Remitly Global Inc at JPMorgan Global Technology, Media and Communications Conference Transcript

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

Question: Tien-Tsin Huang - JPMorgan - Analyst : So I always like leading with the same question, Matt. I don't want to be redundant, but I always like hearing you talk about, right, co-founding the company back in 2011, what the vision was then. But more importantly, how that's evolved and what it is today.

Question: Tien-Tsin Huang - JPMorgan - Analyst : And you've been laser-focused on the mission that, so thanks for going through that. I guess let's get into the growth figures, and then we'll get into some of the thematic stuff, if that's okay. Just thinking about send volume revenue. You've been one of the top decile growers in our coverage. I know there's always this macro uncertainty that comes up. That's, of course, the conversation in every meeting here. But just detail for us why, Matt, the business is resilient in up or down markets, and including some of the geopolitical stuff that's out there. Why is that? Why do you see it that way?

Question: Tien-Tsin Huang - JPMorgan - Analyst : All right. Good. I want to go in a little bit different direction, Matt, in terms of the types of questions I'm going to ask you, but I want to actually start with FX, if that's okay. On the call, you said you manage foreign exchange right? And that's become a competitive advantage. And you mentioned scale right, and your growth discussion earlier. 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 14, 2025 / 6:20PM, RELY.OQ - Remitly Global Inc at JPMorgan Global Technology, Media and Communications Conference And this concept of decoupling funding from FX risk. Can you elaborate on that, right? Because there's so much FX volatility going on. We heard about it from Visa, MasterCard, et cetera. But I felt like that was interesting that you called that out. Why?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Okay. Good. That's good to go through. I think just -- because I asked about FX, right? I know that volatility is always a discussion. And we've seen a lot of that recently. Illiquidity is, of course, a discussion. I know stablecoin has come up a lot. We've heard it in some of the sessions. Matt, just for your benefit here. So it is a hot topic in tech. And is this whole friend or foe discussion as it relates to remittance. How do you the same thing? How do you see that? What's your thesis on stablecoin?

Question: Tien-Tsin Huang - JPMorgan - Analyst : So how quickly are you running towards that, Matt, and especially on the leveraging treasury, we've heard more -- not to mention peers, but I think it's always interesting, right, Stripe buying Bridge, and Lisa talked about something exactly like what you're doing today. How far along are you in that?

Question: Tien-Tsin Huang - JPMorgan - Analyst : And then it feels like you're on the front line of that. You're going to go with your customers go. So I don't worry about that side of it. But I think the treasury full side is it is interesting, and I know the developers have said it's easy to work with you guys. And when the crypto craze happen, you're right there as a partner, which is why I wanted to make sure I ask you. So thank you for that. So sticking -- building off of stablecoin, maybe quickly on alternative payment methods, especially walls, new rails, you rolled out Interact, Pay by Bank with Platt, I think Visa at the lunch session talked about Remitly leveraging Visa Direct. What does all of that mean for you from a transaction cost standpoint, from a servicing standpoint or engagement? What does that mean? Is it -- are you seeing some of the benefit? Is there more benefit to come?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Got you. So it's lower cost, so it should benefit transaction expense. It's helping consumers because they can then choose to pay the way to pay. I want to pay like iDEAL, right? And the last point is that it opens up the chance to do more high-cost trends -- or higher ticket transactions or a higher average value it. So let's talk about that. I think that was -- that's been a trend shifting more towards higher transaction sizes that I wrote down in my eyes could be failing me. Greater $1,000 principal value up 45% right? So you've got a lot of high growth there. So this traction you have with high transaction amount centers, that would include SMB users, right? So what is the opportunity here? Is this something you want to lean into more? I know there's more risk associated with it. Just what's your vision on how this evolves?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Thank you for that.

Question: Tien-Tsin Huang - JPMorgan - Analyst : I mean, that begs the question, why not pursue things like SMBs, not just micro, but SMB or pursue business build payments. If you can do higher take transactions, you can do all the alternative payment methods. It feels like a natural extension. And cross border is hard. We've seen value -- I mean, Mastercard is investing in Corepay, cross-border business, which is also high ticket. So there's a lot of evidence of that. Is that a consideration? Is that a priority for you, Matthew, to lean harder into that?

Question: Tien-Tsin Huang - JPMorgan - Analyst : And look, I respect the focus, Matt, I'm not trying to push you to do something right? You're way smarter about this than I am. But it just feels like you've built a lot of those elements from the scale and the platform and the network. But again, I respect the focus. On the -- let's go back to the focus of quarterly actives. I think, what, 8 million-ish users and you're close to 30% growth there. Any change in the type of user that's coming into the system as you've observed it?

Question: Tien-Tsin Huang - JPMorgan - Analyst : How about the cost to acquire them?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Okay. Good. How about all this immigration stuff? I know there's a lot of geopolitical around immigration and policy shifts. So your sensitivity there. Is there anything you see that's concerning? 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 14, 2025 / 6:20PM, RELY.OQ - Remitly Global Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Tien-Tsin Huang - JPMorgan - Analyst : Yeah. The World Bank data supports that, right? I mean migration trends have generally been pretty stable and even through the cycle. So I think there's a lot of history and data behind that. So you mentioned 5,200 quarters, Matt. I think Western Union has 20,000. So the opportunity to expand quarters is still in front of you. Is this an area where you can -- we'll see step function change or you'll ease into growing? Or is there a choice here that you're making to stay selective with corridors?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Good. So competitively, I have to ask you about competition. And if you're seeing any change there and always the pricing question, we do our best to track that. And curious to see if you've observed any changes in pricing and how you benchmark it?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Okay. Good. And it's a little bit going backwards on the corridor front and pricing is always important. But is that something you consider, Matt, when you're thinking about entering a new country or adding new country pairs. Just what's on the ground competitively? What are the pricing dynamics? Is that consideration as you think about the expansion?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Right, exactly.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Is there a temptation then to solve for some of those gaps potentially through acquisition? Learned a bit since you've done something what rewire was the last one you did in size. I'm just curious if that's something on the radar. 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 14, 2025 / 6:20PM, RELY.OQ - Remitly Global Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Tien-Tsin Huang - JPMorgan - Analyst : Yeah. I know some of the traditional players are sometimes in the mode of buying their agents and getting more integrated or vertically integrated as a solution. But for you, I mean, is it going to be more product driven versus adding scale or geography? Can you solve more easily organically on the geography side versus product? That's my question.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Right? Because you've done that in a disciplined way with margin expansion, you mentioned it upfront and rule of 50-plus now. But does it feel like you're constrained in investing in some of these other Horizon 2, Horizon 3 opportunities and delivering on profits. Is that fair?

Question: Tien-Tsin Huang - JPMorgan - Analyst : Sure. So I have to ask you now about Gen AI and sort of you're sitting in the CEO seat, is that a priority to automate more of what you do or even externalize some of that with agents so you can interface better with consumers. What are your thoughts on that? 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 14, 2025 / 6:20PM, RELY.OQ - Remitly Global Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Tien-Tsin Huang - JPMorgan - Analyst : Okay. Good. No, we'll keep asking you about it as things develop. And we're almost out of time, I have to ask Horizon 3 stuff, Matt. I know the answer is you're focused on a lot of growth ahead and what you're doing. But the theme of embedded finance and embedded banking and sort of banking your base is still out there. We've been hearing it throughout the conference. And I know you have a circle and somewhat, but there's so much trust that you have with your user base. What's the latest thinking on pushing into that?

Question: Tien-Tsin Huang - JPMorgan - Analyst : All right. We can then do you have a customer testimony you want to share, at -- you usually have one, but put you on the spot on that.

Question: Tien-Tsin Huang - JPMorgan - Analyst : Great. Matt, thank you for the update.