Q1 2024 Remitly Global Inc Earnings Call Transcript
Key Points
- Remitly Global Inc (RELY) reported a strong revenue of $269 million for the first quarter, marking a 32% increase year over year.
- Adjusted EBITDA for the quarter was $19 million, demonstrating a significant increase of more than 250% compared to the previous year, surpassing expectations.
- Quarterly active customers grew by 36% year over year, reaching 6.2 million, indicating robust customer acquisition and retention.
- The company has successfully enhanced its digital transaction capabilities, with a nearly 500 basis point increase in digital transaction mix compared to the previous quarter.
- Remitly Global Inc (RELY) has raised its 2024 adjusted EBITDA outlook based on strong current performance and confidence in continued operational efficiencies.
- The company reported a GAAP net loss of $21 million for the quarter, which includes significant expenses such as $34 million in stock compensation.
- Seasonality impacts, particularly post-holiday quarters, can lead to lower customer activity as seen in the first quarter, necessitating careful management and forecasting.
- High dependence on digital transaction growth and market acceptance, which, while currently strong, poses risks if technological advancements or customer preferences shift unexpectedly.
- Operational risks related to managing a complex international payment network, which involves compliance, fraud prevention, and ensuring transaction integrity across multiple jurisdictions.
- While marketing efficiency is highlighted, the absolute cost remains substantial at $64 million for the quarter, underlining the need for continued optimization and justification of marketing spend relative to customer lifetime value.
Good day, and thank you for standing by, and welcome to Remitly's first quarter 2024 earnings call. (Operator Intructions) Please be advised that this conference is being recorded. I would now like to hand the conference over to Stefan Schulz, Senior Vice President of Investor Relations. Please go ahead.
Thank you. Good afternoon and thank you for joining us for at least first quarter 2024 earnings call. Joining me on the call today are Matt Oppenheimer, Co-Founder and Chief Executive Officer of Remitly, and Hemanth Munipalli, our Chief Financial Officer.
Our results and additional management commentary are available on our earnings release presentation slides, which can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Investor Relations website.
Before we start, I'd like to remind you that we'll be making forward-looking statements within the meaning of federal securities laws, including but not limited to, statements regarding relate to future
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