Remitly Global Inc at Wolfe Research FinTech Forum Transcript

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

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Certainly a long runway, which is one of the things that we certainly appreciate about your model. There's been a lot of changes throughout the entire industry, in the remittance space throughout the pandemic. You were obviously earlier focused on digital send side, but maybe if you could discuss some of the changes to consumer behaviors, maybe particularly on the receive side that has happened over the last three to five years. 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 14, 2023 / 5:50PM, RELY.OQ - Remitly Global Inc at Wolfe Research FinTech Forum

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Absolutely. Transitioning, I guess, a little bit to your guidance in 2023 expectations. Expecting another great year of top-line growth, around 33% at the midpoint, I believe, but a meaningful improvement in adjusted EBITDA from negative $19 million in 2022 overall to breakeven to plus $10 million. So this is a common thing that we've been asking a lot of questions -- a lot of companies over the last few weeks. But if you could talk about how you view the balance between profitability and growth moving forward for Remitly.

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : And it's been great to see that customer retention and resilience throughout these past few years. Competition is always a hot topic within the remittance space. Although I think it's important, maybe, if we could level set a little bit with who you're maybe taking share from in the market because it's not always the other fintech players that everyone focuses on. But I think the punch line for Remitly is that you've had relatively stable take rate over the past almost 12 quarters now. So if you could discuss a little bit about who you're maybe taking share from and your approach to pricing overall.

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Yeah. I think that's great to see that the growth in your overall customers quarter after quarter without any impact on pricing because that has been an open part of some of your competitors' strategy. Have you seen any differences, price sensitivity, or how customers have approached you or your pricing because of their recent actions? 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 14, 2023 / 5:50PM, RELY.OQ - Remitly Global Inc at Wolfe Research FinTech Forum

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : No? No, that's fantastic. So I guess, like to shift a little bit, not on new customer adds but the customers that are already with you in previous cohort growth. You've been able to retain much of those revenues year after year. How do you work on that retention? How do you measure it over time? Are people sending the same amounts, or how do we view that growth trajectory moving forward?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : You spoke specifically about fraud. I think if you'd like to pick a different example, that's fine. But if you could clarify how your previous heavy investment into tech and research and development is now coming to fruition and playing out as you gain scale. Do you think that A, how long ago do you have to start investing in fraud prevention for it to impact 4Q '22? And then B, is that something that needs continuous investment to continue to improve or at a much lower base perhaps?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Maybe we could go into that right now on the disbursement network side. We had Euronet in the other room earlier. At times, maybe you could clarify what percentage of the corridor, but that you -- they enabled some cash pickup locations for you across the world. How else are you building out that network? Are those all-independent non-exclusive agent locations? Are some of them exclusive to Remitly? Could you just break that down for us?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : And that, just to a little clarification question. The direct to bank account payout, for example, in India, is that something that while not through an aggregator is facilitated through, for example, a Visa Direct transaction? Or is that processed by you or a different partner?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Okay. Got it. Great. So maybe breaking away from the India corridor and talking about incremental corridors. Could you take a minute to describe -- because you have a bit of a differentiated approach to building out new corridors, perhaps a slower approach than most. So could you talk about why that strategy works for Remitly? Why do you think it's best? And then maybe just a broad timeline of how long it's taking you to expand. Once you identify a new corridor, how long does it take to enter that corridor? And how that's changed over time as you've gained scale? Has that process quickened?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Is there regulatory friction in corridors that you've already entered into in terms of as a send country that you have to continuously deal with? Or is that a get your license, pay yearly fee, and it's easy sailing from there?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : And so, speaking of user experience, customer support is something else that you've been able to automate a bit more, which has resulted in better scale overall cost for you. Could you talk a little bit about what you're building and how you can still maintain a trusted experience with more automated experience? 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 14, 2023 / 5:50PM, RELY.OQ - Remitly Global Inc at Wolfe Research FinTech Forum

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : I think that's great. I guess back on the incremental corridors, specifically Rewire, gained Israel as a send country via acquisition, also exciting from a product development standpoint. Could you walk us through how you identify Rewire? What made it exciting to you? And why enter via acquisition rather than building out the Israel infrastructure on your own?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Understood. So looking to digest and integrate more than rapidly do this in other geographies for sure. I guess, so keeping on the same capital allocation theme, if you could discuss maybe how you allocate, but also prioritization between optimizing your internal product, whether it's fraud, customer support, marketing, now the Rewire integration cost, but also new product development. Could you rank order those for us?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : And so, speaking about those -- some of those complementary new products that you've mentioned. I know more information to follow on those. But if we can think about how those are being developed, and maybe which of your customers are best suited for those or these products, given the likely need for more digitally savvy customers using these products. Are we thinking about products on the send side or on the receive side, or both? Who has the greater need for these complementary products?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : That's great. I'd like to turn it over to the audience if you had any questions before I wrap up with one more from that. Unidentified Participant Visa and Mastercard have been talking lately quite a bit about the remittance space. And so, Visa has this output and then that Visa directly cost cut send platform. Okay, the whole question? So Visa and Mastercard have talked about their recent growth in the remittances space. It's like an area of opportunity for them, and Visa has this output platform. So wanted to understand is it like a complementary thing for you guys because it helps you get access to more endpoints? Or are they like a competition to you guys in that space?

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : I think that was a great use of one of my last questions here. One final, looking longer term, what are you most excited about for your business and Remilty three to five years out? 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 14, 2023 / 5:50PM, RELY.OQ - Remitly Global Inc at Wolfe Research FinTech Forum

Question: Daniel Krebs - Wolfe Research, LLC - Analyst : Looking forward to watching it. Matt, thank you very much for your time today.