02 Mar 2022

Remitly Reports Fourth Quarter and Full Year 2021 Results

Active customers up 50% year over year
Send volume up 64% year over year
Revenue up 69% year over year

SEATTLE, March 02, 2022 (GLOBE NEWSWIRE) -- Remitly Global, Inc. (NASDAQ: RELY), a leading digital financial services provider for immigrants and their families in over 150 countries around the world, reported results for the fourth quarter and full year ended December 31, 2021.

“Reflecting on our strong fourth quarter growth, I’m incredibly proud of all that Remitly delivered and am reminded of the significance of the work we’re doing to transform the lives of our customers,” said Matt Oppenheimer, Remitly’s Chief Executive Officer. “Looking ahead, we’re excited to drive new customer growth, geographic expansion, and new product development through strategic investments in the business. These outcomes will create enduring value for our customers and shareholders alike.”

Fourth Quarter 2021 Highlights and Key Operating Data:
(All comparisons relative to the fourth quarter of 2020)

  • Active customers increased to 2.8 million, from 1.9 million, up 50%.
  • Send volume increased to $6.0 billion, from $3.6 billion, up 64%.
  • Revenue totaled $135.3 million, compared to $80.0 million, up 69%.
  • Average revenue per active customer increased 13% to $47.69.
  • Net loss was $16.6 million, compared to $9.0 million.
  • Adjusted EBITDA was $(7.1) million, compared to $(6.2) million.

Full Year 2021 Highlights and Key Operating Data:
(All comparisons relative to the full year 2020)

  • Send volume increased to $20.4 billion, from $12.1 billion, up 70%.
  • Revenue totaled $458.6 million, compared to $257.0 million, up 78%.
  • Net loss was $38.8 million, compared to $32.6 million.
  • Adjusted EBITDA improved to $(10.5) million, compared to $(19.9) million.

2022 Financial Outlook:
For fiscal year 2022, Remitly currently expects:

  • Total revenue in the range of $605 million to $615 million, representing a growth rate of 32% to 34% year over year.
  • Adjusted EBITDA in the range of $(40) million to $(30) million.

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 Wednesday, March 2, 2022 to discuss its fourth quarter 2021 financial results. The live webcast 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, 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 10-Q for the fiscal quarter ended September 30, 2021 filed with the SEC and our annual report on 10-K for the fiscal year ended December 31, 2021 to be filed with the SEC, all of 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 150 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, Kraków, Manila and Managua. For more information, visit Remitly.com.


Danielle Vincent

Stephen Shulstein
Vice President of Investor Relations

Condensed Consolidated Statements of Operations
 Three Months Ended December 31, Twelve Months Ended December 31,
(in thousands, except share and per share data)2021 2020 2021 2020
Revenue$135,255  $80,017  $458,605  $256,956 
Costs and expenses       
Transaction expenses(1) 56,431   36,158   191,606   110,414 
Customer support and operations(1) (2) 13,090   7,633   45,525   25,428 
Marketing(1) (2) 38,267   22,881   120,906   73,804 
Technology and development(1) (2) 19,128   11,338   64,093   40,777 
General and administrative(1) (2) 23,512   9,648   70,941   31,656 
Depreciation and amortization 1,366   1,201   5,256   4,060 
Total costs and expenses 151,794   88,859   498,327   286,139 
Loss from operations (16,539)  (8,842)  (39,722)  (29,183)
Interest income 48   92   140   273 
Interest expense (208)  (162)  (1,256)  (1,189)
Other income (expense), net 81   435   3,125   (1,302)
Loss before provision for income taxes (16,618)  (8,477)  (37,713)  (31,401)
Provision for income taxes (42)  528   1,043   1,163 
Net loss attributable to common stockholders$(16,576) $(9,005) $(38,756) $(32,564)
Net loss per share attributable to common stockholders:       
Basic and diluted$(0.10) $(0.40) $(0.64) $(1.52)
Weighted-average shares used in computing net loss per share attributable to common stockholders:       
Basic and diluted 163,616,647   22,272,275   60,728,748   21,459,062 

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

Stock-based Compensation Expense, net:
 Three Months Ended December 31, Twelve Months Ended December 31,
(in thousands)2021 2020 2021 2020
Customer support and operations$76 $8 $153 $22
Marketing 1,118  242  2,325  869
Technology and development 3,409  582  6,931  2,130
General and administrative 3,448  580  7,607  2,243
Total$8,051 $1,412 $17,016 $5,264

Condensed Consolidated Balance Sheets
(in thousands)December 31, 2021 December 31, 2020
Current assets   
Cash and cash equivalents$403,262  $186,694 
Disbursement prefunding 119,627   101,558 
Customer funds receivable, net 67,215   50,729 
Prepaid expenses and other current assets 17,448   6,350 
Total current assets 607,552   345,331 
Restricted cash 51   1,381 
Property and equipment, net 9,249   9,675 
Operating lease right-of-use assets 5,302   5,605 
Other non-current assets, net 3,510   997 
Total assets$625,664  $362,989 
Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)   
Current liabilities   
Accounts payable$1,210  $4,256 
Borrowings    80,000 
Customer liabilities 70,483   54,819 
Accrued expenses and other current liabilities 66,683   39,742 
Operating lease liabilities 3,240   2,959 
Total current liabilities 141,616   181,776 
Operating lease liabilities, non-current 2,907   4,008 
Other non-current liabilities 813   827 
Total liabilities$145,336  $186,611 
Commitments and contingencies   
Redeemable convertible preferred stock    387,707 
Stockholders' equity (deficit)   
Common stock 16   2 
Additional paid-in capital 739,503   8,766 
Accumulated other comprehensive income 253   591 
Accumulated deficit (259,444)  (220,688)
Total stockholders' equity (deficit) 480,328   (211,329)
Total liabilities, redeemable convertible preferred stock, and stockholders' equity (deficit)$625,664  $362,989 

Condensed Consolidated Statements of Cash Flows
  Year Ended December 31,
(in thousands) 2021 2020
Cash flows from operating activities    
Net loss $(38,756) $(32,564)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization  5,256   4,060 
Stock-based compensation expense, net  17,016   5,264 
Donation of common stock  6,933    
Other  452   2 
Changes in operating assets and liabilities:    
Disbursement prefunding  (18,069)  (69,719)
Customer funds receivable  (17,282)  (20,028)
Prepaid expenses and other assets  (12,559)  (1,959)
Operating lease right-of-use assets  2,780   2,376 
Accounts payable  (3,035)  4,044 
Customer liabilities  16,097   (29,073)
Accrued expenses and other liabilities  26,071   25,935 
Operating lease liabilities  (3,295)  (2,547)
Net cash used in operating activities  (18,391)  (114,209)
Cash flows from investing activities    
Purchases of property and equipment  (1,956)  (2,064)
Capitalized internal-use software costs  (2,578)  (2,306)
Net cash used in investing activities  (4,534)  (4,370)
Cash flows from financing activities    
Proceeds from issuance of common stock upon initial public offering and the private placement, net of underwriting discounts and commissions and other offering costs  305,191    
Repayment of non-recourse promissory note  3,060    
Proceeds from issuance of Series F convertible preferred stock, net of issuance costs  2,980   84,834 
Proceeds from exercise of stock options  8,345   2,382 
Payment of debt issuance costs  (1,373)   
Proceeds from (repayments of) revolving credit facility borrowings, net  (80,000)  35,000 
Net cash provided by financing activities  238,203   122,216 
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash  (40)  918 
Net increase in cash, cash equivalents and restricted cash  215,238   4,555 
Cash, cash equivalents, and restricted cash at beginning of period  188,075   183,520 
Cash, cash equivalents, and restricted cash at end of period $403,313  $188,075 
Supplemental disclosure of cash flow information    
Cash paid for interest $934  $1,061 
Cash paid for income taxes $756  $421 
Supplemental disclosure of non-cash investing and financing activities    
Operating lease right-of-use assets obtained in exchange for operating lease liabilities $2,532  $1,523 
Vesting of early exercised options  482   185 
Conversion of preferred stock to common stock  390,687    
Reconciliation of cash, cash equivalents and restricted cash    
Cash and cash equivalents $403,262  $186,694 
Restricted cash  51   1,381 
Total cash, cash equivalents and restricted cash $403,313  $188,075 

Reconciliation of GAAP to Non-GAAP Data
Reconciliation of net loss to Adjusted EBITDA:
  Three Months Ended December 31, Twelve Months Ended December 31,
(in thousands) 2021 2020 2021 2020
Net loss $(16,576) $(9,005) $(38,756) $(32,564)
Interest expense, net  160   70   1,116   916 
Provision for income taxes  (42)  528   1,043   1,163 
Depreciation and amortization  1,366   1,201   5,256   4,060 
Foreign exchange (gain) loss  (81)  (435)  (3,125)  1,302 
Donation of common stock        6,933    
Stock-based compensation expense, net  8,051   1,412   17,016   5,264 
Adjusted EBITDA $(7,122) $(6,229) $(10,517) $(19,859)

Reconciliation of operating expenses to non-GAAP operating expenses:
  Three Months Ended December 31, Twelve Months Ended December 31,
(in thousands) 2021 2020 2021 2020
Customer support and operations $13,090 $7,633 $45,525 $25,428
Excluding: Stock-based compensation expense, net  76  8  153  22
Non-GAAP customer support and operations $13,014 $7,625 $45,372 $25,406
  Three Months Ended December 31, Twelve Months Ended December 31,
  2021 2020 2021 2020
Marketing $38,267 $22,881 $120,906 $73,804
Excluding: Stock-based compensation expense, net  1,118  242  2,325  869
Non-GAAP marketing $37,149 $22,639 $118,581 $72,935
  Three Months Ended December 31, Twelve Months Ended December 31,
  2021 2020 2021 2020
Technology and development $19,128 $11,338 $64,093 $40,777
Excluding: Stock-based compensation expense, net  3,409  582  6,931  2,130
Non-GAAP technology and development $15,719 $10,756 $57,162 $38,647
  Three Months Ended December 31, Twelve Months Ended December 31,
  2021 2020 2021 2020
General and administrative $23,512 $9,648 $70,941 $31,656
Excluding: Stock-based compensation expense, net  3,448  580  7,607  2,243
Excluding: Donation of common stock      6,933  
Non-GAAP general and administrative $20,064 $9,068 $56,401 $29,413