Remitly Global, Inc. Q1 FY2025 earnings call

• Resilience: Remittances are resilient across economic cycles. Remitly's treasury function is a competitive advantage, managing nearly $60 billion in send volume over 12 months, enabling win-win partnerships and FX risk management.
• Diversification: Geographic expansion with launches to Nigeria, Burkina Faso, and Mali; direct integrations for pay-in/pay-out; growth in high-amount senders (45%+ growth in Q1) and micro business customers.
• Trust and innovation: Robust KYC, fraud prevention, and compliance systems; WhatsApp Send integration for frictionless money movement; Remitly Circle for innovation testing.

In the first quarter, Remitly reported revenue of $361.6 million, up 34% year-over-year or 36% on a constant currency basis. Quarterly active customers increased 29% year-over-year to over 8 million. Send volume grew 41% to $16.2 billion. Gross take rate was 2.24%. RLTE dollars grew 34% to $240.2 million, representing 66.4% of revenue. U.S. revenue grew 35%, while Rest of the world grew 41% year-over-year. Revenue from regions outside of India, the Philippines, and Mexico grew 45% year-over-year.

• Q2 2025 revenue expected: $383 million to $385 million (25%-26% growth).
• Full year 2025 revenue expected: $1.574 billion to $1.587 billion (25%-26% growth).
• Q2 2025 adjusted EBITDA expected: $45 million to $47 million (12% margin).
• Full year 2025 adjusted EBITDA expected: $195 million to $210 million (12%-13% margin).

• Macroeconomic and geopolitical uncertainty may impact results.
• Volatility in transaction losses from quarter to quarter.
• Dependence on marketing investments and their return on investment.

Q: Tien-Tsin Huang asked about the drivers of higher send per active, including higher send limits, pull-forward mix, and business payments.

A: Vikas Mehta and Matt Oppenheimer responded that drivers include increased customer engagement, growth in high-dollar senders, and diversification of use cases like micro-senders.

Q: Andrew Schmidt asked about environmental factors and sustainability of benefits.

A: Vikas Mehta stated that majority of revenue comes from prior quarter cohorts, and drivers like high-amount senders and micro business customers sustain growth.

Q: Chris Kennedy asked about direct partner integrations.

A: Matt Oppenheimer explained that direct integrations enable faster transactions, lower costs, and more reliability, improving customer experience and retention.

Q: Will Nance asked about U.S.-Mexico tensions and share gains.

A: Matt Oppenheimer responded that Remitly is resilient through macro changes, with diversification and scaled digital presence aiding growth in Latin America.

Q: Ramsey El-Assal asked about strategy for high-dollar senders and micro business customers.

A: Matt Oppenheimer and Vikas Mehta discussed targeted marketing, product innovation, and leveraging technology for efficient service.

Q: Andrew Bauch asked about WhatsApp Send partnership.

A: Matt Oppenheimer mentioned short-term focus in Latin America with long-term ambitions for customer acquisition and service improvement.

Q: David Scharf asked about margin variance and seasonality.

A: Vikas Mehta noted marketing efficiency in Q1 and planned investments in Q2, with seasonality influencing marketing spend and margin expectations.

Q: Darrin Peller asked about Circle product development.

A: Matt Oppenheimer discussed Circle as a sandbox for innovation, testing new ideas for core Remitly experience.

Q: Alex Markgraff asked about growth opportunity left out by past limits.

A: Matt Oppenheimer explained risk-based approach using technology to lift send limits for customers.

Q: Grace Wong asked about marketing spend and word-of-mouth.

A: Vikas Mehta mentioned data-driven marketing campaigns, organic results, and AI-driven approaches improving marketing ROI.

Q: Zachary Gunn asked about KYC/AML for non-bank-linked card customers.

A: Matt Oppenheimer stated majority of customers use bank-linked cards, with low-risk profile compared to cash-based providers.

Q: Gus Gala asked about Q2 guidance and marketing per QAU.

A: Vikas Mehta explained revenue growth outpacing QAU growth, and moderation in marketing per QAU leverage due to tougher comps in second half.