Remitly Global, Inc. (NASDAQ: RELY), a leading digital financial
services provider for immigrants and their families in over 170
countries around the world, reported results for the fourth quarter
and full year ended December 31, 2022.
“Remitly’s consistent out-performance in 2022 is a
testament to the unique value we offer customers and the
demonstrated effectiveness of our focus on delivering efficient
growth," said Matt Oppenheimer, co-founder and Chief Executive
Officer, Remitly. “In 2023, our increasing scale, customer loyalty,
and superior technology will allow us to drive greater
efficiencies, while we also invest in our strategic priorities to
drive sustainable returns. We look forward to continuing to deliver
value for our customers and long-term returns from our investments
as we execute our vision of transforming the lives of immigrants
and their families by providing the most trusted financial services
on the planet."
Fourth Quarter 2022 Highlights and Key
Operating Data(All comparisons relative to the fourth
quarter of 2021)
- Active customers increased to 4.2
million, from 2.8 million, up 48%.
- Send volume increased to $8.1 billion,
from $6.0 billion, up 35%.
- Revenue totaled $191.0 million,
compared to $135.3 million, up 41%.
- Net loss was $19.4 million, compared
to a net loss of $16.6 million.
- Adjusted EBITDA was $7.5 million,
compared to $(7.1) million.
Full Year 2022 Highlights and Key Operating
Data:(All comparisons relative to the full year 2021)
- Send volume increased to $28.6
billion, from $20.4 billion, up 40%.
- Revenue totaled $653.6 million,
compared to $458.6 million, up 43%.
- Net loss was $114.0 million and
Adjusted EBITDA was $(13.6) million.
2023 Financial
OutlookFor fiscal year 2023,
Remitly currently expects:
- Total revenue in the range of $860
million to $880 million, representing a growth rate of 32% to 35%
year over year.
- Adjusted EBITDA to be between
breakeven and $10 million and to remain in a GAAP net loss position
for 2023.
Reconciliation of GAAP to
Non-GAAP Financial Measures: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 (the “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 InformationRemitly will
host a webcast at 5:00 p.m. Eastern Time on Wednesday, February 22,
2023 to discuss its fourth quarter and full year 2022 financial
results. The live webcast and investor presentation 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 earnings release, 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 provides 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 (income) expense, net, (ii) provision for income
taxes, (iii) noncash charge of depreciation and amortization, (iv)
gains and losses from the remeasurement of foreign currency assets
and liabilities into their functional currency, (v) noncash charges
associated with our donation of common stock in connection with our
Pledge 1% commitment, (vi) noncash stock-based compensation
expense, net, and (vii) certain transaction and integration costs
associated with acquisitions. We calculate non-GAAP operating
expenses as our GAAP operating expenses adjusted by (i) noncash
stock-based compensation expense, net, (ii) noncash charges
associated with our donation of common stock in connection with our
Pledge 1% commitment, as well as (iii) certain transaction and
integration costs associated with acquisitions.
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 2023 financial
outlook, including forecasted fiscal year 2023 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, our ability to
stay in compliance with 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 annual report on Form 10-K
for the year ended December 31, 2021 filed with the SEC, and within
our annual report on Form 10-K for the year ended December 31, 2022
to be filed with the SEC, 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 170 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.
Contacts
Media:Kendall
Sadlerkendall@remitly.com
Investor Relations:Stephen
Shulsteinstephens@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) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue |
$ |
191,032 |
|
|
$ |
135,255 |
|
|
$ |
653,560 |
|
|
$ |
458,605 |
|
Costs and expenses |
|
|
|
|
|
|
|
Transaction expenses(1) |
|
71,866 |
|
|
|
56,431 |
|
|
|
258,827 |
|
|
|
191,606 |
|
Customer support and operations(1) |
|
19,239 |
|
|
|
13,090 |
|
|
|
68,106 |
|
|
|
45,525 |
|
Marketing(1) |
|
43,163 |
|
|
|
38,267 |
|
|
|
170,970 |
|
|
|
120,906 |
|
Technology and development(1) |
|
42,883 |
|
|
|
19,128 |
|
|
|
138,719 |
|
|
|
64,093 |
|
General and administrative(1) |
|
34,895 |
|
|
|
23,512 |
|
|
|
131,250 |
|
|
|
70,941 |
|
Depreciation and amortization |
|
1,854 |
|
|
|
1,366 |
|
|
|
6,724 |
|
|
|
5,256 |
|
Total costs and expenses |
|
213,900 |
|
|
|
151,794 |
|
|
|
774,596 |
|
|
|
498,327 |
|
Loss from operations |
|
(22,868 |
) |
|
|
(16,539 |
) |
|
|
(121,036 |
) |
|
|
(39,722 |
) |
Interest income |
|
2,274 |
|
|
|
48 |
|
|
|
4,149 |
|
|
|
140 |
|
Interest expense |
|
(327 |
) |
|
|
(208 |
) |
|
|
(1,302 |
) |
|
|
(1,256 |
) |
Other income, net |
|
1,092 |
|
|
|
81 |
|
|
|
5,213 |
|
|
|
3,125 |
|
Loss before provision for income taxes |
|
(19,829 |
) |
|
|
(16,618 |
) |
|
|
(112,976 |
) |
|
|
(37,713 |
) |
Provision for income taxes |
|
(434 |
) |
|
|
(42 |
) |
|
|
1,043 |
|
|
|
1,043 |
|
Net loss attributable to common stockholders |
$ |
(19,395 |
) |
|
$ |
(16,576 |
) |
|
$ |
(114,019 |
) |
|
$ |
(38,756 |
) |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.68 |
) |
|
$ |
(0.64 |
) |
Weighted-average shares used in computing net loss per share
attributable to common stockholders: |
|
|
|
|
|
|
|
Basic and diluted |
|
171,505,584 |
|
|
|
163,616,647 |
|
|
|
167,774,123 |
|
|
|
60,728,748 |
|
|
|
|
(1) |
Exclusive of depreciation and amortization, shown separately,
above. |
Stock-Based Compensation Expense, net:
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Customer support and operations |
$ |
220 |
|
$ |
76 |
|
$ |
816 |
|
$ |
153 |
Marketing |
|
3,363 |
|
|
1,118 |
|
|
10,512 |
|
|
2,325 |
Technology and development |
|
15,461 |
|
|
3,409 |
|
|
46,420 |
|
|
6,931 |
General and administrative |
|
8,369 |
|
|
3,448 |
|
|
37,545 |
|
|
7,607 |
Total |
$ |
27,413 |
|
$ |
8,051 |
|
$ |
95,293 |
|
$ |
17,016 |
REMITLY GLOBAL,
INC.Condensed
Consolidated Balance
Sheets(unaudited)
|
December 31, |
|
December 31, |
(in thousands) |
2022 |
|
2021 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
300,635 |
|
|
$ |
403,262 |
|
Disbursement prefunding |
|
158,055 |
|
|
|
119,627 |
|
Customer funds receivable, net |
|
191,402 |
|
|
|
67,215 |
|
Prepaid expenses and other current assets |
|
19,327 |
|
|
|
17,448 |
|
Total current assets |
|
669,419 |
|
|
|
607,552 |
|
Restricted cash |
|
99 |
|
|
|
51 |
|
Property and equipment,
net |
|
11,546 |
|
|
|
9,249 |
|
Operating lease right-of-use
assets |
|
8,675 |
|
|
|
5,302 |
|
Other noncurrent assets,
net |
|
6,214 |
|
|
|
3,510 |
|
Total assets |
$ |
695,953 |
|
|
$ |
625,664 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
6,794 |
|
|
$ |
1,210 |
|
Customer liabilities |
|
111,075 |
|
|
|
70,483 |
|
Accrued expenses and other current liabilities |
|
87,752 |
|
|
|
66,683 |
|
Operating lease liabilities |
|
3,521 |
|
|
|
3,240 |
|
Total current liabilities |
|
209,142 |
|
|
|
141,616 |
|
Operating lease liabilities,
noncurrent |
|
5,674 |
|
|
|
2,907 |
|
Other noncurrent
liabilities |
|
1,050 |
|
|
|
813 |
|
Total liabilities |
$ |
215,866 |
|
|
$ |
145,336 |
|
Commitments and contingencies |
|
|
|
Stockholders’ equity |
|
|
|
Common stock |
$ |
17 |
|
|
$ |
16 |
|
Additional paid-in capital |
|
854,276 |
|
|
|
739,503 |
|
Accumulated other comprehensive (loss) income |
|
(743 |
) |
|
|
253 |
|
Accumulated deficit |
|
(373,463 |
) |
|
|
(259,444 |
) |
Total stockholders’ equity |
|
480,087 |
|
|
|
480,328 |
|
Total liabilities and stockholders’ equity |
$ |
695,953 |
|
|
$ |
625,664 |
|
REMITLY
GLOBAL, INC.Condensed
Consolidated Statements of Cash Flows(unaudited)
|
Year Ended December 31, |
(in thousands) |
2022 |
|
2021 |
Cash flows from
operating activities |
|
|
|
Net loss |
$ |
(114,019 |
) |
|
$ |
(38,756 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities |
|
|
|
Depreciation and amortization |
|
6,724 |
|
|
|
5,256 |
|
Stock-based compensation expense, net |
|
95,293 |
|
|
|
17,016 |
|
Donation of common stock |
|
1,972 |
|
|
|
6,933 |
|
Other |
|
356 |
|
|
|
452 |
|
Changes in operating assets and liabilities: |
|
|
|
Disbursement prefunding |
|
(38,428 |
) |
|
|
(18,069 |
) |
Customer funds receivable |
|
(126,942 |
) |
|
|
(17,282 |
) |
Prepaid expenses and other assets |
|
(4,598 |
) |
|
|
(12,559 |
) |
Operating lease right-of-use assets |
|
3,763 |
|
|
|
2,780 |
|
Accounts payable |
|
5,535 |
|
|
|
(3,035 |
) |
Customer liabilities |
|
42,979 |
|
|
|
16,097 |
|
Accrued expenses and other liabilities |
|
26,298 |
|
|
|
26,071 |
|
Operating lease liabilities |
|
(4,073 |
) |
|
|
(3,295 |
) |
Net cash used in operating activities |
|
(105,140 |
) |
|
|
(18,391 |
) |
Cash flows from
investing activities |
|
|
|
Purchases of property and
equipment |
|
(3,679 |
) |
|
|
(1,956 |
) |
Capitalized internal-use software costs |
|
(3,382 |
) |
|
|
(2,578 |
) |
Cash paid for acquisition, net of acquired cash and cash
equivalents |
|
(248 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(7,309 |
) |
|
|
(4,534 |
) |
Cash flows from
financing activities |
|
|
|
Proceeds from issuance of
common stock upon initial public offering and private placements,
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 |
|
Proceeds from exercise of
stock options |
|
11,554 |
|
|
|
8,345 |
|
Payment of debt issuance
costs |
|
— |
|
|
|
(1,373 |
) |
Repayments of revolving credit
facility borrowings, net |
|
— |
|
|
|
(80,000 |
) |
Taxes paid related to net
share settlement of equity awards |
|
(99 |
) |
|
|
— |
|
Repayment of long-term
debt |
|
(384 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
11,071 |
|
|
|
238,203 |
|
Effect of foreign exchange
rate changes on cash, cash equivalents, and restricted cash |
|
(1,201 |
) |
|
|
(40 |
) |
Net (decrease) increase in
cash, cash equivalents and restricted cash |
|
(102,579 |
) |
|
|
215,238 |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
403,313 |
|
|
|
188,075 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
300,734 |
|
|
$ |
403,313 |
|
Supplemental
disclosure of cash flow information |
|
|
|
Cash paid for interest |
$ |
906 |
|
|
$ |
934 |
|
Cash paid for income
taxes |
$ |
2,282 |
|
|
$ |
756 |
|
Supplemental
disclosure of noncash investing and financing
activities |
|
|
|
Operating lease right-of-use
assets obtained in exchange for operating lease liabilities |
$ |
7,441 |
|
|
$ |
2,532 |
|
Vesting of early exercised
options |
|
716 |
|
|
|
482 |
|
Noncash issuance of common
stock in connection with ESPP |
|
3,516 |
|
|
|
— |
|
Stock-based compensation
expense capitalized to internal-use software |
|
1,821 |
|
|
|
— |
|
IPO and debt issuance costs
incurred but not yet paid |
|
— |
|
|
|
2,287 |
|
Conversion of redeemable
convertible preferred stock to common stock in connection with
initial public offering |
|
— |
|
|
|
390,687 |
|
Reconciliation of
cash, cash equivalents, and restricted cash |
|
|
|
Cash and cash equivalents |
$ |
300,635 |
|
|
$ |
403,262 |
|
Restricted cash |
|
99 |
|
|
|
51 |
|
Total cash, cash equivalents,
and restricted cash |
$ |
300,734 |
|
|
$ |
403,313 |
|
REMITLY GLOBAL,
INC.Reconciliation of GAAP to
Non-GAAP Financial
Measures(unaudited)
Reconciliation of net loss to Adjusted
EBITDA: |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Net loss |
$ |
(19,395 |
) |
|
$ |
(16,576 |
) |
|
$ |
(114,019 |
) |
|
$ |
(38,756 |
) |
Add: |
|
|
|
|
|
|
|
Interest (income) expense, net |
|
(1,947 |
) |
|
|
160 |
|
|
|
(2,847 |
) |
|
|
1,116 |
|
Provision for income taxes |
|
(434 |
) |
|
|
(42 |
) |
|
|
1,043 |
|
|
|
1,043 |
|
Depreciation and amortization |
|
1,854 |
|
|
|
1,366 |
|
|
|
6,724 |
|
|
|
5,256 |
|
Foreign exchange gain |
|
(1,090 |
) |
|
|
(81 |
) |
|
|
(5,261 |
) |
|
|
(3,125 |
) |
Donation of common stock |
|
— |
|
|
|
— |
|
|
|
1,972 |
|
|
|
6,933 |
|
Stock-based compensation expense, net |
|
27,413 |
|
|
|
8,051 |
|
|
|
95,293 |
|
|
|
17,016 |
|
Transaction costs(1) |
|
1,077 |
|
|
|
— |
|
|
|
3,462 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
7,478 |
|
|
$ |
(7,122 |
) |
|
$ |
(13,633 |
) |
|
$ |
(10,517 |
) |
(1) Transaction costs primarily represents expenses
related to the acquisition of Rewire (O.S.G) Research and
Development Ltd.
Reconciliation of operating expenses to non-GAAP operating
expenses: |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands) |
2022 |
|
2021 |
|
2022 |
|
2021 |
Customer support and operations |
$ |
19,239 |
|
$ |
13,090 |
|
$ |
68,106 |
|
$ |
45,525 |
Excluding: Stock-based compensation expense, net |
|
220 |
|
|
76 |
|
|
816 |
|
|
153 |
Non-GAAP customer support and operations |
$ |
19,019 |
|
$ |
13,014 |
|
$ |
67,290 |
|
$ |
45,372 |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Marketing |
$ |
43,163 |
|
$ |
38,267 |
|
$ |
170,970 |
|
$ |
120,906 |
Excluding: Stock-based compensation expense, net |
|
3,363 |
|
|
1,118 |
|
|
10,512 |
|
|
2,325 |
Non-GAAP marketing |
$ |
39,800 |
|
$ |
37,149 |
|
$ |
160,458 |
|
$ |
118,581 |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Technology and development |
$ |
42,883 |
|
$ |
19,128 |
|
$ |
138,719 |
|
$ |
64,093 |
Excluding: Stock-based compensation expense, net |
|
15,461 |
|
|
3,409 |
|
|
46,420 |
|
|
6,931 |
Non-GAAP technology and development |
$ |
27,422 |
|
$ |
15,719 |
|
$ |
92,299 |
|
$ |
57,162 |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
General and administrative |
$ |
34,895 |
|
$ |
23,512 |
|
$ |
131,250 |
|
$ |
70,941 |
Excluding: Stock-based compensation expense, net |
|
8,369 |
|
|
3,448 |
|
|
37,545 |
|
|
7,607 |
Excluding: Donation of common stock |
|
— |
|
|
— |
|
|
1,972 |
|
|
6,933 |
Excluding: Transaction costs |
|
1,077 |
|
|
— |
|
|
3,462 |
|
|
— |
Non-GAAP general and administrative |
$ |
25,449 |
|
$ |
20,064 |
|
$ |
88,271 |
|
$ |
56,401 |
Remitly Global (NASDAQ:RELY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Remitly Global (NASDAQ:RELY)
Historical Stock Chart
From Jul 2023 to Jul 2024