Remitly Global, Inc. Q2 FY2025 earnings call

• Product innovations: Remitly Business launched in Q2, Remitly One membership program with Wallet and Flex, stablecoin initiatives, and Agentic AI for cross-border payments. • Financial performance: Q2 revenue $411.9M, up 34% y/y; adjusted EBITDA $64M, 16% margin. GAAP net income $6.5M, a significant improvement from Q2 2024. • Operational metrics: Over 93% of transactions disbursed in under NR, over 97% completed without customer support contact, and 99.99% uptime.

Second quarter revenue was $411.9 million, up 34% year-over-year. Adjusted EBITDA was $64 million, representing a 16% margin. Remitly Business launched in Q2, with strong early momentum, onboarding thousands of businesses, and average transaction sizes nearly twice those of core consumers. Remitly One, a membership program launching in September, includes Remitly Wallet and Remitly Flex. Stablecoin initiatives are in beta with plans to launch in September. Agentic AI is used for cross-border payments and customer engagement.

• Third quarter 2025 revenue expected $411M-$413M (22%-23% growth). • Full year 2025 revenue expected $1.61B-$1.62B (27%-28% growth). • Q3 adjusted EBITDA expected $53M-$55M (13% margin). • Full year adjusted EBITDA expected $225M-$230M (14% margin). • Authorized a $200 million share repurchase program.

• A sophisticated fraud incident in May led to higher provision for transaction losses, though it was an isolated event. • Regulatory risks related to remittance tax, though expected to be a tailwind for the business.

Q: Any updates on the timeline and geographic phasing for product rollouts like Remitly Business, Remitly One, etc., and if these initiatives will be accretive to revenue and profit?

A: Remitly Business launched in Q1 and grew nicely in Q2. Remitly One includes Remitly Flex and Wallet, launching in September. These initiatives are expected to drive growth without major impact on marketing line items initially, with plans to focus on targeted campaigns in the second half.

Q: Thoughts on stablecoin demand from customers and how it impacts unit economics?

A: There's demand in emerging markets for stablecoins as an inflation hedging tool. Revenue model for stablecoin transactions is expected to be similar to fiat, with Remitly well-positioned to drive adoption due to its infrastructure and regulatory expertise.

Q: Clarification on guide beats and how much comes from new innovations?

A: Most upside in the guide is from the core business. New initiatives like Remitly One are early, but the guide already incorporates plans for targeted campaigns supporting newer initiatives. Marketing remains an efficient lever with 6x plus LTV to CAC.