Remitly Global (RELY) 31 Jul 242024 Q2 Earnings call transcript

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

Thank you. you Call. us thank Quarter Remitly's and Earnings XXXX afternoon, for for joining Second Good

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

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

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

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

Following presentation measures. contains financial non-GAAP

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

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

and Remitly's second all to for you thank strong us our Stephen, results increased priorities, strategic outlook discuss Thank you, XXXX. quarter long-term joining and for

journey trusted that transform to borders. financial We services with our continue transcend lives

any has additional myriad this doing as by before, been problems done experience payment those that sending time, we for the not in We borders. a transactions. At of money for solving way are as same international cross-border customers seamless payment domestic across the by making payments a our are reinventing faced

efficiently see about and cash to excited order are invest share strategic growth, focused opportunities flow goals high on execute we to to long addressable only deliver market, setting sustainable opportunities, drive We to allow over our the drive us priorities, you on priorities growing more we us term. In share. increase the market array these in on remain and can to X. approximately of deliver our Slide a These have while as even X.X% long-term returns near-term large where up

today rapid to positioned are from more preference We well shift ongoing and digital to expect options. in customer the benefit

our improved for outlook for. Our the building strong money looking across to the we one quarter second the demonstrate delightfully. experience we are These resilience of our delivering right also both is seamlessly customer results borders strategy and and base and results outcomes are send differentiated validates our and that the customers

Now operating on of acquisition and last XX% benefiting let's across record from Based on engagement new second or X.X engagement. existing active top both active growth We quarter growth $XX continued of delivered up is performance can quarter for million majority serve now efficiencies expectations our strong EBITDA X.X see second saw are strong scale million customers We from of We and approximately of our and adjusted you XXXX EBITDA, increase Slide We in outlook. We customers, year-over-year strong adjusted which as customer activity The customers. in quarterly quarter XX% ahead expectations. strength get expense delivered our into X, line we raising some $XXX customers customer quarterly the our impact. execution, our year. revenue million this results our our and and saw in Slide of in on base. a million the our robust and revenue, of details X.

there expected, with such second the more Mother's quarter. first quarter as year were occasions compared in as of Day sending this the As

a fewer which a is benefits seasonally some upcoming modest saw holidays, stronger U.S. customer some third our dollar, platform. With key Additionally, from helped typically we additional the activity weaker to corridors, quarter in from perspective. activity drive on some

a were that the customers move the quarterly than to fourth second then quarter. Ultimately, as we and our quarter sequential and customer saw sequential be the in to growth As third result, in improving quarter drove lower and cost the improvements our expect to third the increase change from foundation we product the platform the change active we structure. in

experience reliable of significant customer growth to you As into progress driving making even that and driving and can invest that we are delivering fast experience, flywheel efficiencies more us X, efficiency. the on while see a a is customer Slide on allow

record revenue have the also the onboarded absolute strong to support support are major delivered lowest new year Our this recognized basis than number on has transactions to XXX with with solve of with our year-over-year of been as our have have even ever more pleased help the associate. also leverage Investments spent quarter launch without to in especially competitors. second number customers highest rate a score contact more throughout to quarter We of experience our compared less significant dimensions a to and among customers a on that faster in need even support these the to last active way. of second continuing XX% costs were Trustpilot second contact than an in record and support a customer reductions though live investments. These of across basis support quarter delivered with and less customer disbursed XX% in product we we our virtual even of progress grew a percentage transactions get and basis customers. We the customers quarter metrics onboarding hour, in customer customer support second customer both directly contact. without contact continue more increase points a made while it these was Improvements improvement was was customer-centric of sequential year-over-year, the of the dollar recently customers an some in customer XX% and proceeding an seasonally AI-powered a in problems new by assistant decline during attributable than quarter. Driving a the continue

are or is The generative transfer. with strong if If to problems, passes seeing is I example, support, our center customer to contact. issue the initial transfer-related results existing assistant virtual how We and help amend as leveraging customer contact in does satisfaction that focusing of not customer an customer or seamlessly I customer both support questions, complete assistant type context cancel decreasing virtual on transfer assistant needs need for previously. The a AI delayed a rates, help virtual a and mentioned the it also answers something do the associate. currently customers

X Xx We our this have self-service also faster continue with interacting grow for than X cases savings our savings This within to support we languages found coverage experience. love minutes, more expect expand organization, as that issues use more when associates. is and virtual resolve enable to assistant across and resolution. to can the Customers to in resulting we

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in increase we As customers. seafarers as a significant new result, have seen

more customers target technology rapidly platform allow are borders. types to will and across sending nimble localize us that Our money of

senders tailoring also driven investments product our additional types, our to higher in technology attract Our dollar platform. customer to have progress additional including

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example becoming We to allows are preferred by is payment this methods at and for a to flywheel. An cost, widely payments, alternatives launch ubiquitous is is solution a Interac as of lower transfer lower a and cost us provides PXP the corridors are typically money our faster on more predominant pay-in speed bank are in all focused growth localized and they drive in adopted payments. Interac providing because Canada and card efficiency payment Canada's customers these method and cost electronic quarter. candidate they as a of our much Interac Compared traditional than which method.

customers to diversify our the in including payments make mix As options lower accounts, we more transactions faster and their products for transaction ahead, rapidly U.S., our bank with look cost. our will fund attractive, our

higher able platform transaction new as We of our technology increasingly investments. customers, such target a types as have those been to amounts result of sending

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make decisions base. to for this friction able customer and risk reduce dynamic significantly are we Now

at As which amount, customer weighted was India especially towards a result, to corridor, our behavior senders. in we strong have trends higher sending seen U.S. dollar higher

Now our efforts Slide marketing on let's to turn X.

knowledge economics. We marketing mouth front, our On friction unit to with about to reduce deep a intentional customers. customers. to word sets driving and data our the invest use aligns at how execute product for to even invest allows us new approach long-term improvements to customer that customer de-average target pack benefited willing much allows This This and acquisition new lifetime stronger from trust, we're large value. acquire and be us of investments we that

lifetime customer the optimize to to price large sets competitive efficient in our to ability both also data analytical near-term and trusted drive to we long-term targeted leverage addition in marketing, products an have value. manner advantage a and In and continually

basis specific this ongoing of in competitive response changes in pricing occurs the All to on an any is and not quarter.

we number Year-over-year As a second another customers new growth was record strongest in seen new delivered result, the acquisition X in quarter. past the the have quarters. customer of we in

markets increasingly with Philippines, new the and markets. Our quarter also markets are second the majority in outside acquired top sending outside of customers customers of the India, Mexico our sending newly these X to received of

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the the marginal elasticity Our in spending saw data-driven acquisition. to this reducing understand our quarter deeply us limited with marketing incremental certain new in some initial analytics second on costs of success impact allows with areas customer investments. We of and testing

significant and remains unit to make summary, investments We our very our are deliver than will strong returns our year returns global improve this trusted to In customer less operating for excited growth. very to at economics. the a our marketing months. In delivering while and business progress complex continue adjustments therefore, in monitor improving XX channels brand and industry, multiple across so our foundation strong leverage our delivering investments. this growth time product, marketing all payback continually the continue Overall, about our experience the of on we in far and is horizons, effectiveness attractive strong all

with As trusted vision our forward, we am transcend look lives beyond I execute and XXXX financial in as that confident outlook borders. transform services on to we our

move renowned seamlessly users family with leave Hemanth, growth joined. enabled company Munipalli, this to doubling In for In like past over he that he finance a our better importantly, strong for and call that you true have key a during I'm our helped all me XX. Replacing us Mehta. driving would team CFO the together. will has grateful partnership Vikas has been for XX until work to to to fintech than built along efficient software, customer agreed also of of his a more supported he advisory I'd has continue growth. I'm in leadership, support growth, be India. that September e-commerce, Vikas thank the Hemanth with these Remitly, strategic informed years efficiency he like to your Hemanth for turn effectiveness. Most and like serve confidence lead years, across so can and for X over he Remitly's success, our I and but I to the taught Fortune XX as and path. Hemanth remittance August spend an to him time and that leadership effective CFO our many need He grateful to Since significant experience about Hemanth capacity Before global will Hemanth for his and generously Remitly management. I thanks, announcement Hemanth. passion companies that has he relations contributions. the Hemanth continue to that Remitly, some over the returns is customer joined transformation search the on experienced operational in base. has as forward change its has to a executive he not customer make team. Vikas's driver be his turn to growth a financial we also an care and control, with more and our expertise active I'll a XXX our for manner and a strategy, hyper of in with investor based only believe We since potential experience high replacement He with growth, most number worked of will had for quarterly achieve shareholders. With professional business milestones us and drive also excellence. for instrumental call role, CFO our would supported has that,

our global our the customers' and Thank quarter are you, testament Matt. execution delivered The the we a strong consistent in results resilience by to teams.

remained our highly begin top details second and Our turn with we more performance drivers with that, let's improving customer efficiencies. quarter high-level results for and financial of pleased the predictable, activity and to and XXXX. With growth by on with line operating durable our outlook are finish our I'll reviewing our results. some of improved

and or compensation, remarks. are non-GAAP and my and restructuring the operating results reminder, GAAP such a discuss exchange I earnings acquisition, integration, These expenses EBITDA exclude included Reconciliations metrics release. As to will in as stock-based adjusted other in items gain costs, foreign loss.

second quarter. performance with Slide the in begin financial Let's XX high-level on our

and our seasonally customer customer benefited we as our second Our delivered consistent that above we and active new in with on from revenue both along record call, the quarter expectations acquisition. the customer solid execution behavior last growth described were

approximately Our $XX.X scale X.X year-over-year to adjusted profitability volume in focus grew billion, as a year-over-year from of customers benefited to EBITDA active on business. year-over-year and revenue million. efficiencies XX% improved XX% Quarterly the through million. grew growth we all to also by parts XX% driving Send of resulting $XXX deliberate

across quarter, XX% GAAP improvement leverage narrowed as the the benefited year-over-year $XX.X Our of in loss of net million we second P&L. from an

to revenue expectations. adjusted restructuring million $XX have and of quarter expenses, included EBITDA in growth, the did stock we across and quarter. with operating million loss combined expense, compensation net led efficiency above in $XX.X Strong our of charges Our the not

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the to second quarter a Now constant some year-over-year to of in on let's XX% of was reported currency Slide and drivers up key turn XX review Revenue the second our performance. basis. quarter

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new through enhancements, expansion global acquired the also and we product We in record customers from achieved engagement customer quarter. in growing investments improving benefits our

Turning costs from expense XX partially year-over-year quarter. fraud we to of in latter and to was increased fraud volumes. percentage primarily the second basis quarter, a due partners, efficiencies the offset partners higher-than-expected in pay-in related Transaction This to expenses, our of part increasing the revenue transaction experienced by that losses. disbursement our as which points include losses

a fraud percentage by Excluding losses, transaction points. XX approximately as expense of improved revenue basis

losses noted be As can we have temporarily before, volatile. fraud

losses total we optimization within maintaining activity fraud improvements our with great while customer down this quickly risk reacted However, bringing unwanted to tolerance controls and fraud of a models, range, to experience. historical our were losses and machine-learning

a response, half as in As we of levels result within manage fraud experience continue the and losses expect to normalized a our level at to back rapid more year customer the our the balance thresholds. be of we fraud

variable Our sustainable delivering a and in longer-term of cost with value a structure competitive trend improving provides model. building customers overall expense to transaction business and significant advantage us

and a a was support on basis we our improving We as and the customer have to are experience. on more expense XXX operating second operations expenses continued progress continued points proud make as basis revenue percentage on progress year-over-year down of efficiently. In quarter, our lowering customers' significant of

grew the reflects elimination and year-over-year, support service to various customer the cause our strong experience. By XX%. delivered such various contact our customers year-over-year efficiency risk dollar with absolute are we absolute as support satisfaction an basis realizing customer both assistant customers percentage an on on as made customers our This both across sequentially and the manual decreased improve targeted see have rollout from flat progress technology benefits satisfaction by product moderation and expenses customer improving And customer on increasing points AI-based the issues us, quarterly and have improvements expense headcount even metrics. G&A expect active Matt mentioned, focus of fact, we revenue tasks the essentially as customer investments declined and of as basis. basis, both to teams that as virtual efficiencies. and automation In and to products non-headcount a Also, self-help of reviews of made our term, continued consistently was seeing and expenses. over significant in and medium XX discipline experience a remains of across revenue. our continued dollar expense Overall, in long for percentage G&A we performance

of number Our customers come. investments attractive for stream a We many record years of deliver marketing new less expect customers to these the revenue expense fully transaction in highly delivered unit to quarter, long economics. a

in efficiently second achieved marketing and marketing testing number data-driven efficiencies and funnels. marketing new the mouth through our benefits additional expense quarter across bringing million of both Our customers. $XX lower into we while record upper elasticity as reflects insights was word the This deep of a of

across over compliance customer to development These quarter. million to our levels to by products our customers investments time These of customers security, enabling features expenses many and and addition at continue also the come. Technology support are complementary productivity operational transaction P&L maintaining our to higher investments expenses in acquire years revenue to and new to in engineering new teams. platform deliver new our were down can our for ensuring returns critical $XX reducing highly of are efficiencies attractive and to high enabling contacts. driving ensure second expect strong growth We

additional to also lowering long to stock An this rate of improvement compensation highly on a is focus to In expense. results X%. to grow term. number On in help than growth we growth focused the reflects stock growth Turning quarter, is slower slowed full significant quarter's from moderating share new revenue. We're adjusted providing managing and being the the continue moderate of EBITDA to expenses our significantly This a over dilution basis, compensation compensation shares year reflected our and expect stock in on dilution our cash hires. compensation impacts. rates. the second headcount of example more our issued compensation rate prior to expense This

turn for let's of We back Slide the outlook for is both end to driving the continued our expectations XX. which billion be our on higher prior our quarter the second Now half revenue to updated now year, year. and $X.XX outlook. outperformance reflects $X low million between at the strong billion XXXX the expect $X.XX activity the existing in increase This new of execution customer and in in and

customer for as we preferences and between second such relationship and mix, factors compared with revenue to balance corridor expect the year sizes mix various as send the transaction largely and a pay-in disbursement the Assuming quarter, the consistent for remain options, of second similar quarter. volume

to we to in in growth expect As quarter, difficult of QX year. revenue first comps the look third lapped we now have half XX% as we some approximately the be the ahead

activity. quarter new we have growth near-term visibility rates be and volatility While timing in exchange given acquisition results, rates, seasonal customer customer can foreign in any into by impacted revenue significant

our adjusted for year, position, expect $XX net is which loss increase second outlook outlook. strong While GAAP by expect well growth million a is remain The of as and $XXX we in efficiencies the performance the expect be from in between increase the our deliver a midpoint in back in million operational we year. to as at driven and half EBITDA both $X additional quarter to prior million to adjusted we EBITDA the our the

about and dollars to gives customers to expect ahead strong adjusted are we these Overall, this seasonally balanced we opportunity quarters, solid in would to to to the opportunities we the especially customers on during deliver improved periods commitments strong economics, with as outlook and and us of far excited unit additional EBITDA are shareholders. our between roughly acquire be As This such at also QX. our the year fourth look execution third quarters. ahead pleased thus customer activity,

to strong team like trusted to would been has Q&A, part transforming fast-paced, a I the to a executive with last of family in every vision look growth significant move transcend remain continued a few I'm and Remitlian who for loyal over customers. I been Remitly's It Matt journey, we made of all all amazing proud to function in that I the pleasure about transformative being to at partnering work who Remitly's and of facets the driving grown across borders. have advocate of finance services is Remitly. strong change exciting have the with our CEO. entire to It leadership community. more of a of successes. for customer very and single and impactful and delight part a for leader investment Before and forward been lives the very the progress has I Remitly Matt, to with financial for highly have years. opportunity very personally you we team in thank an Grateful spending excited towards best journey my its I'm do bold their and time confident India. with

much, the to begin to over Q&A. call with so we'll operator turn And Thanks that, Hemanth. the

Tien-Tsin [Operator Instructions] will first of from come Huang line question Our from JPMorgan.

to was did is want why to best nice to asking growth just -- in big the see. confident curious India move the start you back if here. fraud if related to mind, increase that you the I'm the customers, increase growth all Hemanth, is don't I temporary? big which to on you're in growth in and fraud maybe as you the

Thanks, wishes Tien-Tsin, for it's related, No, Yes. well. the as actually. not

customers with of QX. our pleased really growth the are We in

about, seasonality was customers. Some on of talked the that both we existing

record new had also the quarter. We in customers

different, point, very and in able last we're that. nature, quickly temporary in the we saw it corridors, we -- later very quarter saw of was to part the towards it On fix fraud certain the something

within levels threshold at and So have well our normalized this point. been

to So unrelated largely customers. our growth of record the

know. my open and up. it Great. just then Good to follow-up I'll And

sequentially there's rate, I to at know goes but looking it complexity of -- take the rate, a Just year-over-year. anyway. down I'll the It take ask lot and

typically up over it's first quarter. the think I quarter second

in So, change the why there? pattern

Yes. Thanks, Tien-Tsin.

reliable caveat manage to continuous lens, is and the optimization, geo mentioned, And revenue sort We It -- so mix products more transaction, that of it's other we're wasn't metrics more rate front, pay-in, of the impacted by take comes it's No a delivering, appreciate past, And on as is method part not more don't to that around improvements in of kind of your some and pricing that proof competitive that we actually business I we size, a the average and of what down take rolled that per payout product they are CS business the question, assistant in rate any the of as and the providing an from driving manage in So given shift, of in it the profit mix. per elements and -- the you the pressure. Ultimately, transaction output are standpoint. major to We further our trusted from the revenue transaction, virtual when as seamlessness of LTV. pricing. to nature AI that at trust look shift it mentioned we product, fairly in pricing trusted business usual at features And due trusted priced respect. QX. that but points is some product. look that we've the some I best. our the think out, retention growth if you around the

quarter. the with pleased really So

from Andrew the Citi. come will Schmidt question line next of Our from

and FY third a you. addressed the bit dig this Pleasure work adds EBITDA EBITDA of some upticks balanced b, does marketing little in in significant being line, some half. It the fourth the leave drop with for 'XX. outlook half. for I luck. some either, creating will all fourth into bottom know, to terms Maybe number to comes Hemanth, to economic Hemanth, CAC of set back acquire or new which pretty LTV in you expense well a could customers best to the the you that unit I If decisions. like the in customer quarter, EBITDA and of in pretty I dollars guys margin in -- of seems the you back and the significant good know this lapping that a, we're just position a to quarter back in up optionality

walk through there setting just and you're you can things how us point? process up the this thought at So

we Andrew. quarter, years QX, I we we've think make beyond. terms do like I in able unit to Thanks, at prior well, to new particularly to continue of to sort and customers, we high marketing LTV which really back we to to retain we're acquire Again, the wanted forward sure in customers And deploy in Yes. ratios, on half, the being is look that. think and of look that particularly focused if to had you optionality seasonally and XXXX economics as a CAC our as acquire

year So that's at QX. look sort looked the EBITDA balance of sort as as for we that guide margin the particularly the the of and for of thinking the sort you of at

talk And what larger Maybe scale on. you've you've referrals mouth of may marketing you in longer seeing evolved sales and Maybe terms of about question. what been have that recently. then given word related over stepping in it. just the have Got other your how term just you market, to Understood. a things more testing, going confidence elasticity confidence talk on time maybe up the seen based and

Andrew. question, the for Thanks Yes.

that our the of at record I And number ever we're that we think more fact feeling front. And about of the have think look I scalability on a reflection I we're excited brand. new efficiency think confident the that's you and that market, that of getting. that we're trusted customers the than a when

the XX-month mouth continues question, our alluded unit to your to to improve. And economics of continue be payback you below well target. in word our As

question a adjusted and marketing we're aspects Hemanth from guide that in to the it's year-on-year XX% to that of leverage is of special in of a a we more standpoint. And then that your positioned means terms But the what be scale business to we're so the it's support of getting just a scale to and we in build a grew at And place And a from also leverage. revenue confident on EBITDA and to broadly, that respect to getting and our lot first deliver customer and standpoint. bottom I a differentiated able our that and the answered, a quality let you matters experience of grow costs how and much think to And lot that we leverage flow P&L. us continue payments both to optionality overall profitability is to line, versus get spend of in much reminder everything have from well customer variety in we businesses, look business. how

Totally Appreciate comments. agree. the

Ramsey next will the El-Assal come question from Barclays. Goldman from of Our line -- from

This is Allison great for on it's working with been Ramsey. you. Hemanth,

you're seeing seafarer And to I spoke you to new opportunity thinking does the a adds. So that in product the ongoing just about, new which customers. Matt, momentum through like nice back go want to seem capture

easy in how an pipeline of big investment standpoint? how going see to could type the product lift of And like So something these ground is we to groups? So this to get that replicate product the forward? it products that from of off is other a is it types like specialized

We've Thanks, you. Allison. to Yes, hear have our serve seafarers those great indicative. think of to from Seafarer great it's the our efficiently able investments I product excited in more enabled and made that. and example of the some we've technology to product. And be to platform, adjust about multiple the prime but us technology talked question about We're is audiences. investments nimbly

about senders, could talked different in apply profiles different also wide but customer you range of of dollar a to geographies. We types high that

faster that. And numbers volume we're I and standpoint. from revenue you've that seen is that the growth in result better continued and doing a the at think getting

to to seafarers, of product And work expect grow mentioned, as million very well. with so is and across can an quarter. seafarers And interact say I It's have underserved opportunity in I you an I'd us even with X.XX serve our think one demographic better. that There's that the many to continue I last globe. that it's seafarers serving segments

question Sachs. line Nance from will the next of Our Goldman from come Will

wanted on you the customer also follow some to of Matt, comments on I acquisition. actually up made

Some seafarer example.

I month. of week are mentioned each of and that majority kind higher think reoccurring you your senders fact or dollar senders the the customers also

or maybe customer. shifts if can just meaningful of you been I'm noticeable so level the in wondering on any if And hit there's the high of incremental sort profile

of is And I it of seems in the focus on think -- the kind strong. around a third-party data like momentum business downloads. lot it been there's app seems like continuing very

So I'm customer of the the wondering been the if there's just over couple last any profile quarters. in shift existing sort of of

profiles question. substantially terms say or year the last last in that X. of of has even great I the quarter a the Thanks, would changed not customers Will. in or mix Yes,

terms the that customers. different portfolio business of now segments like think where it's of geographies, about kind which at in is we've can the proven I deliver we of different I what of

a X I additional And facilities, in to for XX much predictable you very call we so having kind of the customers. And or which portfolio -- ago, additions started in is business would of more of XX diverse when first the than alone. were business resilient, years that I just the U.S. we were business much more this as years view tell it,

look diversification, you segments -- when you mentioned, and the is a it business that becomes shape rapid continuation I as now to opposed view number new on look as from I the a diversified, customers If becoming any And at absolute in predictability as of that form. journey to way, change or these give would business. more the which only even more, only at

wanted that. -- appreciate well. to Got the [indiscernible] and I Hemanth as question it. I a I announcement, And given then CFO

number impact And be normal the the with expect last in fraud, kind million, right the half? fraud working Is like up Q, the $X on just the fraud over of confirming looking patterns I to Hemanth, the was this was kind about the years. losses that looked great and Just back quarter? you $X at few it quarter. maybe think in at like you to been cost it's about million looks sequentially. the it, It of the Appreciate -- back

Thanks, Will.

[indiscernible]

great. sounds Nope,

the question. next to go Let's

Citizens come question Our will next from from JMP. the line of David Scharf

a been couple just that upon. have on touched of Maybe a follow-up topics

First, just on the fraud.

something in your large dollar had dollar easy geographic-focused Anything Was you risk-based curious, related senders? if identify remarks, is risk-based prepared underwriting, for was it size, you very larger Just comfort on will, fraud Matt, that either senders. to very bump that to -- the temporary for more gives and you implementing in or talked dollar being ephemeral?

not have those. over be that said fraud think we the we've journey think And in think higher the more good times Yes. we've that that we where I the to as for fraud shown fraud constant loss QX we're attacks. a will a sideline And the reviews sophisticated longer you there past, in higher directly. anything, and the models at responding delineation. and to of experience just user for I manual element there's our into do if I can question. gotten important analytics a the to better have data optimizing we Thanks between for dollar what was and that when for related of that help maintaining lot systems that about meaning answer And think we've balance senders good that because rates having feed and great is we call not rates, It can customers. And machine-learning that

rate QX sideline into continue across uptick normality, levels that in what going there again, into back maintaining an that have is QX, frontier goals and we loss. We happened that was and it rates. while our our to fraud back sideline as of And within low so efficient are optimization of that's pulled range

come, always should as in some in the variation, and we back did under bring very So that business control and excited it's QX. about you temporary, expect what's we but to

expansion there's you growth, really just -- certain it that might you've you global ability is outsized wondering, a how which big years grown years, feel Understood. think about your now next quarters be which in There of ] whether as shown in focus the Union, it's the or a focus on profitability? delivered At at margins. And $X year not of time the or customer and as [ clearly milestones out, of EBITDA company could remittance now on it's a mark. But to get more it's revenue in revenue artificial whether on what, big the [indiscernible] their scale it. Remitly you corridor I'm XX maybe to we maybe ex and the that X is been U.S. head, know least Got has quickly you signifies based And remarkable can just terms year is normal and full kind how the in size have revenue been about look transfers. margins following acquisition you think And to of and when account as hitting revenue total numbers is to could U.S. share there, how on Because billion on not say, what an market acquisition? has provider less guidance basis, you or ceiling angle. the actually X/X from different where a out approaching -- -- guidance trajectory about did it it's margin up Western curious on you've it's ceiling an account we you achieve grown already. versus where just more Western milestone quite Union that obviously,

Thanks, David. Yes. Yes.

current answer $X.X leverage show I our we're that XX the is business, that at proud. trailing in if the revenue billion look mean, to And I you we're months. we're in business. at think really continuing

where just quarter, you customer through what side as that doing of different mouth because of and the technology on a the leverage this whether scale that to headcount chat where element we leverage company see the the company remittances. And Tien-Tsin went on so do the on this word line. see continue we able I fireside kind marketing leverage components do that. can the as of aspects payments have of through P&L remittance more at there's internally in get talked about continuing talk we glide with And ambitions, to show a leverage to become conference And path while on we the leverage But to you a overall as JPMorgan bottom and support largest to company. are I And did is, we do to recently a we to -- planet. be the where see on

we're deliver see scale excited to really continues size, to on for that. showing to and be remarkable continue and the business our a top to You line line, growth that leverage deliver while bottom able

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

you call more is like Again, of growth all, you're the at in to changed shift what give it just you X,XXX in when take think, lately, just color intentional plans? congrats is around call, what on well. it, I being the saw you And on be, but I kind about, overarching to corridor compare into there different What's if any on strategy. any could little to back XX expect as deliver wish I let's markets let's you're Hemanth, sustainable? And wanted quarters pricing. we last, anything, could just quick next, all the push is a the just the Matt, a just few still growth follow-up, corridors that a review in put it, in or months? And a together, But maybe new and adds. should let's if it customer of step the guess First the seeing

seeing some different a been I the you're growth yield. and There's the spread been some seeing bit in revenue widening on transactions. here little some cases impact. could discussion competitors, in So market. with if around you more in was But of us between any fraud an we've share know there's of trends

great. seeing you're what on would color competitively any So be

Yes. Darrin. Yes. Thanks,

were X briefly. parts to so I'll answer I each of question, them think your kind there

On in in when users. adds we said, the seasonality QX, you to what net at extent there's point, that quarterly it active was look some some

new our combined of holidays with -- more QX, we're customers send a folks infers really retention as that that of, that And expected record that QX so number and it quarterly continued of looks I reasons was in that that active and users. in QX and at we proud strong in think change market to exceptional exactly know the metric And with product. there's given

it And so, usual in on some that front. respects, business was as

we're side, we're to expand the we about X,XXX the grow corridors room we the reality in plan corridor much X,XXX to long But have so in. XX,XXX time, run, XX,XXX Over to the On globally. in corridors is now. in

no more since is of you in to a room always, QX months in we've expect as the the the next So to pricing. of so in done. way always provide as should on methodological our do products. said optimization value us importantly, front, changes to in as takeaway to to are there XX you grow we existing lots Lots well fair corridors. And our as We, material improve room pricing that months. a XX corridors add continue grow on continuing customers price to But

So it's what trusted remittance at foundation for provider. a and which choose reliable, look is they when the customers

come from of will question Kennedy the next Our line Cris Blair. from William

Good about the some peers down. have Hemanth, you. seen struggles you shut working smaller Can thank advantages in industry? just structural the some to others Remitly relative We've and talk with you. cost that has

a answer And founder subscale. absolutely. I can as Yes, having been that

mean, in and I by exceptional deliver succeed, really without And customer as leverage to succeed it's a experience scale. company. an I think profitability business this get continuing hard while to

and to that talked not players And that's or surprise our whether of, whether analytics things the beneficiary digital those and we're some players, the of cash-based beneficiary the enough have word so could numbers on deliver customers, folks subscale on our scale see that of players. And kind to I that about, virtual fraud the are lot some exceptionally, that retention we've scale able in especially folks of subscale data subscale and are of is AI a assistant being I it's having ultimately, to a our are challenges partners, subscale first on, our the think and go us important. And QX. seeing and that of pay-in, our from and the digital scale that are required you're are at scale I growth delivering but think to deliver payout mouth. side,

that for being market? some And you. about talked as then Africa think quarter, dynamics opportunity I you just about last the a of of large talk you Can

disbursement story good the opportunity XX-year I came we're but rapid the from and Africa, at Yes, several countries in disbursement drive lived company, be positioned in grow there's room options where markets where shift lots West of the of I haven't the simply to to the because it's have say grow especially to of towards mobile origin been digitization, And and like look punchline the feel -- -- like Africa, a just we in growth. to Kenya, Africa. within as really and Africa in lot room lot Big Africa product the you countries is, on obviously, a and long example we're of we side, a a offer there origination the starting well of in wallets, to if before great in, both when history and across sure. able business. There's there X,XXX East we corridors

next the of Our from will come KeyBanc Capital Markgraff line Alex from question Markets.

Matt, one one then and for for you Hemanth.

big or you sort support coverage interactions of that just mix how engagements support, English? an expansion way what of effort customer the the just to language side that? of systems Just like characterize is, for of on an language on unlock mentioned the it big to broaden any the maybe is of context are then not in And for in how virtual the

of Great that a general, capabilities tools, Yes. language look lot I question. at are translation in you the the when material. do AI think

I there's opportunities so there. And think

use you virtual driven also of cases, assistant. thus far can cases we've it English, multiple for we but use can most languages. And using of at problems easy of number the the AI where think is number I of types are when it customers when if expansion in look to that expand we solve the comes

So they that at excited as a helping more skills, customer support but potential do their customer our experience can with both things as for uniquely the better level. agents about there well specialized do

just I should said half of second full the in then, that be level for consideration Okay. thinking expansion we expense -- was but on on just transaction in for already, the in How And year? higher about the the and Hemanth, XQ. this rate if margin expansion the year of apologize

continue we No, reducing transaction transaction I Thanks Yes. would think to for over the question, -- focus Alex. time. improving expenses on

in We half. think last the particularly improvement improvements really significant think some second of moderated. the had year, will I we've be -- rate I more

on, comping what scale doing the direct our in some to with terms -- growth, improving a reduce our coming going transaction different expenses especially we lot it's be years. customer of opportunities reduce we're whether integration, see and and over of we're -- focus as do we've through our the So that. But volume reducing experience so of next many levers, continue to gotten to

working Pleasure you. Thank you, with Hemanth.

Thanks.

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

a you wishing the best. Hemanth, been It's pleasure.

Looking what in think, positively out sense in metric? sure parse the I to at quarter Is about for, holidays volume that that to positive if of do get holidays years. second forward. kind customer, to per inflected the those it's have could flat we first the with that. a had trying start to time way there I'm something Just contributed potentially could to going modeling any X

in increase the that question, significant and played I it of called growth I it's QX, Andrew. Yes. of last sort -- And as for No, when there go a Yes. is we saw see to out the QX of from we we as think Thanks think sequential we I active -- quarter, think do that out. what sort customers.

more offering. improvements we as is, well product continues of as transaction the and think think have we engagement disbursement there outperformance, the we've our as called particularly been and mix in those just retention making. and And and degree digital intensity more of improve of customers. And you've terms there's a the options did an other have advantage before, given here piece contributed see enhancements to with product improving I some I as out to well

the expected. engagement that that seasonal the of quarter demonstrated are that show our those of top in we of think sort I pattern customer some on So factors increased

And a out macro Anything you're inform otherwise of you're putting that market of we're the then generally to are to our related you that basis. stable I helps know monitoring from make remittances be perspective, I in top pretty that covering macro question. that today? maybe geopolitical, but just sure the a are that guide today, from guys seeing on kind or with economic just follow it want

Yes, take that Yes. can I one.

it's we're say having we that certainly landscape, decade, cycles. of countries. domestically, but the geopolitical we unfold. economic globally prior various remittances criticality is and that geopolitical something XXX not been thing monitor only through that whether predictability have the think has -- now cycles there around And first election I'd is over the for or I in a And the a been cycles of and seen for variety

and And this taking with high so our feel those I'd guidance. have into say we we in account even are that confidence we

speak of? to no So, development

development speak No to of, no.

question Rufus Hone the Our BMO. from come next will line of from

saw wanted ask I G&A may down to G&A here. percentage cash you like be around of also increase a hiring, but you're step sequentially the sounds And this looking the comp the being about in quarter. mix meaningful trajectory. It measured to

G&A So any you'd I'd on love color to outlook. the like share

Yes. Thanks, operational we've P&L, on efficiencies. the across and really focused think it's Rufus. I Yes, G&A been

side. service other that You've seen the expenditures. that on now aspects seeing of operating the across customer We're

drive And that we the would so a There's we going And it So our process trend. G&A efficiencies moderated efficiencies, technology, We many similar managing the we will to we're to have G&A. focus software forward. way continued growth dimensions to on rates in spend. would see follow put be expect there see this.

on new well. Okay. I wondering And on on. level a was just any follow-up products spend quick update and progress with the as of then you're that working that if the on associated Remitly there and Circle was

our the pain Circle of lives are broad areas you remittances other but that modular that improve you there, we've the in a transform started elements encouraging, borders, to solving. And new in at have -- The including on But financial broader stack. we more in built points vision extending of fashion it's and trajectory early excited. the trusted starting look with if and innovate that launch us confident of and have, range of international we think is areas, technology enables customers that Yes, and payments, highly that at look it's out our thanks. with in services broader the other if technology some based context that our APIs to products to the platform I we're transcend

the And so that, to ties say I'd cost that point. also

to in reach to I scale products. in disciplined We're efficient it And more new think for investing become ramp critical we it it's excited and it launch detail. to look that what's scale and area, way pretty a as forward talking to makes more to about continue less and about talk that. about but us us does costs in sense

Crespi, Hardt will of from question next Gus & Company. from Gala come Monness, the line Our

expense transaction the as a of pricing? Can gets reset way. bigger, little we a by how How talk as Best to seeing how do in scales, you're spend an for us mechanics customers? Can about bit types the that you volume wishes, the differently? Hemanth, on. help does bringing happen? of those non maybe initial this about in of about think where terms customers you're intensity mix the and that? And Can transaction often volume there talk India, Just then is the Mexico, think you AOB one, other Philippines -- or

we've and you we pay-in gotten key time. I for over These and levers the with think out called you as partners, will certainly Gus. think tiers. I volume Thanks happen volume of more called Yes, our one some out, -- there's disbursement negotiate

very contracts. have negotiating We some been large

think the with called of of an the of partnership been thing. some payment And last we out the ongoing couple I some in global providers. quarters that's larger

economics we second So being mix. as more And question more volume levers we'll the of of able and well to your see will that flow through. And get terms this in volume-related one get pan as out bigger scale. in and that's

customers and broadly of many now similar resiliency experienced we're they I think that is haven't of patterns quarters for that years. really is the we've many, seeing what seeing behavior largely mix What we're very and have a changed.

part stay look really changed, as year our about guidance hasn't as same fundamentally we So think as I that will we and forward, then and this that think coming certainly, the of the probably years.

next Our line from FT of O'Neill question from will the Partners. Matthew come

their their best rate wishes. out higher some competition they some prepared as talked When interest good Union thought in environment I the ask driving of remarks Hemanth, Western asked and couple of out a congratulations answered. just rational call, earnings and the view about on forcing they marginal market players. I A how provided follow-ups. lot would questions and

on could last follow-up you or if seen? And competitive the I was just in front? heightened I So of fraud. has those do my your experience sort just was months else you've the curious, views been Would of anything then broadly, the few what that just share I some quickly. curious on

to And type a Or of guys can around it's it kind have geography gotten back new there? it your a or already Just confirm, was you vector that down. and up? it come any sounds you color popped of arms provide like particular

Yes. Great question.

fact our it fraud in it optimized and focus that brought one, a second was typical the down. having and And few Matt, On to yes, geographies ranges. on within we in

former, make for cost to from efficiency the is able the players I sense it's think harder the standpoint competitive. there -- there's raise they capital. advertisers it some capital, get earnings, crypto the to when even be that scale just marketing players because back that benefits in there's given as Remitly's smaller think not ability environment I marketing to and other think -- more might comes many subscale to truth that the the to definitely impact On I if of does irrational to also that the of and to that it you look

beneficiary of think So a that. I we're

sit, around thing have scale, how that positioned market think that in about at scale, I digital excited we at I a think really where right you so the that. there's is it in only make we're and at have probably sweet going well advantage as digital be does look it just I that players that feel And player And are consolidation we additional a players and to we think, would spot. add competitive the scale. I

closing today. over would the Thank That's turn the now any I all remarks. for to you. we time Q&A have for to like Oppenheimer call Matt back

operator, questions. thanks, Thanks, and Great. everyone, the thoughtful for

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ahead are right in everybody, funds at we can you, view real for excited progress time " So We your with exchange beyond we rates and trusted appreciate us. to your of to services transcend the You sending and on about is support, current joining forward fingertips. execute thank the that transforming and opportunities and XXXX our sharing in as our lives continue look vision financial borders.

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

a have Everyone, disconnect. day. great now may You