0001782170-24-000223 | 10-Q | XBRL Viewer

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Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements There were no financial assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2024. Except for the holdback liability related to the Rewire acquisition discussed in Note 6. Business Combinations, there were no financial assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2023. The carrying values of certain financial instruments, including disbursement prefunding, customer funds receivable, accounts payable, accrued expenses and other current liabilities, customer liabilities, short-term debt, and long-term debt, approximate their respective fair values due to their relative short maturities. If these financial instruments were measured at fair value in the financial statements, they would be classified as Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Supplemental Cash Flow Information

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

The supplemental disclosures of cash flow information consisted of the following:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Supplemental disclosure of cash flow information
Cash paid for interest	$	1,922	$	1,329
Cash paid for income taxes	4,071		4,691
Supplemental disclosure of noncash investing and financing activities

Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	5,617	$	5,414
Vesting of early exercised options	48		311
Stock-based compensation expense capitalized to internal-use software	3,890		2,194
Settlement of equity amounts previously held back for acquisition consideration	2,783		—
Issuance of common stock for acquisition consideration	—		6,635
Issuance of 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

Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 2,085
2025	8,338
2026	2,125
Net Carrying Amount	$ 12,548	$ 16,642

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Number of Options Outstanding
Beginning balance (in shares)	10,801,396
Exercised (in shares)	(1,745,172)
Forfeited (in shares)	(118,077)
Ending balance (in shares)	8,938,147		10,801,396
Vested and exercisable (in shares)	8,109,918
Vested and expected to vest (in shares)	8,938,147
Weighted-Average Exercise Price
Beginning balance (in dollars per share)	$ 4.46
Exercised (in dollars per share)	3.28
Forfeited (in dollars per share)	6.26
Ending balance (in dollars per share)	4.66		$ 4.46
Vested and exercisable (in dollars per share)	4.05
Vested and expected to vest (in dollars per share)	$ 4.66
Weighted-Average Remaining Contractual Life (Years)
Outstanding	5 years 1 month 9 days		5 years 10 months 13 days
Vested and exercisable	4 years 11 months 4 days
Vested and expected to vest	5 years 1 month 9 days
Aggregate Intrinsic Value
Outstanding	$ 77,993		$ 161,603
Exercised	24,089	$ 59,845
Vested and exercisable	75,720
Vested and expected to vest	77,993
Aggregate grant-date fair value, options	$ 10,266	$ 7,068

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Stockholders' Equity
Beginning balance	$ 480,087	$ 17	$ 854,276	$ (743)	$ (373,463)
Beginning balance (in shares) at Dec. 31, 2022		173,250,865
Stockholders' Equity
Issuance of common stock in connection with ESPP (in shares)		297,095
Issuance of common stock in connection with ESPP	2,729		2,729
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		3,589,965
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	4,993	$ 1	4,992
Issuance of common stock for acquisition consideration (in shares)		590,838
Issuance of common stock for acquisition consideration	6,635		6,635
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition (in shares)		104,080
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition	581		581
Taxes paid related to net share settlement of equity awards (in shares)		(99,550)
Taxes paid related to net shares settlement of equity awards	(1,413)		(1,413)
Stock-based compensation expense	29,775		29,775
Other comprehensive income (loss)	348			348
Net income (loss)	(28,314)				(28,314)
Ending balance (in shares) at Mar. 31, 2023		177,733,293
Ending balance at Mar. 31, 2023	495,421	$ 18	897,575	(395)	(401,777)
Beginning balance (in shares) at Dec. 31, 2022		173,250,865
Stockholders' Equity
Net income (loss)	(82,819)
Ending balance (in shares) at Sep. 30, 2023		185,128,562
Ending balance at Sep. 30, 2023	525,792	$ 19	983,197	(1,142)	(456,282)
Stockholders' Equity
Beginning balance	495,421	$ 18	897,575	(395)	(401,777)
Beginning balance (in shares) at Mar. 31, 2023		177,733,293
Stockholders' Equity
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		3,468,316
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	3,586		3,586
Taxes paid related to net share settlement of equity awards (in shares)		(39,883)
Taxes paid related to net shares settlement of equity awards	(698)		(698)
Stock-based compensation expense	36,033		36,033
Other comprehensive income (loss)	245			245
Net income (loss)	(18,850)				(18,850)
Ending balance (in shares) at Jun. 30, 2023		181,161,726
Ending balance at Jun. 30, 2023	515,737	$ 18	936,496	(150)	(420,627)
Stockholders' Equity
Beginning balance	515,737	$ 18	936,496	(150)	(420,627)
Issuance of common stock in connection with ESPP (in shares)		328,272
Issuance of common stock in connection with ESPP	3,317		3,317
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		3,561,018
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	3,992	$ 1	3,991
Donation of common stock (in shares)		181,961
Donation of common stock	4,600		4,600
Taxes paid related to net share settlement of equity awards (in shares)		(104,415)
Taxes paid related to net shares settlement of equity awards	(2,600)		(2,600)
Stock-based compensation expense	37,393		37,393
Other comprehensive income (loss)	(992)			(992)
Net income (loss)	(35,655)				(35,655)
Ending balance (in shares) at Sep. 30, 2023		185,128,562
Ending balance at Sep. 30, 2023	525,792	$ 19	983,197	(1,142)	(456,282)
Stockholders' Equity
Beginning balance	525,792	19	983,197	(1,142)	(456,282)
Beginning balance	529,337	$ 19	1,020,286	335	(491,303)
Beginning balance (in shares) at Dec. 31, 2023		188,435,952
Stockholders' Equity
Issuance of common stock in connection with ESPP (in shares)		439,247
Issuance of common stock in connection with ESPP	5,004		5,004
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		3,500,485
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	2,530		2,530
Taxes paid related to net share settlement of equity awards (in shares)		(64,634)
Taxes paid related to net shares settlement of equity awards	(1,366)		(1,366)
Stock-based compensation expense	35,575		35,575
Other comprehensive income (loss)	(642)			(642)
Net income (loss)	(21,080)				(21,080)
Ending balance (in shares) at Mar. 31, 2024		192,311,050
Ending balance at Mar. 31, 2024	549,358	$ 19	1,062,029	(307)	(512,383)
Beginning balance (in shares) at Dec. 31, 2023		188,435,952
Stockholders' Equity
Net income (loss)	(31,254)
Ending balance (in shares) at Sep. 30, 2024		198,033,845
Ending balance at Sep. 30, 2024	630,823	$ 20	1,151,479	1,881	(522,557)
Stockholders' Equity
Beginning balance	549,358	$ 19	1,062,029	(307)	(512,383)
Beginning balance (in shares) at Mar. 31, 2024		192,311,050
Stockholders' Equity
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		2,741,097
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	1,713	$ 1	1,712
Issuance of common stock for acquisition consideration (in shares)		131,507
Issuance of common stock for acquisition consideration	2,783		2,783
Taxes paid related to net share settlement of equity awards (in shares)		(87,676)
Taxes paid related to net shares settlement of equity awards	(1,202)		(1,202)
Stock-based compensation expense	38,438		38,438
Other comprehensive income (loss)	(97)			(97)
Net income (loss)	(12,091)				(12,091)
Ending balance (in shares) at Jun. 30, 2024		195,095,978
Ending balance at Jun. 30, 2024	578,902	$ 20	1,103,760	(404)	(524,474)
Stockholders' Equity
Beginning balance	578,902	$ 20	1,103,760	(404)	(524,474)
Issuance of common stock in connection with ESPP (in shares)		387,058
Issuance of common stock in connection with ESPP	4,378		4,378
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units (in shares)		2,456,427
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	1,560		1,560
Donation of common stock (in shares)		181,961
Donation of common stock	2,587		2,587
Taxes paid related to net share settlement of equity awards (in shares)		(87,579)
Taxes paid related to net shares settlement of equity awards	(1,206)		(1,206)
Stock-based compensation expense	40,400		40,400
Other comprehensive income (loss)	2,285			2,285
Net income (loss)	1,917				1,917
Ending balance (in shares) at Sep. 30, 2024		198,033,845
Ending balance at Sep. 30, 2024	630,823	$ 20	1,151,479	1,881	(522,557)
Stockholders' Equity
Beginning balance	$ 630,823	$ 20	$ 1,151,479	$ 1,881	$ (522,557)

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its tax provision for interim periods by applying the estimated annual effective tax rate to year-to-date income from recurring operations and adjusting for discrete items arising in that quarter. The Company’s effective tax rates on pre-tax income were 49.1% and (0.7)% for the three months ended September 30, 2024 and 2023, respectively, and (24.4)% and (0.6)% for the nine months ended September 30, 2024 and 2023, respectively. The difference between the effective tax rate and the U.S. federal statutory rate of 21.0% in all periods was primarily the result of foreign income taxed at different rates, changes in the U.S. valuation allowance, non-deductible stock-based compensation, and recognition of a discrete income tax benefit, primarily driven by excess stock-based compensation deductions. The Company maintains a full valuation allowance against the U.S. net deferred tax assets, as it believes that these deferred tax assets do not meet the more likely than not threshold. The Company files income tax returns in the U.S. federal jurisdiction, various state jurisdictions, and internationally. As of September 30, 2024, tax years 2012 through 2023 remain open for examination by taxing authorities.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Debt (Details) $ in Thousands, ₪ in Millions	Sep. 13, 2021 USD ($)	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 20, 2023 USD ($)	Jan. 05, 2023 USD ($)	Jan. 05, 2023 ILS (₪)
Debt Instrument [Line Items]
Debt issuance costs, net		$ 900	$ 1,200
Letters of credit outstanding		49,300	49,400
Short-term debt		2,426	2,481
Advance for Future Deposits
Debt Instrument [Line Items]
Face amount					$ 2,800	₪ 9.0
Short-term debt		$ 2,400	$ 2,500
Effective interest rate		3.00%	3.00%
Advance for Future Deposits \| Prime Rate
Debt Instrument [Line Items]
Derivative, Basis Spread on Variable Rate					1.40%	1.40%
Advance for Future Deposits \| Israeli Prime Rate
Debt Instrument [Line Items]
Derivative, Basis Spread on Variable Rate					1.50%	1.50%
Line of credit \| Revolving credit facility \| New Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 250,000			$ 325,000
Unused commitment fee percentage	0.25%
Adjusted quick ratio		1.50
Minimum liquidity		$ 100,000
Outstanding borrowings		$ 0	$ 130,000
Weighted average interest rate		9.00%
Remaining borrowing capacity		$ 276,300	$ 146,800
Line of credit \| Revolving credit facility \| New Revolving Credit Facility \| NYFRB Rate
Debt Instrument [Line Items]
Variable rate, base	0.50%
Line of credit \| Revolving credit facility \| New Revolving Credit Facility \| Adjusted LIBOR, 1.00% Floor
Debt Instrument [Line Items]
Variable rate, base	1.00%
Floor rate	1.00%
Line of credit \| Revolving credit facility \| New Revolving Credit Facility \| Base Rate
Debt Instrument [Line Items]
Variable rate, spread on variable rate	0.50%
Line of credit \| Revolving credit facility \| New Revolving Credit Facility \| Adjusted LIBOR, 0.00% Floor
Debt Instrument [Line Items]
Floor rate	0.00%
Variable rate, spread on variable rate	1.50%
Line of credit \| Letter of credit \| New Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 60,000

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock Option Activity

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2024:


	Stock Options
(in thousands, except share and per share data)	Number of Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value(1)
Balances as of January 1, 2024	10,801,396	$	4.46	5.87	$	161,603

Exercised	(1,745,172)	3.28			24,089
Forfeited	(118,077)	6.26
Balances as of September 30, 2024	8,938,147	4.66		5.11	77,993
Vested and exercisable as of September 30, 2024	8,109,918	4.05		4.93	75,720
Vested and expected to vest as of September 30, 2024	8,938,147	$	4.66	5.11	$	77,993

_________________

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock.

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Aggregate grant-date fair value of options vested	$	10,266	$	7,068
Intrinsic value of options exercised	24,089		59,845

Schedule of Restricted Stock Award Activity

Restricted stock unit activity during the nine months ended September 30, 2024 was as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
Unvested at January 1, 2024	23,555,665	$	14.67
Granted	12,016,829	16.34
Vested	(6,952,837)	13.79
Cancelled/forfeited	(3,049,620)	15.28
Unvested at September 30, 2024	25,570,037	$	15.62

The following is a summary of the Company’s restricted stock unit activity during the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
(in thousands, except per share data)	2024		2023
Weighted-average grant date fair value of RSUs granted	$	16.34	$	16.85
Aggregate grant-date fair value of RSUs vested	95,880		79,962

Schedule of ESPP Valuation Assumptions

The fair value of the ESPP offerings, including those described above, were estimated using the Black-Scholes option-pricing model as of the respective offering dates, using the following assumptions. These assumptions represent the grant date fair value inputs for new offerings which commenced during the nine months ended September 30, 2024 and 2023, as well as updated valuation information as of the modification date for any offerings for which a modification occurred during the periods presented herein:

Nine Months Ended September 30,

2024

2023

Risk-free interest rates

3.84% to 5.20%

4.81% to 5.40%

Expected term (in years)

0.5 to 2.0 years

Volatility

39.3% to 61.3%

47.8% to 65.2%

Dividend rate

—

Schedule of Share-based Compensation Expense

Stock-based compensation expense for stock options, RSUs, and ESPP, included within the Condensed Consolidated Statements of Operations, net of amounts capitalized to internal-use software, as described in Note 5. Property and Equipment, was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Customer support and operations	$	278	$	386	$	890	$	1,010
Marketing	4,514		4,525		13,014		12,235
Technology and development	21,873		19,828		61,854		55,047
General and administrative	12,613		11,834		34,765		32,715
Total	$	39,278	$	36,573	$	110,523	$	101,007

Commitment and Contingencies - Narrative (Details)	9 Months Ended
Commitment and Contingencies - Narrative (Details)	Sep. 30, 2024 USD ($) claim	Dec. 31, 2023 USD ($)
Loss Contingencies [Line Items]
Operating lease not yet commenced, term	7 years
Indemnification agreement
Loss Contingencies [Line Items]
Loss contingency, number of claims \| claim	0
Loss contingency accrual	$ 0	$ 0
Cloud infrastructure arrangement
Loss Contingencies [Line Items]
Purchase commitment, term	3 years
Purchase commitment	$ 6,900,000
Lease not yet commenced
Loss Contingencies [Line Items]
Purchase commitment	$ 22,900,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Restructuring Initiatives - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restructuring and Related Activities [Abstract]
Incurred charges	$ 0	$ 1,400,000	$ 800,000	$ 1,400,000

Common Stock	9 Months Ended
Common Stock	Sep. 30, 2024
Equity [Abstract]
Common Stock	Common Stock As of September 30, 2024, the Company has authorized 725,000,000 shares of common stock with a par value of $0.0001 per share. Each holder of a share of common stock is entitled to one vote for each share held at all meetings of stockholders and is entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors. No dividends have been declared or paid by the Company during the nine months ended September 30, 2024 and 2023. Donation to Remitly Philanthropy Fund In July 2021, the Company’s board of directors approved the reservation of up to 1,819,609 shares of common stock (which was approximately 1.0% of the fully diluted capitalization as of June 30, 2021) that the Company may issue to or for the benefit of a 501(c)(3) nonprofit foundation or a similar charitable organization pursuant to the Company’s Pledge 1% commitment in installments over ten years. On September 10, 2021, the Company executed the stock donation agreement, pursuant to which it issued the first installment of the Pledge 1% commitment to Remitly Philanthropy Fund, a donor advised fund administered on the Company’s behalf by Rockefeller Philanthropy Advisors, Inc., on the day after consummation of the Company’s initial public offering. The Company donated 181,961 shares of its common stock to Remitly Philanthropy Fund on both September 18, 2024 and September 20, 2023, pursuant to the stock donation agreement, and in connection with the Pledge 1% commitment, which publicly acknowledges the Company’s intent to give back and increase social impact, in order to sustainably fund a portion of its corporate social responsibility goals and further its mission to expand financial inclusion for immigrants. For the three and nine months ended September 30, 2024 and 2023, the Company recorded a charge of $2.6 million and $4.6 million, respectively, to ‘General and administrative expenses’ within the Condensed Consolidated Statements of Operations based on the closing price of its common stock as reported on the Nasdaq Global Select Market (the “NASDAQ”) on September 18, 2024 and September 20 2023, respectively.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 15: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Revenue - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning of the period	$ 1,020	$ 626	$ 1,124	$ 1,108
Deferred revenue, end of the period	857	889	857	889
Revenue recognized from amounts included in deferred revenue at the beginning of the period	$ 907	$ 296	$ 1,008	$ 735

Restructuring Initiatives - Schedule of Severance and Related Charges (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Restructuring Cost and Reserve [Line Items]
Expenses incurred	$ 792
Customer support and operations
Restructuring Cost and Reserve [Line Items]
Expenses incurred	758
General and administrative
Restructuring Cost and Reserve [Line Items]
Expenses incurred	$ 34

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The components of intangible assets as of September 30, 2024 and December 31, 2023 were as follows:


	September 30, 2024						December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Estimated Remaining Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Estimated Remaining Useful Life (in years)
Trade name	$	1,000	$	(583)	$	417	1.3	$	1,000	$	(333)	$	667	2.0
Customer relationships	8,500		(3,719)		4,781		2.3	8,500		(2,125)		6,375		3.0
Developed technology	12,000		(4,650)		7,350		1.3	12,000		(2,400)		9,600		4.0
Total	$	21,500	$	(8,952)	$	12,548		$	21,500	$	(4,858)	$	16,642

The acquired identified intangible assets have estimated useful lives ranging from three to four years. Amortization expense for intangible assets was $1.7 million and $1.2 million for the three months ended September 30, 2024 and 2023, respectively. Amortization expense for intangible assets was $4.1 million and $3.6 million for the nine months ended September 30, 2024 and 2023, respectively.

Expected future intangible asset amortization as of September 30, 2024 was as follows:


(in thousands)	Amount

Remainder of 2024	$	2,085
2025	8,338
2026	2,125


Total	$	12,548

Intangible Assets - Narrative (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
	Jan. 05, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 1.7	$ 1.2	$ 4.1	$ 3.6
Minimum
Finite-Lived Intangible Assets [Line Items]
Weighted Average Estimated Remaining Useful Life (in years)	3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Weighted Average Estimated Remaining Useful Life (in years)	4 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment, net consisted of the following as of September 30, 2024 and December 31, 2023:


	September 30,		December 31,
(in thousands)	2024		2023
Capitalized internal-use software	$	36,374	$	23,195
Computer and office equipment	8,239		8,529
Furniture and fixtures	2,927		2,636
Leasehold improvements	8,684		8,080
Projects in process	733		—
Total gross property and equipment	56,957		42,440
Less: Accumulated depreciation and amortization	(32,593)		(26,430)
Property and equipment, net	$	24,364	$	16,010

The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Total capitalized internal-use software costs(1)	$	3,916	$	2,725	$	13,178	$	6,443
Stock-based compensation costs capitalized to internal-use software	1,122		820		3,890		2,194
Amortization expense(2)	1,999		1,193		5,493		3,136

__________

(1) Amounts are inclusive of stock-based compensation costs capitalized to internal-use software as denoted within the table.

(2) Amounts are included within ‘Depreciation and amortization’ within the Condensed Consolidated Statements of Operations.

Schedule of Hosting Arrangements

The following table presents the Company’s capitalized costs related to the implementation of cloud computing arrangements, including amortization expense recognized, for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Total capitalized cloud computing arrangement costs	$	348	$	859	$	1,241	$	2,732

Technology and development	$	570	$	416	$	1,619	$	1,087
General and administrative	91		59		272		148
Total amortization expense	$	661	$	475	$	1,891	$	1,235

The following table presents the Company’s total capitalized cloud computing arrangement costs, net of accumulated amortization, on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:


	September 30,		December 31,
(in thousands)	2024		2023
Prepaid expenses and other current assets	$	2,445	$	2,220
Other noncurrent assets, net	935		1,811
Total capitalized cloud computing arrangement costs, net	$	3,380	$	4,031

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end data within the Condensed Consolidated Balance Sheets was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, or for any other future annual or interim period.
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Reclassification	Reclassification The condensed consolidated financial statements and accompanying notes have been prepared consistently, with the exception of certain prior year amounts which have been reclassified to conform with the current period presentation. Reclassifications include a change in presentation of shares purchased under the ESPP within the Condensed Consolidated Statements of Cash Flows. Beginning in the year ended December 31, 2023, the Company changed the presentation of shares purchased under the Employee Stock Purchase Plan (“ESPP”) to reflect an operating cash outflow for compensation paid to employees and a financing cash inflow for cash paid by employees in exchange for shares. Previously, such activity was treated and disclosed as noncash activity for the nine months ended September 30, 2023. The Company has conformed the prior period statement of cash flows to the current period presentation to enhance transparency and provide comparability.
Use of Estimates	Use of Estimates The preparation of the accompanying condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported and disclosed within the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense, the carrying value of operating lease right-of-use assets and operating lease liabilities, the recoverability of deferred tax assets, capitalization of software development costs, goodwill, and intangible assets. The key assumptions applied for the value of the intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the condensed consolidated financial statements.
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash, cash equivalents, and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which are typically located in India, Mexico, and the Philippines. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash, or customer funds receivable in the three and nine months ended September 30, 2024 and 2023.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company holds its cash and cash equivalents with financial institutions throughout the world, which management assesses to be of high credit quality. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents, so long as the Company has legal title to such amounts held in these accounts. Amounts that are held in accounts for which the Company does not have legal title to are recorded separately on the Condensed Consolidated Balance Sheets, typically as disbursement prefunding balances. Cash and cash equivalents consist of cash on hand and various deposit accounts, including accounts held in the Company’s name for the benefit of the Company’s customers for which the Company has control.
Advertising	Advertising Advertising expenses are charged to operations as incurred and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statements of Operations. Advertising expenses are used primarily to attract new customers.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company will adopt this new guidance beginning with its annual report for fiscal year ending December 31, 2024. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable. The Company does not believe any of these accounting pronouncements have had, or will have, a material impact on the condensed consolidated financial statements or disclosures.
Revenue	Revenue The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided, when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which includes the following steps: (1)identification of the contract with a customer; (2)identification of the performance obligations in the contract; (3)determination of the transaction price; (4)allocation of the transaction price to the performance obligations in the contract; and (5)recognition of revenue when, or as, the Company satisfies a performance obligation. Customers engage the Company to perform one integrated service—collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions. Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, the disbursement method chosen by the customer, and the country to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided. The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component. The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as ‘Transaction expenses’ within the Condensed Consolidated Statements of Operations. The Company does not have any capitalized contract acquisition costs.

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end data within the Condensed Consolidated Balance Sheets was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2023. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. The interim results for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024, or for any other future annual or interim period. Principles of Consolidation The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Reclassification The condensed consolidated financial statements and accompanying notes have been prepared consistently, with the exception of certain prior year amounts which have been reclassified to conform with the current period presentation. Reclassifications include a change in presentation of shares purchased under the ESPP within the Condensed Consolidated Statements of Cash Flows. Beginning in the year ended December 31, 2023, the Company changed the presentation of shares purchased under the Employee Stock Purchase Plan (“ESPP”) to reflect an operating cash outflow for compensation paid to employees and a financing cash inflow for cash paid by employees in exchange for shares. Previously, such activity was treated and disclosed as noncash activity for the nine months ended September 30, 2023. The Company has conformed the prior period statement of cash flows to the current period presentation to enhance transparency and provide comparability. Use of Estimates The preparation of the accompanying condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported and disclosed within the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense, the carrying value of operating lease right-of-use assets and operating lease liabilities, the recoverability of deferred tax assets, capitalization of software development costs, goodwill, and intangible assets. The key assumptions applied for the value of the intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the condensed consolidated financial statements. Concentration of Credit Risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash, cash equivalents, and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which are typically located in India, Mexico, and the Philippines. The Company has not experienced any significant losses on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash, or customer funds receivable in the three and nine months ended September 30, 2024 and 2023. For the three and nine months ended September 30, 2024 and 2023, no individual customer represented 10% or more of total revenues or customer funds receivable. Cash and Cash Equivalents The Company holds its cash and cash equivalents with financial institutions throughout the world, which management assesses to be of high credit quality. The Company considers all highly liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents, so long as the Company has legal title to such amounts held in these accounts. Amounts that are held in accounts for which the Company does not have legal title to are recorded separately on the Condensed Consolidated Balance Sheets, typically as disbursement prefunding balances. Cash and cash equivalents consist of cash on hand and various deposit accounts, including accounts held in the Company’s name for the benefit of the Company’s customers for which the Company has control. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to these policies during the nine months ended September 30, 2024, except as noted above. Advertising Advertising expenses are charged to operations as incurred and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statements of Operations. Advertising expenses are used primarily to attract new customers. Advertising expenses totaled $54.6 million and $48.3 million during the three months ended September 30, 2024 and 2023, respectively. Advertising expenses totaled $163.1 million and $123.5 million during the nine months ended September 30, 2024 and 2023, respectively. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company will adopt this new guidance beginning with its annual report for fiscal year ending December 31, 2024. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) income tax expense or benefit from continuing operations (separated by federal, state, and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state, and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting this new guidance to its condensed consolidated financial statements and related disclosures. There are other new accounting pronouncements issued by the FASB that the Company has adopted or will adopt, as applicable. The Company does not believe any of these accounting pronouncements have had, or will have, a material impact on the condensed consolidated financial statements or disclosures.

Prepaid Expenses & Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 16,430	$ 8,902
Payment card receivable	10,734	15,599
Tax receivable	3,801	2,813
Other receivables	2,763	0
Capitalized cloud computing arrangement costs, net	2,445	2,220
Prepaid compensation arrangements	2,039	1,518
Restricted cash	1,034	774	$ 715
Other prepaid expenses and other current assets	1,837	1,317
Prepaid expenses and other current assets	$ 41,083	$ 33,143

Stock-Based Compensation - Schedule of Restricted Stock Award Activity (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Number of Shares
Unvested, beginning balance (in shares)	23,555,665
Granted (in shares)	12,016,829
Vested (in shares)	(6,952,837)
Cancelled/forfeited (in shares)	(3,049,620)
Unvested, ending balance (in shares)	25,570,037
Weighted-Average Grant-Date Fair Value Per Share
Unvested, beginning balance (in dollars per share)	$ 14.67
Granted (in dollars per share)	16.34	$ 16.85
Vested (in dollars per share)	13.79
Cancelled/forfeited (in dollars per share)	15.28
Unvested, ending balance (in dollars per share)	$ 15.62
Weighted-average aggregate grant date fair value, vested	$ 95,880	$ 79,962

Restructuring Initiatives (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Severance and Related Charges

The following table presents the restructuring costs included within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2024:


(in thousands)	Amount
Customer support and operations	$	758

General and administrative	34
Total restructuring costs	$	792

Schedule of Restructuring Reserve

The following table presents the changes in liabilities, including expenses incurred and cash payments resulting from the restructuring costs and related accruals, during the nine months ended September 30, 2024:


(in thousands)	Amount
Balance as of December 31, 2023	$	78
Expenses incurred	792
Cash payments	(870)
Balance as of September 30, 2024	$	—

Revenue - Schedule of Sales Incentives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Sales incentives	$ 14,713	$ 13,293	$ 44,184	$ 37,415
Revenue
Disaggregation of Revenue [Line Items]
Sales incentives	10,219	8,528	28,048	24,123
Marketing
Disaggregation of Revenue [Line Items]
Sales incentives	$ 4,494	$ 4,765	$ 16,136	$ 13,292

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Revenue (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Deferred Revenue

The deferred revenue balances from contracts with customers were as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Deferred revenue, beginning of the period	$	1,020	$	626	$	1,124	$	1,108
Deferred revenue, end of the period	857		889		857		889

Revenue recognized from amounts included in deferred revenue at the beginning of the period	$	907	$	296	$	1,008	$	735

Schedule of Sales Incentives

The following table presents the Company’s sales incentives for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Reduction to revenue	$	10,219	$	8,528	$	28,048	$	24,123
Marketing expenses	4,494		4,765		16,136		13,292
Total sales incentives	$	14,713	$	13,293	$	44,184	$	37,415

Schedule of Revenue by Geographic Area

The following table presents the Company’s revenue disaggregated by primary geographical location for the three and nine months ended September 30, 2024 and 2023, attributed to the country in which the sending customer is located:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
United States	$	219,066	$	160,729	$	596,343	$	458,815
Canada	36,022		29,501		103,681		81,838
Rest of world	81,439		51,399		212,044		138,874
Total revenue	$	336,527	$	241,629	$	912,068	$	679,527

Property and Equipment

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment, net consisted of the following as of September 30, 2024 and December 31, 2023:


	September 30,		December 31,
(in thousands)	2024		2023
Capitalized internal-use software	$	36,374	$	23,195
Computer and office equipment	8,239		8,529
Furniture and fixtures	2,927		2,636
Leasehold improvements	8,684		8,080
Projects in process	733		—
Total gross property and equipment	56,957		42,440
Less: Accumulated depreciation and amortization	(32,593)		(26,430)
Property and equipment, net	$	24,364	$	16,010

Depreciation and amortization expense related to property and equipment was $2.9 million and $2.2 million for the three months ended September 30, 2024 and 2023, respectively.

Depreciation and amortization expense related to property and equipment was $8.1 million and $6.0 million for the nine months ended September 30, 2024 and 2023, respectively.

Capitalized Internal-Use Software Costs

The following table presents the Company’s capitalized internal-use software, including amortization expense recognized, for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Total capitalized internal-use software costs(1)	$	3,916	$	2,725	$	13,178	$	6,443
Stock-based compensation costs capitalized to internal-use software	1,122		820		3,890		2,194
Amortization expense(2)	1,999		1,193		5,493		3,136

__________

(1) Amounts are inclusive of stock-based compensation costs capitalized to internal-use software as denoted within the table.

(2) Amounts are included within ‘Depreciation and amortization’ within the Condensed Consolidated Statements of Operations.

Capitalized Costs of Cloud Computing Arrangements


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Total capitalized cloud computing arrangement costs	$	348	$	859	$	1,241	$	2,732

Technology and development	$	570	$	416	$	1,619	$	1,087
General and administrative	91		59		272		148
Total amortization expense	$	661	$	475	$	1,891	$	1,235


	September 30,		December 31,
(in thousands)	2024		2023
Prepaid expenses and other current assets	$	2,445	$	2,220
Other noncurrent assets, net	935		1,811
Total capitalized cloud computing arrangement costs, net	$	3,380	$	4,031

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Consideration Transferred

The acquisition date fair value of consideration transferred for the acquisition totaled $77.9 million, as follows:


(in thousands)	Amount
Cash paid to selling shareholders	$	56,398
Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services	7,216
Holdback liability to be settled in cash and Company equity	11,899
Effective settlement of pre-existing net receivable owed to the Company	2,401
Total consideration transferred	$	77,914

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their acquisition-date fair values:


(in thousands)	Purchase Price Allocation
Cash, cash equivalents, and restricted cash	$	15,465
Disbursement prefunding	6,016
Customer funds receivable, net	3,423
Prepaid expenses and other assets, net	1,187
Intangible assets
Trade name	1,000
Customer relationships	8,500
Developed technology	12,000
Goodwill	54,940
Customer liabilities	(3,075)
Advance for future deposits	(2,550)
Other assumed indebtedness	(16,234)
Other liabilities, net	(2,758)
Total consideration transferred	$	77,914

Property and Equipment - Schedule of Hosting Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total capitalized cloud computing arrangement costs	$ 348	$ 859	$ 1,241	$ 2,732
Internal-use software costs, amortization	661	475	1,891	1,235
Capitalized cloud computing arrangement costs, net	3,380		3,380		$ 4,031
Prepaid expenses and other current assets
Property, Plant and Equipment [Line Items]
Capitalized cloud computing arrangement costs, net	2,445		2,445		2,220
Other noncurrent assets, net
Property, Plant and Equipment [Line Items]
Capitalized cloud computing arrangement costs, net	935		935		$ 1,811
Technology and development
Property, Plant and Equipment [Line Items]
Internal-use software costs, amortization	570	416	1,619	1,087
General and administrative
Property, Plant and Equipment [Line Items]
Internal-use software costs, amortization	$ 91	$ 59	$ 272	$ 148

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions			9 Months Ended
	Aug. 30, 2024	Feb. 29, 2024	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted during period (in shares)			0	0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation cost			$ 342.1
Unamortized compensation cost, recognition period			2 years 8 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Consecutive offering period			24 months
Plan modification, incremental cost	$ 4.5	$ 1.7
Unamortized compensation cost			$ 12.0
Unamortized compensation cost, recognition period			1 year 10 months 24 days
ESPP \| ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, reserved (in shares)			6,921,709
Stock options outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, reserved (in shares)			11,615,477

Commitment and Contingencies

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Guarantees and Indemnification

In the ordinary course of business to facilitate sales of its services, the Company has entered into agreements with, among others, suppliers and partners that include guarantees or indemnity provisions. The Company also enters into indemnification agreements with its officers and directors, and the Company’s amended and restated certificate of incorporation and amended and restated bylaws include similar indemnification obligations to its officers and directors. To date, there have been no claims under any indemnification provisions; therefore, no such amounts have been accrued as of September 30, 2024 and December 31, 2023.

Litigation and Loss Contingencies

Litigation

From time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business, including intellectual property claims, labor and employment claims, threatened claims, breach of contract claims, and other matters. The Company accrues estimates for resolution of legal and other contingencies when losses are probable and estimable. Although the results of litigation and claims are inherently unpredictable, the Company does not believe that there was a reasonable possibility that it had incurred a material loss with respect to such loss contingencies as of September 30, 2024 and December 31, 2023.

Indirect taxes

The Company is subject to indirect taxation in various states and foreign jurisdictions in which it conducts business. The Company continually evaluates those jurisdictions in which indirect tax obligations exist to determine whether a loss is probable and the amount can be estimated. Determination of whether a loss is probable, and an estimate can be made, is a complex undertaking and takes into account the judgment of management, third-party research, and the potential outcome of negotiation and interpretations by regulators and courts, among other information. Such assessments include consideration of management’s evaluation of domestic and international tax laws and regulations, external legal advice, and the extent to which they may apply to the Company’s business and industry. The Company’s assessment of probability includes consideration of recent inquiries with, or actions taken by, regulators and courts, potential or actual self-disclosure, and applicability of tax rules and the Company will continue to evaluate the accounting and disclosure of any related contingencies as they arise.

As a result of this assessment, management has recorded an estimated liability within ‘Accrued expenses and other current liabilities.’ The Company’s estimate is based on the totality of factors including applicability of the tax rules, correspondence with tax authorities including payments made, and tax analysis and documentation supporting the Company’s positions.

Although the Company believes its indirect tax estimates and associated liabilities are reasonable, the final determination of indirect tax audits or settlements could be materially different than the amounts recorded.

Purchase Commitments

The disclosure of purchase commitments in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes within the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. The Company routinely enters into marketing and advertising contracts, software subscriptions or other service arrangements, including cloud infrastructure arrangements, and compliance-application related arrangements that contractually obligate us to purchase services, including minimum service quantities, unless given notice of cancellation based on the applicable terms of the agreements. During the nine months ended September 30, 2024, the Company entered into a three-year cloud infrastructure arrangement in an amount of $6.9 million, increasing the total future minimum payments under non-cancellable purchase commitments from the amounts disclosed within the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Lease Agreement Not Yet Commenced

In June 2024, the Company entered into an agreement to lease certain office space in Seattle, Washington, for the use of its corporate headquarters office. The lease payment term begins on July 1, 2025 for a period of seven years with optional renewal periods available. The total contractual commitment related to this lease, including contractual lease increases, is approximately $22.9 million, exclusive of variable maintenance and operating expenses under the lease agreement. Leasehold improvements within the office space will be constructed under the Company’s direction, and the Company will be entitled to an allowance for a substantial portion of the improvements.

The Company will recognize the related right-of-use asset and operating lease liability on its balance sheet when it gains control of the leased office space.

Reserve for Transaction Losses

The table below summarizes the Company’s reserve for transaction losses for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Beginning balance	$	3,684	$	2,808	$	3,359	$	3,762
Provisions for transaction losses	16,644		9,004		44,304		28,150
Losses incurred, net of recoveries	(16,367)		(8,929)		(43,702)		(29,029)
Ending balance	$	3,961	$	2,883	$	3,961	$	2,883

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	725,000,000	725,000,000
Common stock, issued (in shares)	198,033,845	188,435,952
Common stock, outstanding (in shares)	198,033,845	188,435,952

Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Jan. 05, 2023
Business Acquisition [Line Items]
Goodwill	$ 54,940	$ 54,940
Rewire
Business Acquisition [Line Items]
Cash, cash equivalents, and restricted cash			$ 15,465
Prepaid expenses and other assets, net			1,187
Goodwill			54,940
Customer liabilities			(3,075)
Advance for future deposits			(2,550)
Other assumed indebtedness			(16,234)
Other liabilities, net			(2,758)
Total consideration transferred			77,914
Rewire \| Disbursement prefunding
Business Acquisition [Line Items]
Receivables			6,016
Rewire \| Customer funds receivable, net
Business Acquisition [Line Items]
Receivables			3,423
Rewire \| Trade name
Business Acquisition [Line Items]
Intangible assets			1,000
Rewire \| Customer relationships
Business Acquisition [Line Items]
Intangible assets			8,500
Rewire \| Developed technology
Business Acquisition [Line Items]
Intangible assets			$ 12,000

Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Revenue

$ 336,527

$ 241,629

$ 912,068

$ 679,527

Costs and expenses

Marketing

^[1]

74,792

61,351

219,862

159,074

Technology and development

^[1]

68,446

57,014

199,206

160,699

General and administrative

^[1]

50,920

49,817

140,982

130,715

Depreciation and amortization

4,655

3,418

12,240

9,634

Total costs and expenses

336,159

278,532

947,415

762,721

Income (loss) from operations

368

(36,903)

(35,347)

(83,194)

Interest income

2,065

1,808

6,233

5,200

Interest expense

(760)

(585)

(2,274)

(1,566)

Other income (expense), net

2,094

283

6,272

(2,774)

Income (loss) before provision for income taxes

3,767

(35,397)

(25,116)

(82,334)

Provision for income taxes

1,850

258

6,138

485

Net income (loss)

$ 1,917

$ (35,655)

$ (31,254)

$ (82,819)

Net income (loss) per share attributable to common stockholders:

Basic (in dollars per share)

$ 0.01

$ (0.20)

$ (0.16)

$ (0.46)

Diluted (in dollars per share)

$ 0.01

$ (0.20)

$ (0.16)

$ (0.46)

Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:

Basic (in shares)

196,169,417

182,598,013

193,167,942

178,956,602

Diluted (in shares)

205,251,546

182,598,013

193,167,942

178,956,602

Transaction expenses

Costs and expenses

Cost of revenue

^[1]

$ 115,554

$ 85,742

$ 313,215

$ 239,995

Customer support and operations

Costs and expenses

Cost of revenue

^[1]

$ 21,792

$ 21,190

$ 61,910

$ 62,604

[1]	Exclusive of depreciation and amortization, shown separately.

Property and Equipment - Capitalized Internal-Use Software Costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Line Items]
Stock-based compensation expense capitalized to internal-use software			$ 3,890	$ 2,194
Amortization expense	$ 2,900	$ 2,200	8,100	6,000
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Total capitalized internal-use software costs	3,916	2,725	13,178	6,443
Stock-based compensation expense capitalized to internal-use software	1,122	820	3,890	2,194
Amortization expense	$ 1,999	$ 1,193	$ 5,493	$ 3,136

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The components of intangible assets as of September 30, 2024 and December 31, 2023 were as follows:


	September 30, 2024						December 31, 2023
(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Estimated Remaining Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Estimated Remaining Useful Life (in years)
Trade name	$	1,000	$	(583)	$	417	1.3	$	1,000	$	(333)	$	667	2.0
Customer relationships	8,500		(3,719)		4,781		2.3	8,500		(2,125)		6,375		3.0
Developed technology	12,000		(4,650)		7,350		1.3	12,000		(2,400)		9,600		4.0
Total	$	21,500	$	(8,952)	$	12,548		$	21,500	$	(4,858)	$	16,642

Schedule of Future Amortization Expense

Expected future intangible asset amortization as of September 30, 2024 was as follows:


(in thousands)	Amount

Remainder of 2024	$	2,085
2025	8,338
2026	2,125


Total	$	12,548

Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 39,278	$ 36,573	$ 110,523	$ 101,007
Customer support and operations
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	278	386	890	1,010
Marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	4,514	4,525	13,014	12,235
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	21,873	19,828	61,854	55,047
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 12,613	$ 11,834	$ 34,765	$ 32,715

Accrued Expenses & Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Schedule of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:


	September 30,		December 31,
(in thousands)	2024		2023
Trade settlement liability(1)	$	29,170	$	58,950
Accrued transaction expense	21,239		18,500
Accrued marketing expense	20,008		13,633
Accrued salary, benefits, and related taxes	10,520		10,251
Accrued taxes and taxes payable	4,822		9,259
Reserve for transaction losses	3,961		3,359
ESPP employee contributions	1,106		3,565
Holdback liability(2)	—		12,990
Other accrued expenses	14,408		15,295
Total	$	105,234	$	145,802

_________________

(1) The trade settlement liability amount represents the total of disbursement postfunding liabilities and book overdrafts owed to the Company’s disbursement partners. Refer to Note 2. Basis of Presentation and Summary of Significant Accounting Policies within the notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for further discussion.

(2) Refer to Note 6. Business Combinations for further detail on the Holdback liability, which was settled in April 2024.

Accrued Expenses & Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Loss Contingencies [Line Items]
Trade settlement liability	$ 29,170		$ 58,950
Accrued transaction expense	21,239		18,500
Accrued marketing expense	20,008		13,633
Accrued salary, benefits, and related taxes	10,520		10,251
Accrued taxes and taxes payable	4,822		9,259
Reserve for transaction losses	3,961		3,359
Holdback liability	0		12,990
Other accrued expenses	14,408		15,295
Total	105,234		145,802
Transaction losses
Loss Contingencies [Line Items]
Reserve for transaction losses	3,961	$ 3,684	3,359	$ 2,883	$ 2,808	$ 3,762
ESPP employee contributions	$ 1,106		$ 3,565

Business Combinations - Schedule of Consideration Transferred (Details) - USD ($) $ in Thousands		1 Months Ended	9 Months Ended
	Jan. 05, 2023	Apr. 30, 2024	Sep. 30, 2024	Sep. 30, 2023
Business Acquisition [Line Items]
Holdback liability to be settled in cash and Company equity			$ 0	$ 11,899
Effective settlement of pre-existing net receivable owed to the Company			$ 0	$ 2,401
Rewire
Business Acquisition [Line Items]
Cash paid to selling shareholders	$ 56,398
Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services	7,216	$ 2,800
Holdback liability to be settled in cash and Company equity	11,899
Effective settlement of pre-existing net receivable owed to the Company	2,401
Total consideration transferred	$ 77,914

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Oct. 28, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-40822
Entity Registrant Name	Remitly Global, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-2301143
Entity Address, Address Line One	1111 Third Avenue,
Entity Address, Address Line Two	Suite 2100
Entity Address, City or Town	Seattle,
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	888
Local Phone Number	736-4859
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	RELY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		198,061,161
Entity Central Index Key	0001782170
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Restructuring Initiatives

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring Initiatives

In the nine months ended September 30, 2024, as a result of simplifying and scaling certain processes, functions, and team capabilities, the Company continued restructuring initiatives that commenced within the three months ended September 30, 2023 in order to better serve the Company's customers and allow the Company to centralize, transform, and automate global operations. Restructuring costs incurred primarily included severance and certain other associated costs. These specific restructuring initiatives are complete.

The Company incurred no charges and $0.8 million for the three and nine months ended September 30, 2024, respectively. The Company incurred $1.4 million related to restructuring initiatives for the three and nine months ended September 30, 2023.

The following table presents the restructuring costs included within the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2024:


(in thousands)	Amount
Customer support and operations	$	758

General and administrative	34
Total restructuring costs	$	792


(in thousands)	Amount
Balance as of December 31, 2023	$	78
Expenses incurred	792
Cash payments	(870)
Balance as of September 30, 2024	$	—

Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 1,922	$ 1,329
Cash paid for income taxes	4,071	4,691
Supplemental disclosure of noncash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	5,617	5,414
Vesting of early exercised options	48	311
Stock-based compensation expense capitalized to internal-use software	3,890	2,194
Settlement of equity amounts previously held back for acquisition consideration	2,783	0
Issuance of common stock for acquisition consideration	0	6,635
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition	0	581
Amounts held back for acquisition consideration	0	11,899
Settlement of preexisting net receivable in exchange for net assets acquired in business combination	$ 0	$ 2,401

Debt	9 Months Ended
Debt	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt Secured Revolving Credit Facility 2021 Revolving Credit Facility On September 13, 2021, Remitly Global, Inc. and Remitly, Inc., a wholly-owned subsidiary of Remitly Global, Inc., as co-borrowers, entered into a credit agreement (the “2021 Revolving Credit Facility”) with certain lenders and JPMorgan Chase Bank, N.A. acting as administrative agent and collateral agent, that provided for revolving commitments of $250.0 million (including a $60.0 million letter of credit sub-facility) and terminated its then-existing 2020 Credit Agreement. The 2021 Revolving Credit Facility was amended on June 26, 2023 to reflect changes in the applicable interest rate as a result of the sunsetting of the LIBOR interest rate, as noted below. The 2021 Revolving Credit Facility was further amended on December 20, 2023 to increase the revolving commitments from $250.0 million (including a $60.0 million letter of credit sub-facility) to $325.0 million. All other terms of the 2021 Revolving Credit Facility remained unchanged. As of September 30, 2024 and December 31, 2023, $0.9 million and $1.2 million, respectively, of unamortized debt issuance costs were included within ‘Other noncurrent assets’ on the Condensed Consolidated Balance Sheets. The 2021 Revolving Credit Facility has a maturity date of September 13, 2026. Borrowings under the 2021 Revolving Credit Facility after the June 26, 2023 amendment accrue interest at a floating rate per annum equal to, at the Company’s option, (1) the Alternate Base Rate (defined in the 2021 Revolving Credit Facility as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect for such day plus 0.50%, and (c) the Adjusted Term SOFR Rate for an interest period of one month plus 1.00% (subject to a floor of 1.00%) plus 0.50% per annum) or (2) the Adjusted Term SOFR Rate (subject to a floor of 0.00%) plus 1.50% per annum. Such interest is payable (a) with respect to loans bearing interest based on the Alternate Base Rate, the last day of each March, June, September, and December and (b) with respect to loans bearing interest based on the Adjusted Term SOFR Rate, at the end of each applicable interest period, but in no event less frequently than every three months. In addition, an unused commitment fee, which accrues at a rate per annum equal to 0.25% of the unused portion of the revolving commitments, is payable on the last day of each March, June, September, and December. The 2021 Revolving Credit Facility contains customary conditions to borrowing, events of default, and covenants, including covenants that restrict the ability to dispose of assets, merge with other entities, incur indebtedness, grant liens, pay dividends or make other distributions to holders of its capital stock, make investments, enter into restrictive agreements, or engage in transactions with affiliates. As of September 30, 2024 and December 31, 2023, financial covenants in the 2021 Revolving Credit Facility include (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which is tested quarterly and (2) a requirement to maintain a minimum Liquidity of $100.0 million, which is tested quarterly. The Company was in compliance with all financial covenants under the 2021 Revolving Credit Facility as of September 30, 2024 and December 31, 2023. The obligations under the 2021 Revolving Credit Facility are guaranteed by the material domestic subsidiaries of Remitly Global, Inc., subject to customary exceptions, and are secured by substantially all of the assets of the borrowers and guarantors thereunder, subject to customary exceptions. Amounts of borrowings under the 2021 Revolving Credit Facility may fluctuate depending on transaction volumes and seasonality. As of September 30, 2024, the Company had no outstanding borrowings under the 2021 Revolving Credit Facility. As of December 31, 2023, the Company had $130.0 million outstanding borrowings under the 2021 Revolving Credit Facility. As of December 31, 2023, the weighted-average interest rate was 9.0%. As of September 30, 2024 and December 31, 2023, the Company had unused borrowing capacity of $276.3 million and $146.8 million, respectively, under the 2021 Revolving Credit Facility. As of September 30, 2024 and December 31, 2023, the Company had $49.3 million and $49.4 million, respectively, in issued, but undrawn, standby letters of credit. Advance for Future Deposits As part of the acquisition of Rewire, the Company assumed short-term indebtedness of Rewire that represents an advance for future deposits from Rewire’s amended agreement with one of its financial partners (the “Amendment” and the “Depositor,” respectively) entered into in October 2021. The Amendment has a maturity date of November 2024. The Depositor made an advance payment to Rewire with respect to future deposits (the “Advance for Future Deposits”). The original amount of 9.0 million Israeli shekel, approximately $2.8 million, was transferred as an advance under the Amendment. As of September 30, 2024 and December 31, 2023, the Company had $2.4 million and $2.5 million outstanding under the Amendment, respectively, and was included within ‘Short-term debt’ on the Condensed Consolidated Balance Sheets. The change in the outstanding balance is driven by the change in the foreign exchange conversion rate. The Advance for Future Deposits bears a floating interest rate of 1.4%+ Israeli Prime per annum, paid on a monthly basis. The Israeli Prime rate is defined as the Bank of Israel rate + 1.5%. As of both September 30, 2024 and December 31, 2023, the weighted-average interest rate was 3.0%. Assumed Short-term Debt of Rewire As part of the acquisition of Rewire, the Company assumed the amounts due on a revolving credit line that Rewire had entered into in 2021 and the amounts due on a bridge loan that Rewire had entered into in 2022. The total outstanding amounts were repaid during the nine months ended September 30, 2023, along with certain other acquired indebtedness, subsequent to the Company’s acquisition of Rewire and were included within the Condensed Consolidated Statements of Cash Flows as a financing activity.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Accrued Expenses & Other Current Liabilities

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Accrued Expenses & Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	September 30,		December 31,
(in thousands)	2024		2023
Trade settlement liability(1)	$	29,170	$	58,950
Accrued transaction expense	21,239		18,500
Accrued marketing expense	20,008		13,633
Accrued salary, benefits, and related taxes	10,520		10,251
Accrued taxes and taxes payable	4,822		9,259
Reserve for transaction losses	3,961		3,359
ESPP employee contributions	1,106		3,565
Holdback liability(2)	—		12,990
Other accrued expenses	14,408		15,295
Total	$	105,234	$	145,802

_________________

(2) Refer to Note 6. Business Combinations for further detail on the Holdback liability, which was settled in April 2024.

Net Income (Loss) Per Common Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net loss attributable to common stockholders	$ 1,917	$ (12,091)	$ (21,080)	$ (35,655)	$ (18,850)	$ (28,314)	$ (31,254)	$ (82,819)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares)	196,169,417			182,598,013			193,167,942	178,956,602
Effect of dilutive securities (in shares)	9,082,129			0			0	0
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares)	205,251,546			182,598,013			193,167,942	178,956,602
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.01			$ (0.20)			$ (0.16)	$ (0.46)
Diluted (in dollars per share)	$ 0.01			$ (0.20)			$ (0.16)	$ (0.46)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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Reference 22: http://www.xbrl.org/2003/role/disclosureRef
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Reference 31: http://www.xbrl.org/2003/role/disclosureRef
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (a)
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Reference 36: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1B
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Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Restructuring Initiatives - Schedule of Restructuring Reserve (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2023	$ 78
Expenses incurred	792
Cash payments	(870)
Balance as of September 30, 2024	$ 0

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net income (loss)	$ 1,917	$ (35,655)	$ (31,254)	$ (82,819)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	4,655	3,418	12,240	9,634
Stock-based compensation expense, net			110,523	101,007
Donation of common stock	2,600	4,600	2,587	4,600
Other			299	4,674
Changes in operating assets and liabilities:
Disbursement prefunding			(23,795)	(52,162)
Customer funds receivable			100,539	(68,553)
Prepaid expenses and other assets			(6,787)	(9,652)
Operating lease right-of-use assets			4,475	3,796
Accounts payable			(18,285)	10,448
Customer liabilities			16,811	29,211
Accrued expenses and other liabilities			(23,521)	28,118
Operating lease liabilities			(4,982)	(3,470)
Net cash provided by (used in) operating activities			138,850	(25,168)
Cash flows from investing activities
Purchases of property and equipment			(3,192)	(2,268)
Capitalized internal-use software costs			(9,288)	(4,249)
Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash			0	(40,933)
Net cash used in investing activities			(12,480)	(47,450)
Cash flows from financing activities
Proceeds from exercise of stock options			5,754	12,258
Proceeds from issuance of common stock in connection with ESPP			9,382	6,046
Proceeds from revolving credit facility borrowings			863,000	424,000
Repayments of revolving credit facility borrowings			(993,000)	(424,000)
Taxes paid related to net share settlement of equity awards			(3,774)	(4,711)
Cash paid for settlement of amounts previously held back for acquisition consideration			(10,261)	0
Repayment of assumed indebtedness			0	(17,068)
Net cash used in financing activities			(128,899)	(3,475)
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash			3,941	(599)
Net increase (decrease) in cash, cash equivalents, and restricted cash			1,412	(76,692)
Cash, cash equivalents, and restricted cash at beginning of period			325,029	300,734
Cash, cash equivalents, and restricted cash at end of period	326,441	224,042	326,441	224,042
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents	324,434	223,273	324,434	223,273
Restricted cash included in prepaid expenses and other current assets	1,034	715	1,034	715
Restricted cash included in other noncurrent assets, net	973	54	973	54
Total cash, cash equivalents, and restricted cash	$ 326,441	$ 224,042	$ 326,441	$ 224,042

Business Combinations - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
Business Combinations - Narrative (Details) $ in Thousands	Jan. 05, 2023 USD ($) shares	Apr. 30, 2024 USD ($) shares	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Business Acquisition [Line Items]
Holdback liability to be settled in cash and Company equity					$ 0	$ 11,899
Effective settlement of pre-existing net receivable owed to the Company					0	2,401
Holdback liability, change in fair value			$ 0	$ 900
Holdback liability			0		0		$ 12,990
Payment for holdback liability					$ 10,261	0
Number of operating segments \| segment					1
Acquisition related costs			$ 0		$ 200	2,300
Rewire
Business Acquisition [Line Items]
Purchase consideration	$ 77,914
Equity issued (in shares) \| shares	694,918	131,507
Equity issued	$ 7,216	$ 2,800
Number of shares held back \| shares	133,309
Holdback liability to be settled in cash and Company equity	$ 11,899
Hold back period	15 months
Amount held back, cash		10,400
Amount held back, equity	$ 1,500
Effective settlement of pre-existing net receivable owed to the Company	$ 2,401
Holdback liability, change in fair value				$ 900	$ 200	$ 1,900
Payment for holdback liability		$ 10,300
Rewire \| Service-based vesting
Business Acquisition [Line Items]
Equity issued (in shares) \| shares	104,080
Equity issued, vesting period	2 years
Equity issued	$ 600
Post-combination acquisition costs	900
Rewire \| Disbursement prefunding
Business Acquisition [Line Items]
Acquired receivables	6,016
Rewire \| Customer funds receivable, net
Business Acquisition [Line Items]
Acquired receivables	$ 3,423

Net Income (Loss) Per Common Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	16,002,890	37,863,807	36,632,780	37,863,807
Stock options outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	993,843	11,449,901	8,938,147	11,449,901
RSUs outstanding
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	12,936,491	25,501,813	25,570,037	25,501,813
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	2,072,556	654,994	2,072,556	654,994
Shares subject to repurchase
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	19,710	0	19,710
Unvested common stock, subject to service-based vesting conditions, issued in connection with acquisition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	104,080	52,040	104,080
Equity issuable in connection with acquisition
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation (in shares)	0	133,309	0	133,309

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 56,957	$ 42,440
Less: Accumulated depreciation and amortization	(32,593)	(26,430)
Property and equipment, net	24,364	16,010
Capitalized internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	36,374	23,195
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,239	8,529
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,927	2,636
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,684	8,080
Projects in process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 733	$ 0

Commitment and Contingencies (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Reserve for Transaction Losses

The table below summarizes the Company’s reserve for transaction losses for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Beginning balance	$	3,684	$	2,808	$	3,359	$	3,762
Provisions for transaction losses	16,644		9,004		44,304		28,150
Losses incurred, net of recoveries	(16,367)		(8,929)		(43,702)		(29,029)
Ending balance	$	3,961	$	2,883	$	3,961	$	2,883

Net Income (Loss) Per Common Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders for the periods indicated. Basic net income (loss) per share is calculated using the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is calculated using the weighted-average number of shares of common stock outstanding including the dilutive effect of all potential shares of common stock as determined under the treasury stock method. Dilutive common shares primarily include outstanding stock options, unvested RSUs, and ESPP related shares. In periods when the Company reported a net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive.


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2024		2023		2024		2023
Numerator:


Net income (loss) attributable to common stockholders	$	1,917	$	(35,655)	$	(31,254)	$	(82,819)
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	196,169,417		182,598,013		193,167,942		178,956,602

Effect of dilutive securities	9,082,129		—		—		—
Diluted	205,251,546		182,598,013		193,167,942		178,956,602
Net income (loss) per share attributable to common stockholders:
Basic	$	0.01	$	(0.20)	$	(0.16)	$	(0.46)
Diluted	$	0.01	$	(0.20)	$	(0.16)	$	(0.46)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Stock options outstanding	993,843	11,449,901	8,938,147	11,449,901
RSUs outstanding	12,936,491	25,501,813	25,570,037	25,501,813
ESPP	2,072,556	654,994	2,072,556	654,994
Shares subject to repurchase	—	19,710	—	19,710
Unvested common stock, subject to service-based vesting conditions, issued in connection with acquisition(1)	—	104,080	52,040	104,080
Equity issuable in connection with acquisition(1)	—	133,309	—	133,309
Total	16,002,890	37,863,807	36,632,780	37,863,807

__________

(1) Refer to Note 6. Business Combinations for further discussion of equity issued or to be issued in connection with the Rewire acquisition.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 324,434	$ 323,710
Disbursement prefunding	219,643	195,848
Customer funds receivable, net	276,096	379,417
Prepaid expenses and other current assets	41,083	33,143
Total current assets	861,256	932,118
Property and equipment, net	24,364	16,010
Operating lease right-of-use assets	10,768	9,525
Goodwill	54,940	54,940
Intangible assets, net	12,548	16,642
Other noncurrent assets, net	6,554	7,071
Total assets	970,430	1,036,306
Current liabilities
Accounts payable	16,825	35,051
Customer liabilities	194,122	177,473
Short-term debt	2,426	2,481
Accrued expenses and other current liabilities	105,234	145,802
Operating lease liabilities	5,488	6,032
Total current liabilities	324,095	366,839
Operating lease liabilities, noncurrent	5,770	4,477
Long-term debt	0	130,000
Other noncurrent liabilities	9,742	5,653
Total liabilities	339,607	506,969
Commitments and contingencies (Note 15)
Stockholders’ equity
Common stock, $0.0001 par value; 725,000,000 shares authorized as of September 30, 2024 and December 31, 2023 both; 198,033,845 and 188,435,952 shares issued and outstanding, as of September 30, 2024 and December 31, 2023, respectively	20	19
Additional paid-in capital	1,151,479	1,020,286
Accumulated other comprehensive income	1,881	335
Accumulated deficit	(522,557)	(491,303)
Total stockholders’ equity	630,823	529,337
Total liabilities and stockholders’ equity	$ 970,430	$ 1,036,306

Revenue - Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 336,527	$ 241,629	$ 912,068	$ 679,527
United States
Disaggregation of Revenue [Line Items]
Revenue	219,066	160,729	596,343	458,815
Canada
Disaggregation of Revenue [Line Items]
Revenue	36,022	29,501	103,681	81,838
Rest of world
Disaggregation of Revenue [Line Items]
Revenue	$ 81,439	$ 51,399	$ 212,044	$ 138,874

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-5

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
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-Paragraph 30
-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Section 50
-Paragraph 22
-Subparagraph (a)
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-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
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-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-4

+ Details

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2024

Supplemental Cash Flow Elements [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

The supplemental disclosures of cash flow information consisted of the following:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Supplemental disclosure of cash flow information
Cash paid for interest	$	1,922	$	1,329
Cash paid for income taxes	4,071		4,691
Supplemental disclosure of noncash investing and financing activities

Operating lease right-of-use assets obtained in exchange for operating lease liabilities	$	5,617	$	5,414
Vesting of early exercised options	48		311
Stock-based compensation expense capitalized to internal-use software	3,890		2,194
Settlement of equity amounts previously held back for acquisition consideration	2,783		—
Issuance of common stock for acquisition consideration	—		6,635
Issuance of 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

Income Taxes (Details)	3 Months Ended		9 Months Ended
Income Taxes (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	49.10%	(0.70%)	(24.40%)	(0.60%)

Property and Equipment - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 2.9	$ 2.2	$ 8.1	$ 6.0

Business Combinations

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combinations

There were no significant acquisitions accounted for as business combinations or divestitures completed in the nine months ended September 30, 2024.

Acquisition Completed in 2023

The Company completed its acquisition of Rewire (O.S.G.) Research and Development Ltd. (“Rewire”) on January 5, 2023 by acquiring all outstanding equity interests of Rewire in exchange for cash and equity consideration, described below. The acquisition of Rewire allows the Company to accelerate its opportunity to differentiate the remittance experience with complementary products, by bringing together its remittance businesses in new geographies, along with a strong team that is culturally aligned with the Company.

The acquisition met the criteria to be accounted for as a business combination in accordance with ASC 805, Business Combinations (“ASC 805”). This method required, among other things, that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and that the difference between the fair value of the consideration paid for the acquired entity and the fair value of the net assets acquired be recorded as goodwill, which is not amortized but is tested at least annually for impairment.

Consideration Transferred

The acquisition date fair value of consideration transferred for the acquisition totaled $77.9 million, as follows:


(in thousands)	Amount
Cash paid to selling shareholders	$	56,398
Equity issued to selling shareholders, including replacement of equity awards attributable to pre-combination services	7,216
Holdback liability to be settled in cash and Company equity	11,899
Effective settlement of pre-existing net receivable owed to the Company	2,401
Total consideration transferred	$	77,914

The fair value of equity was determined based on the closing price of the Company’s common stock immediately prior to acquisition, and includes 694,918 shares issued in Company common stock, inclusive of 104,080 shares which are subject to service-based vesting conditions over a two-year period. Approximately $0.6 million of these proceeds were accounted for as pre-combination expense, and included within the total consideration transferred noted above, with the remaining $0.9 million to be recognized as post-combination share-based compensation expense over the requisite service period. The equity issued excluded 133,309 shares and restricted stock units held back and not legally issued at the acquisition date, as further discussed below.

Approximately $11.9 million of the cash and equity proceeds were held back to satisfy any necessary adjustments, including without limitation, indemnification claims related to general representations and warranties, and any net working capital adjustments. As of the acquisition date, the majority of this holdback was expected to be settled in cash, with the remainder in 133,309 shares of Company common stock and restricted stock units. Such amounts were subject to a 15-month holdback period, net of any amounts necessary to satisfy all unsatisfied or disputed claims for indemnification and net working capital adjustments. As of the acquisition date, this represented approximately $10.4 million in cash and $1.5 million in equity, as discussed above, issuable at the end of the holdback period in the Company’s common stock, subject to the aforementioned adjustments. Refer to the discussion below regarding the settlement of the holdback consideration during the nine months ended September 30, 2024.

Included in consideration transferred is the settlement of a pre-existing net receivable owed to the Company by Rewire, which was effectively settled and became intercompany arrangements as of the closing of the transaction. Excluding the impact of the outstanding net receivable owed to the Company by Rewire, the Company would have paid $2.4 million more for the business at closing, and therefore the GAAP purchase price reflects an increase in that amount. The settlement of pre-existing relationships between the Company and Rewire did not result in any material gain or loss. The change in the pre-existing receivable to an intercompany receivable has been considered as a noncash activity reflected within the operating activities of the Condensed Consolidated Statements of Cash Flows.

Holdback Liability

The holdback of cash and equity proceeds discussed above was recorded at its acquisition date fair value and was classified as a liability within ‘Other noncurrent liabilities’ on the Condensed Consolidated Balance Sheets at the acquisition date. The portion of the holdback settled in Company shares was recorded at its fair value through its settlement date, with changes recorded to earnings. The estimated fair value of the portion of the holdback liability settled in equity used both observable and unobservable inputs, specifically considering the price of the Company’s common stock, as well as the probability of payout at the end of the holdback period, and was considered a Level 3 measurement, as defined in ASC 820, Fair Value Measurement (“ASC 820”).

There was no change in the fair value of the holdback liability during the three months ended September 30, 2024, as the holdback was settled in April 2024. The Company recorded $0.2 million during the nine months ended September 30, 2024 to reflect the change in the fair value of the holdback liability through the date of settlement.The Company recorded $0.9 million and $1.9 million during the three and nine months ended September 30, 2023, respectively, to reflect the change in the fair value of the holdback liability. Such amounts were recorded within ‘General and administrative expenses’ within the Condensed Consolidated Statements of Operations.

In April 2024, the holdback liability discussed above was settled with a cash payment of $10.3 million and with $2.8 million of equity consideration, consisting of 131,507 shares of the Company’s common stock and restricted stock units. The holdback settlement was adjusted for immaterial post-closing net purchase price adjustments identified during the period.

Fair Value of Assets Acquired and Liabilities Assumed

The identifiable assets acquired and liabilities assumed of Rewire were recorded at their preliminary fair values as of the acquisition date and consolidated with those of the Company. Assigning fair market values to the assets acquired and liabilities assumed at the date of an acquisition requires the use of significant judgments regarding estimates and assumptions. The fair values of intangible assets were estimated using inputs classified as Level 3 under the income and cost approaches, including the multi-period excess earnings method for developed technology. The key assumptions in applying the income approach used in valuing the identified intangible assets include revenue growth rates for a hypothetical market participant, selected discount rates, as well as migration curves for developed technology. The following table summarizes the allocation of the purchase consideration to the assets acquired and liabilities assumed based on their acquisition-date fair values:


(in thousands)	Purchase Price Allocation
Cash, cash equivalents, and restricted cash	$	15,465
Disbursement prefunding	6,016
Customer funds receivable, net	3,423
Prepaid expenses and other assets, net	1,187
Intangible assets
Trade name	1,000
Customer relationships	8,500
Developed technology	12,000
Goodwill	54,940
Customer liabilities	(3,075)
Advance for future deposits	(2,550)
Other assumed indebtedness	(16,234)
Other liabilities, net	(2,758)
Total consideration transferred	$	77,914

As of December 31, 2023, the valuation of assets acquired and liabilities assumed of Rewire was complete.

The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill and is primarily attributable to the revenue and cost synergies expected to arise from the acquisition through continued geographic expansion and product differentiation, along with the acquired workforce of Rewire. Goodwill is deductible for income tax purposes. The acquisition did not change the Company’s one operating segment.

Acquired Receivables

The fair value of the financial assets acquired include ‘Disbursement prefunding’ and ‘Customer funds receivable, net,’ with a fair value of $6.0 million and $3.4 million, respectively, as disclosed above. The Company has collected substantially all of these receivables.

Transaction Costs

There were no transaction costs for the three months ended September 30, 2024. Transaction costs totaled $0.2 million for the nine months ended September 30, 2024, which related to the change in the fair value of the holdback liability. Transaction costs totaled $0.9 million and $2.3 million for the three and nine months ended September 30, 2023, respectively, which included $0.9 million and $1.9 million, respectively, for the change in the fair value of the holdback liability. Transaction costs are primarily related to the Company’s aforementioned acquisition of Rewire.

Other Disclosures

The results of operations of Rewire are included within the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) since the date of the acquisition.

Intangible Assets - Schedule of Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 21,500	$ 21,500
Accumulated Amortization	(8,952)	(4,858)
Net Carrying Amount	12,548	16,642
Trade name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(583)	(333)
Net Carrying Amount	$ 417	$ 667
Weighted Average Estimated Remaining Useful Life (in years)	1 year 3 months 18 days	2 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,500	$ 8,500
Accumulated Amortization	(3,719)	(2,125)
Net Carrying Amount	$ 4,781	$ 6,375
Weighted Average Estimated Remaining Useful Life (in years)	2 years 3 months 18 days	3 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,000	$ 12,000
Accumulated Amortization	(4,650)	(2,400)
Net Carrying Amount	$ 7,350	$ 9,600
Weighted Average Estimated Remaining Useful Life (in years)	1 year 3 months 18 days	4 years

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Common Stock (Details)			1 Months Ended	3 Months Ended		9 Months Ended
Common Stock (Details)	Sep. 18, 2024 shares	Sep. 20, 2023 shares	Jul. 31, 2021 shares	Sep. 30, 2024 USD ($) vote $ / shares shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) vote $ / shares shares	Sep. 30, 2023 USD ($)	Dec. 31, 2023 $ / shares shares
Subsidiary or Equity Method Investee [Line Items]
Common stock, authorized (in shares)				725,000,000		725,000,000		725,000,000
Common stock, par value (in dollars per share) \| $ / shares				$ 0.0001		$ 0.0001		$ 0.0001
Voting rights, number of votes \| vote				1		1
Dividends declared, paid and unpaid \| $						$ 0	$ 0
Donation of common stock \| $				$ 2,600,000	$ 4,600,000	$ 2,587,000	$ 4,600,000
Pledge 1%
Subsidiary or Equity Method Investee [Line Items]
Common stock, reserved (in shares)			1,819,609
Common stock, reserved, percent of fully-diluted capitalization			1.00%
Common stock, pledged term			10 years
Pledge 1% \| Multifaceted social good program
Subsidiary or Equity Method Investee [Line Items]
Stock donated (in shares)	181,961	181,961

Insider Trading Arrangements	3 Months Ended	9 Months Ended
Insider Trading Arrangements	Sep. 30, 2024 shares	Sep. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Matthew Oppenheimer [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On August 2, 2024, Matthew Oppenheimer, our Chief Executive Officer, adopted a trading plan intended to satisfy the conditions under Rule 10b5-1 of the Exchange Act. Mr. Oppenheimer’s plan is for the sale of up to 350,000 shares of our common stock and terminates on the earlier of the date all the shares under the plan are sold and October 16, 2025.
Name	Matthew Oppenheimer
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	August 2, 2024
Expiration Date	October 16, 2025
Arrangement Duration	440 days
Aggregate Available	350,000	350,000

Organization and Description of Business (Details)	Sep. 30, 2024 country
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of countries in which entity operates (over)	170

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Advertising expense	$ 54.6	$ 48.3	$ 163.1	$ 123.5

Organization and Description of Business	9 Months Ended
Organization and Description of Business	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Description of Business Remitly Global, Inc. (the “Company” or “Remitly”) was incorporated in the State of Delaware in October 2018 and is headquartered in Seattle, Washington, with various other global office locations. Remitly was founded and incorporated in the State of Delaware in 2011 under the name of Remitly, Inc., which is now a wholly-owned subsidiary of Remitly Global, Inc. Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Unless otherwise expressly stated or the context otherwise requires, the terms “Remitly” and the “Company” within these notes to the condensed consolidated financial statements refer to Remitly Global, Inc. and its wholly-owned subsidiaries.

Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - ESPP	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend rate	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates	3.84%	4.81%
Expected term (in years)	6 months	6 months
Volatility	39.30%	47.80%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rates	5.20%	5.40%
Expected term (in years)	2 years	2 years
Volatility	61.30%	65.20%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
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-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitment and Contingencies - Schedule of Reserve for Transaction Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loss Contingency Accrual [Roll Forward]
Beginning balance			$ 3,359
Ending balance	$ 3,961		3,961
Transaction losses
Loss Contingency Accrual [Roll Forward]
Beginning balance	3,684	$ 2,808	3,359	$ 3,762
Provisions for transaction losses	16,644	9,004	44,304	28,150
Losses incurred, net of recoveries	(16,367)	(8,929)	(43,702)	(29,029)
Ending balance	$ 3,961	$ 2,883	$ 3,961	$ 2,883

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income (loss)	$ 1,917	$ (12,091)	$ (21,080)	$ (35,655)	$ (18,850)	$ (28,314)	$ (31,254)	$ (82,819)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Shares Available for Issuance

As of September 30, 2024, 11,615,477 and 6,921,709 awards remain available for issuance under the 2021 Plan and the ESPP, respectively.

Stock Options

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2024:


	Stock Options
(in thousands, except share and per share data)	Number of Options Outstanding	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value(1)
Balances as of January 1, 2024	10,801,396	$	4.46	5.87	$	161,603

Exercised	(1,745,172)	3.28			24,089
Forfeited	(118,077)	6.26
Balances as of September 30, 2024	8,938,147	4.66		5.11	77,993
Vested and exercisable as of September 30, 2024	8,109,918	4.05		4.93	75,720
Vested and expected to vest as of September 30, 2024	8,938,147	$	4.66	5.11	$	77,993

_________________

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock.

No stock options were granted during the nine months ended September 30, 2024 and 2023.

The following is a summary of the Company’s stock option activity during the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
(in thousands)	2024		2023
Aggregate grant-date fair value of options vested	$	10,266	$	7,068
Intrinsic value of options exercised	24,089		59,845

Restricted Stock Units

Restricted stock unit activity during the nine months ended September 30, 2024 was as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
Unvested at January 1, 2024	23,555,665	$	14.67
Granted	12,016,829	16.34
Vested	(6,952,837)	13.79
Cancelled/forfeited	(3,049,620)	15.28
Unvested at September 30, 2024	25,570,037	$	15.62

The following is a summary of the Company’s restricted stock unit activity during the nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
(in thousands, except per share data)	2024		2023
Weighted-average grant date fair value of RSUs granted	$	16.34	$	16.85
Aggregate grant-date fair value of RSUs vested	95,880		79,962

Employee Stock Purchase Plan (“ESPP”)

A new 24-month ESPP offering period commences on March 1 and September 1 of each fiscal year, and the plan includes a rollover feature for the purchase price if the Company's stock price at the end of the purchase period is less than the Company's stock price on the first day of the offering. If this rollover feature is triggered, a new 24-month offering period begins. This feature under the ESPP was triggered on February 29, 2024 and August 30, 2024, resulting in incremental stock-based compensation expense of $1.7 million and $4.5 million, respectively, to be recognized over the new offering periods.

Nine Months Ended September 30,

2024

2023

Risk-free interest rates

3.84% to 5.20%

4.81% to 5.40%

Expected term (in years)

0.5 to 2.0 years

Volatility

39.3% to 61.3%

47.8% to 65.2%

Dividend rate

—

Stock-Based Compensation Expense


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Customer support and operations	$	278	$	386	$	890	$	1,010
Marketing	4,514		4,525		13,014		12,235
Technology and development	21,873		19,828		61,854		55,047
General and administrative	12,613		11,834		34,765		32,715
Total	$	39,278	$	36,573	$	110,523	$	101,007

As of September 30, 2024, the total unamortized compensation cost related to all non-vested equity awards, including options and RSUs, was $342.1 million, which will be amortized over a weighted-average remaining requisite service period of approximately 2.7 years. As of September 30, 2024, the total unrecognized compensation expense related to the ESPP was $12.0 million, which is expected to be amortized over the next 1.9 years.

Prepaid Expenses & Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expense and Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	September 30,		December 31,
(in thousands)	2024		2023
Prepaid expenses	$	16,430	$	8,902
Payment card receivable	10,734		15,599
Tax receivable	3,801		2,813
Other receivables	2,763		—
Capitalized cloud computing arrangement costs, net	2,445		2,220
Prepaid compensation arrangements	2,039		1,518
Restricted cash	1,034		774
Other prepaid expenses and other current assets	1,837		1,317
Prepaid expenses and other current assets	$	41,083	$	33,143

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,917	$ (35,655)	$ (31,254)	$ (82,819)
Other comprehensive income (loss):
Foreign currency translation adjustments	2,285	(992)	1,546	(399)
Comprehensive income (loss)	$ 4,202	$ (36,647)	$ (29,708)	$ (83,218)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Revenue

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue

The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized, in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided, when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers, which includes the following steps:

(1)identification of the contract with a customer;

(2)identification of the performance obligations in the contract;

(3)determination of the transaction price;

(4)allocation of the transaction price to the performance obligations in the contract; and

(5)recognition of revenue when, or as, the Company satisfies a performance obligation.

Customers engage the Company to perform one integrated service—collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions.

Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, the disbursement method chosen by the customer, and the country to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided.

The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component.

The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as ‘Transaction expenses’ within the Condensed Consolidated Statements of Operations. The Company does not have any capitalized contract acquisition costs.

Deferred Revenue

The deferred revenue balances from contracts with customers were as follows for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Deferred revenue, beginning of the period	$	1,020	$	626	$	1,124	$	1,108
Deferred revenue, end of the period	857		889		857		889

Revenue recognized from amounts included in deferred revenue at the beginning of the period	$	907	$	296	$	1,008	$	735

Deferred revenue represents amounts received from customers for which the performance obligations are not yet fulfilled. Deferred revenue is primarily included within ‘Accrued expenses and other current liabilities’ on the Condensed Consolidated Balance Sheets, as the performance obligations are expected to be fulfilled within the next year.

Sales Incentives

The Company provides sales incentives to customers in a variety of forms, including promotions, discounts, and other sales incentives. Evaluating whether a sales incentive is a payment to a customer requires judgment. Sales incentives determined to be consideration payable to a customer or paid on behalf of a customer are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statements of Operations. In addition, referral credits given to a referrer are classified as ‘Marketing expenses,’ as these incentives are paid in exchange for a distinct service.

The following table presents the Company’s sales incentives for the three and nine months ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Reduction to revenue	$	10,219	$	8,528	$	28,048	$	24,123
Marketing expenses	4,494		4,765		16,136		13,292
Total sales incentives	$	14,713	$	13,293	$	44,184	$	37,415

Revenue by Geography


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2024		2023		2024		2023
United States	$	219,066	$	160,729	$	596,343	$	458,815
Canada	36,022		29,501		103,681		81,838
Rest of world	81,439		51,399		212,044		138,874
Total revenue	$	336,527	$	241,629	$	912,068	$	679,527

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except share and per share data)	2024		2023		2024		2023
Numerator:


Net income (loss) attributable to common stockholders	$	1,917	$	(35,655)	$	(31,254)	$	(82,819)
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic	196,169,417		182,598,013		193,167,942		178,956,602

Effect of dilutive securities	9,082,129		—		—		—
Diluted	205,251,546		182,598,013		193,167,942		178,956,602
Net income (loss) per share attributable to common stockholders:
Basic	$	0.01	$	(0.20)	$	(0.16)	$	(0.46)
Diluted	$	0.01	$	(0.20)	$	(0.16)	$	(0.46)

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Stock options outstanding	993,843	11,449,901	8,938,147	11,449,901
RSUs outstanding	12,936,491	25,501,813	25,570,037	25,501,813
ESPP	2,072,556	654,994	2,072,556	654,994
Shares subject to repurchase	—	19,710	—	19,710
Unvested common stock, subject to service-based vesting conditions, issued in connection with acquisition(1)	—	104,080	52,040	104,080
Equity issuable in connection with acquisition(1)	—	133,309	—	133,309
Total	16,002,890	37,863,807	36,632,780	37,863,807

__________

(1) Refer to Note 6. Business Combinations for further discussion of equity issued or to be issued in connection with the Rewire acquisition.

Prepaid Expenses & Other Current Assets

9 Months Ended

Sep. 30, 2024

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses & Other Current Assets

Prepaid expenses and other current assets consisted of the following:


	September 30,		December 31,
(in thousands)	2024		2023
Prepaid expenses	$	16,430	$	8,902
Payment card receivable	10,734		15,599
Tax receivable	3,801		2,813
Other receivables	2,763		—
Capitalized cloud computing arrangement costs, net	2,445		2,220
Prepaid compensation arrangements	2,039		1,518
Restricted cash	1,034		774
Other prepaid expenses and other current assets	1,837		1,317
Prepaid expenses and other current assets	$	41,083	$	33,143