Remitly Global, Inc. Q4 FY2024 earnings call

• Customer-Centric Innovation: Remitly disrupted the remittance industry with a digital-first approach, transparent fees, and customer-centric features. In Q4, a record percentage of transactions were dispersed in less than an hour with no customer support contact.
• Trusted Financial Services: Over 3 million reviews with 4.9/4.8 star ratings on iOS/Google Play. LTV to CAC was approximately six times, payback period well below 12 months. Marketing expense per quarterly active customer decreased nearly 16% year-over-year while adding a record number of new customers.
• Transcending Borders: 80% revenue CAGR in rest of the world since 2020. Over 5,100 corridors, enabling funds to 5 billion mobile wallets/bank accounts and 470,000 cash pickups. Expanded mobile wallet access in Africa, launched PayTo in Australia, Klarna in Germany, and continued progress on faster bank-linked payments in the U.S.

Fourth quarter revenue was $351.9 million, up 33% year-over-year, and adjusted EBITDA was $43.7 million. Full-year 2024 revenue was $1.26 billion, up 34%, and adjusted EBITDA was $135 million. Rest of the world revenue grew 41% year-over-year in Q4 and contributed nearly 24% of full-year revenue. Active customers increased 32% year-over-year to 7.8 million in Q4. Send volume grew 39% to $15.4 billion in Q4, outpacing revenue growth.

• Q1 2025 revenue expected $345 million to $348 million (28%-29% growth). Quarterly active customers expected to grow in line with revenue growth, send volume growth to outpace revenue growth.
• Full-year 2025 revenue expected $1.565 billion to $1.58 billion (24%-25% growth). Q1 adjusted EBITDA expected $36 million to $40 million. Full-year adjusted EBITDA expected $180 million to $200 million (12%-13% margin). Expect positive GAAP net income from Q3 2025.

Forward-looking statements involve risks and uncertainties. Actual results may vary materially from forward-looking statements due to factors such as macroeconomic, geopolitical, and regulatory changes. Remitly assumes no obligation to update forward-looking statements except as required by law.

Q: Andrew Schmidt of Citigroup asked about marketing spend, organic vs paid ads, and 2025 marketing spend trend.

A: Vikas Mehta and Matt Oppenheimer responded that marketing ROI was excellent due to product improvements driving word of mouth and effective campaigns, with marketing spend per quarterly active customer expected to continue to trend favorably.

Q: Griffin of Wells Fargo asked about drivers of higher volume per customer.

A: Vikas Mehta responded that higher volume per customer was driven by increasing frequency of transactions due to improved customer engagement and trust.

Q: Ramsey of Barclays asked about political environment impact.

A: Matt Oppenheimer and Vikas Mehta stated that the business is resilient through political changes, but guidance does not include large macro/geopolitical/regulatory changes.

Q: Zach of Citizens asked about margin ceiling and 2025 margin guide.

A: Vikas Mehta responded that FY 2025 margin guide balances growth and profitability, with considerations of RLTE comps, marketing leverage, and tech investment.

Q: Rufus of KBCM asked about FX impact and margin expansion.

A: Vikas Mehta responded that FX was offsetting in Q4, and FY 2025 guide does not assume FX movement, with margin expansion tied to long-term growth opportunities.

Q: Chris of William Blair asked about micro business opportunity.

A: Matt Oppenheimer shared an example of a micro business customer using Remitly and discussed the platform's extensibility for serving micro businesses.

Q: Alex of KBCM asked about 2025 revenue outlook and gross adds.

A: Vikas Mehta explained that FY 2025 revenue growth is driven by QAU growth, send per QAU increases, and volume growth outpacing revenue, with focus on RLTE dollars rather than net adds.