Remitly Global Inc at JMP Securities Technology Conference Transcript

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

Question: David Scharf - JMP Securities - Analyst : Terrific. So listen, before digging into more granular questions, definitely want to learn more about just who your customer is, how you target them. But a lot of people are familiar with the money transfer industry, or they think they are. So can you just offer up, what do you think the biggest misperceptions are about either Remitly or your industry? I mean, you went public about a year and a half ago. Obviously, you had to kind of tell a story. What are some of the misperceptions or questions that you kept getting encountered with that you had to sort of set people straight on?

Question: David Scharf - JMP Securities - Analyst : Got it. No, good context. So as we think about who you ultimately target, can you talk about kind of the -- for some people it's a subtle distinction, but for you it's probably the difference between who you're going to spend money trying to target as a customer or not. This idea of the underbanked immigrant, the non-banked immigrant, what requirements you actually need in terms of having a checking account perhaps to be a Remitly customer. Can you dig into just who exactly is this customer? Because a lot of us have images of some people getting paid maybe in cash and standing outside a Western Union location handing that cash over a counter. That obviously doesn't work for Remitly. So can you provide a little more context into more granularly sort of who your key customer is?

Question: David Scharf - JMP Securities - Analyst : Got it. And just digging into that a little deeper, what has your experience been over the last few years in terms of the willingness of some of your consumers? Because you mentioned trust, not only handing over a Social Security number and address, but maybe they just opened a bank account in the last 12 months or 24 months, providing that kind of information. Do you find that that underbanked customer that has a savings account and nothing else, is it a tough sell? And conversely, those that are non-banked, are you seeing any conversion I mean, what are you seeing in terms of adoption of banking services by immigrant communities in the corridors you target?

Question: David Scharf - JMP Securities - Analyst : Got it. So 2% of the market. At the same time, Remitly, I think it's doubled its footprint as measured just by corridors. I mean, I think it was astounding. I think it doubled over a six-month period, maybe the end of last year. Can you provide a little update on just -- you mentioned the number of corridors and so forth, but a little more information on where most of your remittances currently take place, maybe how it was founded, the concentration, how that's diversifying now? Ultimately, where do you see this in five years in terms of the footprint? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2023 / 8:30PM, RELY.OQ - Remitly Global Inc at JMP Securities Technology Conference

Question: David Scharf - JMP Securities - Analyst : Got it. And as you think about these share gains you captured, is there any information that you're able to assess to tell you kind of where you're getting it from, who you're taking it from, and sort of what some of those factors are?

Question: David Scharf - JMP Securities - Analyst : Okay. Well, that's a good segue, because I guess it's a tech conference, so let's talk about the technology a little bit. So I'll play devil's advocate a little bit. I'm guessing a lot of people say to themselves, how hard is it to move money? Anyone that's bought something on eBay 10 years ago, 15 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2023 / 8:30PM, RELY.OQ - Remitly Global Inc at JMP Securities Technology Conference years ago, with PayPal, says it's easy to move money electronically. Anybody like me who's getting pinged by their kids by Venmo every hour says, how hard can it be to move money? So walk us through what is unique about the technology. And just as importantly, what barriers you see. I mean, how long would it take somebody to replicate what you've built?

Question: David Scharf - JMP Securities - Analyst : I mean, is it fair to say that a startup, a digital native competitor that sprung up today, you know, to build a disbursement network as well as all the know your customer and compliance infrastructure, I mean, is that roughly a decade-long process?

Question: David Scharf - JMP Securities - Analyst : Got it. Staying on the competitive front, this discussion is about Remitly, but there are a couple big global players out there that have been around for a century. We know who they are. Both Western Union and MoneyGram obviously have very trusted brands. I mean, if anything, that might be their most valuable asset is the trust that's been placed in them that when you give them your money, it's going to wind up in the place you want to send it to. They've been investing aggressively, transitioning from branch-based to digital. They insist there's no cannibalization, but that's another topic. But how would you assess some of the strengths or weaknesses, maybe, of kind of their digital offerings to what Remitly provides?

Question: David Scharf - JMP Securities - Analyst : Yeah. Kind of circling back, I want to come full circle maybe back to the customer, and to be remiss in this environment not to talk about just the state of the economy, your thoughts on kind of the macro backdrop. I think there's some, if not misperceptions, maybe a lot of uncertainties around your user who, from a lending perspective, some people might consider them so-called subprime customers, yet from a remittance perspective, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 06, 2023 / 8:30PM, RELY.OQ - Remitly Global Inc at JMP Securities Technology Conference they tend to be a lot more resilient than some people maybe fully appreciate. Can you talk a little bit about just how the employment backdrop is influencing your users, just some of the usage trends, whether you're able to discern whether inflation in borrowing costs are impacting the principal amount sent and so forth?

Question: David Scharf - JMP Securities - Analyst : Great. Well, I think we've actually kind of ventured off into overtime. All right. But we'll wrap it up there. Matt, Hemanth, thank you.