Remitly Global Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Thank you. Great results. I want to ask on the send volume being up per active, 9% high since 2021. I just wanted to be clear. Is it the higher send limits that's driving that, was there some pull-forward mix, maybe some business payments contributing? I liked your discussion on the treasury as an asset for you within FX, but just want to better understand this trend of higher send per active?

Question: Andrew Schmidt - Citi - Analyst : Hey, Matt, Vikas, Stephen. Thank you for taking the question. Maybe I could just piggyback on the last question. So it sounds like a lot of the benefits that you're seeing are self-driven, first and environmental. Maybe you can comment on that, whether there's anything environmental in the numbers as well that are driving the higher send volume per average active there? And then, if you think about just the forward outlook, is there any reason REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 9:00PM, RELY.OQ - Q1 2025 Remitly Global Inc Earnings Call why these benefits shouldn't sustain, because obviously, good result here, it doesn't look like you're fully flowing through the revenue beat. But clearly, it makes sense in the current environment, but would love to sort of get a better sense of those questions? Thank you so much.

Question: Chris Kennedy - William Blair - Analyst : Good afternoon. Thanks for taking all the questions and for all the details. Can you just talk a little bit more about your direct partner integrations? It's been a journey. We've been hearing about it for years. Just where are you on that journey? And just remind us about the benefits that you get when you have a direct partner integration?

Question: Will Nance - Goldman Sachs - Analyst : Hey, guys. Nice results. 34% in a seasonally slow quarter. So pretty solid. Matt, I wanted to ask just about the environment that you're seeing out there, particularly as it relates to some of the US-Mexico tensions. A lot of your talking points spoke about some of the benefits of the digital channel when it comes to cost benefits, both to you, as well as to the consumer and the consumer experience. And I'm wondering if you guys have seen evidence or any kind of interesting behavioral shifts over the past few months as it relates to customer willingness to transition to the digital channel and maybe set a different way. Is there anything that you guys look at internally around share gains kind of inflected in the relevant corridors as a result of some of the macro tensions that are out there? Thanks for taking the question.

Question: Ramsey El-Assal - Barclays - Analyst : Hi. Thank you very much for taking my question. I wanted to ask about the high dollar senders and the micro business customers and just what your strategy is to kind of lean in there and attract those customers. Is it just shifting your marketing message a bit? Is it different channels? Is it product changes, partnerships? How do you kind of lean in there to find those folks and get them onto your platform?

Question: Andrew Bauch - Wells Fargo Securities, LLC - Analyst : Hey, guys. It's a great quarter and thanks for letting me take the question. One partnership that I thought kind of got glossed over in the prepared remarks was your relationship with WhatsApp. I understand that the initial rollout will only be to a limited amount of location or send corridors predominantly in Latin America, but in the context of 2.6 billion monthly active users, it kind of views to me like a really exciting partnership. So what's the strategy in this partner channel and what do you think it could ultimately mean for the business longer term? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 9:00PM, RELY.OQ - Q1 2025 Remitly Global Inc Earnings Call

Question: David Scharf - Citizens Capital Markets - Analyst : Hi. Good afternoon. Thanks for taking my questions. They've mostly been addressed. I really at this point wanted to get a little more color on, once again with margins coming in so much stronger than anticipated, whether you, A, wanted to kind of call out any expense category in particular where you may view as sort of a one-time variance, maybe what the reason for that 16% margin was, and secondly, if there's something seasonally in the business we ought to be mindful of as we think about a lower guided margin structure in the second half?

Question: Darrin Peller - Wolfe Research - Analyst : Hey, guys. Thanks for the time. Just maybe a little more detail on any product development and updates for Circle. And just bigger picture, I mean, how you view the future efforts and distinct from how other neobanks are serving customers, similar financial profiles that might exist out there. And so, just maybe a little more updates on the progress and where we are?

Question: Alex Markgraff - KeyBanc Capital Markets - Analyst : Thank you and thanks for taking my question. Maybe just -- I know there's been a number on the sort of high-dollar senders, but just to ask it a different way, with the improvements in risk and fraud capabilities, is there any way to sort of quantify or describe for us what's been left out of the growth opportunity as you've had to sort of be more constrictive around limits in the past?

Question: Grace Wong - BMO Capital Markets - Analyst : Hey, guys. Thanks. Maybe coming back to a previous question on the marketing spend and the declining spend per QAU, are you seeing underlying improvements in the competitive environment for new customers? And I suppose related to that, what are you seeing in terms of word-of-mouth improvements as you keep gaining share in your $0.30 markets? Appreciate your thoughts. Thanks.

Question: Zachary Gunn - FT Partners - Analyst : Hey, there. Thanks for taking my question. I appreciate all the detail on the KYC/AML processes. I was just curious. You mentioned earlier in the remarks that majority of your customers are funding through a bank-linked card. So could you just walk through, for the customers that aren't, what do those KYC/AML processes look like? Just any detail you can provide around that and just helping us think about what proportion of your customers do go through those bank-level KYC steps versus other steps that you might have? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 9:00PM, RELY.OQ - Q1 2025 Remitly Global Inc Earnings Call

Question: Gus Gala - Monness, Crespi, Hardt & Co. - Analyst : Hey, Matt. Hi, Vikas. Thanks for taking my question. I wanted to dig in on the guidance philosophy around topline into second quarter. We're a decent portion of the way through. April data looks pretty good on MAUs. We're talking about a trend similar to March plus 30. How do we think of that gap to getting to the 25%, 26% rev growth? Seems like there's quite a bit of cushion there. And then as we think about the QAU, the marketing for QAU in the back half, do we expect that to continue improving at a lesser rate, stay flat? Just any color on that would be incredibly helpful. Thanks for everything, guys.