REMITLY GLOBAL 2024 Q4
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance:

Remitly delivered a strong fourth quarter in 2024, achieving record revenue and adjusted EBITDA exceeding $40 million for the second consecutive quarter. The company highlighted its ability to scale effectively while maintaining customer loyalty. Adjusted EBITDA now excludes payroll taxes related to stock-based compensation, a change that will be reflected in Q1 2025. Additionally, the company shifted its pledged 1% contribution to a quarterly schedule, smoothing the associated expenses across all quarters.

Company Outlook & Strategy:

Executives emphasized their strategic goal of redefining cross-border financial services and disrupting the $2 trillion remittance market through a digital-first approach, transparent fee structures, and customer-centric innovations. The company plans to continue scaling operations while expanding its market share by challenging traditional players. Management expressed confidence in maintaining strong financial performance as they enter 2025.

Key Industry Trends:

The global remittance market remains robust, with increasing demand for digital solutions to replace traditional, costly remittance services. Remitly's focus on a digital-first approach aligns with broader industry trends favoring convenience, transparency, and lower transaction costs. This positions the company advantageously in an industry undergoing rapid transformation.

Operational Highlights:

• Continued scaling of operations, ### Summary of Financial Performance: Remitly reported exceptional financial performance in Q4 2024, achieving record revenue and adjusted EBITDA exceeding $40 million for the second consecutive quarter. These results highlight strong customer loyalty and significant scale across operations. Non-GAAP adjustments, including stock-based compensation and foreign exchange impacts, were detailed, and the company announced it will exclude payroll taxes related to stock-based compensation from adjusted EBITDA starting Q1 2025. The company also revised its 1% contribution accounting practice to quarterly increments, ensuring smoother expense recognition.

Company Outlook & Strategy:

Remitly is positioning itself as a leader in redefining cross-border financial services through a digital-first approach, transparent fee structures, and customer-centric innovations. Management remains optimistic about the company’s ability to disrupt the $2 trillion remittance market by continuing to challenge traditional industry players. Strategic initiatives were not only focused on maintaining growth momentum but also on setting new industry standards.

Key Industry Trends:

The cross-border financial services market remains robust, driven by the continued demand for digital remittances. Remitly highlighted its role in disrupting traditional remittance providers by offering cost savings and innovative solutions to its customers. The broader trend of digitization and ### Summary of Financial Performance: Remitly delivered an exceptional Q4 2024, achieving record revenue and surpassing $40 million in adjusted EBITDA for the second consecutive quarter. This performance reflects strong customer loyalty and operational scale. The company continues to benefit from its digital-first approach, transparent fee structure, and customer-centric innovations, which have disrupted the traditional remittance industry.

Company Outlook & Strategy:

Executives emphasized their commitment to redefining cross-border financial services, setting new industry standards, and challenging legacy players in the $2 trillion remittance market. The company's strategic focus includes driving customer acquisition, scaling operations, and maintaining profitability. Starting in Q1 2025, payroll taxes related to stock-based compensation will be excluded from adjusted EBITDA for clearer financial reporting.

Key Industry Trends:

The remittance industry, valued at $2 trillion, is undergoing a digital transformation as customers shift toward online platforms for faster, more transparent, and cost-effective cross-border money transfers. Remitly's innovations are well-positioned to capitalize on this trend, enabling growth despite competition from traditional players.

Operational Highlights:

• Continued customer-centric innovations have saved customers hundreds of millions of dollars.
• The company is transitioning to quarterly recognition of its pledged 1% ### Summary of Financial Performance: Remitly achieved record revenue and adjusted EBITDA exceeding $40 million in Q4 2024, marking the second consecutive quarter of strong financial performance. This growth demonstrates customer loyalty, increasing scale, and operational efficiency. Adjustments to non-GAAP metrics, including payroll taxes related to stock-based compensation, will be implemented beginning in Q1 2025 for better transparency.

Company Outlook & Strategy:

The company is redefining cross-border financial services with a digital-first approach, transparent fee structures, and customer-centric innovations. Management remains focused on scaling operations, challenging traditional players in the $2 trillion remittance market, and setting new industry standards. Future adjustments to the timing of pledged contributions (1% quarterly rather than in Q3) will smooth expense recognition across the year.

Key Industry Trends:

The remittance industry, valued at $2 trillion, continues to evolve toward digital-first solutions. Traditional players face disruption from customer-focused, technology-driven companies like Remitly. The focus on transparent fees and cost savings aligns with broader fintech trends of customer empowerment and innovation.

Operational Highlights:

• Continued expansion within the remittance market through innovative, customer-focused solutions.
• Enhanced efficiency and scale, resulting in record financial