven over We Remitly. home we are our shifts disbursement discretionary money preferences. not other see

volume down send customers new increasing translation year-over-year, currency was While quarter this per headwinds. of primarily customer versus customers existing and was mix foreign our the in the active due to third

active quarter a basis, Excluding constant periods in year-over-year. new in third slightly the customers was up send per both customer currency on and volume

that more month also same customers the expect nine We versus and found XXXX send surveyed in customers XX XXXX. to money in last of amount our or

survey they second they us same expect than Similarly, frequency finding abroad in more prioritize continue past money our and is confidence or send customers to say remittances. year. at often to gives to in the the This similar that did our customers quarter most send

of primary our in do strength business currency U.S. results, numerous a the driver the recent movements, dollar, impact not foreign particularly While ways. in

of families local those sizes, see ability their First, in to markets, to get advantage friends. especially certain more the with transaction we customers currency and taking larger

currencies markets. emerging it to the dollar customers certain versus the believe and acquire we the easier market market Second, make of developed other new in currencies strength U.S. strength in

against by our international in our dollar. impacted euro pound the U.S. revenue currencies negatively foreign Finally, such were British as translation the continued currency year-over-year weakened as business grow and to and metrics growth

trends Turning Philippines money to back lower especially home sending Mexico, are U.S. our household in occupations, customers trends majority In family our customers we for less basic largest consistent for the Mexico revenue, are to to strong needs. key largest to receive and be of receive Mexico, customer The continue three to employment the vast wage tend markets, in and seeing behavior markets India. send by some we that affluent see as

received increase strong of that abroad, from to in up Mexico in trend billion August annual XX%. high a In reached with remittances X%. Mexico fact, July an continued Bank Mexican The the record to reported Mexican Central families as remittances $X.X

we Our than continue take growth in industry members to these higher Mexico as market share. was significantly

approach. the with with encouraging and their disbursement first to shift our in digital mobile our to and Philippines methods, when support are Customers preferences the customers wallets we to and are digital highly if marketing localized leading continue they to and digital shift other receive which We receive product make ready experience.

send growth we U.S. new rupee quarter. a in Finally, year-over-year and in the the India, strong currencies, very materially dollar saw both the customers to India volume and other as in depreciated against

and to that receive large important as third new acquired three keep receive While corridor continue in mind saw important to out it's diversification in we our of the countries more countries. the remain to business, both our portfolio these diversify quarter outside in this very countries sending send and were than XX% of customers Mexico, India. third We quarter Philippines play across to

a indicator the new retention rate, even diversified tends adding our years leading we result, revenue and quarters more the be and our customers Given as to of across come, to corridors. expect growth for high revenue become to

on can quarter, In as made X. third investment we priorities, Slide across the our progress you see

customer expansion, on remittance new focused unit enhancements acquisition very product strong complementary geographic new are products. at We and economics,

many sustainable With these laying foundation years for the and priorities, growth to are outsized for come. we returns

we to Consistent see drive significant second the third were with customer able efficiencies in you can quarter, acquisition Slide X. quarter, as on the

and cost new manage cost all to continue focus acquisition on strong growth. via customer elasticity lower testing channel, customer while a maintaining We acquisition

XX% improved from quarter the from XX% year. quarter year-over-year sequentially second third of result, a and As last CAC the

international and is active Our increasing effects. the of network mouth markets, brand with in scaling U.S. efficiency word customers and in of along awareness driving resulting both rapid

the advantage to take We have the of advertising in further competitiveness environment to sequentially the even in both quarter, and able moderate third softening seen drive a were we efficiency. and year-over-year,

is the additional for season corridors. opportunity ahead the fourth marketing the driving costs us providing As expensive spending focused we acquisition while holiday expect acquire increase as quarter look also year-over-year typically to seasonally on across remain as customers fourth drives we remittance the media The the to decline customer quarter, would efficiencies funnel. but sequentially best new we across quarter behavior most to

We serve as countries end another accelerating, see the At serve third of than in customers is we XXX corridors alone, record approximately X,XXX more expansion quarter, third geographic Our for us. can X,XXX territories corridors geographic the X. nearly quarterly now Slide quarter we in on expansion worldwide. added the you and and

further Europe opportunity of the expand East geographies complementary Middle pending in We with into to an also Rewire. saw and acquisition the

network repeat sending is the we the It growth serve note of new corridors and disbursement quality important to and behavior. the that both that is number it drive of customer

scale corridors, results rapidly. made, As XXX we investments a in allowing the send network add every have general, result foundational of our to than new in continue of us we the new to quality and country more

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

pickup and them. what banks, network customers mobile wallets growing our tax allows for works Our locations of best choose to

that we As of in in more digital This of XXX in million launch to includes largest payout grow adoption, the in to wallet add pleased be continue mobile expansion options India, one providers the to quarter. third are our mobile than Paytm able market. wallets

We available another customers relationship for option to expanded This Remitly Visa making Canada. our also our Visa Direct in convenient customers. provides by disbursement with

quality and the our and network believe focus a differentiator. of to remains compelling continue disbursement preference We customer options on our

of of significant of improving Slide to The peace drive investments we as progress enhanced in costs drives Remitly customer focus friction retention, These peace platform, customers product differentiation mind contact as on service number less investments lower and customer customer reducing made mind. the a see frequently. will can We the our drive us features you ultimately and quarter will in our delivering key XX. as on experience on

reducing to global included payment peace mind quarter that rapid in import their their MasterCard the by customer experience allowing add Some or key refunds send Visa expanding examples pain a as the by their customer and it in contact funnel card in to enhancements customer U.S. to scan in points the drive method the customers helped profile. to of and third recipient

shopping are third scenarios among the from reflects family to customers, are for customers downtimes especially was emergency. trust quarter uptime when new case in Our customers our ranging global worst as our a XX.XX% around the our during to commitment for devastating customers, existing losing

We and make. continue high preference delivers in an unable of we we believe in we mind have platform ratings continue This to Store to our peace simply customers. investments Remitly's to increasing will as able competitors Google Play to customer scale, that will be make And service App the iOS drives for other both be to and our store.

with our We focus narrowing more you platform our customers products quarter our stickier existing will to business to which believe on time, and as remittance even customers, see increased drive last deeper in and retention can customers. relationship about talked a strategy of with will relationships remittance XX. We our product result complementary over that Slide deepen

that and iterate our with to families products so problems are pleased solve and We test the customers demand their immigrant far. critical for additional and progress continue for

pending strategy. and product this help their execute and account-based platform us will acquisition Rewire of accelerate Our remittance

platform we our serve critical will addition, ensure investments the products we multiple peace deliver In across with remittance with customers can product. we mind that same our our are the of across making

in and to The investment Slide overlapping shareholders our medium balance our customers, areas employees. us term, on seen and that long on return we growth sheet positions can drive portfolio promises as of sustainable deliver strong confidence and profiles four XX. gives to us The strategic near, the the

our to on Before vision Hemanth, I like to over call Slide I'd return turn the XX. to

transform our the providing families on immigrants will by to remain is most us planet. This trusted energizes the their what and drives services vision us the is lives Star. North Our and of financial and

on customers drives focus and ESG. the long our to term Our our commitment also

additional publish strategy our ESG commitment, metrics this to will soon in of about part provide and the XXXX. more plan As ESG we reporting across we

is made and customers returns our is In to us. serve our ESG drives our programs addition, what to experience product, This as of and with all delivers initiatives our we shares ultimately part approximately business Pledge that of ESG, our contribution XXX,XXX to a ability employees' sustainable that improve commitment stakeholders. for long-term during our third belief our the annual quarter. second strong X% It

to Hemanth, turn With financial that, and will our results on the provide more I'll call who outlook. details

pleased strong outlook track Thank resilience for our with you, the our revenue quarter third customers. I'm our of allowed execution of has Matt. This XXXX raise continued results, and again. once our us record to

quarter, I'm the past opportunities also about excited to the Remitly's deeper and significant I've the Over across potential. opportunity growth investments return and our confident dive and had

turn let's quarter third that, by for on drivers and the outlook detail I'll With to of XXXX. our of more financial then our the our details begin quarter reviewing we'll third results. provide performance

to Pledge stock-based remarks. related the earnings commitment EBITDA included in reminder, compensation, and donation Reconciliations a expenses will I GAAP in with are transaction such stock our discuss and as metrics in my adjusted acquisitions. costs common results As items non-GAAP of the to release. operating X% These exclude connection

Beginning with volume grew more customers approximately $XXX top line year-over-year year-over-year on year-over-year our of above billion, XX% which revenue million, XX% our Send expectations. by X.X $X.X resulting high-level million. to to in XX growth active was performance, to XX% grew Slide than all

the Slide many see existing acquisitions XX, transact cases, factors and years. high for number growth, of setting another many who, including active can on customer in of retention you XX% record number customer to quarter over strong As new a the continued with us customers, in drove

in product, highly to quarter. active the scale, and Our customer we growth all marketing saw differentiated contributed outsized global increasing effective the

record new that helped the of surpassed the strength set saw markets. drive to U.S. USA in acquisition Remitly We We beginning Mexico to new we incremental to corridors India the customers dollar in delivered strength certain new pandemic. in previous in new at in the USA customer believe and the the particular customer customers also where records

upper as investments, efficiencies and promotions marketing scale, localized by funnel product page driven improved was mouth, and including landing word and referrals This we of optimization.

in smaller to our strong also from growth some of we and Africa, We our and campaign newer benefited awareness scale. Africa a saw where corridors, including sub-Saharan additional

Robust continue XX. healthy growth XXX against in quarter track delivered in currency Revenue growth. of saw and was revenue Slide growth growth approximately to quarter British drove as customers XX% to in unfavorably euro decline double-digit euro our points the foreign dollar. the we revenue Turning multiyear the active high record and by basis as translation we due the impacted year-over-year that retention we pound

$XX loss transaction revenue last on a million, new the risk customers of XX. profile. record we Slide higher-than-expected year. revenue We a compared to number in XX% as expense expense XX% up was generally Turning with higher Transaction of who fraud the third in of rates have quarter of third quarter onboarded saw

were the our our losses customers systems However, experience. risk improving fraud for continue in invest time, new our to the improving well while guardrails and and fraud same at we within customer

better and send leverage to partners. third and drive and continue with scale terms destination the globally see able fees we were to payment as disbursement quarter on We in our

percent revenue XXX points. improved basis, has expense basis a a by year-to-date On as of transaction

term, from some long we in our to increasing expect and the improved we on fraud continue losses, precision expense benefit transaction Over scale expect variability quarter-to-quarter. from although to

to families. the of year-over-year turn moderation technology we quarter, with third I'll Overall, new scale operating our development their in and immigrants second both to business reflects to compared strategy the XX, growth including delivering and the rates OpEx to in on expenses. our in non-GAAP products G&A on which Slide execute investments saw as allow and a quarter expenses long-term and us complementary we're our Now, remittance making

drive customer discussed costs. acquisition Matt earlier, also we in to efficiencies As continue

acquisition of improvement which a acquisition record point new million quarter This efficiencies was the of by delivering $XX Remitly. marketing time the driven was to targeted at basis customers same percent expense, XXX majority a the customer is a new reflected year-over-year in as and marketing number at while customer vast Our leverage and revenue. of

and awareness disciplined due brand in number basis. operations to and market. competitive million to of improved Customer customers new of the plan highly marketing $XX percentage elasticity testing, gains. efficiency continue driving the third this points from efficiencies primary focus The high-return driver came revenue a quarter. in on to higher-than-expected was added with invest up XX in a support Our moderately less of overall We and advertising was year-over-year on basis expense quarter was increase a

technology rate peace cohorts New higher average, customers, make our down as mind cohorts. we significantly rate our investments to It disbursement on of for in networks contact to this at time deliver us our contact than customers. product, a drive payment of and older is goal over

proportion to new of As active we smaller we customers be a expect scale, customers.

of our lower. factors We contact support Both help drive of to also the peace costs over expect medium customer rates product enhancements should and drive term. mind these leverage

and and of $XX essentially quarter third as percentage expense a flat year-over-year the in million Technology was development was revenue.

to Our investments and the complementary revenue This products. additional of and retention our opportunities. relationships ultimately customers drive new loyalty us provides deliver deepens with allow and peace our development mind, enable of

on expect compared and revenue As development as product and improvements, technology with of new XXXX in we mentioned call, our expense increase to as we last corridor prioritize a percentage XXXX we development additions. product

third was in $XX quarter. expense G&A the million

has expense expenses. Our in to rate public anniversary we as in company the year-over-year growth ramp moderated begin G&A

G&A the to expect in to in fourth moderate rate year-over-year We expense quarter. continue growth the

in EBITDA, Adjusted stock-based connection in and which X% the approximately expense, quarter third XXXX. the donation negative Pledge XX. costs was of million transaction Slide to Turning with of stock excludes compensation common $X

lower due acquisition than was performance to and better primarily costs. EBITDA we expected, adjusted Our higher-than-expected customer revenue

loss million was stock-based million incremental net increase Third expense. $XX in primarily $XX XXXX. quarter third loss due net compensation compared net was the to of GAAP $XX a to million loss in quarter The of

million cash capital the on sheet. million. sheet of and $XXX Working $XXX reflects end our to was quarter at the balance balance Turning approximately of our

is to strong from Our balance key many other us subscale competitors, drive to profitable long-term and execute allows our sheet a growth. especially differentiator priorities strategic ones

and rate year-over-year Slide XXXX $XX expect existing our third on we of $XXX in midpoint increase the be million growth with delivered outlook our a reflect XX, XX% we implies prior and from to and the customers. between We're is to XX%. to outlook the Moving million a customers strong revenue quarter both performance $XXX million. increasing outlook to to This our new

million the adjusted tailwind Our strong $XX first of to quarter, we in million. the new negative beyond. acquisition be XXXX adjusted have customer outlook negative the new for EBITDA third to the We're a Due at will our and in quarter growth maintaining the strong quarters the $XX during EBITDA fourth to seasonally quarter fourth three customer lower growth expect XXXX than for year quarter. fourth

new short-term forward. While quarter expect acquiring will continue drive impact these fully we growth customers to profitability, in Remitly strong going the customers these

investment I forward return As now days, an have we that also that completed discussing more my guidance for provide year. I profile have confident even when attractive XX early XXXX first I'm we look to next

We're operating discipline customer the with behavior, growth, momentum strong leverage to global of return sheet. balance attractive executing strongly scale, an profile resilient and opportunities with and financial a build our predictable revenue healthy continue and

that, With I your for call the up Matt open will Operator? and questions.

with Instructions] Thank from you. JP the question line comes Our of Tien-Tsin first [Operator Huang Morgan.

ahead. open. is line go Please Your

so Thanks Good here. afternoon. much. results Good

customers big increase really added a in notional standpoint. sequentially here from Just

I versus there? sense FX, with stepped a it in well. of the two function So quarters can the some growth users mentioned makes And you up you heard wanted existing which corridors again being this quarters opportunistic correctly of were from to or if much is as I sure how there the attracting that just marketing users in I explain, maybe a row make heard think efforts which I in

there well, risk some So just is and that as studied? forward you've of any understand given of what kind pull of

Good Tien-Tsin. question. Thanks, Yeah.

of strong the Philippines, certain frankly corridors. sort based of First obviously Mexico, our with broadly it's in some like growth India -- we're customers markets all, seen. saw the We some growth say pleased to I'd our across in that of stronger and corridors. really the being overall certainly USA global we've from broad

of of demand to send to FX I'd basis your did saw see that we coming and the point where say with Mexico market was FX outside on well, customer relating new as saw from we Philippines well. we activity perspective, some activity a XX% as customer broad India, everywhere new and outside But impact. a increased So growth,

So pleased we're pretty overall. with that

there this reinforce terms question to slight be think a about there we of or we're board. in your at think of want point, whether pretty behavior do any across the seeing just pull terms customer We was consistent pull-forward. material it's In may that don't demand, forward but enough

due major So the to forward we don't a effect. pull expect impact

Matt, add? anything further to

Tien-Tsin. No

the record it think customer excited up I'd only with it QX I of new quarter thing customers, that decline because QX, from and in QX shaping we is, a we're -- CAC terms was decline XX% XX% new add pretty from and sorry in did an on adds also XXXX.

not 'XX, flows not a can what and and customers that's levers which is to flexibility us into quarter's for that therefore gives but also that of enabled around that pull are ultimately which confidence us a lot standpoint. not strong only margin, new improvement -- us through revenue going transaction so And the customers, terms our paybacks and around in but profitability, bodes to from gives have and well bank going only of growth, hence growth then banking new guidance, given growth we only to that we lot more of this

is due So, the less to the really in some of excited, and it better sustainability, testing but competitive elasticity. I a the we've of I done think environment, think job advertising terms

velocity and seat CMO I now. marketing in in execution, place very the right for seems the been has in we've just her opportunity large our the got a less than think great a creative year creative role, team

what in to come. the So, quarters excited that represents about

stated improve customer don't and from because digital acquisition. CAC And mind stood really the them clearly as you me and strategy piece No. important mentioning Yeah. said. questions getting Thanks is that for to out if around Union, you their we're investors that. Western

seem I is fourth effects maybe know your given don't Thank up you're another you marketing And seeing some you you. perspective, trying some seeing pretty ways clear. on it in some Is like have marketing, a is -- does quarter was opportunistic from step there. that are side, So, that, replicate Western your any what Union comment to do, or to need to model? --

Tien-Tsin. Thanks, Yeah.

we we look customers capture mentioned lot QX, I demand the into it capture as is I from being lot a think in remarks, so in unique where line. lot money a is and send that that optionality, as to growth back able of new of a think there revenue QX, to of a that time customers and being to bottom again the both able will a flow give us of terms down in home

capture And to so that. to able want we be

more add driven It in and record of more new we're by by doesn't the less dynamics but driven that, unit the customers it's mean an at economics. number QX, investment competitive to continuing fact of improving

us lot And we of that of to lot in serve so optionality but banking the elasticity, it's that customers continue now business. gives new a to these we prudent can that test a XXXX, think in

sense. Matt. Makes Thanks,

Thank Instructions] comes Schmidt next Our you. [Operator with Andrew of from Citi. line the question

Your open. is line

but curious in know proportion of your question your And traditional there's a sources question source Stephen. prepared any you all on terms change out coming wins good -- I in the remarks, coming commentary Thanks from? start if of just are Hey from? Want been mentioned the where appreciate Matt, share Hemanth, taking for my gains are to here. where the with and

as is little the and channel like that, of the maybe corollary time customer mix lot. marketing efficiency as also comment then a -- particularly And being customer over on could more it Thanks efficient a acquisition sounds the bit part you how just changing referrals, just is with your channels, a acquisition well? to

to connect nice with you. Andrew,

let and Matt which So can it is really of maybe a cover question, gain. broadly in your and terms the then I'd question, is with marketing, say me lot of optimization. the second efficiency share start through and I

is I is funnel, team we're broad doing elasticity what there strongly, a has local really pretty executing upper there It's been think is the based. at and there level. is really-really testing, marketing

they've place job has in last six phenomenal and nine new And place this a team there. in the been a really with for months, months, leadership doing team only been

So a driving I'd and driving there is marketing. say in happening marketing efficiency in of optimization ton that's work

attribute is, of factor and I we're do terms that's for as to, CAC but -- is that referrals; we hard sort One, expenditures. talked think obviously in beneficial of other increasing efficiency. think referrals think seeing about becoming that to with about The also our we is scale one we factor a increasingly us, measure marketing

a to that. So exact to point bit that attribution and kind Again, happening. there hard is definitely numbers of of

marketing our terms in driving we're But in that. already of see a that great that less many of goes, so as I been spend just spend, rate. the just the so continue high third that, with of The benefiting piece, prepared is seasonally marketing which to a and of again that watch at bit little terms sort a where be things pointed remarks competitors been out, for obviously we'll there well, QX to market has going to we of and been have had which that well as the in has has we're competitive, been controlling that's We'll us. is pleased optimization

Yeah.

it's right. the And that's think Andrew only I'd thing I question. a add -- great

I think to the market. fact, fragmented ourselves gaining of although in. trillion that And where if share look have we we important very that's anchor you X% the at it’s very, we as $X.X it's share, still gain from, again but mentioned, we're in continue

additions I mentioned, effects customer and other leverage efficient as and from a brand of Remitly, us we we operating to that additions using and gives to awareness measure mouth network a standpoint standpoint business from word are organic There like things organic and a where legacy just things legacy really that growth, well lot based is bode but are market a across resides. efficient of subscale think as digital, players, both subscale continued sub-scale which it both players, signals for well acquisition that, the as is that broad for

through well And that is that's better I of and at, to think continuing that in cutting fast good and international we delivers basis, that payments, friction reliable aspect on to a sort of in of customers that get every build in invest growth scale of it's friction, complexity, and mind did may a size that those companies peace with we're I ability something rate consistent without our real which inherent up and at transfers, customers we're lot harder for face. shows and to any for think

Hemanth. despite of is there and a Matt you just quarter bit basis, quarter outlook. Tank fourth a growth, a just helpful. seems quick like implied the on typically decel little seasonally being on stronger. follow-up Very fourth It revenue And in quarter-over-quarter

just Difficulty] be your seeing or is prudence. might kind pull-forward call it -- pause clear, normal that nature conservatism in just embed algorithm, the is want of potential around to environment of of level that of just their kind outlook something it you're I it there [Technical does or is terms cause in

curious, you Just Thanks the if a lot. just could characterize here? setup

Andrew sort Yeah. in I'd that. I'd say, the of macro consistent are of we say, pretty drivers broadly to assuming QX elements outlook. our

that that on that quarter, that fundamentally doesn't seasonally wanted line, growth directly on To in the question with a again, expectation we have being So not we're anything there, to different, reinforce strong deceleration from into effect customer in revenues revenue to QX. right. just baking your translate that high

is to get what subsequent quarters. we this So in expect

timeline the P&L. of that's will our flow sort how So revenues how of into

any have doesn't the on QX activity. expectation built decreased new of sort deceleration in customer of from perspective So any sort of

very Perfect. Very much. helpful. Thank you

comes question Instructions] Ramsey the with [Operator of Barclays. Our from next line El-Assal you. Thank

Your line go Please ahead. is open.

taking for evening. this question Thanks my Hi.

it a out of more I is trend. the what when I you to longer me think it part add in corridors the reach a move covered which term type this, we've corridor the target certain indefinitely, path missed call. kind have Is How where really you mind we thing there? this, as we ask a fruitful certain has about Forgive of of you'll impressive first number the the or terms need your can on? you point, we kind been to of say, corridor was of then expansion, just should about in got wanted if of scale of

joining busy will I and a that especially one during for Ramsey. Thanks, season. take earnings thanks

added and -- X,XXX if then last alone. foundationally your remarks the IPO. you to look, I'll since we've X,XXX in And question. quarter earlier X,XXX address corridors added from we've our heard have may We you gone corridors sorry, X,XXX So to corridors corridors

two your I'd things. a intentional think there's corridor and So, what think we're a in couple our is that about about a the new is companies fast, One, corridor corridors, continued that terms and right of ones how are been countries year very of or of ago, methodological we've and very we approach. launched are go corridors adding we in by about growth. lot that the intentional mean very expansion, when we say, I And playbook, very driving that really question new do expansion and a broad,

we're the quarters the that going come. to in be the going going like that we ones years and just be launching But now, we're are corridors do Now, intentionally. growth driving to to

can you So of map at remittances looking where at get where versus flow sense a a we're now. of just

APAC. have opportunities We in

corridors. origination Japan New launched, may Zealand and seen as we that You have just

our company. is also in remittance with Rewire, also East which presence process will Middle us We an origination are Israeli country. that of first Europe, a in the have so base help They acquiring

primarily over that network, And countries one countries receive XX is we then send given there opportunities country, from and on XXX Latin receive given that there we to that each we America, to send see it and but primarily us corridors opportunities customers gives send to time send the and now XXX receive. to, a a quality new customers as new of the send new Africa countries, add And our XXX well. our side, money continue to Asia, improve are add where can

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how me. from for give thing? is developing that update type on you Could an sort of Thank the follow-up trending, pipeline Great. us And that. uptake you the developers, Remitly how is for of one

Yeah. Absolutely, about glad that. Ramsey. I'm really asked you

BXB, offering that a we're businesses. product when We what to first -- of -- to variety business of So refer offerings to we is business. all I'm

to with have partnered our mentioned we as you disbursement for we the be so able with And like companies network. which developers, that fund one Remitly mentioned, is to Meta,

that businesses, want some they well. international part seen network, and we've FX product just what than this is to quickly to many of and the at disbursement interestingly, RFT look the just flow that pipeline, access payments, And realize disbursement they the funds complexity more we with as broader they think are but as network, a remittances there's lot

within we risk U.S., given of our all that's our as then managed our the disbursement, X,XXX exception localization across management, and talked important also and It's our corridors product, localized remittances. payment that pricing, our just about,

makes part hard that's And get as to know platform remittances build payments remittances is businesses and so defensible to and what depth. international validated it's more being and of this in

and leveraging for now banks, and an really built end banks is we a accelerate product, fully that neo to more we're their credit embedded offering organizations really it's customers, accordingly, product trusted BXB to designed platform the like unions, to simple this So growth. and strong offer end-to-end international payments

in excited space because not remittances, complexity, BXB that learning built, the add businesses, broadly, potentially that's the from we've strategic more businesses. inherent can important to that about understand to value and only what and the context but to validating to we're even So also platform it's the other

Fantastic. Thanks so much.

Ramsey. Thanks,

Instructions] William Robert Blair. [Operator comes question the Our of from Napoli you. Thank line with next

ahead. go Please open. is line Your

new for on you customers Thank impressive, and really Congratulations quarter, see. to you. of corridors, Thank additions the the question. good

little give -- corridors? efforts, of more can you on Rewire steady going or and a if a to us to as maybe guess, I efforts. M&A any color the diversification and become relates is and diversification Rewire, entering Just color new I mean, way the countries on it your

you. so deal. Bob. team great Rewire. rationales the And excited But seeing timely not for pending strategic two at again from is just it's hear Yes, that to we're I the acquisition And that Tel yet. Thanks, back from about regulatory question closed got approval, because Aviv,

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we grow think so once to at looking we what to but requisite which whether are continue really And I today, -- is and M&A, acquisition have the that we But ways approvals. about organic, acquisition. excited inorganic get and you that's look always excited when efficiently about to that more broadly the regulatory about Rewire talk

any have it follow-up I'm on then so mean a of margins, less as but really I Thank in surprised you just competition seen in waterfall. are like the cetera. the retention, in customer your to and hear retention, you. retention kind you to And unit market, et How those relates economics, change confident

Thanks for the question.

change is we've behavior I we're so cohorts We closely. feel sort don't customer fundamental that think XX% look would -- before that. at in got in one metric right that think I we retention. the we of it's indicate or of any we range, retention, the I shared in any revenue think changes pretty seeing we that, in say obviously terms have we're that have would new

of that's of So for economics, it interesting quarter -- we piece has of of been where an on kind sit retention sort Certainly, unit a that's it. us.

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getting about customer expenses talked contact us customers more. lot impacted, also new We because service a

the pretty stable, improve. economics a interesting profile business, look see to continue the core continue that's and is out very strip But if at consistent we opportunities you and and that to fundamentals unit with to of the

is So saw impact through but the see, QX is higher which stable. additions, lower because flow of the pretty with we new the along P&L, just say efficiencies, I'd and economics significance customer of unit marketing to fundamental fantastic the the costs

Thank it. you. Appreciate

Will Instructions] Goldman with comes next [Operator Nance the Our line question Sachs. of from

ahead. Your line go is open. Please

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you what from perspective. look they are and this ratios, we time to all the well within payback when our of LTV range be, we a at So the want CAC monitor that

Got it.

that record -- is, does, I great because it's that when in that optionality Yeah. And eventually of flows record on I repeat strong that we're earlier, the us, seeing because saw think that we customers dynamics I the that profit, addition I What strategic and that I in in question. the add QX. your core strong and and down would of that of think retention new think that think we're gives the perspective, answers as we're optimistic mentioned QX to Well, say the behavior I is also front, seeing, I transaction 'XX. it payback and that that

we continue then dynamics. into decide that also both can term of we and we how while long mindful the reinvest We have to to sustainable go about do in profitability a short How as term, think vision, business 'XX. being our the

give head when it making So We're into to optionality investments we efficient QX. comes acquisition also in XXXX. as us we're that the being

Yeah. of appreciate And That in all year makes a gave Interesting. kind ton the the I Super. the slides. one color on you of sense. out from IPO guys all that

of kind of the year that are a revenue mentioned contributing update corridors, was today I customers the You the if three a corridors top percentage that of those perspective where was or kind new send us just the ago? of three of and from volume and corridors you could some size coming today? top outside from of wondering much How on

obviously Yeah. don't international Those share. will, of say we that's have are revenues we're as amount continue would a mix to that significant top North towards But our quarters, increasing America obviously you X of I from seeing we originated. stats number well. if

towards about where that we come new to at that be is on business. activity point North think concentration geographically. the will But be the customer from can to revenue we I more a more continues So growth talk moving say it. and But I would America broad

today. and Understood. results questions all nice my Appreciate taking

Thanks.

of Thank you. KeyBanc. the Alex question [Operator from Markgraff comes Instructions] line our last with And

open. is ahead. go line Please Your

the Maybe new last. of on question. same this customers Hi, the quarter note of as to impact versus transaction the for kind just Thanks couple a taking relates it around team. here, margin

much new you if how curious of related sequential decline the could I'm characterize, So is customers? to

If any is new the I impact quarter, stable recall I of of around commentary some more last was from customers. excluding assume that there transaction kind margins,

commentary commentary of around strip the impact stable there, sort does that margins if record to the any out adds, just were maybe of you So net hold?

which we strip Yeah. That's been that effect And historically. customers been of well. QX, the the of that terms we that mention thing had have at as would in also obviously of at just sort I a new looking transaction, we that great with in overall closely overall are line with unpredictable sort loss more new see of pretty those what much that one-time of things we but in guardrails, these impact. we've well the our probably was effects, strip we're within time are line margins, levels question. are so effect in a stable localized broadly the out, pretty to if When We've the you fraud time, out, and from trend to stable historically. seen you transaction say customer impacts other on

localized that when marketing of about efforts, all CAC. any FX tailwind That's just think is localized that with the realizing helpful. some And lastly there sort then spend? I'm curious, around you more Okay. of really I are marketing

-- on from does out in us of business perspective, of the our of side U.S. a mix operationally translation the revenue international impact, sort the of less terms impact certain in of overall it concentration but be business seeing, my Again, There our impacts when the to spend. of translational comes a that The an has overall to to and that of we're have given is the on FX bit earlier going our commentary quite it we impact nature and some areas.

Okay. guys. Super helpful. Thanks,

you. Thank you, Thank Alex.

the answer any I turn Matt to you. over further question Thank back does CEO, this and like conclude would to remarks. session. conference Oppenheimer, today's And And for

the thanks thoughtful really Thanks everybody And questions. for so much.

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Ladies and participating. concludes you this gentlemen, conference. Thank today's for

disconnect. You Good may bye. now