REMITLY GLOBAL 2024 Q2
Earnings Overview & AI Insights

Earnings Performance

Matt Oppenheimer -- Co-Founder and Chief Executive Executive Executive -- will discuss Remitly's second-quarter results. He and Hemanth Munipalli, our chief financial officer, will discuss the company's second quarter results. This conference call will be simultaneously webcast on the Investor Relations website. We are excited about the array of opportunities to invest efficiently to drive high growth, increase market share, and deliver sustainable cash flow over the long term. We delivered $25 million in adjusted EBITDA,  benefiting from strong top-line growth. We now serve approximately 6.9 million active customers as you can see on Slide.6, which is up 36%, or 1.8 million, from the second. We are making significant progress on delivering a customer experience that is fast and reliable, while driving efficiencies that allow us to invest even more into the customer experience, driving a flywheel of growth and efficiency. The upcoming third quarter is typically seasonally weaker from a customer activity perspective. Though we grew active customers by 36% and onboarded a record number of new customers. We're especially pleased that our customer support contact rate in the second quarter was the lowest it has ever been. Driving some of this improvement was the launch of an AI-powered virtual assistant. The virtual assistant can resolve issues within two to four minutes, four times faster than we're interacting with live customer support associates. India's seafarers play a crucial role in the global economy. The remittances they send home are a lifeline for their families and their loved ones. Remitly's new onboarding experience was designed with the needs of seafarers in mind. We have seen strong customer behavior trends at higher sending amounts, especially in our U.S. to India corridor, which was weighted toward higher dollar senders. Year-over-year growth in new customer acquisition was the strongest we've seen in the past four quarters. The company acquired a record number of customers in the second-half of the year. Marketing also delivered an increasing mix of customers from unpaid customers. Hemanth Munipalli, our CFO, has informed us that he would like to leave the company to spend more time with his family in India. Hemanth Munipalli will be replaced as CFO effective August 19th. Vikas Mehta has over 25 years of global experience across software, fintech, and e-commerce, driving hypergrowth, business transformation, and operational excellence. Performance in the second quarter was both above our expectations. Revenue and active customer growth were both above expectations. Adjusted EBITDA profitability also improved as we benefited from scale and a deliberate focus on driving efficiencies through all parts of the business. Transaction expense as a percentage of revenue increased 90 basis points year over year in the second quarter. Excluding fraud losses, transaction expense as a percentage of revenue improved by approximately 50 basis points. Fraud losses were within our historical tolerance range. G&A expense as a percentage of revenue declined 80 basis points year over year and was essentially flat sequentially on an absolute dollar-dollar basis. Technology and development expenses were $47.2billion in the second quarter. We expect revenue growth in Q3 to be approximately 32% as we have now lapped some difficult comps in the first half of the year. We expect adjusted EBITDA to be between $90 million and $100 million for the year, which is a $5 million increase at the midpoint from our prior outlook. Hemanth: "I'm very proud of the progress we've made in driving... transformative change" Matt Oppenheimer: "It has been a fast-paced, impactful journey and I'm very excited about Remitly's journey"