Remitly Global, Inc. (NASDAQ: RELY), a leading digital financial
services provider for immigrants and their families in over 150
countries around the world, reported results for the fourth quarter
and full year ended December 31, 2021.
“Reflecting on our strong fourth quarter growth, I’m incredibly
proud of all that Remitly delivered and am reminded of the
significance of the work we’re doing to transform the lives of our
customers,” said Matt Oppenheimer, Remitly’s Chief Executive
Officer. “Looking ahead, we’re excited to drive new customer
growth, geographic expansion, and new product development through
strategic investments in the business. These outcomes will create
enduring value for our customers and shareholders alike.”
Fourth Quarter 2021 Highlights and Key Operating
Data:(All comparisons relative to the fourth quarter of
2020)
- Active customers increased to 2.8 million, from 1.9 million, up
50%.
- Send volume increased to $6.0 billion, from $3.6 billion, up
64%.
- Revenue totaled $135.3 million, compared to $80.0 million, up
69%.
- Average revenue per active customer increased 13% to
$47.69.
- Net loss was $16.6 million, compared to $9.0 million.
- Adjusted EBITDA was $(7.1) million, compared to $(6.2)
million.
Full Year 2021 Highlights and Key Operating
Data:(All comparisons relative to the full year 2020)
- Send volume increased to $20.4 billion, from $12.1 billion, up
70%.
- Revenue totaled $458.6 million, compared to $257.0 million, up
78%.
- Net loss was $38.8 million, compared to $32.6 million.
- Adjusted EBITDA improved to $(10.5) million, compared to
$(19.9) million.
2022 Financial Outlook:For fiscal year 2022,
Remitly currently expects:
- Total revenue in the range of $605 million to $615 million,
representing a growth rate of 32% to 34% year over year.
- Adjusted EBITDA in the range of $(40) million to $(30)
million.
A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included in this
earnings release. An explanation of these measures is also included
below under the heading “Non-GAAP Financial Measures.” We have not
provided a quantitative reconciliation of forecasted Adjusted
EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP
income (loss) before income taxes within this earnings release
because we cannot, without unreasonable effort, calculate certain
reconciling items with confidence due to the variability,
complexity and limited visibility of the adjusting items that would
be excluded from forecasted Adjusted EBITDA. These items include
but are not limited to income taxes and stock-based compensation
expense which are directly impacted by unpredictable fluctuations
in the market price of our common stock.
Note: All percentage changes described within this press release
are calculated using amounts in the Company's Annual Reports on
Form 10-K and Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission (SEC), for which revenue and
active customers are presented in thousands and send volume is
presented in millions. Rounding differences may occur when
individually calculating percentages or totals from rounded amounts
included within the press release body as compared to the amounts
included with the Company's SEC filings.
Webcast Information Remitly will host a webcast
at 5:00 PM Eastern Time on Wednesday, March 2, 2022 to discuss its
fourth quarter 2021 financial results. The live webcast will be
accessible on Remitly’s website at https://ir.remitly.com/. A
webcast replay will be available on our website at
https://ir.remitly.com/ following the live event.
We have used, and intend to continue to use, the Investor
Relations section of our website at https://ir.remitly.com as a
means of disclosing material non-public information and for
complying with our disclosure obligations under Regulation FD.
Non-GAAP Financial MeasuresSome 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
business metrics and non-GAAP financial measures to evaluate our
performance, identify trends affecting our business, prepare
financial projections, and make strategic decisions. We believe
that these key business metrics and non-GAAP financial measures
provide meaningful supplemental information for management and
investors in assessing our historical and future operating
performance. Adjusted EBITDA and non-GAAP operating expenses are
key output measures used by our management to evaluate our
operating performance, inform future operating plans, and make
strategic long-term decisions, including those relating to
operating expenses and the allocation of internal resources.
Remitly believes that the use of Adjusted EBITDA and non-GAAP
operating expenses provide additional tools to assess operational
performance and trends in, and in comparing Remitly’s financial
measures with, other similar companies, many of which present
similar non-GAAP financial measures to investors. Remitly’s
non-GAAP financial measures may be different from non-GAAP
financial measures used by other companies. The presentation of
non-GAAP financial measures is not intended to be considered in
isolation or as a substitute for, or superior to, financial
measures determined in accordance with GAAP. Because of the
limitations of non-GAAP financial measures, you should consider the
non-GAAP financial measures presented herein in conjunction with
Remitly’s financial statements and the related notes thereto.
Please refer to the non-GAAP reconciliations in this press release
for a reconciliation of these non-GAAP financial measures to the
most comparable financial measure prepared in accordance with
GAAP.
We calculate Adjusted EBITDA as net loss adjusted by i) interest
expense, net; ii) provision for income taxes; iii) noncash charge
of depreciation and amortization; iv) other expense (income), net,
including gains and losses from the remeasurement of foreign
currency assets and liabilities into their functional currency; and
v) non-cash stock-based compensation expense, as well as non-cash
charges associated with our donation of common stock in connection
with our Pledge 1% commitment. We calculate non-GAAP operating
expenses as our GAAP operating expenses adjusted by i) non-cash
stock-based compensation expense, as well as ii) non-cash charges
associated with our donation of common stock in connection with our
Pledge 1% commitment.
Forward Looking StatementsThis press release
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 limited to,
statements regarding our future operating results and financial
position, including our fiscal year 2022 financial outlook,
including forecasted fiscal year 2022 revenue and Adjusted EBITDA,
anticipated future expenses and investments, expectations relating
to certain of our key financial and operating metrics, our business
strategy and plans, market growth, our market position and
potential market opportunities, and our objectives for future
operations. The words “believe,” “may,” “will,” “estimate,”
“potential,” “continue,” “anticipate,” “intend,” “expect,” “could,”
“would,” “project,” “plan,” “target,” and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements are based on management’s expectations, assumptions, and
projections based on information available at the time the
statements were made. These forward-looking statements are subject
to a number of risks, uncertainties, and assumptions, including
risks and uncertainties related to: our ability to successfully
execute our business and growth strategy, our ability to achieve
and maintain future profitability, our ability to further penetrate
our existing customer base and expand our customer base in existing
and new corridors, our ability to expand into broader financial
services, our ability to expand internationally, the effects of
seasonal trends on our results of operations, our expectations
concerning relationships with third parties, including strategic,
banking and disbursement partners, our ability to obtain, maintain,
protect, and enhance our intellectual property and other
proprietary rights, our ability to keep data and our technology
platform secure, the success of any acquisitions or investments
that we make, our ability to compete effectively, and our ability
to stay in compliance applicable laws and regulations, our ability
to buy foreign currency at generally advantageous rates, and the
effects of changes to immigration laws, macroeconomic conditions
and geopolitical forces on our customers and business operations.
It is not possible for our management to predict all risks, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements we may make. In light of these risks,
uncertainties, and assumptions, our actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. Further information on risks that could
cause actual results to differ materially from forecasted results
are included in our quarterly report on 10-Q for the fiscal quarter
ended September 30, 2021 filed with the SEC and our annual report
on 10-K for the fiscal year ended December 31, 2021 to be filed
with the SEC, all of which are or will be available on our website
at https://ir.remitly.com and on the SEC’s website at www.sec.gov.
Except as required by law, we assume no obligation to update these
forward-looking statements, or to update the reasons if actual
results differ materially from those anticipated in the
forward-looking statements.
About RemitlyRemitly is a leading digital
financial services provider for immigrants and their families in
over 150 countries around the world. Remitly helps immigrants
send money home in a safe, reliable and transparent manner. Its
digitally-native, cross-border remittance app eliminates the long
wait times, complexities and fees typical of traditional remittance
processes. Building on its strong foundation, Remitly is expanding
its suite of products to further its mission and transform
financial services for immigrants all around the world. Founded in
2011, Remitly is headquartered in Seattle and has seven global
offices, including London, Kraków, Manila and Managua. For more
information, visit Remitly.com.
Contacts
Media:Danielle Vincentremitly@inkhouse.com
Investors:Stephen ShulsteinVice President of
Investor Relationsstephens@remitly.com
REMITLY GLOBAL, INC. |
Condensed Consolidated Statements of
Operations |
(unaudited) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands, except share
and per share data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue |
$ |
135,255 |
|
|
$ |
80,017 |
|
|
$ |
458,605 |
|
|
$ |
256,956 |
|
Costs and
expenses |
|
|
|
|
|
|
|
Transaction expenses(1) |
|
56,431 |
|
|
|
36,158 |
|
|
|
191,606 |
|
|
|
110,414 |
|
Customer support and
operations(1) (2) |
|
13,090 |
|
|
|
7,633 |
|
|
|
45,525 |
|
|
|
25,428 |
|
Marketing(1) (2) |
|
38,267 |
|
|
|
22,881 |
|
|
|
120,906 |
|
|
|
73,804 |
|
Technology and development(1)
(2) |
|
19,128 |
|
|
|
11,338 |
|
|
|
64,093 |
|
|
|
40,777 |
|
General and administrative(1)
(2) |
|
23,512 |
|
|
|
9,648 |
|
|
|
70,941 |
|
|
|
31,656 |
|
Depreciation and
amortization |
|
1,366 |
|
|
|
1,201 |
|
|
|
5,256 |
|
|
|
4,060 |
|
Total costs and expenses |
|
151,794 |
|
|
|
88,859 |
|
|
|
498,327 |
|
|
|
286,139 |
|
Loss from operations |
|
(16,539 |
) |
|
|
(8,842 |
) |
|
|
(39,722 |
) |
|
|
(29,183 |
) |
Interest income |
|
48 |
|
|
|
92 |
|
|
|
140 |
|
|
|
273 |
|
Interest expense |
|
(208 |
) |
|
|
(162 |
) |
|
|
(1,256 |
) |
|
|
(1,189 |
) |
Other income (expense),
net |
|
81 |
|
|
|
435 |
|
|
|
3,125 |
|
|
|
(1,302 |
) |
Loss before provision for income taxes |
|
(16,618 |
) |
|
|
(8,477 |
) |
|
|
(37,713 |
) |
|
|
(31,401 |
) |
Provision for income
taxes |
|
(42 |
) |
|
|
528 |
|
|
|
1,043 |
|
|
|
1,163 |
|
Net loss attributable to common stockholders |
$ |
(16,576 |
) |
|
$ |
(9,005 |
) |
|
$ |
(38,756 |
) |
|
$ |
(32,564 |
) |
Net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.64 |
) |
|
$ |
(1.52 |
) |
Weighted-average shares used
in computing net loss per share attributable to common
stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
|
163,616,647 |
|
|
|
22,272,275 |
|
|
|
60,728,748 |
|
|
|
21,459,062 |
|
_______________________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Exclusive of depreciation and amortization, shown
separately, above.(2) Includes stock-based compensation expense,
net.
Stock-based Compensation Expense, net: |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Customer support and operations |
$ |
76 |
|
$ |
8 |
|
$ |
153 |
|
$ |
22 |
Marketing |
|
1,118 |
|
|
242 |
|
|
2,325 |
|
|
869 |
Technology and development |
|
3,409 |
|
|
582 |
|
|
6,931 |
|
|
2,130 |
General and administrative |
|
3,448 |
|
|
580 |
|
|
7,607 |
|
|
2,243 |
Total |
$ |
8,051 |
|
$ |
1,412 |
|
$ |
17,016 |
|
$ |
5,264 |
REMITLY GLOBAL, INC. |
Condensed Consolidated Balance Sheets |
(unaudited) |
|
(in thousands) |
December 31, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
403,262 |
|
|
$ |
186,694 |
|
Disbursement prefunding |
|
119,627 |
|
|
|
101,558 |
|
Customer funds receivable, net |
|
67,215 |
|
|
|
50,729 |
|
Prepaid expenses and other current assets |
|
17,448 |
|
|
|
6,350 |
|
Total current assets |
|
607,552 |
|
|
|
345,331 |
|
Restricted cash |
|
51 |
|
|
|
1,381 |
|
Property and equipment,
net |
|
9,249 |
|
|
|
9,675 |
|
Operating lease right-of-use
assets |
|
5,302 |
|
|
|
5,605 |
|
Other non-current assets,
net |
|
3,510 |
|
|
|
997 |
|
Total assets |
$ |
625,664 |
|
|
$ |
362,989 |
|
Liabilities,
Redeemable Convertible Preferred Stock and Stockholders' Equity
(Deficit) |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
1,210 |
|
|
$ |
4,256 |
|
Borrowings |
|
— |
|
|
|
80,000 |
|
Customer liabilities |
|
70,483 |
|
|
|
54,819 |
|
Accrued expenses and other current liabilities |
|
66,683 |
|
|
|
39,742 |
|
Operating lease liabilities |
|
3,240 |
|
|
|
2,959 |
|
Total current liabilities |
|
141,616 |
|
|
|
181,776 |
|
Operating lease liabilities,
non-current |
|
2,907 |
|
|
|
4,008 |
|
Other non-current
liabilities |
|
813 |
|
|
|
827 |
|
Total liabilities |
$ |
145,336 |
|
|
$ |
186,611 |
|
Commitments and
contingencies |
|
|
|
Redeemable convertible
preferred stock |
|
— |
|
|
|
387,707 |
|
Stockholders' equity
(deficit) |
|
|
|
Common stock |
|
16 |
|
|
|
2 |
|
Additional paid-in capital |
|
739,503 |
|
|
|
8,766 |
|
Accumulated other comprehensive income |
|
253 |
|
|
|
591 |
|
Accumulated deficit |
|
(259,444 |
) |
|
|
(220,688 |
) |
Total stockholders' equity (deficit) |
|
480,328 |
|
|
|
(211,329 |
) |
Total liabilities, redeemable convertible preferred stock, and
stockholders' equity (deficit) |
$ |
625,664 |
|
|
$ |
362,989 |
|
REMITLY GLOBAL, INC. |
Condensed Consolidated Statements of Cash
Flows |
(unaudited) |
|
|
|
Year Ended December 31, |
(in thousands) |
|
2021 |
|
2020 |
Cash flows from
operating activities |
|
|
|
|
Net loss |
|
$ |
(38,756 |
) |
|
$ |
(32,564 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities |
|
|
|
|
Depreciation and amortization |
|
|
5,256 |
|
|
|
4,060 |
|
Stock-based compensation expense, net |
|
|
17,016 |
|
|
|
5,264 |
|
Donation of common stock |
|
|
6,933 |
|
|
|
— |
|
Other |
|
|
452 |
|
|
|
2 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Disbursement prefunding |
|
|
(18,069 |
) |
|
|
(69,719 |
) |
Customer funds receivable |
|
|
(17,282 |
) |
|
|
(20,028 |
) |
Prepaid expenses and other assets |
|
|
(12,559 |
) |
|
|
(1,959 |
) |
Operating lease right-of-use assets |
|
|
2,780 |
|
|
|
2,376 |
|
Accounts payable |
|
|
(3,035 |
) |
|
|
4,044 |
|
Customer liabilities |
|
|
16,097 |
|
|
|
(29,073 |
) |
Accrued expenses and other liabilities |
|
|
26,071 |
|
|
|
25,935 |
|
Operating lease liabilities |
|
|
(3,295 |
) |
|
|
(2,547 |
) |
Net cash used in operating activities |
|
|
(18,391 |
) |
|
|
(114,209 |
) |
Cash flows from
investing activities |
|
|
|
|
Purchases of property and
equipment |
|
|
(1,956 |
) |
|
|
(2,064 |
) |
Capitalized internal-use
software costs |
|
|
(2,578 |
) |
|
|
(2,306 |
) |
Net cash used in investing activities |
|
|
(4,534 |
) |
|
|
(4,370 |
) |
Cash flows from
financing activities |
|
|
|
|
Proceeds from issuance of
common stock upon initial public offering and the private
placement, net of underwriting discounts and commissions and other
offering costs |
|
|
305,191 |
|
|
|
— |
|
Repayment of non-recourse
promissory note |
|
|
3,060 |
|
|
|
— |
|
Proceeds from issuance of
Series F convertible preferred stock, net of issuance costs |
|
|
2,980 |
|
|
|
84,834 |
|
Proceeds from exercise of
stock options |
|
|
8,345 |
|
|
|
2,382 |
|
Payment of debt issuance
costs |
|
|
(1,373 |
) |
|
|
— |
|
Proceeds from (repayments of)
revolving credit facility borrowings, net |
|
|
(80,000 |
) |
|
|
35,000 |
|
Net cash provided by financing activities |
|
|
238,203 |
|
|
|
122,216 |
|
Effect of foreign exchange
rate changes on cash, cash equivalents and restricted cash |
|
|
(40 |
) |
|
|
918 |
|
Net increase in cash, cash
equivalents and restricted cash |
|
|
215,238 |
|
|
|
4,555 |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
|
188,075 |
|
|
|
183,520 |
|
Cash, cash equivalents, and
restricted cash at end of period |
|
$ |
403,313 |
|
|
$ |
188,075 |
|
Supplemental
disclosure of cash flow information |
|
|
|
|
Cash paid for interest |
|
$ |
934 |
|
|
$ |
1,061 |
|
Cash paid for income
taxes |
|
$ |
756 |
|
|
$ |
421 |
|
Supplemental
disclosure of non-cash investing and financing
activities |
|
|
|
|
Operating lease right-of-use
assets obtained in exchange for operating lease liabilities |
|
$ |
2,532 |
|
|
$ |
1,523 |
|
Vesting of early exercised
options |
|
|
482 |
|
|
|
185 |
|
Conversion of preferred stock
to common stock |
|
|
390,687 |
|
|
|
— |
|
Reconciliation of
cash, cash equivalents and restricted cash |
|
|
|
|
Cash and cash equivalents |
|
$ |
403,262 |
|
|
$ |
186,694 |
|
Restricted cash |
|
|
51 |
|
|
|
1,381 |
|
Total cash, cash equivalents
and restricted cash |
|
$ |
403,313 |
|
|
$ |
188,075 |
|
REMITLY GLOBAL, INC. |
Reconciliation of GAAP to Non-GAAP Data |
(unaudited) |
|
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net loss |
|
$ |
(16,576 |
) |
|
$ |
(9,005 |
) |
|
$ |
(38,756 |
) |
|
$ |
(32,564 |
) |
Add: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
160 |
|
|
|
70 |
|
|
|
1,116 |
|
|
|
916 |
|
Provision for income taxes |
|
|
(42 |
) |
|
|
528 |
|
|
|
1,043 |
|
|
|
1,163 |
|
Depreciation and amortization |
|
|
1,366 |
|
|
|
1,201 |
|
|
|
5,256 |
|
|
|
4,060 |
|
Foreign exchange (gain) loss |
|
|
(81 |
) |
|
|
(435 |
) |
|
|
(3,125 |
) |
|
|
1,302 |
|
Donation of common stock |
|
|
— |
|
|
|
— |
|
|
|
6,933 |
|
|
|
— |
|
Stock-based compensation expense, net |
|
|
8,051 |
|
|
|
1,412 |
|
|
|
17,016 |
|
|
|
5,264 |
|
Adjusted EBITDA |
|
$ |
(7,122 |
) |
|
$ |
(6,229 |
) |
|
$ |
(10,517 |
) |
|
$ |
(19,859 |
) |
Reconciliation of operating expenses to non-GAAP operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Customer support and operations |
|
$ |
13,090 |
|
$ |
7,633 |
|
$ |
45,525 |
|
$ |
25,428 |
Excluding: Stock-based compensation expense, net |
|
|
76 |
|
|
8 |
|
|
153 |
|
|
22 |
Non-GAAP customer support and operations |
|
$ |
13,014 |
|
$ |
7,625 |
|
$ |
45,372 |
|
$ |
25,406 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Marketing |
|
$ |
38,267 |
|
$ |
22,881 |
|
$ |
120,906 |
|
$ |
73,804 |
Excluding: Stock-based compensation expense, net |
|
|
1,118 |
|
|
242 |
|
|
2,325 |
|
|
869 |
Non-GAAP marketing |
|
$ |
37,149 |
|
$ |
22,639 |
|
$ |
118,581 |
|
$ |
72,935 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Technology and development |
|
$ |
19,128 |
|
$ |
11,338 |
|
$ |
64,093 |
|
$ |
40,777 |
Excluding: Stock-based compensation expense, net |
|
|
3,409 |
|
|
582 |
|
|
6,931 |
|
|
2,130 |
Non-GAAP technology and development |
|
$ |
15,719 |
|
$ |
10,756 |
|
$ |
57,162 |
|
$ |
38,647 |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
General and administrative |
|
$ |
23,512 |
|
$ |
9,648 |
|
$ |
70,941 |
|
$ |
31,656 |
Excluding: Stock-based compensation expense, net |
|
|
3,448 |
|
|
580 |
|
|
7,607 |
|
|
2,243 |
Excluding: Donation of common stock |
|
|
— |
|
|
— |
|
|
6,933 |
|
|
— |
Non-GAAP general and administrative |
|
$ |
20,064 |
|
$ |
9,068 |
|
$ |
56,401 |
|
$ |
29,413 |
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