(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class: | Trading Symbol(s): | Name of each exchange on which registered: | ||||||||||||
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Exhibit No. | Description | ||||
99.1 | |||||
99.2 | |||||
104 | Cover page interactive data file (embedded with the inline XBRL document) |
Remitly Global, Inc. | ||||||||
Date: August 2, 2023 | By: | /s/ Hemanth Munipalli | ||||||
Hemanth Munipalli | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands, except share and per share data) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | $ | 234,033 | $ | 157,255 | $ | 437,898 | $ | 293,269 | |||||||||||||||
Costs and expenses | |||||||||||||||||||||||
Transaction expenses(1) | 80,187 | 60,826 | 154,253 | 117,089 | |||||||||||||||||||
Customer support and operations(1) (2) | 21,483 | 16,855 | 41,414 | 30,725 | |||||||||||||||||||
Marketing(1) (2) | 53,600 | 43,849 | 97,723 | 84,470 | |||||||||||||||||||
Technology and development(1) (2) | 54,309 | 36,083 | 103,685 | 59,658 | |||||||||||||||||||
General and administrative(1) (2) | 39,490 | 37,509 | 80,898 | 60,851 | |||||||||||||||||||
Depreciation and amortization | 3,187 | 1,510 | 6,216 | 3,027 | |||||||||||||||||||
Total costs and expenses | 252,256 | 196,632 | 484,189 | 355,820 | |||||||||||||||||||
Loss from operations | (18,223) | (39,377) | (46,291) | (62,551) | |||||||||||||||||||
Interest income | 1,368 | 439 | 3,392 | 475 | |||||||||||||||||||
Interest expense | (592) | (332) | (981) | (645) | |||||||||||||||||||
Other (expense) income, net | (1,546) | 1,687 | (3,057) | 2,356 | |||||||||||||||||||
Loss before provision for income taxes | (18,993) | (37,583) | (46,937) | (60,365) | |||||||||||||||||||
(Benefit) provision for income taxes | (143) | 662 | 227 | 1,190 | |||||||||||||||||||
Net loss attributable to common stockholders | $ | (18,850) | $ | (38,245) | $ | (47,164) | $ | (61,555) | |||||||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||||||||||||
Basic and diluted | $ | (0.11) | $ | (0.23) | $ | (0.27) | $ | (0.37) | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders: | |||||||||||||||||||||||
Basic and diluted | 179,076,496 | 166,498,333 | 177,105,720 | 165,450,862 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Customer support and operations | $ | 419 | $ | 277 | $ | 624 | $ | 370 | |||||||||||||||
Marketing | 4,727 | 2,765 | 7,710 | 3,797 | |||||||||||||||||||
Technology and development | 18,588 | 13,649 | 35,219 | 17,721 | |||||||||||||||||||
General and administrative | 11,466 | 15,850 | 20,881 | 20,247 | |||||||||||||||||||
Total | $ | 35,200 | $ | 32,541 | $ | 64,434 | $ | 42,135 |
June 30, | December 31, | ||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 227,507 | $ | 300,635 | |||||||
Disbursement prefunding | 281,940 | 158,055 | |||||||||
Customer funds receivable, net | 138,870 | 191,402 | |||||||||
Prepaid expenses and other current assets | 30,848 | 19,327 | |||||||||
Total current assets | 679,165 | 669,419 | |||||||||
Property and equipment, net | 13,380 | 11,546 | |||||||||
Operating lease right-of-use assets | 11,718 | 8,675 | |||||||||
Goodwill | 54,940 | — | |||||||||
Intangible assets, net | 19,071 | — | |||||||||
Other noncurrent assets, net | 6,253 | 6,313 | |||||||||
Total assets | $ | 784,527 | $ | 695,953 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 17,608 | $ | 6,794 | |||||||
Customer liabilities | 102,262 | 111,075 | |||||||||
Short-term debt | 2,432 | — | |||||||||
Accrued expenses and other current liabilities | 98,717 | 87,752 | |||||||||
Operating lease liabilities | 5,637 | 3,521 | |||||||||
Total current liabilities | 226,656 | 209,142 | |||||||||
Operating lease liabilities, noncurrent | 7,239 | 5,674 | |||||||||
Long-term debt | 34,000 | — | |||||||||
Other noncurrent liabilities | 895 | 1,050 | |||||||||
Total liabilities | $ | 268,790 | $ | 215,866 | |||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity | |||||||||||
Common stock | $ | 18 | $ | 17 | |||||||
Additional paid-in capital | 936,496 | 854,276 | |||||||||
Accumulated other comprehensive loss | (150) | (743) | |||||||||
Accumulated deficit | (420,627) | (373,463) | |||||||||
Total stockholders’ equity | 515,737 | 480,087 | |||||||||
Total liabilities and stockholders’ equity | $ | 784,527 | $ | 695,953 |
Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net loss | $ | (47,164) | $ | (61,555) | ||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||
Depreciation and amortization | 6,216 | 3,027 | ||||||||||||
Stock-based compensation expense, net | 64,434 | 42,135 | ||||||||||||
Other | 2,203 | 179 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Disbursement prefunding | (117,870) | (39,873) | ||||||||||||
Customer funds receivable | 54,245 | (29,868) | ||||||||||||
Prepaid expenses and other assets | (10,344) | (2,687) | ||||||||||||
Operating lease right-of-use assets | 2,434 | 1,743 | ||||||||||||
Accounts payable | 10,180 | 4,317 | ||||||||||||
Customer liabilities | (12,477) | 60,279 | ||||||||||||
Accrued expenses and other liabilities | (1,518) | 50,395 | ||||||||||||
Operating lease liabilities | (1,806) | (2,062) | ||||||||||||
Net cash (used in) provided by operating activities | (51,467) | 26,030 | ||||||||||||
Cash flows from investing activities | ||||||||||||||
Purchases of property and equipment | (1,566) | (1,492) | ||||||||||||
Capitalized internal-use software costs | (2,344) | (1,688) | ||||||||||||
Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash | (40,933) | — | ||||||||||||
Net cash used in investing activities | (44,843) | (3,180) | ||||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from exercise of stock options | 8,333 | 4,467 | ||||||||||||
Proceeds from revolving credit facility borrowings | 334,000 | — | ||||||||||||
Repayments of revolving credit facility borrowings | (300,000) | — | ||||||||||||
Taxes paid related to net share settlement of equity awards | (2,111) | (30) | ||||||||||||
Repayment of assumed indebtedness | (17,068) | — | ||||||||||||
Net cash provided by financing activities | 23,154 | 4,437 | ||||||||||||
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 663 | (840) | ||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (72,493) | 26,447 | ||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 300,734 | 403,313 | ||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 228,241 | $ | 429,760 | ||||||||||
Supplemental disclosure of cash flow information | ||||||||||||||
Cash paid for interest | $ | 771 | $ | 465 | ||||||||||
Cash paid for income taxes | 804 | 829 | ||||||||||||
Supplemental disclosure of noncash investing and financing activities | ||||||||||||||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 5,414 | $ | 6,932 | ||||||||||
Vesting of early exercised options | 245 | 393 | ||||||||||||
Noncash issuance of common stock in connection with ESPP | 2,729 | 1,882 | ||||||||||||
Stock-based compensation expense capitalized to internal-use software | 1,374 | 900 | ||||||||||||
Issuance of common stock for acquisition consideration | 6,635 | — | ||||||||||||
Issuance of unvested common stock, subject to service-based vesting conditions, in connection with acquisition | 581 | — | ||||||||||||
Amounts held back for acquisition consideration | 11,899 | — | ||||||||||||
Settlement of preexisting net receivable in exchange for net assets acquired in business combination | 2,401 | — | ||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash | ||||||||||||||
Cash and cash equivalents | $ | 227,507 | $ | 429,709 | ||||||||||
Restricted cash included in prepaid expenses and other current assets | 680 | — | ||||||||||||
Restricted cash included in other noncurrent assets, net | 54 | 51 | ||||||||||||
Total cash, cash equivalents and restricted cash | $ | 228,241 | $ | 429,760 |
Reconciliation of net loss to Adjusted EBITDA: | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Net loss | $ | (18,850) | $ | (38,245) | $ | (47,164) | $ | (61,555) | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Interest (income) expense, net | (776) | (107) | (2,411) | 170 | ||||||||||||||||||||||
(Benefit) provision for income taxes | (143) | 662 | 227 | 1,190 | ||||||||||||||||||||||
Depreciation and amortization | 3,187 | 1,510 | 6,216 | 3,027 | ||||||||||||||||||||||
Foreign exchange (gain) loss | 1,482 | (1,687) | 2,987 | (2,356) | ||||||||||||||||||||||
Stock-based compensation expense, net | 35,200 | 32,541 | 64,434 | 42,135 | ||||||||||||||||||||||
Transaction costs(1) | 316 | — | 1,489 | — | ||||||||||||||||||||||
Adjusted EBITDA | $ | 20,416 | $ | (5,326) | $ | 25,778 | $ | (17,389) |
Reconciliation of operating expenses to non-GAAP operating expenses: | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Customer support and operations | $ | 21,483 | $ | 16,855 | $ | 41,414 | $ | 30,725 | ||||||||||||||||||
Excluding: Stock-based compensation expense, net | 419 | 277 | 624 | 370 | ||||||||||||||||||||||
Non-GAAP customer support and operations | $ | 21,064 | $ | 16,578 | $ | 40,790 | $ | 30,355 | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Marketing | $ | 53,600 | $ | 43,849 | $ | 97,723 | $ | 84,470 | ||||||||||||||||||
Excluding: Stock-based compensation expense, net | 4,727 | 2,765 | 7,710 | 3,797 | ||||||||||||||||||||||
Non-GAAP marketing | $ | 48,873 | $ | 41,084 | $ | 90,013 | $ | 80,673 | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Technology and development | $ | 54,309 | $ | 36,083 | $ | 103,685 | $ | 59,658 | ||||||||||||||||||
Excluding: Stock-based compensation expense, net | 18,588 | 13,649 | 35,219 | 17,721 | ||||||||||||||||||||||
Non-GAAP technology and development | $ | 35,721 | $ | 22,434 | $ | 68,466 | $ | 41,937 | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
General and administrative | $ | 39,490 | $ | 37,509 | $ | 80,898 | $ | 60,851 | ||||||||||||||||||
Excluding: Stock-based compensation expense, net | 11,466 | 15,850 | 20,881 | 20,247 | ||||||||||||||||||||||
Excluding: Transaction costs | 316 | — | 1,489 | — | ||||||||||||||||||||||
Non-GAAP general and administrative | $ | 27,708 | $ | 21,659 | $ | 58,528 | $ | 40,604 |