Remitly Global, Inc. · NASDAQ:RELY
Remitly Global — Q4 2023 Earnings Presentation
23 slides from Remitly Global's earnings presentation, Feb 21, 2024
Slide 1: Investor Presentation Fourth Quarter 2023 Earnings
Investor Presentation Fourth Quarter 2023 Earnings February 21, 2024 1 February 2024 / © 2024 Remitly Inc.
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limit
Slide 3: 4Q Strategic Overview
4Q Strategic Overview Matt Oppenheimer Co-Founder & CEO 3 February 2024 / © 2024 Remitly Inc.
Slide 4: 2023 results reflect exceptionally strong growth and improving returns
4Q23 Revenue 2023 Revenue $265m $944m 2023 results 39% Y/Y 44% Y/Y reflect exceptionally strong growth and 4Q23 Profitability 2023 Profitability improving returns ($35m) ($118m) GAAP Net Loss GAAP Net Loss $8m $44m *Adjusted EBITDA is a non-GAAP measure. Please see reconciliation of non-GAAP measure
Slide 5: Vision
Vision Transform lives with trusted financial services that transcend borders 5 February 2024 / © 2024 Remitly Inc.
Slide 6: Consistent strategy to drive long-term growth and returns
Consistent strategy to drive long-term growth and returns Delight customers with fast, reliable and seamless experience Consumer Cross-Border TAM Localized marketing at attractive unit economics ~$1.8t1 Unlock incremental customers Current Remitly Share and geographies Deepen customer relationships
Slide 7: Strong growth in quarterly active customers
Strong growth in quarterly active customers Quarterly Active Customers (thousands) Record number of new customers across geographies 1.7m 5,911 increase 5,409 5,033 Increasing transaction intensity 4,559 +41% 4,188 YoY Digital receive continues to show strong growth 7 February 2024 / © 2024 Remitly
Slide 8: Building trust by removing unnecessary friction drives retention and engagement
Removing customer friction across the transaction Key outcomes lifecycle enabled by scale Building trust ● Advanced identity verification and higher >90% precision risk systems Customer transactions by removing ● Higher payment disbursed in less than an hour1,2 unnecessary acceptance and delivery ra
Slide 9: Predictable and durable lifetime value
Revenue less transaction expense Contribution of customers acquired in prior years Contribution of customers acquired in-year Predictable and durable lifetime value 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 YoY % growth in revenue less 107% 82% 48% 56% transaction expense 9 February 2024 / ©
Slide 10: Opportunity to serve additional markets and growing existing markets
FY 2020 v. FY 2023 Revenue Mix USA Canada Rest of World CAGR 92% $199m $113m Opportunity to Success in entering new serve additional 56% markets and growing existing markets markets and $28m $632m $30m customers $199m 47% 2020 2023 ● Serve >5,000 corridors→significant runway to expand with scale ben
Slide 11: Technology investments will allow us to deepen customer relationships
● Faster time to market with remittance innovations ● Increasing returns from investments Technology in key technology systems investments will allow us to ● Complementary new products built on a modern technology platform deepen customer relationships 11 February 2024 / © 2024 Remitly Inc.
Slide 12: 4Q Financial Results
4Q Financial Results Hemanth Munipalli CFO 12 February 2024 / © 2024 Remitly Inc.
Slide 13: 4Q — Continued strong execution
Scale 5.9m $11.1b 41% growth in quarterly 38% growth in active customers send volume over 4Q 2022 over 4Q 2022 4Q — Continued $265m strong Revenue 39% growth in revenue over 4Q 2022 execution Profitability ($35m) $8m GAAP Net Loss Adjusted EBITDA* *Adjusted EBITDA is a non-GAAP measure. Please see r
Slide 14: Strong performance and targeted investments to drive future growth
Strong performance and targeted investments to drive future growth 4Q23 Year-over-Year Change Performance Drivers ● Strong active customer growth and retention Revenue Growth 39% ● Continued digital transaction intensity ● Geographic expansion diversifying revenue Transaction ● Reducing costs across
Slide 15: Significant longer term progress on focus areas
Significant longer term progress on focus areas Strong Revenue Growth Improve Transaction Expense as a % of Revenue YoY % % of Growth 78% 42% 44% Revenue 42% 40% 35% Marketing Investments to Drive Growth1 Deliver Scale Benefits in Other Opex1 Other Opex % of as % of Revenue 26% 25% 23% Revenue 35% 3
Slide 16: 2024 Outlook: Continuation of strategy
Key 2024 Assumptions ● Macro and FX environment stable to 4Q23 ● Predictable and durable active customer trends High return marketing $1,225m-$1,250m ● investments 2024E Revenue Continued efficiencies 2024 Outlook 30% to 32% YoY growth ● in transaction expense Improving other Continuation of strateg
Slide 17: Q&A
Q&A 17 February 2024 / © 2024 Remitly Inc.
Slide 18: Customer testimonial: Amazing! It worked as it described it
“ Alexandra Remitly user since 2023 Amazing! It worked Sends money from Spain to Colombia as it described it. It's reliable and quick. I'm very happy that I tried it.” 18 February 2024 / © 2024 Remitly Inc.
Slide 19: Appendix
Appendix 19 February 2024 / © 2024 Remitly Inc.
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Some of the financial information and data contained in this presentation, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). We regularly review our key busin
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of operating expenses to non-GAAP operating expenses 4Q 2023 4Q 2022 2023 2022 2021 (in thousands) Customer support and operations $19,917 $19,239 $82,521 $68,106 $45,525 Excluding: Stock-based compensation expense, net 394 220 1,404 816 153 Excluding: Acquisit
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Reconciliation of net loss to Adjusted EBITDA and calculation of Adjusted 4Q 2023 4Q 2022 2023 2022 2021 EBITDA Margin (in thousands, except for percentages) Net loss ($35,021) ($19,395) ($117,840) ($114,019) ($38,756) Add: Interest (income) expense, net (1,461) (1,947) (5,09
Slide 23: Thank you.
Thank you. February 2024 / © 2024 Remitly Inc.