Remitly Global, Inc. (NASDAQ: RELY), a
trusted provider of digital financial services that transcend
borders, reported results for the first quarter ended March 31,
2024.
“We are pleased with our strong start to the year
that reflects our resilient customer base and superior customer
experience,” said Matt Oppenheimer, co-founder and Chief Executive
Officer, Remitly. “Our global scale and consistent execution has
allowed us to deliver both robust top line growth and also improved
profitability. As a result, we are pleased to build on this
momentum by raising our outlook for full year 2024 Adjusted
EBITDA.”
First Quarter 2024 Highlights and Key
Operating Data(All comparisons relative to the first
quarter of 2023)
- Active customers increased to 6.2
million, from 4.6 million, up 36%.
- Send volume increased to $11.5
billion, from $8.5 billion, up 34%.
- Revenue totaled $269.1 million,
compared to $203.9 million, up 32%.
- Net loss was $21.1 million, compared
to $28.3 million.
- Adjusted EBITDA was
$19.3 million, compared to $5.4 million.
2024 Financial OutlookFor fiscal
year 2024, Remitly currently expects:
- Total revenue in the range of $1,225
million to $1,250 million, representing a growth rate of 30% to 32%
year over year.
- To remain in a GAAP
net loss position for 2024 and for Adjusted EBITDA to be in the
range of $85 million to $95 million. This outlook reflects an
increase from our prior Adjusted EBITDA outlook of between $75
million and $90 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 with the Company’s SEC filings.
Webcast InformationRemitly will
host a webcast at 5:00 p.m. Eastern time on Wednesday, May 1,
2024 to discuss its first 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 charge 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
keep data and our technology platform secure, 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 changes to immigration laws,
macroeconomic conditions, and geopolitical forces 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 March 31, 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 March 31, |
(in thousands, except share and per share data) |
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
269,118 |
|
|
$ |
203,865 |
|
Costs and expenses |
|
|
|
Transaction expenses(1) |
|
89,881 |
|
|
|
74,066 |
|
Customer support and operations(1) |
|
20,119 |
|
|
|
19,931 |
|
Marketing(1) |
|
68,014 |
|
|
|
44,123 |
|
Technology and development(1) |
|
63,206 |
|
|
|
49,376 |
|
General and administrative(1) |
|
44,173 |
|
|
|
41,408 |
|
Depreciation and amortization |
|
3,678 |
|
|
|
3,029 |
|
Total costs and expenses |
|
289,071 |
|
|
|
231,933 |
|
Loss from operations |
|
(19,953 |
) |
|
|
(28,068 |
) |
Interest income |
|
2,226 |
|
|
|
2,024 |
|
Interest expense |
|
(769 |
) |
|
|
(389 |
) |
Other expense, net |
|
(1,586 |
) |
|
|
(1,511 |
) |
Loss before provision for income taxes |
|
(20,082 |
) |
|
|
(27,944 |
) |
Provision for income taxes |
|
998 |
|
|
|
370 |
|
Net loss |
$ |
(21,080 |
) |
|
$ |
(28,314 |
) |
Net loss per share attributable to common stockholders: |
|
|
|
Basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.16 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders: |
|
|
|
Basic and diluted |
|
189,848,799 |
|
|
|
175,113,904 |
|
(1) Exclusive of depreciation and amortization,
shown separately, above.
REMITLY GLOBAL, INC.Condensed Consolidated
Balance Sheets(unaudited) |
|
|
|
|
|
March 31, |
|
December 31, |
(in thousands) |
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
285,997 |
|
|
$ |
323,710 |
|
Disbursement prefunding |
|
202,042 |
|
|
|
195,848 |
|
Customer funds receivable, net |
|
439,183 |
|
|
|
379,417 |
|
Prepaid expenses and other current assets |
|
44,789 |
|
|
|
33,143 |
|
Total current assets |
|
972,011 |
|
|
|
932,118 |
|
Property and equipment, net |
|
19,335 |
|
|
|
16,010 |
|
Operating lease right-of-use assets |
|
10,315 |
|
|
|
9,525 |
|
Goodwill |
|
54,940 |
|
|
|
54,940 |
|
Intangible assets, net |
|
15,427 |
|
|
|
16,642 |
|
Other noncurrent assets, net |
|
7,173 |
|
|
|
7,071 |
|
Total assets |
$ |
1,079,201 |
|
|
$ |
1,036,306 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
12,278 |
|
|
$ |
35,051 |
|
Customer liabilities |
|
192,296 |
|
|
|
177,473 |
|
Short-term debt |
|
2,445 |
|
|
|
2,481 |
|
Accrued expenses and other current liabilities |
|
155,080 |
|
|
|
145,802 |
|
Operating lease liabilities |
|
5,746 |
|
|
|
6,032 |
|
Total current liabilities |
|
367,845 |
|
|
|
366,839 |
|
Operating lease liabilities, noncurrent |
|
5,345 |
|
|
|
4,477 |
|
Long-term debt |
|
150,000 |
|
|
|
130,000 |
|
Other noncurrent liabilities |
|
6,653 |
|
|
|
5,653 |
|
Total liabilities |
|
529,843 |
|
|
|
506,969 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity |
|
|
|
Common stock |
|
19 |
|
|
|
19 |
|
Additional paid-in capital |
|
1,062,029 |
|
|
|
1,020,286 |
|
Accumulated other comprehensive (loss) income |
|
(307 |
) |
|
|
335 |
|
Accumulated deficit |
|
(512,383 |
) |
|
|
(491,303 |
) |
Total stockholders’ equity |
|
549,358 |
|
|
|
529,337 |
|
Total liabilities and stockholders’ equity |
$ |
1,079,201 |
|
|
$ |
1,036,306 |
|
REMITLY GLOBAL,
INC.Condensed Consolidated Statements of Cash
Flows(unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
Net loss |
|
$ |
(21,080 |
) |
|
$ |
(28,314 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
3,678 |
|
|
|
3,029 |
|
Stock-based compensation expense, net |
|
|
34,088 |
|
|
|
29,234 |
|
Other |
|
|
249 |
|
|
|
1,083 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Disbursement prefunding |
|
|
(6,194 |
) |
|
|
(44,157 |
) |
Customer funds receivable |
|
|
(59,432 |
) |
|
|
69,608 |
|
Prepaid expenses and other assets |
|
|
(10,377 |
) |
|
|
(12,078 |
) |
Operating lease right-of-use assets |
|
|
1,392 |
|
|
|
1,184 |
|
Accounts payable |
|
|
(22,707 |
) |
|
|
(4,512 |
) |
Customer liabilities |
|
|
14,744 |
|
|
|
(7,448 |
) |
Accrued expenses and other liabilities |
|
|
10,429 |
|
|
|
(9,570 |
) |
Operating lease liabilities |
|
|
(1,598 |
) |
|
|
(355 |
) |
Net cash used in operating activities |
|
|
(56,808 |
) |
|
|
(2,296 |
) |
Cash flows from
investing activities |
|
|
|
|
Purchases of property and
equipment |
|
|
(945 |
) |
|
|
(864 |
) |
Capitalized internal-use software costs |
|
|
(3,369 |
) |
|
|
(1,296 |
) |
Cash paid for acquisition, net of acquired cash, cash equivalents,
and restricted cash |
|
|
— |
|
|
|
(40,933 |
) |
Net cash used in investing activities |
|
|
(4,314 |
) |
|
|
(43,093 |
) |
Cash flows from
financing activities |
|
|
|
|
Proceeds from exercise of
stock options |
|
|
2,483 |
|
|
|
4,844 |
|
Proceeds from issuance of
common stock in connection with ESPP(1) |
|
|
5,004 |
|
|
|
2,729 |
|
Proceeds from revolving credit
facility borrowings |
|
|
275,000 |
|
|
|
75,000 |
|
Repayments of revolving credit
facility borrowings |
|
|
(255,000 |
) |
|
|
(75,000 |
) |
Taxes paid related to net
share settlement of equity awards |
|
|
(1,366 |
) |
|
|
(1,413 |
) |
Repayment of assumed
indebtedness |
|
|
— |
|
|
|
(17,068 |
) |
Net cash provided by (used in) financing activities |
|
|
26,121 |
|
|
|
(10,908 |
) |
Effect of foreign exchange
rate changes on cash, cash equivalents, and restricted cash |
|
|
(1,099 |
) |
|
|
219 |
|
Net decrease in cash, cash
equivalents, and restricted cash |
|
|
(36,100 |
) |
|
|
(56,078 |
) |
Cash, cash equivalents, and restricted cash at beginning of
period |
|
|
325,029 |
|
|
|
300,735 |
|
Cash, cash equivalents, and restricted cash at end of period |
|
$ |
288,929 |
|
|
$ |
244,657 |
|
Reconciliation of
cash, cash equivalents, and restricted cash |
|
|
|
|
Cash and cash equivalents |
|
$ |
285,997 |
|
|
$ |
244,159 |
|
Restricted cash included in
prepaid expenses and other current assets |
|
|
2,190 |
|
|
|
444 |
|
Restricted cash included in
other noncurrent assets, net |
|
|
742 |
|
|
|
54 |
|
Total cash, cash equivalents,
and restricted cash |
|
$ |
288,929 |
|
|
$ |
244,657 |
|
(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 three months ended March 31, 2023.
REMITLY GLOBAL, INC.Reconciliation of GAAP
to Non-GAAP Financial Measures(unaudited) |
|
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
Three Months Ended March 31, |
(in thousands) |
|
|
2024 |
|
|
|
2023 |
|
Net loss |
|
$ |
(21,080 |
) |
|
$ |
(28,314 |
) |
Add: |
|
|
|
|
Interest income, net |
|
|
(1,457 |
) |
|
|
(1,635 |
) |
Provision for income taxes |
|
|
998 |
|
|
|
370 |
|
Depreciation and amortization |
|
|
3,678 |
|
|
|
3,029 |
|
Foreign exchange loss |
|
|
1,569 |
|
|
|
1,505 |
|
Stock-based compensation expense, net |
|
|
34,088 |
|
|
|
29,234 |
|
Acquisition, integration, restructuring, and other costs(1) |
|
|
1,468 |
|
|
|
1,173 |
|
Adjusted EBITDA |
|
$ |
19,264 |
|
|
$ |
5,362 |
|
(1) Acquisition, integration, restructuring, and
other costs for the three months ended March 31, 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 March 31, 2023 consisted primarily of $0.8 million
related to the change in the fair value of the holdback liability
and $0.4 million of professional fees incurred in connection
with the acquisition and integration of Rewire.
Reconciliation of operating expenses to non-GAAP operating
expenses: |
|
|
|
|
|
|
|
Three Months Ended March 31, |
(in thousands) |
|
|
2024 |
|
|
2023 |
Customer support and operations |
|
$ |
20,119 |
|
$ |
19,931 |
Excluding: Stock-based compensation expense, net |
|
|
353 |
|
|
205 |
Excluding: Acquisition, integration, restructuring, and other
costs |
|
|
758 |
|
|
— |
Non-GAAP customer support and operations |
|
$ |
19,008 |
|
$ |
19,726 |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
Marketing |
|
$ |
68,014 |
|
$ |
44,123 |
Excluding: Stock-based compensation expense, net |
|
|
3,979 |
|
|
2,983 |
Non-GAAP marketing |
|
$ |
64,035 |
|
$ |
41,140 |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
Technology and development |
|
$ |
63,206 |
|
$ |
49,376 |
Excluding: Stock-based compensation expense, net |
|
|
19,627 |
|
|
16,631 |
Non-GAAP technology and development |
|
$ |
43,579 |
|
$ |
32,745 |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
General and administrative |
|
$ |
44,173 |
|
$ |
41,408 |
Excluding: Stock-based compensation expense, net |
|
|
10,129 |
|
|
9,415 |
Excluding: Acquisition, integration, restructuring, and other
costs |
|
|
710 |
|
|
1,173 |
Non-GAAP general and administrative |
|
$ |
33,334 |
|
$ |
30,820 |
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