Remitly Global, Inc. ((RELY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Remitly Global, Inc. was overwhelmingly positive, showcasing significant growth in revenue and send volume, alongside successful product innovations. Despite a notable fraud incident, the company demonstrated strong financial performance and strategic advancements in stablecoin and AI technologies, reflecting a robust and optimistic outlook.
Record Send Volume Growth
Remitly reported a remarkable 40% growth in send volume, reaching $18.5 billion. This impressive increase was accompanied by a 12% year-over-year rise in send volume per active customer, marking a record achievement for the company.
Strong Financial Performance
The second quarter saw Remitly’s revenue climb to $411.9 million, a 34% increase from the previous year. The company also reported an adjusted EBITDA of $64 million, representing a healthy 16% margin, underscoring its strong financial health.
Remitly Business Expansion
Remitly Business made a significant leap by expanding its total addressable market from approximately $2 trillion to over $22 trillion. This expansion targets freelancers and small businesses, broadening the company’s market reach significantly.
Launch of Remitly One Membership
The introduction of Remitly One marks a strategic move to cater to cross-border financial needs. This membership program includes innovative products like Remitly Wallet and Remitly Flex, offering unique benefits to its users.
Stablecoin Initiatives
Remitly is advancing its stablecoin initiatives, planning to store and manage stablecoin balances and enable cross-border payments through stablecoin-compatible wallets. This positions the company at the forefront of financial modernization.
Agentic AI Implementation
The implementation of Agentic AI has enhanced Remitly’s customer support experience, handling nearly 2 million real-time interactions. This advancement is pivotal in improving customer acquisition and onboarding processes.
Geographic and Customer Diversification
Remitly’s revenue growth was robust across various regions, with U.S. revenue increasing by 35% and the rest of the world by 40% year-over-year. Notably, revenue from regions outside of India, the Philippines, and Mexico grew by 41% year-over-year.
Positive GAAP Net Income
For the second consecutive quarter, Remitly delivered a positive GAAP net income of $6.5 million, reinforcing its financial stability and profitability.
Sophisticated Fraud Incident
In May, Remitly faced a sophisticated fraud incident, resulting in a provision for transaction losses of $28 million and a discrete nonrecurring loss of $3.8 million. Despite this setback, the company’s overall performance remained strong.
Forward-Looking Guidance
Looking ahead, Remitly has raised its full-year revenue outlook to between $1.61 billion and $1.62 billion, reflecting a growth rate of 27% to 28%. The company expects to maintain positive GAAP net income for the full year, driven by strategic initiatives and an expanding customer base, which has grown to over 8.5 million.
In summary, Remitly Global, Inc.’s earnings call highlighted a period of significant growth and strategic advancements. The overall sentiment was overwhelmingly positive, with record send volumes, strong financial performance, and innovative product launches. Despite challenges such as a sophisticated fraud incident, Remitly’s forward-looking guidance remains optimistic, with expectations of continued growth and profitability.