UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 02, 2022
(Exact name of Registrant as Specified in Its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices and Zip Code)
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||||||||||||
| | ||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition.
On March 2, 2022, Remitly Global, Inc. (the "Company") issued a press release announcing its financial results for the year ended December 31, 2021. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure.
On March 2, 2022, Remitly Global, Inc. (the "Company") provided an investor presentation that will be made available on the investor relations section of the Company’s website at https://ir.remitly.com/. The investor presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.
The information in Items 2.02 and 7.01 of this Current Report, including the accompanying Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of Section 18. The information in Items 2.02 and 7.01 of this Current Report, including the accompanying Exhibit 99.1 and Exhibit 99.2, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language contained in such filing
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||
| 99.1 | |||||
| 99.2 | |||||
| 104 | Cover page interactive data file (embedded with the inline XBRL document) | ||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Remitly Global, Inc. | ||||||||
| Date: March 2, 2022 | By: | /s/ Susanna Morgan | ||||||
Susanna Morgan | ||||||||
| Chief Financial Officer | ||||||||
| (Principal Financial and Accounting Officer) | ||||||||
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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, WA / March 2, 2022 / GlobeNewswire / - 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
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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,
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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.
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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.
Contacts
Media:
Danielle Vincent
remitly@inkhouse.com
Investors:
Stephen Shulstein
Vice President of Investor Relations
stephens@remitly.com
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(unaudited)
| 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 | |||||||||||||||
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REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)
| (in thousands) | December 31, 2021 | December 31, 2020 | |||||||||
| Assets | |||||||||||
| 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 | |||||||
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| 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 | ||||||||||
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REMITLY GLOBAL, INC.
Reconciliation of GAAP to Non-GAAP Data
(unaudited)
| 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) | ||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| 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 | ||||||||||||||||||
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March 2022 / © 2022 Remitly Inc. 1 Investor Presentation March 2022
March 2022 / © 2022 Remitly Inc. 2 Forward-Looking Statements This presentation 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, without limitation, 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. The forward-looking statements in this presentation speak only as of the original date of this presentation and 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. 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 presentation 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.
March 2022 / © 2022 Remitly Inc. 3 Remitly at a glance SCALE 2.8m Active Customers as of Q4 2021 $20b Send Volume LTM Q4 2021 GLOBAL OPPORTUNITY $1.6t1,2 TAM +2,100 Corridors as of Q4 2021 PERFORMANCE 69% Q4 2021 YoY Revenue Growth +90% Revenue Retention 1. TAM based on estimates from the World Bank and International Monetary Fund as of November 2021. 2. TAM includes informal remittance channels.
March 2022 / © 2022 Remitly Inc. Track record of high double digit revenue growth at scale with $1.6t TAM Loyal customer base and high recurring revenue with +90% retention Attractive unit economics and clear path to profitability Long-term opportunity to expand presence in adjacent financial services Customer-centric culture with an authentic focus on ESG Why invest? 4
March 2022 / © 2022 Remitly Inc. 5 Mission Tirelessly deliver on our promises to immigrants savings, spending, and sending money across the world. Vision To transform the lives of immigrants and their families by providing the most trusted financial services on the planet. Promise We build peace of mind into everything we do.
March 2022 / © 2022 Remitly Inc. 6 Serving immigrants is at the heart of everything we do We build products that are… Trusted and reliable Fairly and transparently priced Specifically designed for them
March 2022 / © 2022 Remitly Inc. We believe in serving people like you, who are not being served by traditional financial institutions. Who belong here but also belong there. Who want to reach new heights while honoring their roots. We believe you should be able to confidently send your hard-earned money with complete peace of mind. And have banking services you know you can rely on to be there for you. We believe in delivering on these promises to you. So you can deliver on your promises to those you love. 7 To people away from their home country we are the br nd of modern financial services that they can rely on so that they feel unparallele peace of mind because unlike other financial services we are designed specifically for them.
March 2022 / © 2022 Remitly Inc. 8 The legacy cross- border remittance industry is broken.
March 2022 / © 2022 Remitly Inc. 9 Lack of trust and transparency are built into the system PROBLEMS Brick-and-mortar locations focused on cash pay-in High fees Antiquated technology CUSTOMER IMPACT Inconvenient, limited store hours, long wait times, manual forms, and sometimes unsafe locations Fewer funds make it home to the recipient Lagging digital capabilities, poor customer service, and reduced pay-in and disbursement options
March 2022 / © 2022 Remitly Inc. 10 Remittances are very complex— more than most realize Peace of mind is difficult to deliver. ● Compliance ● Fraud ● Funds acceptance ● FX and flow of funds ● Localization across +2,100 corridors ● Disbursement network
March 2022 / © 2022 Remitly Inc. 11 Our approach is different.
March 2022 / © 2022 Remitly Inc. We’re disrupting cross-border remittances 12 Localization at scale Global network Mobile- centric suite of products Data- driven approach
March 2022 / © 2022 Remitly Inc. 13 Providing a simple and reliable way to send money from your phone +90% of customers engage with Remitly on their phones Trusted and intuitive digital experience… 5 taps to complete transaction (repeat customers) …that customers love. 4.9 iOS App Store rating 1 (+650k reviewers) 4.8 Android Google Play rating 1 (+325k reviewers) 1 App Store and Google Play rating as of January 2022. Mobile-centric
March 2022 / © 2022 Remitly Inc. Mobile-centric from day one Our purpose-built technology platform… ● Powers mobile-centric suite of products ● Connects our global network and localization approach ● Drives rigorous data analytics Mobile-centric Experience Funding Advanced Risk Management & Fraud System Local & Global Regulatory Compliance Marketing Platforms Treasury Systems & Tools CRM Accounting System & Tools Transaction Lifecycle Tr an sa ct io n En gi ne En ab lin g Te ch Pricing Transaction Processing Disbursement Delivery 14 Mobile-centric
March 2022 / © 2022 Remitly Inc. ≠ Data as of Q4 2021. Putting money safely in the hands of your family, wherever they live +2,100 corridors +3.7b bank accounts +670m mobile wallets ~390k cash pickup locations 15 17 Send Countries +135 Receive Countries & Territories https://mapchart.net/world.html {"groups":{"#c1586c":{"label":"Send Countries = 17","paths":["Canada","United_States","Belgium","Sweden","Norway","F inland","United_Kingdom","Ireland","Spain","Netherlands","Germany","It aly","Australia","Singapore","Denmark","Greenland","Austria","French_ Guiana","Guadeloupe","Martinique","France"]},"#ffbc69":{"label":"Receiv e Countries & Territories = +135","paths":["Mexico","Guatemala","Honduras","El_Salvador","Nicara gua","Costa_Rica","Panama","Colombia","Ecuador","Peru","Bolivia","Ch ile","Argentina","Paraguay","Uruguay","Brazil","Dominican_Republic","M orocco","Ethiopia","Kenya","Rwanda","South_Africa","Poland","Romani a","Czechia","Hungary","Bulgaria","Croatia","India","Nepal","Thailand","I ndonesia","Malaysia","Philippines","Vietnam","Bangladesh","Nigeria","T unisia","Pakistan","Senegal","Sri_Lanka","Haiti","Ghana","Turkey","Jam aica","South_Korea","Ukraine","Moldova","Egypt","Uganda","China","Gu yana","Suriname","Greece","North_Macedonia","Laos","Cambodia","Cy prus","Cote_d_Ivoire","Tanzania","Cameroon","Israel","Belarus","Albani a","Georgia","Armenia","Lithuania","Montenegro","Kosovo","Benin","Tog o","Gabon","Serbia","Uzbekistan","Kyrgyzstan","Gambia","Fiji","Guinea" ,"Comoros","Madagascar","Malawi","Sierra_Leone","Bahamas","Burund i","Jordan","Zambia","Japan","Estonia","Slovenia","Bhutan","Kazakhstan ","Slovakia","Latvia","Malta","Russia","Equatorial_Guinea","Iceland","Gu inea_Bissau","Andorra","Monaco","Zimbabwe","Congo","Mongolia","Sa moa","Djibouti","Botswana","Mauritius","Mozambique","Azerbaijan","Bar bados","Bosnia_and_Herzegovina","Namibia","Turkmenistan","Liberia", "DR_Congo","Eritrea","Mauritania","Tajikistan","Lebanon","Myanmar"," Dominica","Saint_Lucia","Antigua_and_Barbuda","Trinidad_and_Tobag o","Timor_Leste","Luxembourg","Hong_Kong","Lesotho","Liechtenstein" ]}},"title":"","hidden":["USA_Wisconsin","USA_Montana","USA_Minnesot a","USA_Washington","USA_Idaho","USA_North_Dakota","USA_Michig an","USA_Maine","USA_Ohio","USA_New_Hampshire","USA_New_Yo rk","USA_Vermont","USA_Pennsylvania","USA_Arizona","USA_Californ ia","USA_New_Mexico","USA_Texas","USA_Alaska","USA_Louisiana", "USA_Mississippi","USA_Alabama","USA_Florida","USA_Georgia","US A_South_Carolina","USA_North_Carolina","USA_Virginia","USA_Washi ngton_DC","USA_Maryland","USA_Delaware","USA_New_Jersey","US A_Connecticut","USA_Rhode_Island","USA_Massachusetts","USA_Ore gon","USA_Hawaii","USA_Utah","USA_Wyoming","USA_Nevada","US A_Colorado","USA_South_Dakota","USA_Nebraska","USA_Kansas","U SA_Oklahoma","USA_Iowa","USA_Missouri","USA_Illinois","USA_Kent ucky","USA_Arkansas","USA_Tennessee","USA_West_Virginia","USA_ Indiana","Prince_Edward_Island_CA","New_Brunswick_CA","Ontario_C A","British_Columbia_CA","Alberta_CA","Saskatchewan_CA","Manitoba _CA","Quebec_CA","Yukon_CA","Nunavut_CA","Newfoundland_and_L abrador_CA","Northwest_Territories_CA","Nova_Scotia_CA","Scotland" ,"Wales","England","Northern_Ireland"],"background":"#fbf8f2","borders" :"#000000","legendFont":"Century Gothic","legendFontColor":"#000000","legendBgColor":"#00000000","ar eBordersShown":false,"defaultColor":"#d1dbdd","labelsColor":"#6a0707 ","strokeWidth":"medium","areLabelsShown":false,"usaStatesShown":fal se,"canadaStatesShown":false,"splitUK":false,"legendPosition":"bottom _left","legendSize":"medium","legendStatus":"show","scalingPatterns":tr ue,"legendRowsSameColor":true} Global network
March 2022 / © 2022 Remitly Inc. ● Integration technology consists of single, flexible APIs ● Integrations help drive: ○ Fewer transaction errors and better error handling ○ Faster availability of funds ○ Lower processing cost Direct integrations drive transaction momentum and lower costs +100 Direct integrations ~80% total transactions in 2021 completed in less than one hourData as of Q4 2021. 16 Global network
March 2022 / © 2022 Remitly Inc. Direct funding relationship Trusted disbursement partners 17 Global network Superior customer experience Enabled by direct integrations and key partnerships.
March 2022 / © 2022 Remitly Inc. 18 Personalized and culturally relevant experiences in 14 native languages Marketing Deep cultural insights & hyperlocal targeting Support Regional service teams & a rich self-help center Tailored CX Languages, delivery speeds, delivery methods, & payment options Localization at scale
March 2022 / © 2022 Remitly Inc. Data-driven approach to customer acquisition Corridor- specific targets based on customer lifetime value 6x+ Avg. 5 yr. LTV / CAC 1 1. Average Five-Year LTV / CAC for customers acquired during the year ended December 31, 2021. “Lifetime value” or “LTV” is the projected average revenue, net of transaction expenses, during five years of a customer’s relationship with the business, though data suggests customers continue to transact beyond this time. When actual data is not available, future periods are projected based on robust statistical models that source thousands of existing customer observations. “Customer Acquisition Cost” or “CAC” refers to direct marketing expenses deployed to acquire new customers. “LTV/CAC” is defined as the ratio of Lifetime value to Customer Acquisition Cost and is calculated as the Lifetime value divided by CAC. We use this metric to assess return on marketing spend. Data-driven approach 19
March 2022 / © 2022 Remitly Inc. 20 We’re just getting started Gain share in existing corridors $1.6t Cross-Border Remittances Worldwide 01 TAM New corridors and use cases 02 New products 03
March 2022 / © 2022 Remitly Inc. Proven corridor expansion playbook +700 new corridors launched in 2021 Launch Localize Market Optimize Corridor launches prioritized based on potential—Modern, simple API integrations (including Remitly proprietary API) Product localized for send / receive countries Leverage learnings to optimize corridor performance / growth Growth engine combined with testing and analytics 21
March 2022 / © 2022 Remitly Inc. Remitly for Developers We enable new use cases by allowing others to use the most trusted global payments platform through modern, simple APIs 22 Strong global network allows for new business customer use cases
March 2022 / © 2022 Remitly Inc. Significant opportunities beyond remittances Global financial services are not designed for immigrants Unique company assets ● Mobile centric remittance platform ● Global network ● Deep customer insights ● Strong compliance/fraud infrastructure We’re a trusted brand with nearly 3M active customers 23
March 2022 / © 2022 Remitly Inc. 24 Deeply rooted in a unified set of values Customer centricity Continuously improve Don’t be afraid to fail Deliver on promises Be an empathetic partner Act with integrity Data driven Sweat the details Be an owner Aim for the stars Hire & develop exceptional people Bias for action Lead authentically Constructively direct Joyful
March 2022 / © 2022 Remitly Inc. Financials 25
March 2022 / © 2022 Remitly Inc. Active Customers (thousands) DRIVERS: New Customer Acquisition and Repeat Transactions Our revenue model Strong Customer Retention and High Visibility +50% YoY Revenue per Active Customer DRIVERS: Transaction Frequency and Pricing 1,891 2,136 2,397 2,561 2,836 +13% YoY $42.31 $42.63 $46.33 $47.34 $47.69 26
March 2022 / © 2022 Remitly Inc. Loyal & predictable customer base Revenue Contribution by Cohort ($ in millions) +90% Annual Revenue Retention (post first full year growth) 27
March 2022 / © 2022 Remitly Inc. Send Volume ($ in billions) Strong Q4 results across the board +64% YoY Revenue ($ in millions) $3.6 $4.3 $5.0 $5.2 $6.0 +69% YoY $80.0 $91.1 $111.1 $121.2 $135.3 28
March 2022 / © 2022 Remitly Inc. 2022 Outlook Reflects strong growth and key investments to unlock our vision ● High growth at scale ● Upfront investments drive future growth and high customer lifetime value ● We will continue to invest efficiently to deliver long-term shareholder value $605m- $615m 2022 Revenue 32% to 34% growth — ($40)m-($30)m 2022 Adjusted EBITDA 29
March 2022 / © 2022 Remitly Inc. Incredibly Powerful Flywheel Driven by a trusted brand and increasing scale Leading brand focused on immigrant communities Data-driven approach Global network built over 10 years Improved targeting and unit economics Innovation mindset More customers More transactions Trusted experience More data & insights Broader suite of products 30
March 2022 / © 2022 Remitly Inc. “ Mila Remitly user since 2013 Sends money from USA to the PhilippinesI am a mother of four children, a wife and a loving grandmother. I am working abroad to help my family augment the income that we have. I work hard because I want my children to study, get their degree and be able to work and stand on their own two feet. It is tough to be away from my family, work is hard as well. But I am thankful for my children who studied well, finished their studies and now they are happy working on their own... I thank Remitly for being there for me and making it easy to send the money to my country. 31
March 2022 / © 2022 Remitly Inc. Thank you.