Remitly Global, Inc. · NASDAQ:RELY
Remitly Global — Q3 2022 Earnings Presentation
28 slides from Remitly Global's earnings presentation, Nov 2, 2022
Slide 1: Third Quarter 2022 Earnings
November 2022 / © 2022 Remitly Inc. 1 Investor Presentation Third Quarter 2022 Earnings November 2, 2022
Slide 2: Forward-Looking Statements
November 2022 / © 2022 Remitly Inc. 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements
Slide 3: 3Q Strategic Overview
November 2022 / © 2022 Remitly Inc. 3Q Strategic Overview 3 Matt Oppenheimer Co-Founder & CEO
Slide 4: Significant progress since IPO
November 2022 / © 2022 Remitly Inc. Significant progress since IPO 4 Note: Data reflects comparisons to 3Q 2021 IPO TODAY Quarterly Active Customers 2.6m 3.8m Countries Served +135 +170 Corridors ~1,800 ~4,200 Annualized 3Q Run Rate Send Volume $21b $30b Consistent track record of beating expectatio
Slide 5: Strong execution continued in 3Q 2022
November 2022 / © 2022 Remitly Inc. Strong execution continued in 3Q 2022 SCALE $169m 40% YoY REVENUE 3.8m active customers 49% YoY 5
Slide 6: Macro conditions remain volatile but our customers remain resilient
November 2022 / © 2022 Remitly Inc. Macro conditions remain volatile but our customers remain resilient Customer behavior metrics indicate continued resilience Remitly customer survey in October 2022 shows 9 out of 10 customers expect to send the same amount or more in 2023 versus 2022 Strong US dol
Slide 7: Progress across investment portfolio will drive strong long-term growth
November 2022 / © 2022 Remitly Inc. Progress across investment portfolio will drive strong long-term growth $257.0 7 New customer acquisition Geographical expansion Remittance product enhancements Complementary new products Record new customers in 3Q along with CAC efficiency Record number of new co
Slide 8: Customer acquisition efficiencies continued in 3Q
November 2022 / © 2022 Remitly Inc. ● Disciplined focus on payback ● Elasticity testing ● Less competitive advertising market ● Improved brand awareness ● Improved referral experience Note: “Customer Acquisition Cost” or “CAC” refers to direct marketing expenses deployed to acquire new customers. Di
Slide 9: Geographic expansion is accelerating
November 2022 / © 2022 Remitly Inc. Geographic expansion is accelerating 9 ~4,200 corridors +3.9b bank accounts +420k cash pickup locations +875m mobile wallets +170 Countries & Territories https://mapchart.net/world.html 2Q22: {"groups":{"#6fa0af":{"label":"Send Countries = 17","paths":["Canada","U
Slide 10: Remittance investments drive customer growth, loyalty and product differentiation
November 2022 / © 2022 Remitly Inc. Remittance investments drive customer growth, loyalty and product differentiation 10 Peace of Mind Enhancements ● Expanding rapid refunds to Visa and Mastercard in the US ● Ability for global customers to import recipient contacts ● Ability to scan payment card an
Slide 11: Long-term vision of complementary new products
November 2022 / © 2022 Remitly Inc. Long-term vision of complementary new products 11 Complementary new products will… … drive value for remittance customers and grow our remittance platform … deepen relationships with our customers … enhance value of the Remitly ecosystem … drive more efficient cus
Slide 12: Portfolio of investments expected to drive outsized growth
November 2022 / © 2022 Remitly Inc. New customer acquisition Geographic expansion Remittance product enhancements Complementary new products Our portfolio of investments are expected to drive outsized growth and returns well into the future 2022 & beyond 2023 & beyond 2023 & beyond 2024 & beyond 12
Slide 13: Vision
November 2022 / © 2022 Remitly Inc. Vision To transform the lives of immigrants and their families by providing the most trusted financial services on the planet. 13
Slide 14: 3Q Financial Results
November 2022 / © 2022 Remitly Inc. 14 3Q Financial Results Hemanth Munipalli CFO
Slide 15: Track record of strong growth continued in 3Q 2022
November 2022 / © 2022 Remitly Inc. Track record of strong growth continued in 3Q 2022 SCALE 3.8m 49% growth in active customers over 3Q 2021 $7.5b 44% growth in send volume over 3Q 2021 REVENUE $169m 40% growth in revenue over 3Q 2021 90%+ Average annual revenue retention across all cohorts since 2
Slide 16: Strong continued growth in active customers
November 2022 / © 2022 Remitly Inc. Strong continued growth in active customers 1,692 1,891 2,136 2,397 Primarily driven by 2,561 2,836 3,042 3,419 ● Exceptionally strong new customer acquisition at compelling unit economics ● High retention ● Peace of mind improvements to the customer experience ●
Slide 17: High double-digit revenue growth at scale
November 2022 / © 2022 Remitly Inc. High double-digit revenue growth at scale Revenue ($ in millions) $71.8 $80.0 $91.1 $121.2 $135.3 $136.0 $169.3 $111.1 $157.3 17 +40% YoY
Slide 18: Unit costs impacted by higher new customer mix and scale
November 2022 / © 2022 Remitly Inc. Unit costs impacted by higher new customer mix and scale Direct integrations reduce transaction errors and lower processing costs Advanced risk and fraud management systems improve the customer experience & optimize transaction loss rates over time Scale drives be
Slide 19: Disciplined investments set us up to deliver on strategic priorities
November 2022 / © 2022 Remitly Inc. Disciplined investments set us up to deliver on strategic priorities New customer acquisition Geographic expansion Remittance product enhancements Complementary new products Marketing 3Q 2022 Operating Expense Mix (Non-GAAP) KEY INVESTMENTS $40.0m 39% Technology &
Slide 20: Strong balance sheet to execute efficiently on growth priorities
November 2022 / © 2022 Remitly Inc. Strong balance sheet to execute efficiently on growth priorities $450m Working Capital as of 9/30/22 ($33.1)m 3Q22 GAAP Net Loss ($3.7)m 3Q22 Adjusted EBITDA 20 Please see reconciliation of Non-GAAP measures in the Appendix (2.9)% 2Q22 Adjusted EBITDA Margin
Slide 21: Raising 2022 revenue outlook
November 2022 / © 2022 Remitly Inc. Raising 2022 revenue outlook Reflects strong growth and key investments to unlock our vision ● Raising 2022 revenue outlook by $10m at the midpoint(1) ● Maintaining 2022 Adjusted EBITDA outlook ● High growth at scale ● Upfront investments drive future growth and h
Slide 22: Q & A
November 2022 / © 2022 Remitly Inc. Q & A 22
Slide 23: Customer testimonial
November 2022 / © 2022 Remitly Inc. “ April Remitly user since 2022 Sends money from USA to KenyaI would highly recommend Remitly for sending money. It's fast and reliable. I send money to Kenya once or twice a month and my people have received it safely.
Slide 24: Appendix
November 2022 / © 2022 Remitly Inc. Appendix 24
Slide 25: Non-GAAP Measures
November 2022 / © 2022 Remitly Inc. Non-GAAP Measures Some of the financial information and data contained in this presentation, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). We regu
Slide 26: Non-GAAP Reconciliation: operating expenses
November 2022 / © 2022 Remitly Inc. Non-GAAP Reconciliation Reconciliation of operating expenses to non-GAAP operating expenses (in thousands) 3Q 2022 Customer support and operations $18,142 Excluding: Stock-based compensation expense, net 226 Non-GAAP customer support and operations $17,916 Marketi
Slide 27: Non-GAAP Reconciliation: net loss to Adjusted EBITDA
November 2022 / © 2022 Remitly Inc. Non-GAAP Reconciliation 27 Reconciliation of net loss to Adjusted EBITDA (in thousands) 3Q 2022 Net loss ($33,069) Add: Interest expense, net (1,070) Provision for income taxes 287 Depreciation and amortization 1,843 Foreign exchange gain (1,815) Donation of commo
Slide 28: Thank you.
November 2022 / © 2022 Remitly Inc. Thank you.