Remitly Global, Inc. (NASDAQ:RELY), a leading provider of digital financial services that transcend borders, has reported its financial results for the second quarter of 2024, showcasing impressive growth and profitability improvements. The company's performance in Q2 2024 underscores its ability to execute on its strategic priorities and deliver value to its customers.

Financials

For the full year 2023, Remitly reported annual revenue of $944.3 million and a net loss of $117.8 million. The company's annual operating cash flow was -$53.6 million, and its annual free cash flow was -$62.7 million. These figures demonstrate Remitly's significant scale and growth, as well as the investments it is making to drive long-term success.

In the second quarter of 2024, Remitly reported revenue of $306.4 million, a 31% increase compared to the same period in 2023. This strong top-line growth was driven by a 36% increase in active customers to 6.9 million, as well as continued strength in customer retention and a shift towards digital disbursements. The company's send volume also increased 38% to $13.2 billion in Q2 2024, further highlighting the robust demand for Remitly's services.

Despite the impressive revenue growth, Remitly reported a net loss of $12.1 million in Q2 2024, an improvement from the $18.9 million net loss in the same period last year. This reduction in net loss was primarily due to the company's focus on operational efficiency, which led to a 28% increase in total costs and expenses, compared to the 31% revenue growth.

Remitly's adjusted EBITDA, a non-GAAP metric that excludes certain items, was $25.1 million in Q2 2024, up from $20.4 million in the same period last year. This improvement in profitability was driven by the company's ability to reduce transaction expenses as a percentage of revenue, as well as its focus on driving operational efficiencies across the organization.

The company's geographic diversification continues to be a strength, with revenue from the United States accounting for 66% of total revenue in Q2 2024, Canada contributing 11%, and the rest of the world making up the remaining 23%. This balanced mix of revenue sources helps Remitly mitigate the impact of localized macroeconomic or foreign exchange trends.

Business Overview

Remitly's business model is centered around providing a seamless and reliable cross-border payment experience for its customers. The company's digital-first approach, coupled with its extensive global network of funding and disbursement partnerships, allows it to offer a wide range of payment and disbursement options to its customers, catering to their diverse needs.

One of the key drivers of Remitly's success has been its focus on customer experience. The company has invested heavily in reducing transaction defects, improving payment and disbursement processes, and leveraging technology, such as machine learning and AI, to enhance the overall customer experience. These efforts have resulted in over 90% of transactions being disbursed in less than an hour and more than 95% of transactions proceeding without the need for customer support.

Outlook

Remitly's strategic priorities for 2024 and beyond remain centered around continued revenue growth, reducing transaction expenses, efficient customer acquisition, and driving operational efficiencies. The company is particularly excited about the growth opportunities in sub-Saharan Africa, a region that has been a focus for Remitly for a relatively short period but has already shown encouraging growth.

Looking ahead, Remitly has updated its full-year 2024 guidance. The company now expects revenue to be between $1.225 billion and $1.25 billion, representing a year-over-year growth of 30% to 32%. Additionally, Remitly has raised its adjusted EBITDA outlook to a range of $85 million to $95 million, up from its previous guidance of $77.5 million to $87.5 million. This improved outlook reflects the company's strong performance in the first half of the year and its confidence in its ability to drive further operational efficiencies.

Conclusion

Remitly's robust financial results, coupled with its strategic focus and execution, position the company well to continue capitalizing on the significant growth opportunities in the cross-border payments market. As the company leverages its digital-first approach, global scale, and customer-centric innovation, investors can expect Remitly to remain a leading player in the rapidly evolving financial services landscape.