Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital
financial services that transcend borders, reported results for the
second quarter ended June 30, 2024.
“We are pleased with our second quarter performance
as our product experience delights both new and existing
customers,” said Matt Oppenheimer, co-founder and Chief Executive
Officer, Remitly. “Our differentiated positioning, focus on
building long-term customer trust, and our increasing global scale
enabled these strong results. Looking ahead, we are pleased to
raise our 2024 outlook for revenue and Adjusted EBITDA.”
Second Quarter 2024 Highlights and Key
Operating Data(All comparisons relative to the second
quarter of 2023)
- Active customers increased to 6.9
million, from 5.0 million, up 36%.
- Send volume increased to $13.2
billion, from $9.6 billion, up 38%.
- Revenue totaled $306.4 million,
compared to $234.0 million, up 31%.
- Net loss was $12.1 million, compared
to $18.9 million, an improvement of 36%.
- Adjusted EBITDA was
$25.1 million, compared to $20.4 million, up 23%.
2024 Financial OutlookFor fiscal
year 2024, Remitly currently expects:
- Total revenue in the range of $1,230
million to $1,250 million, representing a growth rate of 30% to 32%
year over year. This outlook reflects an increase at the midpoint
from our prior revenue outlook in the range of $1,225 million to
$1,250 million.
- To remain in a GAAP
net loss position for 2024 and for Adjusted EBITDA to be in the
range of $90 million to $100 million. This outlook reflects an
increase from our prior Adjusted EBITDA outlook in the range of $85
million and $95 million.
Reconciliation of GAAP to
Non-GAAP Financial MeasuresA reconciliation of GAAP to
non-GAAP financial measures has been provided in the financial
statement tables included in this earnings release. An explanation
of these measures is also included below under the heading
“Non-GAAP Financial Measures.” We have not provided a quantitative
reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net
income (loss) or to forecasted GAAP income (loss) before income
taxes within this earnings release because we cannot, without
unreasonable effort, calculate certain reconciling items with
confidence due to the variability, complexity, and limited
visibility of the adjusting items that would be excluded from
forecasted Adjusted EBITDA. These items include, but are not
limited to, income taxes and stock-based compensation expense,
which are directly impacted by unpredictable fluctuations in the
market price of our common stock. The variability of these items
could have a significant impact on our future GAAP financial
results.
Note: All percentage changes described within this
press release are calculated using amounts in the Company’s Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with
the Securities and Exchange Commission (the “SEC”), for which
revenue and active customers are presented in thousands and send
volume is presented in millions. Rounding differences may occur
when individually calculating percentages or totals from rounded
amounts included within the press release body as compared to the
amounts included within the Company’s SEC filings.
Webcast InformationRemitly will
host a webcast at 5:00 p.m. Eastern time on Wednesday,
July 31, 2024 to discuss its second quarter 2024 financial
results. The live webcast and investor presentation will be
accessible on Remitly’s website at https://ir.remitly.com. A
webcast replay will be available on our website at
https://ir.remitly.com following the live event.
We have used, and intend to continue to use, the
Investor Relations section of our website at https://ir.remitly.com
as a means of disclosing material nonpublic information and for
complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial MeasuresSome of
the financial information and data contained in this earnings
release, such as Adjusted EBITDA and non-GAAP operating expenses,
have not been prepared in accordance with United States generally
accepted accounting principles (“GAAP”). We regularly review our
key business metrics and non-GAAP financial measures to evaluate
our performance, identify trends affecting our business, prepare
financial projections, and make strategic decisions. We believe
that these key business metrics and non-GAAP financial measures
provide meaningful supplemental information for management and
investors in assessing our historical and future operating
performance. Adjusted EBITDA and non-GAAP operating expenses are
key output measures used by our management to evaluate our
operating performance, inform future operating plans, and make
strategic long-term decisions, including those relating to
operating expenses and the allocation of internal resources.
Remitly believes that the use of Adjusted EBITDA and non-GAAP
operating expenses provides additional tools to assess operational
performance and trends in, and in comparing Remitly’s financial
measures with, other similar companies, many of which present
similar non-GAAP financial measures to investors. Remitly’s
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies. The presentation of
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, financial
measures determined in accordance with GAAP. Because of the
limitations of non-GAAP financial measures, you should consider the
non-GAAP financial measures presented herein in conjunction with
Remitly’s financial statements and the related notes thereto.
Please refer to the non-GAAP reconciliations in this press release
for a reconciliation of these non-GAAP financial measures to the
most comparable financial measure prepared in accordance with
GAAP.
We calculate Adjusted EBITDA as net loss adjusted
by (i) interest (income) expense, net, (ii) provision for income
taxes, (iii) noncash charges of depreciation and amortization, (iv)
gains and losses from the remeasurement of foreign currency assets
and liabilities into their functional currency, (v) noncash charges
associated with our donation of common stock in connection with our
Pledge 1% commitment, (vi) noncash stock-based compensation
expense, net, and (vii) certain acquisition, integration,
restructuring, and other costs. We calculate non-GAAP operating
expenses as our GAAP operating expenses adjusted by (i) noncash
stock-based compensation expense, net, (ii) noncash charges
associated with our donation of common stock in connection with our
Pledge 1% commitment, as well as (iii) certain acquisition,
integration, restructuring, and other costs.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact are
forward-looking statements. These statements include, but are not
limited to, statements regarding our future operating results and
financial position, including our fiscal year 2024 financial
outlook, including forecasted fiscal year 2024 revenue and Adjusted
EBITDA, anticipated future expenses and investments, expectations
relating to certain of our key financial and operating metrics, our
business strategy and plans, market growth, our market position and
potential market opportunities, and our objectives for future
operations. The words “believe,” “may,” “will,” “estimate,”
“potential,” “continue,” “anticipate,” “intend,” “expect,” “could,”
“would,” “project,” “plan,” “target,” and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are based on management’s expectations, assumptions, and
projections based on information available at the time the
statements were made. These forward-looking statements are subject
to a number of risks, uncertainties, and assumptions, including
risks and uncertainties related to our ability to successfully
execute our business and growth strategy, our ability to achieve
and maintain future profitability, our ability to further penetrate
our existing customer base and expand our customer base in existing
and new corridors, our ability to expand into broader financial
services, our ability to expand internationally, the effects of
seasonal trends on our results of operations, the current
inflationary environment, our expectations concerning relationships
with third parties, including strategic, banking, and disbursement
partners, our ability to obtain, maintain, protect, and enhance our
intellectual property and other proprietary rights, our ability to
maintain the security and availability of our solutions, the
success of any acquisitions or investments that we make, our
ability to compete effectively, our ability to stay in compliance
with applicable laws and regulations, our ability to buy foreign
currency at generally advantageous rates, and the effects of
macroeconomic and geopolitical conditions, including regulatory
changes, on our customers and business operations. It is not
possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. In light of these risks, uncertainties, and
assumptions, our actual results could differ materially and
adversely from those anticipated or implied in the forward-looking
statements. Further information on risks that could cause actual
results to differ materially from forecasted results is included in
our quarterly report on Form 10-Q for the quarter ended June 30,
2024 to be filed with the SEC, and within our annual report on Form
10-K for the year ended December 31, 2023 filed with the SEC, which
are or will be available on our website at https://ir.remitly.com
and on the SEC’s website at www.sec.gov. Except as required by law,
we assume no obligation to update these forward-looking statements,
or to update the reasons if actual results differ materially from
those anticipated in the forward-looking statements.
About RemitlyRemitly is a trusted
provider of digital financial services that transcend borders. With
a global footprint spanning more than 170 countries, Remitly’s
digitally native, cross-border payments app delights customers with
a fast, reliable, and transparent money movement experience.
Building on its strong foundation, Remitly is expanding its suite
of products to further its vision and transform lives around the
world.
Contacts
Media:Kendall
Sadlerkendall@remitly.com
Investor Relations:Stephen
Shulsteinstephens@remitly.com
REMITLY GLOBAL, INC.Condensed Consolidated
Statements of Operations(unaudited) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
306,423 |
|
|
$ |
234,033 |
|
|
$ |
575,541 |
|
|
$ |
437,898 |
|
Costs and expenses |
|
|
|
|
|
|
|
Transaction expenses(1) |
|
107,780 |
|
|
|
80,187 |
|
|
|
197,661 |
|
|
|
154,253 |
|
Customer support and operations(1) |
|
19,999 |
|
|
|
21,483 |
|
|
|
40,118 |
|
|
|
41,414 |
|
Marketing(1) |
|
77,056 |
|
|
|
53,600 |
|
|
|
145,070 |
|
|
|
97,723 |
|
Technology and development(1) |
|
67,554 |
|
|
|
54,309 |
|
|
|
130,760 |
|
|
|
103,685 |
|
General and administrative(1) |
|
45,889 |
|
|
|
39,490 |
|
|
|
90,062 |
|
|
|
80,898 |
|
Depreciation and amortization |
|
3,907 |
|
|
|
3,187 |
|
|
|
7,585 |
|
|
|
6,216 |
|
Total costs and expenses |
|
322,185 |
|
|
|
252,256 |
|
|
|
611,256 |
|
|
|
484,189 |
|
Loss from operations |
|
(15,762 |
) |
|
|
(18,223 |
) |
|
|
(35,715 |
) |
|
|
(46,291 |
) |
Interest income |
|
1,942 |
|
|
|
1,368 |
|
|
|
4,168 |
|
|
|
3,392 |
|
Interest expense |
|
(745 |
) |
|
|
(592 |
) |
|
|
(1,514 |
) |
|
|
(981 |
) |
Other income (expense), net |
|
5,764 |
|
|
|
(1,546 |
) |
|
|
4,178 |
|
|
|
(3,057 |
) |
Loss before provision (benefit) for income taxes |
|
(8,801 |
) |
|
|
(18,993 |
) |
|
|
(28,883 |
) |
|
|
(46,937 |
) |
Provision (benefit) for income taxes |
|
3,290 |
|
|
|
(143 |
) |
|
|
4,288 |
|
|
|
227 |
|
Net loss |
$ |
(12,091 |
) |
|
$ |
(18,850 |
) |
|
$ |
(33,171 |
) |
|
$ |
(47,164 |
) |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.27 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
|
193,452,628 |
|
|
|
179,076,496 |
|
|
|
191,650,713 |
|
|
|
177,105,720 |
|
(1) Exclusive of depreciation and amortization,
shown separately.
REMITLY GLOBAL, INC.Condensed Consolidated Balance
Sheets(unaudited) |
|
June 30, |
|
December 31, |
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
185,187 |
|
|
$ |
323,710 |
|
Disbursement prefunding |
|
150,710 |
|
|
|
195,848 |
|
Customer funds receivable, net |
|
461,797 |
|
|
|
379,417 |
|
Prepaid expenses and other current assets |
|
42,860 |
|
|
|
33,143 |
|
Total current assets |
|
840,554 |
|
|
|
932,118 |
|
Property and equipment,
net |
|
22,178 |
|
|
|
16,010 |
|
Operating lease right-of-use
assets |
|
11,905 |
|
|
|
9,525 |
|
Goodwill |
|
54,940 |
|
|
|
54,940 |
|
Intangible assets, net |
|
14,212 |
|
|
|
16,642 |
|
Other noncurrent assets,
net |
|
6,404 |
|
|
|
7,071 |
|
Total assets |
$ |
950,193 |
|
|
$ |
1,036,306 |
|
Liabilities and stockholders’ equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
20,926 |
|
|
$ |
35,051 |
|
Customer liabilities |
|
166,840 |
|
|
|
177,473 |
|
Short-term debt |
|
2,394 |
|
|
|
2,481 |
|
Accrued expenses and other current liabilities |
|
145,451 |
|
|
|
145,802 |
|
Operating lease liabilities |
|
6,235 |
|
|
|
6,032 |
|
Total current liabilities |
|
341,846 |
|
|
|
366,839 |
|
Operating lease liabilities,
noncurrent |
|
6,189 |
|
|
|
4,477 |
|
Long-term debt |
|
15,000 |
|
|
|
130,000 |
|
Other noncurrent
liabilities |
|
8,256 |
|
|
|
5,653 |
|
Total liabilities |
|
371,291 |
|
|
|
506,969 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity |
|
|
|
Common stock |
|
20 |
|
|
|
19 |
|
Additional paid-in capital |
|
1,103,760 |
|
|
|
1,020,286 |
|
Accumulated other comprehensive (loss) income |
|
(404 |
) |
|
|
335 |
|
Accumulated deficit |
|
(524,474 |
) |
|
|
(491,303 |
) |
Total stockholders’ equity |
|
578,902 |
|
|
|
529,337 |
|
Total liabilities and stockholders’ equity |
$ |
950,193 |
|
|
$ |
1,036,306 |
|
REMITLYGLOBAL,
INC.Condensed Consolidated Statements of Cash
Flows(unaudited) |
|
|
Six Months Ended June 30, |
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from
operating activities |
|
|
|
|
Net loss |
|
$ |
(33,171 |
) |
|
$ |
(47,164 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
|
7,585 |
|
|
|
6,216 |
|
Stock-based compensation expense, net |
|
|
71,245 |
|
|
|
64,434 |
|
Other |
|
|
195 |
|
|
|
2,203 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Disbursement prefunding |
|
|
45,138 |
|
|
|
(117,870 |
) |
Customer funds receivable |
|
|
(82,079 |
) |
|
|
54,245 |
|
Prepaid expenses and other assets |
|
|
(7,237 |
) |
|
|
(10,344 |
) |
Operating lease right-of-use assets |
|
|
2,895 |
|
|
|
2,434 |
|
Accounts payable |
|
|
(14,041 |
) |
|
|
10,180 |
|
Customer liabilities |
|
|
(10,701 |
) |
|
|
(12,477 |
) |
Accrued expenses and other liabilities |
|
|
15,621 |
|
|
|
(4,247 |
) |
Operating lease liabilities |
|
|
(3,359 |
) |
|
|
(1,806 |
) |
Net cash used in operating activities |
|
|
(7,909 |
) |
|
|
(54,196 |
) |
Cash flows from
investing activities |
|
|
|
|
Purchases of property and
equipment |
|
|
(2,076 |
) |
|
|
(1,566 |
) |
Capitalized internal-use software costs |
|
|
(6,494 |
) |
|
|
(2,344 |
) |
Cash paid for acquisition, net of acquired cash, cash equivalents,
and restricted cash |
|
|
— |
|
|
|
(40,933 |
) |
Net cash used in investing activities |
|
|
(8,570 |
) |
|
|
(44,843 |
) |
Cash flows from
financing activities |
|
|
|
|
Proceeds from exercise of
stock options |
|
|
4,194 |
|
|
|
8,333 |
|
Proceeds from issuance of
common stock in connection with ESPP(1) |
|
|
5,004 |
|
|
|
2,729 |
|
Proceeds from revolving credit
facility borrowings |
|
|
570,000 |
|
|
|
334,000 |
|
Repayments of revolving credit
facility borrowings |
|
|
(685,000 |
) |
|
|
(300,000 |
) |
Taxes paid related to net
share settlement of equity awards |
|
|
(2,568 |
) |
|
|
(2,111 |
) |
Cash paid for settlement of
amounts previously held back for acquisition consideration |
|
|
(10,261 |
) |
|
|
— |
|
Repayment of assumed
indebtedness |
|
|
— |
|
|
|
(17,068 |
) |
Net cash (used in) provided by financing activities |
|
|
(118,631 |
) |
|
|
25,883 |
|
Effect of foreign exchange
rate changes on cash, cash equivalents, and restricted cash |
|
|
(1,229 |
) |
|
|
663 |
|
Net decrease in cash, cash
equivalents, and restricted cash |
|
|
(136,339 |
) |
|
|
(72,493 |
) |
Cash, cash equivalents, and restricted cash at beginning of
period |
|
|
325,029 |
|
|
|
300,734 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
188,690 |
|
|
$ |
228,241 |
|
Reconciliation of
cash, cash equivalents, and restricted cash |
|
|
|
|
Cash and cash equivalents |
|
$ |
185,187 |
|
|
$ |
227,507 |
|
Restricted cash included in
prepaid expenses and other current assets |
|
|
2,693 |
|
|
|
680 |
|
Restricted cash included in
other noncurrent assets, net |
|
|
810 |
|
|
|
54 |
|
Total cash, cash equivalents,
and restricted cash |
|
$ |
188,690 |
|
|
$ |
228,241 |
|
(1) Beginning with the fourth quarter of 2023, the Company
changed the presentation of shares purchased under the Employee
Stock Purchase Plan ("ESPP") to reflect an operating cash outflow
for compensation paid to employees and a financing cash inflow for
cash paid by employees in exchange for shares. Previously such
activity was treated and disclosed as noncash activity for the six
months ended June 30, 2023.
REMITLY GLOBAL, INC.Reconciliation of GAAP
to Non-GAAP Financial Measures(unaudited) |
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
|
$ |
(12,091 |
) |
|
$ |
(18,850 |
) |
|
$ |
(33,171 |
) |
|
$ |
(47,164 |
) |
Add: |
|
|
|
|
|
|
|
|
Interest income, net |
|
|
(1,197 |
) |
|
|
(776 |
) |
|
|
(2,654 |
) |
|
|
(2,411 |
) |
Provision (benefit) for income taxes |
|
|
3,290 |
|
|
|
(143 |
) |
|
|
4,288 |
|
|
|
227 |
|
Depreciation and amortization |
|
|
3,907 |
|
|
|
3,187 |
|
|
|
7,585 |
|
|
|
6,216 |
|
Foreign exchange (gain) loss |
|
|
(5,962 |
) |
|
|
1,482 |
|
|
|
(4,393 |
) |
|
|
2,987 |
|
Stock-based compensation expense, net |
|
|
37,157 |
|
|
|
35,200 |
|
|
|
71,245 |
|
|
|
64,434 |
|
Acquisition, integration, restructuring, and other costs(1) |
|
|
— |
|
|
|
316 |
|
|
|
1,468 |
|
|
|
1,489 |
|
Adjusted EBITDA |
|
$ |
25,104 |
|
|
$ |
20,416 |
|
|
$ |
44,368 |
|
|
$ |
25,778 |
|
(1) Acquisition, integration, restructuring, and other costs for
the six months ended June 30, 2024 consisted primarily of
$0.8 million in restructuring charges incurred,
$0.5 million of non-recurring legal charges, and
$0.2 million related to the change in the fair value of the
holdback liability associated with the acquisition of Rewire
(O.S.G.) Research and Development Ltd. ("Rewire"). Acquisition,
integration, restructuring, and other costs for the three months
ended June 30, 2023 consisted primarily of $0.2 million
related to the change in the fair value of the holdback liability.
Acquisition, integration, restructuring, and other costs for the
six months ended June 30, 2023 consisted primarily of
$1.0 million related to the change in the fair value of the
holdback liability and $0.5 million of expenses incurred in
connection with the acquisition and integration of Rewire.
Reconciliation of operating expenses to non-GAAP operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
(in thousands) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Customer support and operations |
|
$ |
19,999 |
|
$ |
21,483 |
|
$ |
40,118 |
|
$ |
41,414 |
Excluding: Stock-based compensation expense, net |
|
|
259 |
|
|
419 |
|
|
612 |
|
|
624 |
Excluding: Acquisition, integration, restructuring, and other
costs |
|
|
— |
|
|
— |
|
|
758 |
|
|
— |
Non-GAAP customer support and operations |
|
$ |
19,740 |
|
$ |
21,064 |
|
$ |
38,748 |
|
$ |
40,790 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Marketing |
|
$ |
77,056 |
|
$ |
53,600 |
|
$ |
145,070 |
|
$ |
97,723 |
Excluding: Stock-based compensation expense, net |
|
|
4,521 |
|
|
4,727 |
|
|
8,500 |
|
|
7,710 |
Non-GAAP marketing |
|
$ |
72,535 |
|
$ |
48,873 |
|
$ |
136,570 |
|
$ |
90,013 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Technology and development |
|
$ |
67,554 |
|
$ |
54,309 |
|
$ |
130,760 |
|
$ |
103,685 |
Excluding: Stock-based compensation expense, net |
|
|
20,354 |
|
|
18,588 |
|
|
39,981 |
|
|
35,219 |
Non-GAAP technology and development |
|
$ |
47,200 |
|
$ |
35,721 |
|
$ |
90,779 |
|
$ |
68,466 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
General and administrative |
|
$ |
45,889 |
|
$ |
39,490 |
|
$ |
90,062 |
|
$ |
80,898 |
Excluding: Stock-based compensation expense, net |
|
|
12,023 |
|
|
11,466 |
|
|
22,152 |
|
|
20,881 |
Excluding: Acquisition, integration, restructuring, and other
costs |
|
|
— |
|
|
316 |
|
|
710 |
|
|
1,489 |
Non-GAAP general and administrative |
|
$ |
33,866 |
|
$ |
27,708 |
|
$ |
67,200 |
|
$ |
58,528 |
Remitly Global (NASDAQ:RELY)
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