05 May 2022

Remitly Reports First Quarter 2022 Results

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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)--May 5, 2022-- 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

 

 

Media:
Danielle Vincent
remitly@inkhouse.com

Investor Relations:
Stephen Shulstein
Vice President of Investor Relations
stephens@remitly.com

Source: Remitly Global, Inc.