rely-20220505
0001782170FALSE00017821702022-05-052022-05-05

 
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): May 05, 2022
 
REMITLY GLOBAL, INC.
(Exact name of Registrant as Specified in Its Charter)
  
Delaware021-34410483-2301143
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)(IRS Employer
Identification No.)
1111 Third Avenue, Suite 2100
Seattle, WA 98101
(Address of Principal Executive Offices and Zip Code)
(888) 736-4859
(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):
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: Trading Symbol(s): Name of each exchange on which registered:
 Common Stock, par value $0.0001 per share RELY NASDAQ
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.  
1


Item 2.02    Results of Operations and Financial Condition.
On May 5, 2022, Remitly Global, Inc. (the "Company") issued a press release announcing its financial results for the fiscal quarter ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.
Item 5.02    Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 5, 2022, Remitly Global, Inc. (the “Company”) announced that Susanna Morgan, its Chief Financial Officer (the “CFO”), will be leaving her position with the Company later this year. Ms. Morgan’s resignation did not result from any disagreement regarding the Company’s financial reporting or accounting policies, procedures, estimates, or judgments. Ms. Morgan has agreed to remain in her position as CFO until an appropriate successor has been identified and to continue with the Company in an advisory capacity and assist in the transition of her duties through September 30, 2022 or such other time as is agreed upon with Ms. Morgan. An executive search is underway by the Company for a new Chief Financial Officer. The Company has retained a national firm to assist in the search.
The Company and Ms. Morgan will enter into a general release consistent with her employment agreement. Ms. Morgan's existing compensation arrangements will continue during her remaining period of employment.
Item 7.01   Regulation FD Disclosure.
On May 5, 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)

2


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: May 5, 2022By:
/s/ Susanna Morgan
Susanna Morgan
Chief Financial Officer
(Principal Financial and Accounting Officer)
3
Document

https://cdn.kscope.io/8eb1737ee3ddf07687650bba5a324263-remitly-horizontalxbluea.jpg
Remitly Reports First Quarter 2022 Results
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, WA / May 5, 2022 / GlobeNewswire / - 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.

1


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
2


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.
3


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.





Contacts

Media:
Danielle Vincent
remitly@inkhouse.com

Investor Relations:
Stephen Shulstein
Vice President of Investor Relations
stephens@remitly.com
4


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

Three Months Ended March 31,
(in thousands, except share and per share data)20222021
Revenue$136,014 $91,056 
Costs and expenses
Transaction expenses(1)
56,263 41,110 
Customer support and operations(1) (2)
13,870 8,631 
Marketing(1) (2)
40,621 26,116 
Technology and development(1) (2)
23,575 11,644 
General and administrative(1) (2)
23,342 10,882 
Depreciation and amortization1,517 1,245 
Total costs and expenses159,188 99,628 
Loss from operations(23,174)(8,572)
Interest income36 
Interest expense(313)(259)
Other income, net669 1,426 
Loss before provision for income taxes(22,782)(7,400)
Provision for income taxes528 370 
Net loss attributable to common stockholders$(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 diluted164,391,753 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)20222021
Customer support and operations$93 $
Marketing1,032 285 
Technology and development4,072 590 
General and administrative4,397 639 
Total$9,594 $1,522 



5


REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)

March 31,December 31,
(in thousands)20222021
Assets
Current assets
Cash and cash equivalents$444,605 $403,262 
Disbursement prefunding57,177 119,627 
Customer funds receivable, net81,702 67,215 
Prepaid expenses and other current assets23,413 17,448 
Total current assets606,897 607,552 
Restricted cash51 51 
Property and equipment, net9,671 9,249 
Operating lease right-of-use assets7,272 5,302 
Other non-current assets, net3,645 3,510 
Total assets$627,536 $625,664 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$6,048 $1,210 
Customer liabilities80,926 70,483 
Accrued expenses and other current liabilities60,001 66,683 
Operating lease liabilities3,590 3,240 
Total current liabilities150,565 141,616 
Operating lease liabilities, non-current4,362 2,907 
Other non-current liabilities1,106 813 
Total liabilities$156,033 $145,336 
Commitments and contingencies
Stockholders' equity
Common stock17 16 
Additional paid-in capital753,983 739,503 
Accumulated other comprehensive income257 253 
Accumulated deficit(282,754)(259,444)
Total stockholders' equity471,503 480,328 
Total liabilities and stockholders' equity$627,536 $625,664 
6




REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended March 31,
(in thousands)20222021
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 amortization1,517 1,245 
Stock-based compensation expense, net9,594 1,522 
Other83 
Changes in operating assets and liabilities:
Disbursement prefunding62,450 34,425 
Customer funds receivable(14,453)(11,298)
Prepaid expenses and other assets(6,221)(5,165)
Operating lease right-of-use assets807 661 
Accounts payable4,857 8,474 
Customer liabilities10,257 48,390 
Accrued expenses and other liabilities(4,362)(6,740)
Operating lease liabilities(969)(835)
Net cash provided by operating activities40,250 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 options2,601 1,126 
Repayments of revolving credit facility borrowings, net— (15,000)
Net cash provided by (used in) financing activities2,601 (10,874)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash117 84 
Net increase in cash, cash equivalents and restricted cash41,343 50,928 
Cash, cash equivalents, and restricted cash at beginning of period403,313 188,075 
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 taxes605 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 options205 53 
Non-cash issuance shares through Employee Stock Purchase Plan1,882 — 
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$444,605 $238,502 
Restricted cash51 501 
Total cash, cash equivalents and restricted cash$444,656 $239,003 
7



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)20222021
Net loss$(23,310)$(7,770)
Add:
Interest expense, net277 254 
Provision for income taxes528 370 
Depreciation and amortization1,517 1,245 
Foreign exchange (gain) loss(669)(1,426)
Stock-based compensation expense, net9,594 1,522 
Adjusted EBITDA$(12,063)$(5,805)

Reconciliation of operating expenses to non-GAAP operating expenses:
Three Months Ended March 31,
(in thousands)20222021
Customer support and operations$13,870 $8,631 
Excluding: Stock-based compensation expense, net93 
Non-GAAP customer support and operations$13,777 $8,623 
Three Months Ended March 31,
20222021
Marketing$40,621 $26,116 
Excluding: Stock-based compensation expense, net1,032 285 
Non-GAAP marketing$39,589 $25,831 
Three Months Ended March 31,
20222021
Technology and development$23,575 $11,644 
Excluding: Stock-based compensation expense, net4,072 590 
Non-GAAP technology and development$19,503 $11,054 
Three Months Ended March 31,
20222021
General and administrative$23,342 $10,882 
Excluding: Stock-based compensation expense, net4,397 639 
Non-GAAP general and administrative$18,945 $10,243 
8
remitlyirdeck1q22
May 2022 / © 2022 Remitly Inc.1 Investor Presentation First Quarter 2022 Earnings May 5, 2022


 
May 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 with 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. The forward-looking statements in this presentation speak only as of the 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. A reconciliation of GAAP to non-GAAP financial measures has been provided in the Appendix included in this presentation. An explanation of these measures is also included in the Appendix within this presentation 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 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.


 
May 2022 / © 2022 Remitly Inc. 1Q Strategic Overview 3 Matt Oppenheimer Co-Founder & CEO


 
May 2022 / © 2022 Remitly Inc.4 Track record of strong growth continued in 1Q 2022 SCALE $136m 49% YoY REVENUE 3.0m active customers 42% YoY


 
May 2022 / © 2022 Remitly Inc. Our target customers are not served well by traditional financial services 5 +280 million immigrants across the world1 USA +50m UK +9m Germany +15m France +8m Canada +8m Italy +6m Australia +7m Rest of World +170m $1.6T Remittances sent 3-5% of GDP low and mid-income countries2 Spain ~7m 1 International Organization for Migration (IOM) GMDAC; 2 IMF & World Bank; 3, 4 FDIC, Financial Health Network, Federal Reserve Bank of San Francisco; adjusted for inflation 5 Long term loans include auto & student loans and mortgages; other financial services include check cashing, tax preparation, etc. U.S. example illustrates that immigrants are financially underserved US Immigrants that are underbanked3 +50% +$200 Remittances +$800 Short term loans and fees (Credit cards, Payday loans, overdraft) +$1,900 Long term loans and other financial services5 US average annual financial services fees and interest paid by foreign-born households4 $3,000


 
May 2022 / © 2022 Remitly Inc.6 Inconvenient Limited store hours Long wait time Manual forms Unsafe locations Slow 3-5 business days1 No transparency on speed of transfer Confusing Poor customer support No timely recourse Lagging digital capabilities Limited delivery options Overpriced 5-7% avg take rate2 Hidden FX ratesLegacy cross border remittance industry is broken 1, 2 The World Bank, Remittance Prices Worldwide, available at www.worldbank.org


 
May 2022 / © 2022 Remitly Inc.7 Convenient +3.7B bank accounts +690M mobile wallets +395k cash pickup Locations Home delivery Fast Majority of transactions disbursed in minutes1 Offer flexibility for customers who desire quick delivery of funds Friendly Intuitive sign on and KYC 3 taps to send a repeat transaction Customer support – digital in 14 languages, human in 8 languages Fair ~2% average cost to send Upfront FX rate quotes Remitly is creating an enduring customer preference by providing trusted service 1 Represents Remitly internal disbursement data for 1Q 2022


 
May 2022 / © 2022 Remitly Inc. Opportunity is massive and we are just getting started 8 Remittances TAM $1.6T1 Global remittances through both formal and informal channels ● Majority of remittances still flow through ‘brick and mortar’ channels, including informal remittance systems (e.g. hawala, fie-chien, etc.) ● Digital remittances account for ~15-25% of total addressable market, but mix shift is occurring rapidly ● 49% YoY 1Q22 revenue growth rate for Remitly demonstrates our ability to gain share ● Achieving scale rapidly and effectively is essential to long term success Remitly SAM $589B2 2021 World Bank estimate of remittance flows to Low and Middle Income countries 1 Remitly Form 10-K. 2 Remitly Form 10-K and The World Bank, Migration and Development Brief 35, Nov 2021


 
May 2022 / © 2022 Remitly Inc.9 Acquire new customers at strong unit economics 2024 & beyond Current Impact Near- term impact 01 Marketing Expand to new geographies and increase payment and disbursement options for customers 02 Global network 03 Remittance product Differentiated features, risk systems, infrastructure and customer support Mid-term impact 04 New products and services Additional offerings to serve our customers’ needs and increase engagement Focused investments to drive continued growth


 
May 2022 / © 2022 Remitly Inc. Marketing investments generate strong returns 10 Cumulative Return on Initial Direct Marketing Investment by Cohort Relative Cohort Year Re tu rn o n D ire ct M ar ke tin g In ve st m en t1 1 Return on marketing investment is the ratio of revenue, net of transaction expenses, to “Customer Acquisition Cost” or “CAC.” “CAC” refers to direct marketing expenses deployed to acquire new customers. Direct marketing expenses exclude experimental spend used to test new marketing channels, creative production expenses, endorser costs, customer research expenses, agency fees, personnel costs, or other fixed operating expenses that support the marketing team. The calculation of this metric may differ from other similarly titled metrics used by other companies, analysts, or investors. 2 Year 0 represents the year of acquisition for each cohort shown. As new customers are acquired throughout Year 0, their average tenure exiting this period is typically less than six months (more customers are added in the back half of the year due to continued growth and seasonality). Years 1-5 represent the full annual period for each cohort. For example, Year 1 for the 2020 cohort includes all of 2021.


 
May 2022 / © 2022 Remitly Inc. Our global network is continuously expanding and is a key growth driver 11 +2,300 corridors +3.7b bank accounts +395k cash pickup locations +690m mobile wallets +160 Countries & Territories Data as of 1Q 2022


 
May 2022 / © 2022 Remitly Inc. Product & Technology investments drive superior customer experience 12 App UX ● App offered in 14 languages and adding more ● 3 taps to send for repeat customers ● Easy in-app access to help center Risk & Fraud Management ● Reduced fraud sideline rates ● Reduced customer loss due to KYC verification friction ● Machine learning algorithm Infrastructure & Security ● High 24/7/365 platform availability ● Lower security threats ● Plug-n-play corridor launches Customer Support ● Lower KYC time and touches per review ● High repeat transaction post review ● Lower cancellation rates +90% of customers engage with Remitly on their phones 4.9 ⭐️ iOS App Store rating1 (+700k reviewers) 4.8 ⭐️ Android Google Play rating2 (~375k reviewers) +99.96% Platform availability3 8 languages customers can access for live support 24/7/365 1, 2 App Store and Google Play rating as of April 2022 3 Remitly internal data for 1Q 2022


 
May 2022 / © 2022 Remitly Inc. Vision To transform the lives of immigrants and their families by providing the most trusted financial services on the planet. 13


 
May 2022 / © 2022 Remitly Inc.14 1Q Financial Results Susanna Morgan CFO


 
May 2022 / © 2022 Remitly Inc.15 Track record of strong growth continued in 1Q 2022 SCALE 3.0m 42% growth in active customers over 1Q 2021 $6.1b 43% growth in send volume over 1Q 2021 REVENUE $136m 49% growth in revenue over 1Q 2021 90%+ Revenue retention across all cohorts since 2015


 
May 2022 / © 2022 Remitly Inc. Active Customers (thousands) Strong continued growth in active customers +42% YoY 1,140 1,525 1,692 1,891 2,136 16 Primarily driven by 2,397 2,561 2,836 3,042 ● New customer acquisition at strong unit economics ● High retention and customer loyalty ● Convenient, fast, friendly and fair customer experience ● Expansion of our global disbursement network


 
May 2022 / © 2022 Remitly Inc. Loyal & predictable customer base Revenue Contribution by Cohort ($ in millions) +90% Annual Revenue Retention (post first full year growth) 17


 
May 2022 / © 2022 Remitly Inc. Our take rate continues to remain stable Average Take Rate by Quarter (%) 18 Take-rate is defined as revenue per transaction as a percentage of the transaction size 2.22% Avg.


 
May 2022 / © 2022 Remitly Inc. High double digit revenue growth at scale Revenue ($ in millions) +49% YoY $45.7 $59.4 $71.8 $80.0 19 $111.1 $121.2 $135.3 $136.0 $91.1


 
May 2022 / © 2022 Remitly Inc.20 Delivering leverage on unit costs Direct integrations reduce transaction errors and lower processing costs Advanced risk and fraud management systems drive down transaction loss rates Scale drives better terms with payment processing and disbursement partners 1Q21 1Q22 Transaction expenses as percentage of revenue 45.1% 41.4% 370 bps


 
May 2022 / © 2022 Remitly Inc.21 Disciplined investments will drive long- term growth ● New customer acquisition marketing ● Expanding global network ● Product technology and new products ● Public company capabilities Marketing 1Q 2022 Operating Expense Mix (Non-GAAP) KEY INVESTMENTS $39.6m 43% Technology & Development $19.5m / 21% Customer Support & Operations $13.8m / 15% G&A $18.9m / 21% Excludes stock-based compensation expense. Please see reconciliation of Non-GAAP measures in the appendix


 
May 2022 / © 2022 Remitly Inc.22 Strong balance sheet to execute on growth $445m Cash as of 3/31/22 (8.9)% 1Q22 Adjusted EBITDA Margin ($23)m 1Q22 GAAP Net Loss ($12)m 1Q22 Adjusted EBITDA Please see reconciliation of Non-GAAP measures in the appendix


 
May 2022 / © 2022 Remitly Inc. 2022 Outlook Reflects strong growth and key investments to unlock our vision ● Raising 2022 revenue outlook by $5M at the midpoint (1) ● High growth at scale ● Upfront investments drive future growth and high customer lifetime value ● Investing efficiently to deliver long-term shareholder value $610m-$620m 2022E Revenue 33% to 35% growth — ($40)m-($30)m 2022E Adjusted EBITDA 23 1 Compared with 2022 outlook provided on March 2, 2022


 
May 2022 / © 2022 Remitly Inc. Q & A 24


 
May 2022 / © 2022 Remitly Inc. “ I wanted to send money to my girlfriend who is in the Philippines and it was a great experience using Remitly. My experience with the money transfer companies I used before was really bad. They made sending money really hard and I would get rejected! I am proud to help support my girlfriend back home and I feel that Remitly treats me with dignity and I know she receives the money safe and sound. This is the way it should be! We thank your company for providing a great service for us. Floyd Remitly user since 2021 Sends money from USA to the Philippines 25


 
May 2022 / © 2022 Remitly Inc. Appendix 26


 
May 2022 / © 2022 Remitly Inc.27 Non-GAAP 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 presentation 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.


 
May 2022 / © 2022 Remitly Inc.28 Non-GAAP Reconciliation Reconciliation of operating expenses to non-GAAP operating expenses (in thousands) 1Q 2022 Customer support and operations $13,870 Excluding: Stock-based compensation expense, net 93 Non-GAAP customer support and operations $13,777 Marketing $40,621 Excluding: Stock-based compensation expense, net 1,032 Non-GAAP marketing $39,589 Technology & development $23,575 Excluding: Stock-based compensation expense, net 4,072 Non-GAAP technology and development $19,503 General and administrative $23,342 Excluding: Stock-based compensation expense, net 4,397 Non-GAAP General and administrative $18,945


 
May 2022 / © 2022 Remitly Inc.29 Non-GAAP Reconciliation Reconciliation of net loss to Adjusted EBITDA (in thousands) 1Q 2022 Net loss ($23,310) Add: Interest expense, net 277 Provision for income taxes 528 Depreciation and amortization 1,517 Foreign exchange (gain) loss (669) Stock-based compensation expense, net 9,594 Adjusted EBITDA ($12,063) Revenue $136,014 Adjusted EBITDA margin (8.9%)


 
May 2022 / © 2022 Remitly Inc. Thank you.