Remitly Reports First Quarter 2022 Results

Rhea-AI Summary

Remitly Global reports a strong first quarter for 2022, with active customers rising 42% YoY to 3 million and send volume increasing 43% YoY to $6.1 billion. Revenues surged 49% YoY to $136 million, prompting the company to raise its 2022 revenue outlook to between $610 million and $620 million, representing a growth rate of 33% to 35% YoY. Despite these strong metrics, the company reported a net loss of $23.3 million. The CFO will depart later this year, but a smooth transition is assured.

Positive

• Active customers increased by 42% YoY to 3 million.
• Send volume rose 43% YoY to $6.1 billion.
• Revenue climbed 49% YoY to $136 million.
• Raised 2022 revenue outlook to $610-620 million, reflecting a growth rate of 33%-35%.

Negative

• Net loss increased to $23.3 million from $7.8 million YoY.
• Adjusted EBITDA worsened to $(12.1) million from $(5.8) million YoY.

Active customers up 42% year over year

Send volume up 43% year over year

Revenue up 49% year over year

Raising 2022 revenue outlook

SEATTLE--(BUSINESS WIRE)-- Remitly Global, Inc. (NASDAQ: RELY), a leading digital financial services provider for immigrants and their families in over 160 countries around the world, reported results for the first quarter ended March 31, 2022.

“We had a strong start to the year and delivered peace of mind to millions of customers sending money home,” said Matt Oppenheimer, Remitly’s Chief Executive Officer. “Looking ahead, we have raised our revenue outlook for 2022 as we are seeing the benefit from strong repeat usage and new customer growth at highly attractive unit economics. We plan to continue our disciplined investments in redefining the remittance experience, developing new products for immigrants and expanding across the globe. We believe our investments will enable us to accomplish our vision of transforming the lives of immigrants and their families by providing the most trusted financial services on the planet.”

First Quarter 2022 Highlights and Key Operating Data:

(All comparisons relative to the first quarter of 2021)

• Active customers increased to 3.0 million, from 2.1 million, up 42%.
• Send volume increased to $6.1 billion, from $4.3 billion, up 43%.
• Revenue totaled $136.0 million, compared to $91.1 million, up 49%.
• Net loss was $23.3 million, compared to $7.8 million.
• Adjusted EBITDA was $(12.1) million, compared to $(5.8) million.

2022 Financial Outlook:

For fiscal year 2022, Remitly currently expects:

• Total revenue in the range of $610 million to $620 million, representing a growth rate of 33% to 35% year over year. This outlook reflects an increase from our prior outlook of $605 million to $615 million.
• Adjusted EBITDA in the range of $(40) million to $(30) million.

Leadership Transition:

Today, Remitly is announcing that Chief Financial Officer Susanna Morgan has decided to leave the Company later this year in order to pursue other opportunities. A search for the next CFO is underway by the Company with the assistance of an executive search firm. Ms. Morgan will continue as CFO until a successor is in place and she will continue with the Company in an advisory capacity thereafter, until September 30, 2022, to ensure a smooth transition.

Reconciliation of GAAP to Non-GAAP Financial Measures:

A 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.

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 (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 Information

Remitly will host a webcast at 5:00 PM Eastern Time on Thursday, May 5, 2022 to discuss its first quarter 2022 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 non-public information and for complying with our disclosure obligations under Regulation FD.

Non-GAAP Financial Measures

Some of the financial information and data contained in this presentation, 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 provide 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 expense, net; ii) provision for income taxes; iii) noncash charge of depreciation and amortization; iv) other expense (income), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; and v) non-cash stock-based compensation expense, net, as well as non-cash charges associated with our donation of common stock in connection with our Pledge 1% commitment. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by i) non-cash stock-based compensation expense, as well as ii) non-cash charges associated with our donation of common stock in connection with our Pledge 1% commitment.

Forward Looking Statements

This 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 2022 financial outlook, including forecasted fiscal year 2022 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, 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, and our ability to stay in compliance 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 are included in our quarterly report on Form 10-Q for the quarter ended March 31, 2022 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2021 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 Remitly

Remitly is a leading digital financial services provider for immigrants and their families in over 160 countries around the world. Remitly helps immigrants send money home in a safe, reliable and transparent manner. Its digitally-native, cross-border remittance app eliminates the long wait times, complexities and fees typical of traditional remittance processes. Building on its strong foundation, Remitly is expanding its suite of products to further its mission and transform financial services for immigrants all around the world. Founded in 2011, Remitly is headquartered in Seattle and has seven global offices, including London, Cork, Singapore, Manila and Managua.

REMITLY GLOBAL, INC. Condensed Consolidated Statements of Operations (unaudited)
	Three Months Ended March 31,
(in thousands, except share and per share data)		2022				2021
Revenue	$	136,014			$	91,056
Costs and expenses
Transaction expenses(1)		56,263				41,110
Customer support and operations(1) (2)		13,870				8,631
Marketing(1) (2)		40,621				26,116
Technology and development(1) (2)		23,575				11,644
General and administrative(1) (2)		23,342				10,882
Depreciation and amortization		1,517				1,245
Total costs and expenses		159,188				99,628
Loss from operations		(23,174	)			(8,572	)
Interest income		36				5
Interest expense		(313	)			(259	)
Other income, net		669				1,426
Loss before provision for income taxes		(22,782	)			(7,400	)
Provision for income taxes		528				370
Net loss attributable to common stockholders	$	(23,310	)		$	(7,770	)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.14	)		$	(0.34	)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted		164,391,753				22,711,379

_________________________________
(1)		Exclusive of depreciation and amortization, shown separately, above.
(2)		Includes stock-based compensation expense, net.

Stock-based Compensation Expense, net:
	Three Months Ended March 31,
(in thousands)	2022				2021
Customer support and operations	$	93			$	8
Marketing		1,032				285
Technology and development		4,072				590
General and administrative		4,397				639
Total	$	9,594			$	1,522

REMITLY GLOBAL, INC. Condensed Consolidated Balance Sheets (unaudited)
	March 31,				December 31,
(in thousands)		2022				2021
Assets
Current assets
Cash and cash equivalents	$	444,605			$	403,262
Disbursement prefunding		57,177				119,627
Customer funds receivable, net		81,702				67,215
Prepaid expenses and other current assets		23,413				17,448
Total current assets		606,897				607,552
Restricted cash		51				51
Property and equipment, net		9,671				9,249
Operating lease right-of-use assets		7,272				5,302
Other non-current assets, net		3,645				3,510
Total assets	$	627,536			$	625,664
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	6,048			$	1,210
Customer liabilities		80,926				70,483
Accrued expenses and other current liabilities		60,001				66,683
Operating lease liabilities		3,590				3,240
Total current liabilities		150,565				141,616
Operating lease liabilities, non-current		4,362				2,907
Other non-current liabilities		1,106				813
Total liabilities	$	156,033			$	145,336
Commitments and contingencies
Stockholders' equity
Common stock		17				16
Additional paid-in capital		753,983				739,503
Accumulated other comprehensive income		257				253
Accumulated deficit		(282,754	)			(259,444	)
Total stockholders' equity		471,503				480,328
Total liabilities and stockholders' equity	$	627,536			$	625,664

REMITLY GLOBAL, INC. Condensed Consolidated Statements of Cash Flows (unaudited)
		Three Months Ended March 31,
(in thousands)			2022				2021
Cash flows from operating activities
Net loss		$	(23,310	)		$	(7,770	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization			1,517				1,245
Stock-based compensation expense, net			9,594				1,522
Other			83				7
Changes in operating assets and liabilities:
Disbursement prefunding			62,450				34,425
Customer funds receivable			(14,453	)			(11,298	)
Prepaid expenses and other assets			(6,221	)			(5,165	)
Operating lease right-of-use assets			807				661
Accounts payable			4,857				8,474
Customer liabilities			10,257				48,390
Accrued expenses and other liabilities			(4,362	)			(6,740	)
Operating lease liabilities			(969	)			(835	)
Net cash provided by operating activities			40,250				62,916
Cash flows from investing activities
Purchases of property and equipment			(872	)			(265	)
Capitalized internal-use software costs			(753	)			(933	)
Net cash used in investing activities			(1,625	)			(1,198	)
Cash flows from financing activities
Proceeds from issuance of Series F convertible preferred stock, net of issuance costs			—				3,000
Proceeds from exercise of stock options			2,601				1,126
Repayments of revolving credit facility borrowings, net			—				(15,000	)
Net cash provided by (used in) financing activities			2,601				(10,874	)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash			117				84
Net increase in cash, cash equivalents and restricted cash			41,343				50,928
Cash, cash equivalents, and restricted cash at beginning of period			403,313				188,075
Cash, cash equivalents, and restricted cash at end of period		$	444,656			$	239,003
Supplemental disclosure of cash flow information
Cash paid for interest		$	227			$	192
Cash paid for income taxes			605				46
Supplemental disclosure of non-cash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease liabilities		$	2,830			$	—
Vesting of early exercised options			205				53
Non-cash issuance shares through Employee Stock Purchase Plan			1,882				—
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents		$	444,605			$	238,502
Restricted cash			51				501
Total cash, cash equivalents and restricted cash		$	444,656			$	239,003

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)			2022				2021
Net loss		$	(23,310	)		$	(7,770	)
Add:
Interest expense, net			277				254
Provision for income taxes			528				370
Depreciation and amortization			1,517				1,245
Foreign exchange (gain) loss			(669	)			(1,426	)
Stock-based compensation expense, net			9,594				1,522
Adjusted EBITDA		$	(12,063	)		$	(5,805	)

Reconciliation of operating expenses to non-GAAP operating expenses:
		Three Months Ended March 31,
(in thousands)		2022			2021
Customer support and operations		$	13,870		$	8,631
Excluding: Stock-based compensation expense, net			93			8
Non-GAAP customer support and operations		$	13,777		$	8,623
		Three Months Ended March 31,
		2022			2021
Marketing		$	40,621		$	26,116
Excluding: Stock-based compensation expense, net			1,032			285
Non-GAAP marketing		$	39,589		$	25,831
		Three Months Ended March 31,
		2022			2021
Technology and development		$	23,575		$	11,644
Excluding: Stock-based compensation expense, net			4,072			590
Non-GAAP technology and development		$	19,503		$	11,054
		Three Months Ended March 31,
		2022			2021
General and administrative		$	23,342		$	10,882
Excluding: Stock-based compensation expense, net			4,397			639
Non-GAAP general and administrative		$	18,945		$	10,243

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220505006151/en/

Media:

Danielle Vincent

remitly@inkhouse.com



Investor Relations:

Stephen Shulstein

Vice President of Investor Relations

stephens@remitly.com

Source: Remitly Global, Inc.

FAQ

What were Remitly's financial results for Q1 2022?

In Q1 2022, Remitly reported revenue of $136 million, a 49% increase from the previous year.

How did Remitly's active customers change in Q1 2022?

Active customers increased to 3 million, reflecting a 42% year-over-year growth.

What is Remitly's 2022 revenue outlook?

Remitly now expects total revenue to range between $610 million and $620 million for 2022.

What was Remitly's net loss for Q1 2022?

Remitly reported a net loss of $23.3 million for the first quarter of 2022.

What impact did the CFO transition have on Remitly?

The CFO will leave later this year, but will assist in a smooth transition until September 30, 2022.