Remitly Global (RELY) 30 Oct 242024 Q3 Earnings call transcript

Hello, and welcome to Remitly's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] It is now my pleasure to introduce Vice President of Investor Relations, Stephen Shulstein.

Thank you. Good afternoon, and thank you for joining us for Remitly's Third Quarter 2024 Earnings Call.

Joining me on the call today are Matt Oppenheimer, Co-Founder and Chief Executive Officer of Remitly; and Vikas Mehta, our Chief Financial Officer. commentary which in ir.remitly.com. can management and earnings additional slides, presentation be and are the available release Results found at note will Investor call that webcast Please the on be Relations simultaneously website. this

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

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

EBITDA reference integration, as on We and or items costs gain loss. and call. expenses non-GAAP and exclude will other stock-based These metrics operating restructuring this acquisition, adjusted such compensation, foreign exchange

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

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

delivered revenue in margin. To a of across performance. XX%, us delivered discuss We sustainable margin growth. business the priority. delivered Remitly's XX, and expectations, Rule acquired the This yet to quarter of With beyond both new of it and and as this QX we and today first of EBITDA nearly was earned in all growth XXXX. to you of perspective, on sum another quarterly the as defined latest the in to you strong Revenue adjusted line, accelerated adjusted me by shows Thank more X. We thoughts customers results. growth Slide and getting record EBITDA expanded million adjusted XX%. bottom of all than the joining of the let than board. entire of adjusted top record put EBITDA We on number we exceeded exceptionally year-over-year. this is on half EBITDA us We share strong backdrop, year see drive can quarter adjusted $XX.X for strategy. Growth to top the unique strength my and profitable that was what growth Remitly's our ability more EBITDA model the

getting serve, growth advantages me disrupt to started. just give algorithm. we a unique in and we our are to cater are the innovate, massive confidence and growth share and we market company customers We The the structural win

Let me unpack this.

let market me about opportunity. talk First, our

you can large in payments as X. on highly of see almost of We cross-border addressable $X have fragmented trillion very a Slide a market space, consumer

long-term near-, less The challenge XX% growing medium-, across outgrow has to is prioritizing trailing billion We horizons. over more provider and only plus. Remitly's sustainably quarter, scaled with have as as the are where rate. than Xx more works improving economies The X% us founding the $X identifying since growth digital-first grew advantage every of still our fragmentation revenue volume our a the are grow, positioning investments strategically scale. we approximately to market in XX-month we than won penetrated. Send year about but with along in the allowed XX% digital third more and market share to the and only player around

new to acquiring is it regions, use expanding whether into and cases. vectors, adjacent growth multiple extending have customers existing corridors, We or new novel in

will We serving existing microbusinesses. of needs high-dollar seafarers, The and and centers, of and like explore diversify prospect segments very unmet exciting. transaction into potential continue to customers is

Our existing and geographies. includes and both send market opportunities new in receive opportunity large growth

significant regions new we existing and near-term a long of while growth growth to term majority creates for come expect geographies term. medium We from entering the opportunities serve,

same We new will so use regions. when targeted expansion approach the to the enter served disciplined strategy corridor has these date well us and that we

a friends Second, and customers. home that existing This of payments, We XXX nearly in enable cross-border to the their to in to do by the funds service money let trust right send at price. share seamless more transparent person, ensuring financial people in country. growing at cater the family a that distinct providers people about place, our fair segment the right right customer-centric me create We helping needs way. and generally delivered million has not are time, their

X Remitly. when instantly. And experience friends Remitly up support about money Angeles her available one signed first Los in app, Since at she she cash focus customers, loves would time have her For explained for Prior of her pickup us at family members. times, that and her is sent example, told least has to for she and needed. at a take Remitly, and the doesn't nervous including Remitly thought nearly to sending speed, options. of a first. day or her money she Remitly, fees Upon starting sent person send. reliability different first money support how to bank send Sagrario about $X,XXX. fast when she to account great for of who our told the paying then, that and to XXXX. how make pride, was about with use house sending totaling through she in confidence on to company Sagrario things leave money the Immediately was was to amazement. Sagrario money and a to money mother-in-law, lives her cool uses Sagrario, sense siblings using she Mexico XX arrive. all Sagrario, and customer high for in pickup husband's Remitly it husband with a transfer. She online Her each to X difference transferring, Prior afterward, We for amazed with the the

Our so borders absolute helps many by trusted convenience, focus success of her working simplicity of hard validates with transform consistently fair and many Remitly Sagrario's drive services reminds over accompanied crucial. is trust, to price. all transparent, This and Mexico a our the years. focus on that with competitive in customers send so story to us our lives family vision why financial transcends support to

technology business, digital customer across ultimately apply structural and discuss a These every including advantages global network, low-friction platform our advantages marketing, business. I'll as experiences. driving Third, of aspect our

Let of touch these some me on examples.

customer behavior. and One us a with add every that improve develop benefits product business. We helps of is of which rich business effectiveness customer customer transaction. This innovation view call of the to experience, efficiencies the the data-driven get smarter Deeper end-to-end across we enables click, digital get of real-time every of powers have sense customer insights every teams the us every distinct on we to a behavior deeper a part needs. the and continuously as understanding customer of

amount XX regularly of Slide and our of our can high customer data teams business we tests of powers observe. to durable X. Confidence run tremendous analysts A/B teams and and a marketing actions. and in spend and data build our result over curves historical cohorts, behavior experiments marketing This demand to time example, analyzing ROI is behavior on customer the continue marketing customer years campaigns, as investment you see that data For

value prior acquired XX-month of a comes significant example, on in customer remains to marketing investments customers optimize cost. majority revenue periods. lifetime trailing we from acquisition focus for For This ensuring

average deploying period investments. months. This Our below confidence high remains marketing us payback XX well gives in

of people we possible from complex payments our compliance, Importantly, a that with for as are are awareness marketing customers, back very becomes more This unique when regulatory product collection, for on send localized customers. risk global We solving we to experience serve difficult while to XX to We be including countries, due to existing payment do even increased scale believe local in intricacies. our at it and disbursement a management. send than everything made ability a many and simple also to our our localized support our delivers provide of complexity irrespective experience customers more for brand and and should to money as and hurdles, continue continues countries payments how cross-border as yet word potential end. Cross-border resonate is benefit corridors. the abstract mouth complicated receive The simple X,XXX more and than strength. XXX

have highly efficiently. developing is you We in and iterate we see to core The Slide nature keep the our strive quickly payments. features experience principles platform us have we new to of design that infrastructure. We uptime The as services nothing and security and XXX%. and importance advantage delivered technology built to availability and cross-border can given and XX.XX% less technology the for Now reliability the allows while pride turning and structural This than through take platform. as X. improve, year-to-date continues trust the time-sensitive of customer on platform relevant introduce

broad billion move certain network. We payment than acceptance put more retail network and alongside advantage. in home wallets, global To bank built and pickup global mobile a with we accounts high-quality it options context, Let's XXX,XXX our support and to countries. network this supplemented X a distribution and cash in delivery

customers U.S. Faster to rates faster include allow Examples add with provide bank use expanding delivery experiences This unit the in transactions and costs. their times in help increasing attractive We cases and great of faster our fund across similar in launching drive while that customer card payments lowering payments. variable bank-linked conversion bank-linked payment payment the to methods costs. continue to and options quarter product from accounts down makes Canada Interac relevant this

make and increases high-quality disbursement transaction This side, improves to On speeds, integrations. customer costs. implementing the progress experience direct on continue lowers we

in with Airtel. relevant mobile in Nagad. M-PESA, For and And we partnered partnered wallets directly such example, as MTN Africa, with we Bangladesh, directly

have trust. experiences customer low-friction built high Finally,

customer issue a language use we to virtual Remitly Spanish Health can want and and and an Xx new we that cases with customer We the AI associates. Data ever recently virtual assistant a stores who customers app transactions into dispersed the retention. introduced of less customer a Remitly AI-powered in capabilities of interacting out reflected the respectively. saw For the to in assistant French our simplify Apple Center increasing than resolve transactions of results contact and a feeds launched of redesigned improve hour when we support us, support in assistant and customer virtual Android without faster and satisfaction great all the to X highest quarter, This ratings are assistant an and proceeding X.X address. In percentage can on experience record percentage X.X the contact. and as than app third the

service in are among and U.S. highest Trustpilot the in best scores In addition, our the the regions. companies money among transfer other

improving in can continuously make the aspect trust committed serve market to confident being grow. In promises, our win and customers best and corridor so on every are we the we structural every future. summary, to and simply in We about advantages ability provider serve large me opportunity, deliver

let me As I share a wrap on few up, our thoughts outlook.

full third quarter. both the raising reflecting the revenue performance we XXXX, the EBITDA strong For in we outlook, year and delivered are adjusted

but XXXX, building at you I that For are comprehensive it's early, can a hard we work plan. already tell

in centricity to guidance deliver keeps itself. growth us and earnings into planning virtuous top are we model growth our I how can a durable and business feeds from its call, high achieve another Given areas. In detail confidence in priorities for will will focus and at part detailed results The strategy, you we momentum line our our and strategic further reinforcing the revenue, provide and this results. creates one more durable, will on and priorities customer expect next next guide that profitable key XXXX. With our year. have our what This objectives I cycle the leadership team core,

payments home We are and instant Sagrario reimagining way. hard-earned in cross-border their where can a send to family like customers simple money

I call me and a tour. excited done profitable him. an experience growth prioritized In decades discipline learned XX will allocation. With deal investor let Fortune senior Vikas Financial Vikas. and drive I Before Remitly him to of and and to through from already XXX welcome thanks, Officer. over I'll listening am hand the Vikas, days, to already Vikas I finance companies, the extensive have with that, he has in to have as I his engagement financial no it Chief share prudent doubt resource great turn at investor how has roles first

continued afternoon, everyone. profitability and of strong a while acceleration growth Matt, driving and good you, quarter We expanded Thank gains. delivered margins share

and expectations, see exceeded X, revenue our XX% XX% delivering As $XXX.X you top on was EBITDA was can line. Results margin. And million, year-over-year. up the Slide quarter adjusted EBITDA line both bottom on $XX.X adjusted a third million, nearly

Let me unpack outlook early growth, profitability thoughts and FY then QX for and on share our 'XX.

function active revenue active to XX% send of in as is send their quarterly know, defined and million. Powering customers, number rate quarterly volume. by this customers, X.X as to quarter. you average continued take customers, strong of was record revenue Active new gross volume the increased represented active customer retention As growth a compared acquired by and customers year-over-year

broad-based emphasized our have higher active X a some country pace transactions. a has driven year-over-year higher in XX% revenue with $XX.X earlier, growth profile. growth customers countries and gross XX% receive was are and The focus is a customer billion both of send volume are frequency growth. of per our and the customer we and highest for Consistent active year-over-year. of acceleration world dollar. of perspective, of Matt was globally, last saw pillar and as on we seen send the growth growth outgrew quarters. a quarter of grew Send also sequential expanding we U.S. company a key saw U.S. to by XX% accelerated in scale. geographically volume driven X% to vital As stronger X.XX%. A corridors, a trend, our Rest dimension From increased the the growth strategy. Send volume going send growth rate into new take result revenue In geographic the expectations we with

over as we total to On of of Philippines continue the this increased Mexico and from receive regions quarter. the outside India, side, revenue diversify revenue to XX%

were on expenses quarter Transaction this Slide focus points revenue, basis million improving a and year-over-year. our growth XX. on as were $XXX.X of driving over to XX.X%, profitable XXX percentage Turning

Excluding disbursement basis by points, XXX of million third increased the provision transactions in quarter. to losses, basis other points $XX.X than for mix driven by were improvements and transaction partners. The scale pay-in transaction XXX expenses improved related and with mostly increasing approximately more digital-received year-over-year both

basis improve down and continue for attract a volatile to slightly as that structure. Provision new As relevant customers focused and was remain customer value. points, better Matt highlighted, our sequentially we to losses pay-in on options, of we increased transaction losses bank spend XX.X million and add payments from including faster expectations optimizing cost be percentage earlier. Transaction quarter-to-quarter the and we volume, shared lifetime will can than $XX.X

Before revenue the for into business an market transaction as expenses, indicator expense I our It key me thoughts performance or indicator let dive success. economies business. We share believe share is long-term deeper model operating on both well gains less a of RLTE, reflects of as scale.

revenue This Marketing specific let quarter, you the RLTE grew XX% to a $XXX XX.X%, that, than million, million growth. With expense categories. XXX was points of revenue, more spend $XX.X improving outpacing me as basis year-over-year. percentage non-GAAP through was walk and

digital and per than lower-funnel in past active few down relationships trusted that ROI. In as brand expense a improved driven helpful long-term efficiency and and year-over-year quarters. believe marketing, marketing in spend, and the local have million $X.XX hiring operations we high record over mouth optimized XXX marketing million Technology higher more customer XXX year-over-year. virtual is to percentage was seen speed continued points assistant from build than improved transaction we spend $XX.X basis cycle. G&A more agent on AI-based was points as customer We As our and transaction driving support by both was through expense per fewer basis, benefited revenue, than revenue life $XX.X of and spend. upper-funnel brand awareness. quarterly are points trend of customers targeted a marketing revenue, was rates. Technology as continuing performance enabling drive we optimized as intensity. Customer basis campaigns, non-headcount and by active from the $XX.X evaluating benefited continues customer a improved XXX improving year-over-year. and a and more percentage discipline and we and performance year-over-year was marketing marketing, This expense basis declined a spend million on of investments was across and of new QX, X.X%, percentage defects X.X% development The quarterly marketing contact word and

help growth, AI to strong EBITDA drive categories efficiencies. Overall, implementing additional discipline with expense across revenue and all adjusted are led even more automation and tools operating to efficiency combined We of million the income quarter the $X.X million. $XX.X in XXXX. Net quarter this with was a million. stock-based $XX.X in third of of net $XX.X loss quarter compared compensation Net income million included

the continued on and a As compensation on was basis changes schedules compensation aligning dilution a is recognized and of in revenue, over a This mix hires. It approximately interest reflects percentage of that over with generally time back-end new employees equity a XX points quarter, the for stock-based investor important is long-term time. to are fourth the headcount vesting XX.X% note basis. of in over lower period decline stock-based rates growth than or while the new ratably recent managing grant, it moderating X-year for cash making focus most sequential loaded, and

and will related quarterly going help heard have additional we volatility guidance seasonality. We provide reduce forward. especially This should to guidance your results, around quarterly feedback

on XX. that, our with Now moving Slide to outlook

We expect We expect of mix. quarter. third season in than modestly be a gross expect decline patterns change forward we seasonal the the reflect active quarter FX fourth saw the which to as moderate sequential as holiday quarter. With typical demand a model fourth due in what result, in primarily pulled quarter to to take some the and respect a the a higher in to customers tailwinds, quarterly to rate, sequential third we result

half adjusted Zooming last outlook. above out, laid billion. a the expected out In year we to XXXX XX% line by $X.XX midpoint our EBITDA be the between we full the million $X.XXX revenue $XX guidance that, XX%. second between $XXX million approximately significantly $XXX and We are expectations quarter. Shifting at with revenue revenue to is raising and growth to of million, to expect rate billion of in

level percentage a strong a into QX similar campaigns, the a seen a As over QX performance past fully we us XXXX loss customer X of growth as we quarters. have targeted we with to a investment reminder, transaction seasonally which as from a we volume set high brand up marketing perspective, transaction is expect a loss both marketing and perspective. From new for of in quarter lean acquisition send expect that

half significantly QX is of expected expect and performance million. $XX revenue, EBITDA had be outlook our gave between than $XX the we We quarter. million last EBITDA adjusted what Similar year to adjusted we the when back to in higher

a the adjusted As by the we of million $XXX million. are midpoint increasing result, million at $XXX outlook year range full EBITDA to $XX to a

Now let unique confidence me loyalty deep us creates XXXX. durability base, have future the we of product share in early Due within customer business. and revenue our experience, thoughts and our predicting on to gives trusted which in

As Also trends and customer revenue past prudent view, a have a in look expect XXXX. low note rate benefited FX corridors. from thus mid-XX%s at we take growth cohorts, that for in tailwinds we XXXX, far to we key

While benefit, continue not in tailwind we could this XXXX. we to assuming are

view summarize, crucial year. To an hard QX every formal growth across Finally, strong the that team the disciplined early while this next drive this guidance for to quarter and a the is reflects shape quarter maintaining and margin adjusted management. EBITDA will is cost revenue growth expansion work

on will call Operator? the open to and I with look your to we remain vision we trusted for financial As up services the that that, our Matt lives questions. borders. With transcend future, transform focused

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

starting quarter about anything caused other influenced have into little the talk currency Obviously, fourth that maybe results very dig the assuming there, if or it bit seems like was prudent be that seems onetime very, results else momentum could in quarter, dig But might Could It you a here. just than whether performance. not you're effect? assumption. result. like helpful. there a third would great you And a great, that continues, just just Maybe obviously a robust

is Vikas. Thank Andrew. This you,

Let me take that.

in pleased results the First QX. are really we we of saw all, that exceptional with

volume And and XX%, we grew have in volume external was had that highest X that by quarters. We backed that expectations. we was average send the record is saw, which seen highest both that internal grew we by We quarters. seen the new exceeded X you customers. X%, which in have As had

rightly U.S. So continue, establish is in as while look tailwinds benchmark we a strong that a QX, prudent at start point. for the QX is lot finishing did XXX% outlook. quarter them able to in focus it or in corridors. FX the QX, bake quarter. We could some of really off at a this really, addition, pointed, in were see some a the line thought us to XXXX. year strength not those we've with sets tailwinds, our we steps us as into especially strong of expectations. we And Overall, really fact, in it to as high And include believe our QX good crucial And in for up this we been with you

QX. exceptional an overall, good a QX So to and start

certainly to better add rest terms across foundation continues scale thing market. And of the added And our has I and But to But about value growth in at addition mouth, there, is and and when only much mean how product efforts the strong in in growth the size. huge size, of of and outperformance in the compared that welcome again, look I'd I you the that underpinned get product, an equate it's some revenue that was so think can at be. our and results just already impact. But He's is strong. we Vikas. to word XX% QX continues ultimately, marketing the the at there, folks our to scale to talk just sometimes saying, business.

saw in QX. that You

of kind that Sagrario we quarter-to-date. it's we about superior and But and continues and because flywheel be that the to that product again mentioned I'm loop deliver. excited structural future. for advantages product are the share internally the just the see like QX have out we're coming experience again in to about some laying back already the given customers of calling continue that we incredibly 'XX plans I've self-reinforcing may that that the You that we're more

Fargo. next comes Wells the Andrew from with our line Bauch And of question

XXXX if blocks just low mentioned of to Maybe really to tailwinds some of going ease. assumptions I know some that us could corridors you but are the were there to that select you helpful certain are in mid-XX%s, in give fundamental It's on guide. expected building the that the there. have

you bit can more a maybe there. give little if detail So

Yes. Andrew, Thank Vikas. that you all, this we to FY is you your Keep And thinking can early an in the wanted that for given you as early of is mind give this view first XXXX, about you so question. we start -- view. an about think have from that. cohorts signal,

similar Just we to to confidence had the gives one the provide early on and full revenue first retained Matt after earlier, stat shared to us that be platform what signal. majority that of able year cohorts

where listening that I In be headed. as of able the as in bit frequent of to was would addition, an my that, ask did provide terms well business tour, indications I is say view a little as give into a to early things

was there. that genesis So the

shared, As think 'XX we few keep things. mind in a and you about what FY

The in we we from XXXX thought assuming in. bake prudence FX continue. could first benefit a similar is to it tailwinds we what shared to year-to-date. And those best from was for We are QX, not not them, tailwinds but saw perspective, to we them FX

thus say have have to we believe seen the continue you growth Secondly, to as growth active a outperform we the customers, that basis, revenue seen believe that what we far volume finally, in well. that quarterly expect we our I'd similar in will And XXXX. sequential on that XXXX

those So perspective. overall, growth to similar from trends XXXX algorithm

sets that Finally, QX for I'd QX. us are successful quarter that crucial on say up we is a hyper-focused a XXXX.

the So that next define the provide we'll guide will we'll in be that and on relentlessly that executing formal quarter.

this of some excited in morning, 'XX reviewing our company goals just looking the our as how lot historically efficiency. I'm am looking plus continue I'd And you that honest. forward, for And in out running revenue. right well be that 'XX of of were the incredibly 'XX both terms was you I be already, in as just foundation over get to product we in XXXX. to be back set we've And improve other able million to kind historically, a to fuels beyond of level the just if at to able $XXX go XXXX, engines marketing add, Yes. I given and zoom to

And so guided you $X.XX over look to we've already billion. this year,

If after at I'm about how that go uniquely you numbers positioned as on the we're and think giving thinking look I if it, I continue do what at $X.X look it's do be XXXX, trillion, to will we're the 'XX it exciting. And early, we you early to then by said and to we to really services. solid take component transforming the globe there's around accomplishing addition lives by this vision it really to of self-reinforcing in remarks to in our my that us opening just to need the customers execution that's continue reinventing deliver going to of cross-border financial

Appreciate Andrew. excited the what's come, to about So question.

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

I the continue guess, Super I next came in operating leverage. efficiencies wondering I specifically was trends What you could guess, expect and this quarter whether better well. marketing on as of to the better and beyond? can And probably And street you comment expectations, in than are you our marketing the comment than if impressive favorable sort quarter. results you on specifically quarter seeing?

Yes. I'm happy take that start, to and Ramsey.

is our XXXX we added that I'm She Sagrario really been a retained, And earlier, of to example. with the fact she shared I'll I I the pleased as million we think that is since friends. uses how when she has platform. front. her obviously, product She product, marketing customer. used customers X our After now with our deliver of component think, that it as deliver. to back to one the over X continues foundational on I go And continue the said

amount enable the marketing in excited you to add fact can so we're new customers. But marketing unique to given and brand And the is potentially look the is continue -- at our record trend a about us what the of number of deliver required way. to our differentiated moderate when that's dollars I'm spending continues and that product

a product. Vikas, be measure economic But is lifetime deliver of a built. as about brand and unique will so value. But when that I of of even you component that just excited brand way by thing of marketing, delivering where we scientific anything value And a has superior excited where brand marketing about business built customer our unit to lot dollars mouth a built marketing we actually is That and word have real by brand think has can I'm focus And and think of continuing have based those we course. there's about always been a on more and trust, cost really marketing. been acquisition has you'd them the the foundationally, add?

dovetail Yes. channels. of And on specific seafarers it top and is word product-driven organic there. The XX% or record and mouth goes acquired new us customer there in say last reduce seafarers. example just word that Great channels talked we No, QX back that of to Britain, friction into key benefited growth we came to one in referral saw drive point in succeed Europe, lot drives of product That that Australia, We from mouth. we've a of from acquisition Singapore improvements I'd helps really share about motion. that seafarers the flywheel that unpaid again quarter. and that expanded the I'd And new was and that those that

of next line Our Will Sachs. Goldman with question from the comes Nance

competitors in disruptions FX-related some sounded in maybe Central in it -- to as business these macro subside month one in today. of the I mentioned of as October, of seeing results momentum strong couple your see the to in of as America. couple like wanted a some a tailwinds the the corridor impacts and ask well of weather kind Great -- in business U.S.-Mexico of October particularly the

from not see and that, check patterns there? So commentary, it of just observed seeing you but like you have to kind wanted guys sounded your are any if guys notable

Yes. Thanks, we're pleased Will. so performance, seeing since Overall, specifically the mentioned QX. really you Mexico with far in that

per far and send to we growing strong continue metrics significantly thus market. the with behavior see And continue active to QX. in outgrow We take share year-on-year

initial And so for our with the we're remains in the while line region it's still pacing and behavior quarter, in expectations resilient. customer early

marketing on I'll And as just ahead we look hear. to try great fourth one That's into it. then the another quarter. Got

in I quarter. rate sort thoughts of level around saw marketing or range a think step-up you the million since how run it I the for this the following minus, there? in year? the strike sequential quarter from a that right step-up bounced then. pretty cadence substantial marketing And $XX just fourth in of last any the plus year, about think the prior in where for And is to new kind of kind mean, fourth on we

Thanks, Will. Yes.

Vikas. things there. Let This me few take A this. is

acquisition the holiday opportunity a First of given crucial is all, QX season. quarter in customer the definitely

Matt hyper-focused As ROI. are earlier, mentioned marketing on we

we'll moderation it So -- we in to year-over-year believe drive growth. as growth, a think prudent. And do want way we that, QX, for about have a we feel but very spend that is we in

and you similar we'll ROI believe on perspective, that to be focused the marketing. that increase. opportunity X% are the a given seizing we look that marketing per lower comes what And marketing overall, from the will a active be growth to share But think you QX. Ultimately, If if the approximate we customer opportunity there's spend in we'll dollars we sequential or we sequentially that have, QX it will marginal the as well. believe year-over-year, quarterly about you in ROI massive saw when

line next question of comes our from Huang with And Tien-Tsin the JPMorgan.

here. results Great

I and rate would the just terms But conservative of a to some mix. the but quarter because why understand just in XQ. outlook, Perhaps the with you was strong it sequential take dollar, trying different third the to feels forward was mentioned thinking on better there seasonal like be strong. it's I know pull quite from pretty decline than outlook. On fourth the the quarter thinking quarter fourth due past know this about pattern seasonal perspective considerations

you Yes. is question. This the Vikas. for Tien-Tsin, thank

try think the average I think to you -- you gross the the help customer, send algorithm I'll the then about active quarterly take rate. customer think through and per if there,

to we'll you have if is improvement, sequential believe active have compared while quarterly think QX. higher QX quarterly as a from being additional customer we that modest from quarter a active and perspective, a So a from perspective, shared crucial customer we

So that's one.

et want -- about dollar optimization. FX, is if take we that price is influenced quarters. And or what the size, more have will transaction be shared of past believe not which less finally, in from rate, from to it's think that line believe a gross mechanisms, seen note We the QX it we again, rate is we is that The volume it point, will customer. beyond per I that the last sequentially it the over but couple you perspective, send cetera, you second corridors, last line have a by indicator in take before what perspective. that saw And be in softer, also payment with because with best

can for good off about earlier, be line is shape the and QX QX. Overall, the in business. expectations. our we you how think about that's continue to very I a start And to excited with shared growth as So algorithm of the

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

answered, FX impact housekeeping, conservatively this. out as have of has year. year-to-date what's quantified on to growth Most the tailwind? left give define Just missed what Have being been been context I revenue but maybe some FX the for you one, just us next you

Yes.

So it this question. the on quantify hand, you as FX imagine. David, Vikas. for you difficult impact, to one is is And can Thank

especially with So to said, some That see especially that. it's positive of momentum, correlates we strengthening to sort put we that spikes dollars. of of a number and currencies, U.S. hard the see

whether playing hard compared where So days factors to in, terms that volume said, other improve. be lot typically which in we a gives indication to out enough of could or the us is specific direction. That it's parse holidays it see specific to it of

that's point So one.

don't be The is, try more factor as prudent and out that in. generally we second we about quarters, to think

in It headwind. both mind or that be a can ways. go can a Now keep tailwind

it not in can which on So a customers. bake experience with low-friction we providing our and for what we is prudence, we great focus to control, try

And our next Markets. question comes with from the Capital BMO Rufus line of Hone

this margins of the around but Great pace marketing efficiency to the XXXX thinking to the are your beyond? the how thoughts comments appreciate EBITDA But you uptick and I expansion get your GAAP margin and good margin. quarter. Obviously improving on wanted this quarter, really see in longer-term the a in profitability about organic word-of-mouth EBITDA traction.

Rufus. one. start Thanks, I'll this Yes. with

perspective the talk add this coming the flywheel that really payment that we're the the you that you'd whether what for that thing drive of continue the kind is G&A tech investments from obviously, us well in having product there we -- aspects and a optionality gives margins think a businesses continued I for can to happening a because there's at about more standpoint, there? look that is profitable excites those. from to run excited to as go each other digital of a quarter accomplish our and and of we more scale, digital of years. Anything scale and business scale through CS at self-reinforcing we about payments that first when And aspect is fundamentally costs P&L. But long-term to only the And a payments but close mentioned each that business. this our digital had business in you talked this of business that to that and you XX -- vision QX. you P&L, as get is not leverage as now as deliver years are enough 'XX, excited that's we've But me lot transaction make you that's of about, need dev, leverage look how marketing, of across flywheel

company. first are prepared No. a I'd just reinforce what you of all, said we Look, earlier in growth remarks. the

right margin massive, was shareholder quarter. in the very as drive reflected well in long-term capital XX% continue that have a quarter, view you in We this to driving just our bets terms we'll of allocation, disciplined the growth. And finally, making right which as profitable We EBITDA to this with market. small a value. a drive massive saw, invest as did and We'll share

and margin FY 'XX share in of those and drive We principles our but have confidence don't goals anything we've in flywheel virtuous point earlier. front ability cycle specific on the EBITDA the shared we the Matt center. hope for this to had keep you principles the that to learnings we'll at So time, give that

And from Chris with our Blair. next William of line comes Kennedy the question

Can entering emerging and markets clear talk just a guys It's you your of growing allocate then you growth capital your how new have markets, established geographies? about levers. you between lot

to Happy take And Yes. Yes. you're right. one. that

existing and where look our if is growth, point, about there's I challenge think hey, that lot strategically companies I in of about a grow mentioned as there's the grow? you my do in we to more at allocating. And a where question we identifying is markets. grow For opening of, us, less your near-term or a do where of remarks, how to lot it

to a outperform and small large are of growth. a We and continue market growing we percentage very overall market

we growth ] with And to of quarterly the we NCAs because into launched if to doing what from go will expand the can and to business that's markets indicator active continue you is is 'XX. There or that that look encouraging morning, nice we tell markets which in. to it's to we're standpoint, coming again, so we leading the markets some quarters, I And what's revenue. acquisition the continue we large seeing going to ultimately continue continue of I you, a are add at -- just existing review this we ago can quarters some [ I'm back serve. -- few was plan that as a regions pleased customer new users

where grew And microbusiness so Kenya, Sub-Saharan lots And which other includes very users. Nigeria, progress, launch. And the that terms are excited expanding launched about in to serve just opportunities excited about that so last there's we when we've invest the new the to good new mentioned, mention that and I'll last of to year-over-year XX% I comes to market but also is that. And I'd UAE, reinforce about Africa, of like it one in it's just active in the to Tanzania. of segments Ghana, whether markets can markets and Really point. quarterly share then send, terms data

little of of segments markets existing a well sense And as a of gives that as bit the new we're so seeing new in you kind working both it on. we're growth

of next question Wolfe Darrin with from comes line our And the Research. Peller

looks you somewhat half obviously would And guys nice the this, a and be from like giving Nice you view quarter from us was quarter. of the EBITDA the rate beat the some And steps third previous first the if growth bit, had second I'm can it it quarters. beat a because bit. in evenly -- a a out you room, little like EBITDA curious I quite but and in sort comment know of to spread looks was down standpoint, magnitude over the yet now standpoint QX QX a on

those, could around the if opportunity I'll be just is gross beat margins, And follow-up great space investment spend guess, kind up to well more of in around of -- especially -- if maybe the to you're would -- and of the items more for a kind it so corridors the -- the utilizing far, room XXXX, aside business. on on bank just look you're curious opportunity on once quick at ask the I would be which setting current just comment and just And also. so as done that's if just all gross if loss on I'm there's as of integrations marketing for an both some variability, you white great. just spending we you've just more But case, set fraud that

you, Thank Darrin. Yes.

of the first can part second the thoughts on one. and take Matt share me Let it,

So may think guide. half you guide, you our about the to think about broadly as increase want as EBITDA second a in

you in drive we we million, to what $XX a strong really expansion QX saw compared growth done by perspective. is we before. And increase know, as -- meaningful a we the margin sizable have which increased So guide from

we 'XX. And some was we we be lot will set optionality something retaining which customer a you do. retain and quarter we finally, in make continue we to high either invest given from additions, marketing. As innovation. way crucial, growth QX, earlier, FY We'll the invest up as it we some and in there crucial could exactly, that I revenue prudence that want to to a perspective, there us right have opportunities. thought of sure drive for invest. it's that well said believe thing shared movements, FX the a net really to We'll would And move

from So of makes that I is a our given margin again, feel EBITDA us perspective, model economies very expansion think And scale the overall we really in really business from an confident strong. perspective. it the get,

I'll add, the to about The of Yes. Darrin, some point Vikas. expense. transaction Thanks, thing is your only

And Vikas is some transaction I'm talking be a at long-term mentioned while have there'll the if down look of quarter-to-quarter that be in to trend, that, future. RLTE. drive about we costs First, metric variation the That ability happy both we'll of you scale, the our the both our and loss, transaction because to disbursement digitization paying of acceptance whether decreased that systems into manage that's improve partners, the disbursement on because payment partners, data can speed but methods feed side. also cost and of unique and

balancing optionality if a manage that that expense which we latter, make closely as a the of ultimately LTV to the unique the to front. and than need how sure to you like we business look transaction is we're due a lot much have we at correlated with On digitization revenue. more in a metric P&L customers to will drive gives growth along how let to RLTE, us capture we flow help versus But it, much and us pass ability

manage and the about expense and movements transaction that And about that going to gives excited something there. closely optionality to we're RLTE in talk so is continue us

And our next Markgraff question comes KBCM. from the line Alex of with

Vikas, expense on had one mentioned, per metric the active. marketing you, quarterly you for that the

guess, I customers to new just Just marketing metric is the right existing sort of of towards with, understand curious better that versus customer looking think question, from going to retention? your much seats why expense how that's the about underlying

you. Thank the appreciate question. Alex. Thank Yes. you, really I

we of and efficiency about earlier deeply marketing First the care ROI. similar the comments, the to all,

of we new the to that serving for helpful feel have years acquire the of be the insights activity customers, also not that engage the extremely we levels, can us, just data from XX-plus Given but amount improve and only data-driven customers.

to per efficiency is existing. is to for ROI spend periods marketing that driving And we upper both the believe CAC are very new drive our tends us the LTV specific as active there. and solid well performance evaluate And improve the decisions shared So adoption well. while across a to and to payback really composite that continue periods the as funnel adds, et extremely to important marketing both as well across engagement. Behind from as as channel customer brand, customer the the scene, the activity quarterly we payback cetera, help and way drive are earlier, say I'd new as

So the that composite can active drive perspective, per higher us. we to customer important drive halo for very feel said majority metric. is That new from acquisitions. great spend A from our marketing we brand frequency of a quarterly continues it's a

Company line the ]. And Gus Gala our from with comes [ MCH & question of next

I couple. had one -- a

RLTE the you the these think the XX% corridors non-India, how the from contribution performance marketing margin part if will? I growth you is efficiencies as don't of is, And seeing Mexico. now So Philippines, diversifies, versus of then you the, base do geos? and Are targeting core core the newer corridors, second know, those

marketing a X. I'd of we in Yes. Gus, first rolled efficiency, say, beyond on the playbook We're in point have across terms XXX receive corridors. that those we've out

glad in the business And of the so been that not corridors. to that highlighted but is see the continues across that marketing P&L. efficiency We've diversify, this you a see the as ultimately for you in something in new lot I'm And we us. playbook script a marketing that's

And so good about marketing beyond feeling and corridors. expanding the well X playbook those

FT the with from our line Zachary question of Partners. And comes Gunn next

going drivers the the dollars hear there's the an pricing. due to have talk a know margin But So can the think And of term, being expense, to transaction But up. direction about discussed that long I us margin? how across has discussed come then term to great efficiency RLTE down help a that of and you that industry, long RLTE. understand to view about over just follow-up And you I the able just you we drive given all you just that. think should after that

happy -- of Gus' opportunity second me that, to Yes, the take helps it to and an question. answer Yes. also part give

it's I transaction about that RLTE And is there's over going dollars mentioned think down. And continue earlier, expect I but digitization, for expense the the is come to There's because not cost think to most. which only I cost digitization, that the the what it collect come down. to that, makes be remittances can time. I care we we funds as to reasons great manage

because institutions quarter-to-quarter And specifically that example. may at to the margin. You we financial announced with Remittance look have FedNow companies access and what I lower can would expect uniquely percentage. That one greater cost, transaction more will we I more we many to of increase the expect variability we will when with leverage than stability said, we what get the do time. optimize over RLTE are That dollars just bill can being those cumulative look which as highly-regulated give we just was called Affordable would deliver decisions, each seen that we remittance at modestly access that and as And scale, one Act non-bank a helped and would how of to would to some to let that. need bring bring as down we constantly we our much flow our expense. And to down we much we costs, pass how transaction therefore, that, do along pay-in and decide customers our

so customers. price and And customers that again, about I RLTE, to activity we're that, really both feel we charging LTV the is of which we good control equates to that drive and think, something that ultimately, levers the can is

I back question. final like closing the turn call That's Oppenheimer now would Matt remarks. to the to for

customer terms you, in Thank questions. everyone, XXXX this experience is her joining just Remitly with about very and happy. easier thank rate your want a Sagrario, I thank makes money good." We for for said who your to, exchange sending life to we back We family. And recommending my for support. appreciate for Remitly. "I want to her am her thoughtful of and us. bring and since Great. the it loyalty And again, to friends It everybody

lives forward about we of ahead excited that are vision to execute transcend incredibly heard trusted you've borders. services as financial on from with continue the As this we sharing opportunities look and to call, our progress transforming our

Ladies thank disconnect. now participating. program does conclude today's you and gentlemen, may for and This you