EX-99.1 2 rely3q24-earningspr.htm EX-99.1
Remitly Reports Third Quarter 2024 Results and Raises Full Year 2024 Outlook
Active customers up 35% year over year
Revenue up 39% year over year
Achieved GAAP net income profitability and record Adjusted EBITDA
SEATTLE, WA / October 30, 2024 / GlobeNewswire / - Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the third quarter ended September 30, 2024.
“I am grateful to our customers and global teams for the exceptional third quarter results,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “As our performance in the third quarter exceeded expectations, we are pleased to increase our 2024 outlook for both revenue and Adjusted EBITDA. We are excited about growth opportunities in 2025 and beyond as we execute on our vision of transforming lives with trusted financial services that transcend borders.”
Third Quarter 2024 Highlights and Key Operating Data
(All comparisons relative to the third quarter of 2023)
•Active customers increased to 7.3 million, from 5.4 million, up 35%.
•Send volume increased to $14.5 billion, from $10.2 billion, up 42%.
•Revenue totaled $336.5 million, compared to $241.6 million, up 39%.
•Net income was $1.9 million, compared to net loss of $35.7 million.
•Adjusted EBITDA was $46.7 million, compared to $10.5 million, up 345%.
2024 Financial Outlook
For fiscal year 2024, Remitly currently expects:
•Total revenue in the range of $1.250 billion to $1.254 billion, representing a growth rate of 32% to 33% year over year. This outlook reflects an increase from our prior revenue outlook in the range of $1.230 billion to $1.250 billion.
•To remain in a GAAP net loss position for 2024 and for Adjusted EBITDA to be in the range of $108 million to $112 million. This outlook reflects an increase from our prior Adjusted EBITDA outlook in the range of $90 million and $100 million.
For the fourth quarter of 2024, Remitly currently expects:
•Total revenue in the range of $338 million to $342 million, representing a growth rate of 28% to 29% year over year.
•A GAAP net loss position for the fourth quarter of 2024 and for Adjusted EBITDA to be in the range of $17 million to $21 million.
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. 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 within the Company’s SEC filings.
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Webcast Information
Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, October 30, 2024 to discuss its third 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 Measures
Some 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 income (loss) adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges 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.
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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 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 maintain the security and availability of our solutions, 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 macroeconomic and geopolitical conditions, including regulatory changes, 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 September 30, 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.
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About Remitly
Remitly 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 Sadler
kendall@remitly.com
Investor Relations:
Stephen Shulstein
stephens@remitly.com
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(unaudited)

| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands, except share and per share data) | 2024 |  | 2023 |  | 2024 |  | 2023
Revenue | $ | 336,527 |  |  | $ | 241,629 |  |  | $ | 912,068 |  |  | $ | 679,527 |
Costs and expenses |  |  |  |  |  |  |
Transaction expenses(1) | 115,554 |  |  | 85,742 |  |  | 313,215 |  |  | 239,995 |
Customer support and operations(1) | 21,792 |  |  | 21,190 |  |  | 61,910 |  |  | 62,604 |
Marketing(1) | 74,792 |  |  | 61,351 |  |  | 219,862 |  |  | 159,074 |
Technology and development(1) | 68,446 |  |  | 57,014 |  |  | 199,206 |  |  | 160,699 |
General and administrative(1) | 50,920 |  |  | 49,817 |  |  | 140,982 |  |  | 130,715 |
Depreciation and amortization | 4,655 |  |  | 3,418 |  |  | 12,240 |  |  | 9,634 |
Total costs and expenses | 336,159 |  |  | 278,532 |  |  | 947,415 |  |  | 762,721 |
Income (loss) from operations | 368 |  |  | (36,903) |  |  | (35,347) |  |  | (83,194) |
Interest income | 2,065 |  |  | 1,808 |  |  | 6,233 |  |  | 5,200 |
Interest expense | (760) |  |  | (585) |  |  | (2,274) |  |  | (1,566) |
Other income (expense), net | 2,094 |  |  | 283 |  |  | 6,272 |  |  | (2,774) |
Income (loss) before provision for income taxes | 3,767 |  |  | (35,397) |  |  | (25,116) |  |  | (82,334) |
Provision for income taxes | 1,850 |  |  | 258 |  |  | 6,138 |  |  | 485 |
Net income (loss) | $ | 1,917 |  |  | $ | (35,655) |  |  | $ | (31,254) |  |  | $ | (82,819) |
Net income (loss) per share attributable to common stockholders: |  |  |  |  |  |  |
Basic | $ | 0.01 |  |  | $ | (0.20) |  |  | $ | (0.16) |  |  | $ | (0.46) |
Diluted | $ | 0.01 |  |  | $ | (0.20) |  |  | $ | (0.16) |  |  | $ | (0.46) |
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders: |  |  |  |  |  |  |
Basic | 196,169,417 |  |  | 182,598,013 |  |  | 193,167,942 |  |  | 178,956,602 |
Diluted | 205,251,546 |  |  | 182,598,013 |  |  | 193,167,942 |  |  | 178,956,602 |

(1) Exclusive of depreciation and amortization, shown separately.
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REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)

| September 30, |  | December 31,
(in thousands) | 2024 |  | 2023
Assets |  |  |
Current assets |  |  |
Cash and cash equivalents | $ | 324,434 |  |  | $ | 323,710 |
Disbursement prefunding | 219,643 |  |  | 195,848 |
Customer funds receivable, net | 276,096 |  |  | 379,417 |
Prepaid expenses and other current assets | 41,083 |  |  | 33,143 |
Total current assets | 861,256 |  |  | 932,118 |
Property and equipment, net | 24,364 |  |  | 16,010 |
Operating lease right-of-use assets | 10,768 |  |  | 9,525 |
Goodwill | 54,940 |  |  | 54,940 |
Intangible assets, net | 12,548 |  |  | 16,642 |
Other noncurrent assets, net | 6,554 |  |  | 7,071 |
Total assets | $ | 970,430 |  |  | $ | 1,036,306 |
Liabilities and stockholders’ equity |  |  |
Current liabilities |  |  |
Accounts payable | $ | 16,825 |  |  | $ | 35,051 |
Customer liabilities | 194,122 |  |  | 177,473 |
Short-term debt | 2,426 |  |  | 2,481 |
Accrued expenses and other current liabilities | 105,234 |  |  | 145,802 |
Operating lease liabilities | 5,488 |  |  | 6,032 |
Total current liabilities | 324,095 |  |  | 366,839 |
Operating lease liabilities, noncurrent | 5,770 |  |  | 4,477 |
Long-term debt | — |  |  | 130,000 |
Other noncurrent liabilities | 9,742 |  |  | 5,653 |
Total liabilities | 339,607 |  |  | 506,969 |
Commitments and contingencies |  |  |
Stockholders’ equity |  |  |
Common stock | 20 |  |  | 19 |
Additional paid-in capital | 1,151,479 |  |  | 1,020,286 |
Accumulated other comprehensive income | 1,881 |  |  | 335 |
Accumulated deficit | (522,557) |  |  | (491,303) |
Total stockholders’ equity | 630,823 |  |  | 529,337 |
Total liabilities and stockholders’ equity | $ | 970,430 |  |  | $ | 1,036,306 |

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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)

|  | Nine Months Ended September 30, |  |
(in thousands) |  | 2024 |  | 2023 |  |
Cash flows from operating activities |  |  |  |  |  |
Net loss |  | $ | (31,254) |  |  | $ | (82,819) |  |  |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |  |  |  |
Depreciation and amortization |  | 12,240 |  |  | 9,634 |  |  |
Stock-based compensation expense, net |  | 110,523 |  |  | 101,007 |  |  |
Donation of common stock |  | 2,587 |  |  | 4,600 |  |  |
Other |  | 299 |  |  | 4,674 |  |  |
Changes in operating assets and liabilities: |  |  |  |  |  |
Disbursement prefunding |  | (23,795) |  |  | (52,162) |  |  |
Customer funds receivable |  | 100,539 |  |  | (68,553) |  |  |
Prepaid expenses and other assets |  | (6,787) |  |  | (9,652) |  |  |
Operating lease right-of-use assets |  | 4,475 |  |  | 3,796 |  |  |
Accounts payable |  | (18,285) |  |  | 10,448 |  |  |
Customer liabilities |  | 16,811 |  |  | 29,211 |  |  |
Accrued expenses and other liabilities |  | (23,521) |  |  | 28,118 |  |  |
Operating lease liabilities |  | (4,982) |  |  | (3,470) |  |  |
Net cash provided by (used in) operating activities |  | 138,850 |  |  | (25,168) |  |  |
Cash flows from investing activities |  |  |  |  |  |
Purchases of property and equipment |  | (3,192) |  |  | (2,268) |  |  |
Capitalized internal-use software costs |  | (9,288) |  |  | (4,249) |  |  |
Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash |  | — |  |  | (40,933) |  |  |
Net cash used in investing activities |  | (12,480) |  |  | (47,450) |  |  |
Cash flows from financing activities |  |  |  |  |  |
Proceeds from exercise of stock options |  | 5,754 |  |  | 12,258 |  |  |
Proceeds from issuance of common stock in connection with ESPP(1) |  | 9,382 |  |  | 6,046 |  |  |
Proceeds from revolving credit facility borrowings |  | 863,000 |  |  | 424,000 |  |  |
Repayments of revolving credit facility borrowings |  | (993,000) |  |  | (424,000) |  |  |
Taxes paid related to net share settlement of equity awards |  | (3,774) |  |  | (4,711) |  |  |
Cash paid for settlement of amounts previously held back for acquisition consideration |  | (10,261) |  |  | — |  |  |
Repayment of assumed indebtedness |  | — |  |  | (17,068) |  |  |
Net cash used in financing activities |  | (128,899) |  |  | (3,475) |  |  |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |  | 3,941 |  |  | (599) |  |  |
Net increase (decrease) in cash, cash equivalents, and restricted cash |  | 1,412 |  |  | (76,692) |  |  |
Cash, cash equivalents, and restricted cash at beginning of period |  | 325,029 |  |  | 300,734 |  |  |
Cash, cash equivalents, and restricted cash at end of period |  | $ | 326,441 |  |  | $ | 224,042 |  |  |
Reconciliation of cash, cash equivalents, and restricted cash |  |  |  |  |  |
Cash and cash equivalents |  | $ | 324,434 |  |  | $ | 223,273 |  |  |
Restricted cash included in prepaid expenses and other current assets |  | 1,034 |  |  | 715 |  |  |
Restricted cash included in other noncurrent assets, net |  | 973 |  |  | 54 |  |  |
Total cash, cash equivalents, and restricted cash |  | $ | 326,441 |  |  | $ | 224,042 |  |  |

(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 nine months ended September 30, 2023.
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REMITLY GLOBAL, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)

Reconciliation of net income (loss) to Adjusted EBITDA:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Net income (loss) |  | $ | 1,917 |  |  | $ | (35,655) |  |  | $ | (31,254) |  |  | $ | (82,819) |
Add: |  |  |  |  |  |  |  |
Interest income, net |  | (1,305) |  |  | (1,223) |  |  | (3,959) |  |  | (3,634) |
Provision for income taxes |  | 1,850 |  |  | 258 |  |  | 6,138 |  |  | 485 |
Depreciation and amortization |  | 4,655 |  |  | 3,418 |  |  | 12,240 |  |  | 9,634 |
Foreign exchange (gain) loss |  | (2,274) |  |  | (376) |  |  | (6,667) |  |  | 2,611 |
Donation of common stock |  | 2,587 |  |  | 4,600 |  |  | 2,587 |  |  | 4,600 |
Stock-based compensation expense, net |  | 39,278 |  |  | 36,573 |  |  | 110,523 |  |  | 101,007 |
Acquisition, integration, restructuring, and other costs(1) |  | — |  |  | 2,901 |  |  | 1,468 |  |  | 4,390 |
Adjusted EBITDA |  | $ | 46,708 |  |  | $ | 10,496 |  |  | $ | 91,076 |  |  | $ | 36,274 |

(1) Acquisition, integration, restructuring, and other costs for the nine months ended September 30, 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 September 30, 2023 consisted primarily of $1.4 million in restructuring charges incurred, $0.9 million related to the change in the fair value of the holdback liability, and $0.6 million of expenses incurred in connection with the acquisition and integration of Rewire. Acquisition, integration, restructuring, and other costs for the nine months ended September 30, 2023 consisted primarily of $1.9 million related to the change in the fair value of the holdback liability, $1.4 million in restructuring charges incurred, and $1.1 million of expenses incurred in connection with the acquisition and integration of Rewire.
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Reconciliation of operating expenses to non-GAAP operating expenses:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in thousands) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Customer support and operations |  | $ | 21,792 |  |  | $ | 21,190 |  |  | $ | 61,910 |  |  | $ | 62,604 |
Excluding: Stock-based compensation expense, net |  | 278 |  |  | 386 |  |  | 890 |  |  | 1,010 |
Excluding: Acquisition, integration, restructuring, and other costs |  | — |  |  | 749 |  |  | 758 |  |  | 749 |
Non-GAAP customer support and operations |  | $ | 21,514 |  |  | $ | 20,055 |  |  | $ | 60,262 |  |  | $ | 60,845 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Marketing |  | $ | 74,792 |  |  | $ | 61,351 |  |  | $ | 219,862 |  |  | $ | 159,074 |
Excluding: Stock-based compensation expense, net |  | 4,514 |  |  | 4,525 |  |  | 13,014 |  |  | 12,235 |
Non-GAAP marketing |  | $ | 70,278 |  |  | $ | 56,826 |  |  | $ | 206,848 |  |  | $ | 146,839 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Technology and development |  | $ | 68,446 |  |  | $ | 57,014 |  |  | $ | 199,206 |  |  | $ | 160,699 |
Excluding: Stock-based compensation expense, net |  | 21,873 |  |  | 19,828 |  |  | 61,854 |  |  | 55,047 |
Excluding: Acquisition, integration, restructuring, and other costs |  | — |  |  | 510 |  |  | — |  |  | 510 |
Non-GAAP technology and development |  | $ | 46,573 |  |  | $ | 36,676 |  |  | $ | 137,352 |  |  | $ | 105,142 |
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
General and administrative |  | $ | 50,920 |  |  | $ | 49,817 |  |  | $ | 140,982 |  |  | $ | 130,715 |
Excluding: Stock-based compensation expense, net |  | 12,613 |  |  | 11,834 |  |  | 34,765 |  |  | 32,715 |
Excluding: Donation of common stock |  | 2,587 |  |  | 4,600 |  |  | 2,587 |  |  | 4,600 |
Excluding: Acquisition, integration, restructuring, and other costs |  | — |  |  | 1,642 |  |  | 710 |  |  | 3,131 |
Non-GAAP general and administrative |  | $ | 35,720 |  |  | $ | 31,741 |  |  | $ | 102,920 |  |  | $ | 90,269 |

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