Q1 2024 Remitly Global Inc Earnings Call

Operator: Good day, and thank you for standing by. Welcome to Remitly's first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear a message advising that your hand is raised. To withdraw your question, simply press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Stephen Shulstein, Vice President of Investor Relations. Please go ahead.

Okay.

Speaker Change: Good day and thank you for standing by welcome to the first quarter 2024 earnings call.

Speaker Change: At this time all participants are in a listen only mode.

Speaker Change: After the speaker's presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will.

Speaker Change: Dan here and message advising your hand is raised to withdraw your question simply press Star one again please.

Speaker Change: Please be advised that today's conference is being recorded.

Speaker Change: I'd now like to hand, the conference over to Stefan Schulz team Vice President of Investor Relations. Please go ahead.

Stephen M. Shulstein: Thank you. Good afternoon, and thank you for joining us for Remitly's 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 in 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 would like to remind you that we will be making forward-looking statements within the meaning of federal securities laws, including but not limited to statements regarding Remitly's future financial results and management's expectations and plans.

Stephen M. Shulstein: Thank you good afternoon, and thank you for joining us for them at least first quarter of 2024 earnings call. Joining me on the call today are Matt Oppenheimer Co founder and Chief Executive Officer, Mark <unk>, Our Chief Financial Officer.

Stephen M. Shulstein: Our results and additional management commentary are available in our earnings release presentation slides, which can be found at IR, a doctor or at <unk> Dot com.

Stephen M. Shulstein: Please note that this call will be simultaneously webcast on the Investor Relations website before we start I would like to remind you that we will be making forward looking statements within the meaning of federal securities laws, including but not limited to statements regarding future financial results and management's expectations and plans. These.

Stephen M. Shulstein: These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially from those presented here. You should not place undue reliance on any forward-looking statements. Please refer to our energy release and FCC filings for more information regarding the risk factors that may affect our results. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today, and Remitly assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law.

Stephen M. Shulstein: These statements are made of promises no guarantee there about risks and uncertainties that may cause actual results to vary materially from those presented here you should not place undue reliance on any forward looking statements. Please refer to our earnings release and SEC filings for more information regarding the risk factors that may affect our results any forward looking statements made in this conference call, including responses to your car.

Stephen M. Shulstein: <unk> are based on current expectations as of today I really assumes no obligation to update or revise them, whether as a result of new developments or otherwise except as.

Stephen M. Shulstein: The following presentation contains non-GAAP financial measures. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our earnings press release and the appendix to our earnings presentation, which are available in the IR section of our website. Now, I will turn the call over to Matt.

Stephen M. Shulstein: Required by law. Following presentation contains non-GAAP financial measures for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric. Please see our earnings press release in the appendix.

Stephen M. Shulstein: Our earnings presentation, which are available on the IR section of our website now I will turn the call over to Matt to begin.

Matthew B. Oppenheimer: Thank you, Stephen, and thank you all for joining us to discuss our strong first quarter results and our outlook for 2024. We are pleased with our results as our value proposition of delivering trust and peace of mind throughout cross-border payment security continues to resonate with our new and existing customers. You will see this in our first quarter financial results on slide four. Our consistent execution continued with a strong start to the year.

Matthew B. Oppenheimer: Thank you Stephanie and thank you all for joining us to discuss our strong first quarter results and our outlook for 2024.

Matthew B. Oppenheimer: We are pleased with our results as our value proposition of delivering trust and peace of mind throughout the cross border payments journey continues to resonate with our new and existing customers.

Matthew B. Oppenheimer: You will see that in our first quarter financial results on slide four our consistent execution continued with a strong start to the year. We are pleased to deliver $269 million of revenue a 32% increase year over year, our topline results and scale efficiencies across transaction costs and opera.

Matthew B. Oppenheimer: We are pleased to deliver $296 million in revenue, a 32 percent increase year over year. Our top line results and scale efficiencies across transaction costs and operating expenses resulted in a strong adjusted EBITDA of 19 million, a more than two hundred and fifty percent increase year over year and ahead of our expectations. Our digital-first positioning and increasing scale allowed us to deliver the improvements and adjusted EBITDA profitability of the quarter, demonstrating the structural profitability potential of our business, while continuing to make targeted investments to deliver both long-term growth and strong returns.

Matthew B. Oppenheimer: <unk> expenses resulted in a strong adjusted EBITDA of $19 million, a more than 250% increase year over year and ahead of our expectations.

Matthew B. Oppenheimer: Our digital first positioning and increasing scale allowed us to deliver the improvements in adjusted EBITDA profitability in the quarter, demonstrating the structural profitability potential of our business, while continuing to make targeted investments to deliver both long term growth and strong returns.

Matthew B. Oppenheimer: As a result, we are reaffirming our 2024 revenue outlook and raising our 2024 Adjusted EBITDA outlook. In the first quarter, our quarterly active customers grew 36% year-over-year, as you can see on slide five. We now serve 6.2 million quarterly active customers, up 1.7 million from last year, and we continue to outpace the overall growth in the remittance industry and our digital peers. We also continue to benefit from record new customer acquisition due to our investments in creating a seamless customer experience, efficient performance marketing, and brand awareness across key markets.

Matthew B. Oppenheimer: As a result, we are reaffirming our 2020 for revenue outlook and raising our 2024 adjusted EBITDA outlook.

Matthew B. Oppenheimer: In the first quarter, our quarterly active customers grew 36% year over year as you can see on slide five we now served six 2 million quarterly active customers up $1 7 million from last year.

Matthew B. Oppenheimer: And we continue to outpace the overall growth in the remittance industry and our digital peers.

Matthew B. Oppenheimer: We also continue to benefit from record new customer acquisition due to our investments in creating a seamless customer experience.

Matthew B. Oppenheimer: <unk> performance marketing and brand awareness across key markets.

Matthew B. Oppenheimer: Our customers are highly resilient and have a deep sense of responsibility to support their families, and this is key to understanding their predictable and durable behavior. A significant majority of our customers send money home on a regular basis and recurring basis to support daily living necessities. At the same time, we also see strong seasonality as many customers send more actively around key holidays and festivals, including Christmas, Mother's Day, and Ramadan, just to name a few.

Matthew B. Oppenheimer: Our customers are highly resilient and have a deep sense of responsibility to support their families and this is key to understanding they're predictable and durable behavior.

Matthew B. Oppenheimer: Significant majority of our customers send money home on a regular basis and recurring basis to support daily living necessities at.

Matthew B. Oppenheimer: At the same time, we also see strong seasonality as many customers sent more actively around key holidays and festivals, including Christmas mother's day, and Ramadan just to name a few.

Matthew B. Oppenheimer: This seasonality of customer activity played out in the first quarter as expected, as there were fewer large drivers of sending activity, such as the Christmas holiday season that we see in the fourth quarter or Mother's Day and Eid al-Fitr in the second quarter of this year.

Matthew B. Oppenheimer: This seasonality of customer activity played out in the first quarter as expected as there are fewer large sending activity drivers such as the Christmas holiday season that we see in the fourth quarter or mother's day and eat alpha tier in the second quarter of this year.

Matthew B. Oppenheimer: This seasonality is particularly evident in the first quarter on the back of a very strong Q4 activity. We have observed this pattern for several years and see many of these customers increase their sending activity from Q2 to Q4. As expected, we have also observed an increase in recent customer activity in April, which reflects typical seasonal patterns as we remain confident in the resilient customer behavior trends that result in predictable and durable five-year LTV.

Matthew B. Oppenheimer: Seasonality is particularly evident in the first quarter on the back of a very strong Q4 activity. We've observed this pattern for several years and see many of these customers increase their spending activity from Q2 to Q4.

Matthew B. Oppenheimer: As expected we have also observed an increase in recent customer activity in April which reflects typical seasonal.

Matthew B. Oppenheimer: Turns as we remain confident in the resilient customer behavior trends that result, and predictable and durable five year LTV.

Matthew B. Oppenheimer: The trend of customer preference for digital receive options continued in the first quarter. The year-over-year mix of digital receive transactions increased by nearly 500 basis points in the first quarter, which was a similar increase as in Q4.

Matthew B. Oppenheimer: The trend of customer preference for digital receive options continued in the first quarter the year over year mix of digital receive transactions increased by nearly 500 basis points in the first quarter.

Matthew B. Oppenheimer: Which was a similar increase as Q4.

Matthew B. Oppenheimer: As transactions sent to mobile wallets tend to be smaller and more frequent, we continue to optimize our product features and underlying cost structure to serve these customers effectively and profitably. Having a wide variety of high-quality disbursement options, including 1.2 billion mobile wallets and 4.2 billion bank accounts.

Matthew B. Oppenheimer: As transaction set to mobile wallet tend to be smaller and more frequent we continue to optimize our product features and underlying cost structure to serve these customers actively and profitably.

Matthew B. Oppenheimer: Having a wide variety of high quality disbursement options, including $1 2 billion mobile wallet.

Matthew B. Oppenheimer: $4 2 billion bank accounts 470000 cash pick up locations.

Matthew B. Oppenheimer: 470,000 cash pickup locations and home delivery in certain markets to serve different customer needs is a key differentiator and a driver of customer transaction activity. Turning to some additional detail on our marketing efforts in Q1, on slide six. Our focus for our marketing investments remains on ensuring we optimize the customer acquisition cost we are willing to pay for the lifetime value of a customer in order to drive high long-term returns. We continue to see strength and lifetime value as customer activity remains strong with increasing transactions per active, particularly related to digital transactions, and our overall unit costs continue to improve.

Matthew B. Oppenheimer: And home delivery in certain markets to serve different customer needs is a key differentiator and a driver of customer transaction activity.

Matthew B. Oppenheimer: Turning to some additional detail in our marketing efforts in Q1 on slide six.

Matthew B. Oppenheimer: Our focus for our marketing investment remains on ensuring we optimize the customer acquisition cost we are willing to pay with the lifetime value of a customer in order to drive high long term returns.

Matthew B. Oppenheimer: We continue to see strength in lifetime value as customer activity remained strong with increasing transactions per active particularly related to digital transactions and our overall unit costs continue to improve.

Matthew B. Oppenheimer: We delivered another record number of new customers in the first quarter as our marketing investments across channels drove new customers to our platform at a highly efficient customer acquisition cost. We also benefit from word of mouth as we continue to make product improvements and drive additional customer activity in both new and existing markets. Consistent with seasonal patterns, our customer acquisition costs declined sequentially from the fourth quarter.

Matthew B. Oppenheimer: We delivered another record number of new customers in the first quarter as our marketing investments across channels drove new customers to our platform at a highly efficient customer acquisition cost.

Matthew B. Oppenheimer: We also benefit from word of mouth as we continue to make product improvements and drive additional customer activity in both new and existing markets.

Matthew B. Oppenheimer: Consistent with seasonal patterns or customer acquisition costs declined sequentially from the fourth quarter.

Matthew B. Oppenheimer: Our marketing investments, particularly our global 360 integrated campaigns in key markets, are resonating with new customers, which is a leading indicator of future revenue growth. Building off our momentum in the fourth quarter, we are pleased to continue our brand awareness efforts in key strategic regions worldwide, including the launch of an integrated brand campaign in the large Los Angeles market during the quarter. LA has a significant customer base that sends to many of our key receiving markets, including Mexico and other Latin American countries.

Matthew B. Oppenheimer: Our marketing investments, particularly our global 360 integrated campaigns in key markets are resonating with new customers, which is a leading indicator of future revenue growth.

Matthew B. Oppenheimer: Building off our momentum in the fourth quarter. We are pleased to continue our brand awareness efforts in key strategic regions worldwide, including the launch of an integrated brand campaign in the large Los Angeles market in the quarter.

Matthew B. Oppenheimer: La has a significant customer base that tends to many of our key receive markets, including Mexico and other Latin American countries.

Matthew B. Oppenheimer: These campaigns combine traditional media and digital channels, and we are taking the successes we have had in other key markets to L.A. We believe that the disciplined and data-driven, ROI-focused approach to our marketing investments is unique. And we continue to monitor for a variety of signals with our brand campaigns, such as branded search impressions, alongside other metrics across the customer funnel. Taking this approach, we've seen positive results to date from our marketing campaign.

Matthew B. Oppenheimer: These campaigns.

Matthew B. Oppenheimer: On traditional media and digital channels and we are taking the successes we have had in other key markets to Ella.

Matthew B. Oppenheimer: We believe that the disciplined and data driven ROI focused approach to our marketing investments is unique and we continue to monitor for a variety of signals with our brand campaigns, such as branded search impressions alongside other metrics across the customer funnel, taking this approach we have seen positive results to date from our.

Matthew B. Oppenheimer: Marketing campaigns.

Matthew B. Oppenheimer: Finally, on the marketing front, we continue to find more ways to utilize AI, including generative AI, across a variety of use cases in marketing. We're starting to see the benefits of generative AI in helping us generate long-form content at scale.

Matthew B. Oppenheimer: Finally on the marketing front, we continue to find more ways to utilize AI, including generative AI across a variety of use cases in marketing.

Matthew B. Oppenheimer: We're starting to see the benefits of generative AI and helping us generate long form content at scale.

Matthew B. Oppenheimer: We're exploring AI for a variety of process improvements that are actively using AI as an effective tool in translating our product and marketing efforts into many different languages, increasing the benefits of localization. Overall, we continue to have high confidence in our recent marketing investments, which are expected to deliver strong returns this year and beyond with a predictable and durable stream of revenue, less transaction expense, which we detailed in our call last quarter.

Matthew B. Oppenheimer: We're exploring AI for a variety of process improvements that are actively using AI as an effective tool in translating our product and marketing efforts into many different languages, increasing the benefit of localization.

Matthew B. Oppenheimer: Overall, we continue to have high confidence in our recent marketing investments, which are expected to deliver strong returns this year and beyond with a predictable and durable stream of revenue less transaction expense, which we detailed in our call last quarter.

Matthew B. Oppenheimer: This is consistent with the resilient customer behavior that we see related to cross-border transfers for primarily non-discretionary needs, along with our ongoing focus on program optimization and our ability to continue driving down unit costs as we scale. Our focus on delivering a fast and seamless customer experience has not changed, as you can see on slide 7. We often get asked the question of what makes Remitly so special and unique that results in the high growth rates that we're delivering.

Matthew B. Oppenheimer: This is consistent with the resilient customer behavior that we see related to cross border transfers for primarily non discretionary needs along with our ongoing focus on program optimization and our ability to continue driving down unit costs as we scale.

Matthew B. Oppenheimer: Our focus on delivering a fast and seamless customer experience has not changed as you can see on slide seven.

Matthew B. Oppenheimer: We often get asked the question of what makes <unk>, So special and unique the results in the high growth rates that we're delivering.

Matthew B. Oppenheimer: The truth of the matter is that it's a complex answer because remittances are complex, but it all comes back to the customer and continuing to earn their trust. When we analyzed responses to our NPS customer surveys over the last six months, the top two drivers were fast transfers and that the experience was easy. Additionally, a large portion of comments simply say that Remitly was some version of great, such as excellent, incredible, amazing, superb, or brilliant.

Matthew B. Oppenheimer: Truth of the matter is that it's a complex answer because remittances are complex, but it all comes back to the customer and continuing to earn their trust.

Matthew B. Oppenheimer: When we analyzed responses to our NPS customer surveys over the last six months. The top two drivers were fast transfers and that the experience was easy.

Matthew B. Oppenheimer: Additionally, a large portion of comments simply say that <unk> was some version of great such as excellent incredible amazing superb or brilliant.

Matthew B. Oppenheimer: I want to emphasize while qualities like fast and easy may sound like table Stakes.

Matthew B. Oppenheimer: I want to emphasize, while qualities like fast and easy may sound like a table, international payments are incredibly complex, and we are uniquely reinventing international payments in a way that's magical and delightful for customers. And you can see this reflected in our industry-leading growth rates and customer reviews. Let me highlight a few areas of progress in the first quarter in delivering this great experience for our customers. In order to achieve this long-term trust, we are obsessively focused on reducing what we call transaction defects.

Matthew B. Oppenheimer: Our national payments are incredibly complex and we are uniquely reinventing international payments in a way that's magical and delightful for customers and you can see this reflected in our industry, leading growth rates and customer reviews.

Matthew B. Oppenheimer: Let me highlight a few areas of progress in the first quarter on delivering this great experience for our customers.

Matthew B. Oppenheimer: In order to achieve this long term trust, we are obsessive we focused on reducing what we call transaction defects. These are issues related to pay in disbursement and risk that negatively impact the customer experience or delay or.

Matthew B. Oppenheimer: These are issues related to pay-in, disbursement, and risk that negatively impact the customer experience or delay or delay the ultimate delivery of customer funds, which creates unnecessary friction and erodes trust for our customers. Reducing these defects typically results in lower customer contact rates, less back office work for our customer support teams, and ultimately higher customer satisfaction, trust, word of mouth, and retention.

Matthew B. Oppenheimer: Or delay the ultimate delivery of customer funds, which creates unnecessary friction and erodes trust for our customers.

Matthew B. Oppenheimer: Reducing these defects typically results in lower customer contact rates.

Matthew B. Oppenheimer: Less back office work for our customer support teams and ultimately higher customer satisfaction crest word of mouth and retention.

Matthew B. Oppenheimer: On the pay-in side, meaning the way that we collect funds from customers, we are focused on reducing payment issues for our customers. This product work matters to our customers because it enables us to deliver faster transactions, more payment options, fewer errors, and at a lower cost to Remitly. We can also uniquely deliver these benefits with our digital first approach at scale. We continue to, and expect to add, relevant payment options that provide great customer experiences.

Matthew B. Oppenheimer: On the pay inside meaning the way that we collect funds from customers. We are focused on reducing payment issues for our customers.

Matthew B. Oppenheimer: This product work matters to our customers because it enables us to deliver faster transactions more payment options fewer errors.

Matthew B. Oppenheimer: And at a lower cost to remotely.

Matthew B. Oppenheimer: We can also uniquely deliver these benefits with our digital first approach at scale, we continue to and expect to add relevant payment options that provide great customer experiences. Examples of this are bank contact in Belgium, Interac in Canada, and the ability to speed up ACTH transactions in the U.

Matthew B. Oppenheimer: Examples of this are Bank Contact in Belgium, Interact in Canada, and the ability to speed up ACH transactions in the US, which we expect to launch later this year. To help with speed and to reduce errors, we are leveraging machine learning and dynamic routing across payment processors to drive down errors, which improves the customer experience. On the disbursement side, we continue to make progress on improving our mix of high-quality direct integrations, which increases transaction speeds, improves the customer experience, and lowers costs. These include M-Pesa in Tanzania, ICICI Bank in India, and Yapay Mobile Wallets in Peru.

Matthew B. Oppenheimer: The us, which we expect to launch later this year.

Matthew B. Oppenheimer: To help with speed and to reduce errors, we are leveraging machine learning and dynamic routing across payment processors to drive down errors, which improves the customer experience.

Matthew B. Oppenheimer: On the disbursement side, we continue to make progress on improving our mix of high quality direct integrations, which increases transaction speeds improves the customer experience and lowers costs. These include in peso in Tanzania, ICI <unk> Bank in India, and <unk> mobile wallets in Peru.

Matthew B. Oppenheimer: We are also providing more self-service options for customers to resolve disbursement exceptions effectively when they do happen. Finally, we are automating manual actions such as downtime routing and validation APIs that delay transactions and create unnecessary work. Finally, on the risk side, we are also focused on reducing the frequency that transaction defects are introduced to legitimate customers and improving the customer experience around resolving any risk-related issues. To achieve this, our strategy is to build robust, intelligent, and scalable systems utilizing advanced machine learning capabilities to combat bad actors effectively, ensure regulatory compliance, and streamline required customer verification experiences.

Matthew B. Oppenheimer: We are also providing more self service options for customers to resolve disbursement exceptions effectively when they do happen.

Matthew B. Oppenheimer: Finally, we are automating manual actions, such as downtime routing and validation API that delayed transactions and create unnecessary work.

Matthew B. Oppenheimer: Finally on the risk side, we are also focused on reducing the frequency.

Matthew B. Oppenheimer: That transaction defects are introduced to legitimate customers and improving the customer experience around resolving any risk related issues.

Matthew B. Oppenheimer: To achieve this our strategy is to build robust intelligent and scalable systems utilizing advanced machine learning capabilities to combat bad actors effectively <unk>.

Matthew B. Oppenheimer: Ensure regulatory compliance and streamline required customer verification experiences.

Matthew B. Oppenheimer: As a result of our efforts, more than 90% of transactions in the first quarter were disbursed in less than an hour, and more than 95% of transactions proceeded without a customer support contact. Now, our primary focus on this work is to continue to build a fast and magical experience to send money internationally, thereby continuing to drive long-term retention. We have been able to deliver a significant improvement in customer support expense by 260 basis points compared with the first quarter of last year.

Matthew B. Oppenheimer: As a result of our efforts more than 90% of transactions in the first quarter were dispersed in less than an hour.

Matthew B. Oppenheimer: And more than 95% of transactions proceeded without a customer support contact.

Matthew B. Oppenheimer: While our primary focus on this work is to continue to build a fast and magical experience to send money internationally, thereby continuing to drive long term retention we.

Matthew B. Oppenheimer: We have been able to deliver a significant improvement in customer support expense with leverage of 260 basis points compared with the first quarter of last year.

Matthew B. Oppenheimer: While we are pleased with these results so far, our global teams are focused on continually improving the experience for our customers, which is helped by our increasing scale and investments in our technology infrastructure. Our ability to execute our long-term vision of transforming lives with trusted financial services that transcend borders is driven by resilient and predictable customer behavior, differentiated and continuously improving products. A focus on increasing investment returns and efficiency and even more growth enabling us to deliver a more delightful customer experience across all dimensions of the cross-border payments journey for our customers.

Matthew B. Oppenheimer: While we are pleased with these results so far our global teams are focused on continually improving the experience for our customers.

Matthew B. Oppenheimer: Which is helped by our increasing scale and investments in our technology infrastructure.

Matthew B. Oppenheimer: Our ability to execute our long term vision of transforming lives with trusted financial services. The transcend borders is driven by resilient and predictable customer behavior or.

Matthew B. Oppenheimer: Our differentiated and continuously improving product.

Matthew B. Oppenheimer: A focus on increasing investment returns and efficiency.

Matthew B. Oppenheimer: And even more growth, enabling us to deliver a more delightful customer experience across all dimensions of the cross border payments journey for our customers.

Matthew B. Oppenheimer: As we look ahead to the rest of 2024 and beyond, our strategic priorities remain the same, as you can see on slide 8. We are just getting started on addressing our large market opportunity, which includes growth opportunities in both new and existing send and receive markets. I am especially excited about the opportunity we have to grow across sub-Saharan Africa, as this region has only been a focus for Remitly for a relatively short period of time.

Matthew B. Oppenheimer: As we look ahead to the rest of 2024 and beyond our strategic priorities remain the same as you can see on slide eight.

Matthew B. Oppenheimer: We are just getting started and addressing our large market opportunity, which includes growth opportunities in both new and existing send and receive markets.

Matthew B. Oppenheimer: I am, especially excited about the opportunity we have to grow across sub Saharan Africa. This region has only been a focus for <unk> for a relatively short period of time and since that focus began we have.

Hemanth Munipalli: And since that focus began, we have been seeing encouraging growth in a large market with a lot of potential for future growth. On a global basis, we are still only about 2 percent of a very large market, and we are seeing strong growth across our portfolio. We believe we can continue to delight customers, grow market share with high-return marketing investments and new markets, deepen customer relationships, and, at the same time, drive even more dollars to the bottom line through operating efficiencies. With that, I'll turn the call over to Hemanth, who will provide more details on our financial results and our improved 2024 outlook.

Matthew B. Oppenheimer: Been seeing encouraging growth in a large market with a lot of potential for future growth.

Matthew B. Oppenheimer: On a global basis, we are still only about 2% of a very large market and we are seeing strong growth across our portfolio.

Matthew B. Oppenheimer: We believe we can continue to delight customers grow market share with high return marketing investments and new markets deepening customer relationships and at the same time drive even more dollars to the bottom line through operating efficiencies.

Matthew B. Oppenheimer: With that I'll turn the call that Hey, Matt who will provide more details on our financial results and our improved 2024 outlook. Thank.

Hemanth Munipalli: Thank you, Matt. I'm very pleased with the strong results that we delivered in the first quarter and the progress we're making on continued strong revenue growth and driving efficiencies throughout the organization. I'll begin by reviewing some high-level drivers of our financial performance. I will then discuss the priorities we're focusing on to ensure we can deliver sustainable growth and high returns for many years to come, and I'll finish with our updated outlook for 2024.

Matthew B. Oppenheimer: Thank you, Matt I'm very pleased with the strong results we delivered in the first quarter and the progress we're making on continued strong revenue growth and driving efficiencies throughout the organization.

Matthew B. Oppenheimer: I'll begin by reviewing some high level drivers of our financial performance.

Matthew B. Oppenheimer: We'll then discuss the priorities while focusing on to ensure we can deliver sustainable growth and high returns for many years to come and I'll finish with our updated outlook for 2024 with that let's turn to our first quarter results. As a reminder, I will discuss some of the non-GAAP operating expenses and adjusted EBITDA in my remarks, these metrics exclude items such as.

Hemanth Munipalli: With that, let's turn to our first quarter results. As a reminder, I will discuss only non-GAAP operating expenses and adjust my remarks accordingly. These metrics exclude items such as stock-based compensation, the donation of common stock in connection with our pledged 1% commitment, acquisition, integration, restructuring, and other costs, and foreign exchange gain or loss.

Matthew B. Oppenheimer: Stock based compensation the donation of common stock in connection with our pledge, 1% commitment acquisition integration restructuring and other costs and foreign exchange gain or loss.

Hemanth Munipalli: Reconciliation to GAP results is included in the earnings release. Let's begin on slide 10 with our high-level financial performance in the quarter. We were pleased to deliver high active customer and revenue growth in what is typically a seasonally weaker quarter for customer activity. Our adjusted EBITDA profitability also improved substantially as we benefited from scale and a deliberate focus on driving efficiencies to all parts of the business. Quarterly active customers grew by 36% year over year to 6.2 million.

Matthew B. Oppenheimer: Reconciliations to GAAP results are included in the earnings release.

Matthew B. Oppenheimer: Let's begin on slide 10, with our high level financial performance in the quarter. We were pleased to deliver high active customer and revenue growth in what is typically a seasonally weaker quarter for customer activity. Our adjusted EBITDA profitability also improved substantially as we benefited from scale in a deliberate focus on driving efficiencies through all parts of the.

Matthew B. Oppenheimer: Business.

Matthew B. Oppenheimer: Quarterly active customers grew by 36% year over year to $6 2 million setting.

Hemanth Munipalli: SEND volume grew 34% year-over-year to approximately $11.5 billion, resulting in revenue growth of 32% year-over-year to $269 million, which is in line with our expectations. Our gap net loss was $21 million in the quarter and included $34 million of stock compensation expense.

Matthew B. Oppenheimer: <unk> volume grew 34% year over year to approximately $11 5 billion.

Matthew B. Oppenheimer: Resulting in revenue growth of 32% year over year to $269 million.

Matthew B. Oppenheimer: Which was in line with our expectations.

Matthew B. Oppenheimer: Our GAAP net loss was $21 million in the quarter and included $34 million of stock compensation expense.

Hemanth Munipalli: Strong revenue growth combined with significantly lower transaction expense as a percentage of revenue and efficiency across operating expenses led to higher than expected adjusted EBITDA of $19.3 million in the quarter. Our focus for 2024 and beyond remains on four key areas to drive sustainable long-term returns, as you can see on slide 11. These are to continue to deliver strong revenue growth, reduce transaction expenses, acquire new customers with efficient marketing, and operate more efficiently.

Matthew B. Oppenheimer: Strong revenue growth combined with significantly lower transaction expense as a percentage of revenue and efficiency across operating expenses led to higher than expected adjusted EBITDA of $19 3 million in the quarter.

Matthew B. Oppenheimer: Our focus for 2024 and beyond remains on four key areas to drive sustainable long term returns.

Matthew B. Oppenheimer: As you can see on slide 11. These are to continue to deliver strong revenue growth reduce transaction expenses acquired new customers with efficient marketing and operate more efficiently by focusing on executing across these four areas, particularly with the additional focus on efficiencies. We believe we can deliver sustainable long term.

Hemanth Munipalli: By focusing on executing across these four areas, particularly with the additional focus on efficiencies, we believe we can deliver sustainable long-term high returns. Now, let's turn to some of the key factors that drove our strong performance in the first quarter. On slide 12, we detail the drivers of our strong performance.

Matthew B. Oppenheimer: Returns now, let's turn to some of the key factors that drove our strong performance in the first quarter on slide 12, we detailed the drivers of our first half performance.

Hemanth Munipalli: Let's begin with revenue, which was up 32% year-over-year in the first quarter on both the reported and constant currency basis. We've also anniversaryed our acquisition of ReWire, which positively impacted our growth rate by about two percentage points in the first quarter of 2023 and full year 2023. Our revenue growth was driven by the high retention of existing customers, consistent first quarter sending patterns, benefits from earlier send market expansion, and record new customers acquired in the quarter.

Matthew B. Oppenheimer: Let's begin with revenue.

Matthew B. Oppenheimer: Which was up 32% year over year in the first quarter on both a reported and constant currency basis.

Matthew B. Oppenheimer: We are also anniversaried, our acquisition of rewire, which positively impacted our growth rate by about two percentage points in the first quarter of 2023 and full year 2023.

Matthew B. Oppenheimer: Our revenue growth was driven by the high retention of existing customers consistent first quarter selling patterns benefits from earlier and market expansion and record new customers acquired in the quarter.

Hemanth Munipalli: As is typical, sending activity from returning customers contributed to a significant portion of total revenue in the first quarter, which reflects the non-discretionary nature of remittances and the loyalty of our customers. As Matt mentioned, the first quarter is typically a seasonally less active quarter for existing customer activity as compared sequentially with the fourth quarter.

Matthew B. Oppenheimer: As is typical spending activity from returning customers contributed to a significant portion of total revenue in the first quarter, which reflects the non discretionary nature of remittances and the loyalty of our customers.

Matthew B. Oppenheimer: As Matt mentioned, the first quarter is typically a seasonally less active quarter for an existing customer activity as compared sequentially with the fourth quarter. It is also important to note that the first quarter of 2023 was somewhat of an anomaly for quarterly active customer growth agile recognize the addition of all newly acquired <unk> customers.

Hemanth Munipalli: It is also important to note that the first quarter of 2023 was somewhat of an anomaly for quarterly active customer growth, as you recognize the addition of all newly acquired rewired customers to our quarterly active customer count in the first quarter of 2023, which we have now fully anniversaried. As we look ahead to the second quarter, we typically see increased customer activity from prior active customers due to more seasonal sending opportunities, and we also expect to continue acquiring even more new customers through Remitly.

Matthew B. Oppenheimer: In our quarterly active customer count in the first quarter of 2023, which we have now fully anniversaried.

Matthew B. Oppenheimer: As we look ahead to the second quarter, we typically see increased customer activity from prior active customers due to more seasonal spending opportunities and we also expect to continue acquiring even more new customers to remotely we expect various factors to impact year over year and sequential increase in quarterly active customers.

Hemanth Munipalli: We expect various factors to impact year-over-year and sequential increases in quarterly active customers. These are related to the timing of holidays and gift giving periods, such as Easter, Mother's Day, and Ramadan, the increasingly diverse global customer base, timing sensitivity to foreign exchange rates, particularly at higher transaction values, and quarters ending on weekends versus weekdays.

Matthew B. Oppenheimer: These are related to the timing of holidays and gift, giving periods such as the Easter mother's day, and Ramadan, the increasingly diverse global customer base timing sensitivity to foreign exchange rates, particularly at higher transaction values and quarters ending on weekends.

Hemanth Munipalli: Overall, we continue to observe very consistent customer behavior patterns with high retention that are expected to generate robust LTV as measured by revenue less transaction expense for years to come. As a result, our LTV to CAC ratios remain attractive for continued investment in marketing to acquire new customers. Turning to our transaction expenses, which include costs related to our pay and benefits, disbursement partners, and fraud law. Transaction expense as a percentage of revenue improved to 90 basis points year-over-year.

Matthew B. Oppenheimer: This week days.

Matthew B. Oppenheimer: Overall, we continue to observe very consistent customer behavior patterns with high retention, they're expected to generate robust LTV as measured by revenue less transaction expense for years to come as a result, our LTV to CAC ratios remain attractive for continued investment in marketing to acquire new customers.

Matthew B. Oppenheimer: Turning to our transaction expenses, which include costs related to our pay and partners disbursement partners and fraud losses transaction expense as a percentage of revenue improved to 90 basis points year over year. This was primarily due to our increasing volumes, which allows for improving terms with our pay in and pay out partners one of the <unk>.

Hemanth Munipalli: This was primarily due to our increasing volumes, which allowed for improved terms with our pay-in and pay-out partners while at the same time improving our fraud precision. Additionally, approximately 200 basis points of the improvement was related to pay-in and disbursement partner cost reduction.

Matthew B. Oppenheimer: <unk>, improving our fraud precision approximately 200 basis points of the improvement was related to palin displacement parts of our cost reductions.

Hemanth Munipalli: Our continued improvement in transaction expense and overall variable cost structure allows us the option to make investments in improving the customer experience and the value we deliver to customers, which results in increased retention, transaction activity, and ultimately the lifetime value of our customers. We're also making solid progress on delivering operational efficiencies, which has been an increased area of focus for us this year. Let's begin with our progress on customer support expenses.

Matthew B. Oppenheimer: Our continued improvement in transaction expense and overall variable cost structure allows us the optionality to make investments in improving the customer experience and the value we deliver to customers, which resulted in increased retention transaction activity and ultimately increasing lifetime value of our customers.

Matthew B. Oppenheimer: We're also making solid progress on delivering operational efficiencies, which has been an increased area of focus for us. This year, let's begin with our progress on our customer support expenses.

Hemanth Munipalli: Customer support and operations expenses as a percentage of revenue were down 260 basis points year over year, consistent with the trends we've seen over the past few quarters. As Matt mentioned, we're focused on reducing unnecessary friction for our customers via our transaction defect reduction goals. As an example, we have enabled even more self-help options, such as changing disbursement choices without the need to contact customer support.

Matthew B. Oppenheimer: Customer support and operations expenses as a percentage of revenue was down 260 basis points year over year consistent with the trends we've seen over the past few quarters as Matt mentioned, we're focused on reducing unnecessary friction for our customers via our transaction defect reduction goals.

Matthew B. Oppenheimer: As an example, we have enabled EBIT more self help options such as changing disbursement choices without the need to contact customer support when self service is not the right option, we're starting to apply technology like generative AI to make it easier and more efficient for agents to support and delight our customers.

Hemanth Munipalli: When self-service is not the right option, we're starting to apply technology like generative AI to make it easier and more efficient for agents to support and delight our customers. We're also applying AI in our risk systems to improve precision and to provide a more effective customer support experience, either via chat, email, or phone. All of these things reduce the workload for our agents and help provide a more efficient and tailored experience to delight our customers.

Matthew B. Oppenheimer: Also applying AI in our risk systems to improve precision and to provide a more effective customer support experience.

Matthew B. Oppenheimer: Via chat E mail or phone all of these things reduce the workload right for our agents and help provide a more efficient and tailored experience to delight our customers.

Hemanth Munipalli: In the first quarter, G&A expense as a percentage of revenue decreased to 70 basis points year-over-year as we benefited from continued discipline on hiring, non-headcount expenses, and other efficiencies. A portion of the improvement in G&A expenses benefited from some favorable timing and indirect tax reduction, totaling about $2 million that we do not expect to reoccur. We view our marketing and technology and development expenses as key investments that provide returns over both the near and medium terms.

Matthew B. Oppenheimer: In the first quarter G&A expense as a percentage of revenue decreased to 70 basis points year over year as we benefited from continued discipline on hiring non headcount expenses and other efficiencies a portion of the improvement in G&A expenses benefited from some favorable timing in indirect tax reduction totaling about two.

Matthew B. Oppenheimer: That we do not expect to reoccur.

Matthew B. Oppenheimer: We view, our marketing and technology and development expenses as key investments that provide returns over both the near medium and long term, our marketing investments have a payback period of less than 12 months and provide a long stream of revenue less transaction expenses from resilient customer activity.

Hemanth Munipalli: Our marketing investments have a payback period of less than 12 months and provide a long stream of revenue, less transaction expense, from resilient customer activity. Our technology investments have both near-term returns, as you can see in our progress, reducing transaction and customer support costs, and expected medium to long-term returns as we invest in our platform to further deepen customer relationships. Our marketing expense was $64 million in the first quarter, which was a sequential decline of about $7 million from the fourth quarter and in line with our expectations.

Matthew B. Oppenheimer: Technology investments have both near term returns as you can see in our progress reducing transaction and customer support costs and expected medium to long term returns as we invest in our platform to further deepen customer relationships.

Matthew B. Oppenheimer: Our marketing expense was $64 million in the first quarter, which was a sequential decline of about $7 million from the fourth quarter and in line with our expectations.

Hemanth Munipalli: This reflects the typical seasonality of declining customer acquisition costs sequentially as the opportunity to acquire new customers is generally lower in the first quarter. Given our data-driven approach, we are also uniquely able to manage LTV to CAC ratios to the return thresholds that we desire, including taking into account the cost of capital and our higher return thresholds. We will focus on this balance to ensure that we're delivering high long-term returns relative to our cost of capital. Technology and development expenses were $44 million in the first quarter.

Matthew B. Oppenheimer: It reflects the typical seasonality of declining customer acquisition costs sequentially as the opportunity to acquire new customers is generally lower in the first quarter.

Matthew B. Oppenheimer: Given our data driven approach. We are also uniquely able to manage LTV to CAC ratios to the return thresholds that we desire, including taking into account the cost of capital on our high return thresholds.

Matthew B. Oppenheimer: We will focus on this balance to ensure that we're delivering high long term return relative to our cost of capital.

Matthew B. Oppenheimer: Technology and development expenses were $44 million in the first quarter. The primary areas of investment included our <unk> platform.

Hemanth Munipalli: The primary areas of investment included a remittance platform, driving transaction defects down, deepening customer relationships, and enabling increasing automation across various operational areas such as customer service, and back-end transactional processes. We expect moderating growth in our T&E expenses as we scale over the medium term. Before we turn to our updated outlook for 2024, I'd like to discuss our balance sheet and perspectives on cash flow. As you can see on slide 13, we ended the quarter with $286 million in cash and access to a $325 million credit facility. At the end of the quarter, we had $150 million outstanding on the credit facility.

Matthew B. Oppenheimer: Diving transaction defects talent deepening customer relationships.

Matthew B. Oppenheimer: Enabling increasing automation across various operational areas, such as customer service and back end transactional processing, we expect moderating growth in our <unk> expenses as we scale over the medium term.

Hemanth Munipalli: This balance was paid off the next business day, on April 1st, consistent with our prior practice of using the credit facility to fund short-term spikes in customer demand, especially over holidays or weekends. As we have been improving Adjusted EBITDA, we have seen corresponding improvements in our cash flow performance when we adjust for the timing of customer fund flows. Turning to our stock compensation expense. In the quarter, our stock compensation expense of $34 million grew 17% on a year-over-year basis.

Speaker Change: Before we turn to our updated outlook for 2024, I'd like to discuss our balance sheet and perspectives on cash flow as you can see on slide 13, we ended the quarter with $286 million of cash and access to a $225 million credit facility at the end of the quarter, we had $150 million outstanding.

Speaker Change: On the credit facility. This balance was paid off the next business day on April 1st consistent with our prior practice of using the credit facility to fund short term spikes in customer demand, especially over holidays or weekends.

Speaker Change: As we have been improving adjusted EBITDA, we have seen corresponding improvements in our cash flow performance when we adjust for the timing of customer funds fluids.

Speaker Change: Turning to our stock compensation expense in the quarter stock compensation expense of $34 million grew 17% on a year over year basis.

Hemanth Munipalli: This is a significant deceleration from prior quarters' growth rates and reflects our focus on moderating our headcount growth rates. However, we expect stock compensation expense dollars to increase sequentially as a result of our annual performance reviews and RSU grant cycles. On a full year basis, we expect stock compensation expenses to grow slower than revenues.

Speaker Change: This is a significant deceleration from prior quarters growth rate and reflects our focus on moderating our head count growth rates.

Speaker Change: However, we expect stock compensation expense dollars to increase sequentially as a result of our annual performance reviews, and RF <unk> grant cycles on.

Matthew B. Oppenheimer: On a full year basis, we expect stock compensation expenses to grow slower than revenue.

Hemanth Munipalli: We're also focused on managing the number of shares issued, and we have been taking various measures to reduce share dilution for increasing long-term returns to our shareholders. As a result of our strong performance in the first quarter, we're updating our outlook for 2024, as you can see on slide 14. Specifically, we expect revenue to be between $1.225 billion and $1.25 billion, which reflects a year-over-year growth rate of 30 to 32 percent and is consistent with our prior outlook and reflects the strong performance in the first quarter and is in line with our expectations.

Matthew B. Oppenheimer: We're also focused on managing the number of shares issued and we have been taking various measures to reduce share dilution for increasing long term returns to our shareholders.

Matthew B. Oppenheimer: Yes.

Matthew B. Oppenheimer: As a result of our strong performance in the first quarter. We are updating our outlook for 2024 as you can see on slide 14, specifically, we expect revenue to be between one to two 5 billion and $1 5 billion.

Matthew B. Oppenheimer: Which reflects a year over year growth rate of 30% to 32% and it's consistent with our prior outlook and reflects the strong performance in the first quarter and in line with our expectations.

Hemanth Munipalli: We remain confident in both the resilience and seasonal cadence of customer activity and the outlook for new customer acquisition for the rest of 2024. As a result, we are reaffirming our full-year revenue outlook. We also expect second half revenue growth rates to be higher versus the first half revenue growth rate, especially as we lap exceptionally strong growth rates in the first half of 2023. As a result, we expect the revenue growth rate in Q2 to be at the lower end of the annual guidance growth rate range of 30 to 32 percent.

Matthew B. Oppenheimer: We remain confident in both the resilience and seasonal cadence of customer activity and the outlook for new customer acquisition and the rest of 2024.

Matthew B. Oppenheimer: As a result, we are reaffirming our full year revenue outlook.

Matthew B. Oppenheimer: We also expect second half revenue growth rates to be improved versus the first half revenue growth rate, especially as we lap exceptionally strong growth rates in the first half of 2023.

Matthew B. Oppenheimer: As a result, we expect our revenue growth rate in Q2 to be at the lower end of the annual guidance growth rate range of 30% to 32% as a reminder, revenue growth rates in any given quarter can be impacted by volatility in foreign exchange rates, new customer acquisition timing and seasonal customer activity even if.

Hemanth Munipalli: As a reminder, revenue growth rates in any given quarter can be impacted by volatility in foreign exchange rates, new customer acquisition timing, and seasonal customer activity, even if underlying customer behavior and sending patterns remain largely consistent with historical trends. While we expect to remain in a gap net loss position, we expect adjusted EBITDA to be between $85 and $95 million, which is a $7.5 million increase at the midpoint from our prior outlook.

Matthew B. Oppenheimer: Underlying customer behavior, and spending patterns remained largely consistent to historical trends.

Matthew B. Oppenheimer: While we expect to remain in a GAAP net loss position, we expect adjusted EBITDA to be between $85 million to $95 million.

Matthew B. Oppenheimer: Which is a $7 $5 million increase at the midpoint from our prior outlook.

Hemanth Munipalli: The increase in our adjusted EBITDA outlook is primarily driven by our strong performance in the first quarter, ahead of our expectations, and our increased confidence in driving operational efficiencies for the rest of the year. Consistent with our commentary and our 2024 revenue outlook, we expected adjusted EBITDA year-over-year growth to be higher in the back half of the year when compared with the first half. As a reminder, we delivered an exceptional second quarter last year, and the year-over-year comparisons get even better as we enter the back half of this year.

Matthew B. Oppenheimer: The increase in our adjusted EBITDA outlook is primarily driven by a strong performance in the first quarter ahead of our expectations and our increased confidence on driving operational efficiencies, while the rest of the year.

Matthew B. Oppenheimer: Consistent with our commentary in our 2020 for revenue outlook, we expected adjusted EBITDA year over year growth to be higher in the back half of the year when compared with the first half adjusted EBITDA growth.

Matthew B. Oppenheimer: As a reminder, we delivered an exceptional second quarter last year and the year over year comparisons get improved as we enter the back half of this year.

Matthew B. Oppenheimer: The outlook also allows us to take advantage of opportunities to acquire even more customers. If the unit economics remain compelling and we continue to be highly targeted in deploying our marketing investments.

Matthew B. Oppenheimer: We're planning for a macro and FX environment that remains consistent with what we've seen in the first quarter of 2024.

Matthew B. Oppenheimer: Continued global diversification resilient customer base, and increasing scale help us to mitigate localized macroeconomic or FX trends.

Matthew B. Oppenheimer: Overall, we're pleased with the solid start to the year and our business remains robust and resilient as we serve customers that have a recurring need to send money home.

Hemanth Munipalli: The outlook also allows us to take advantage of opportunities to acquire even more customers if the unit economics remain compelling, and we continue to be highly targeted in deploying our marketing investments. We're planning for a macro and effects environment that remains consistent with what we saw in the first quarter of 2024. Our continued global diversification, resilient customer base, and increasing scale help us to mitigate localized macroeconomic or FX trends. Overall, we're pleased with a solid start to the year, and our business remains robust and resilient as we serve customers that have a recurring need to send money home. With that, Matt and I will open up the call for your questions. Operator. Thank you.

Speaker Change: With that Matt and I will open up the call for your questions operator.

Operator: Thank you. And as a reminder, press star 1-1 to get in the queue and wait for your name to be announced. To remove your question, simply press star 11 again.

Speaker Change: Thank you and as a reminder, crestar one one to get in the queue and wait for your name to be announced.

Speaker Change: To remove your question simply press Star one again.

Operator: Please stand by while we compile the Q&A roster. One moment for our first question, please. And it comes from the line of Andrew Schmidt with Citiglobal. Please proceed.

Speaker Change: Please standby, while we compile the Q&A roster.

Matthew B. Oppenheimer: One moment for our first question please.

Matthew B. Oppenheimer: And it comes from the line of Andrew Smith with Citigroup. Please proceed.

Andrew Garth Schmidt: Hey, Matt. Hey, Hemanth.

Andrew Garth Schmidt: Hey, Matt Hey.

Andrew Garth Schmidt: Thanks for taking my questions here.

Andrew Garth Schmidt: Thanks for taking my questions here. I want to dig into the first quarter performance a little bit. I understand that there's normal seasonality there, but historically, you guys have done a great job of delivering on upside expectations. So I'm wondering if maybe you could elaborate on anything else outside of normal seasonality that surprised you. It sounds like customer behavior was pretty consistent, but we'd love to kind of peel back the layers here and better understand if anything played out differently versus your initial expectations. Thanks a lot, guys.

Andrew Garth Schmidt: I wanted to dig into the first quarter performance a little bit understand that there is normal seasonality. There. Historically you guys have done a great job of it.

Andrew Garth Schmidt: Delivering upside expectation so I'm wondering if.

Andrew Garth Schmidt: Maybe you can elaborate if there was anything else outside of normal seasonality that surprised you. It sounds like customer behavior was pretty consistent but would love to kind of peel back the layers here.

Andrew Garth Schmidt: Better understand if anything played out differently versus your initial expectations. Thanks, a lot guys.

Matthew B. Oppenheimer: Yeah, awesome. Thanks, Andrew, for the question.

Speaker Change: Yes, Thanks, Andrew for the question here really excited I think we've had a really strong start to the year Q1 was.

Speaker Change: Well within our expectations, we expected obviously seasonal patterns are known to us historically, so nothing different in Q1 that we've seen in some of the other quarters as well so very consistent and just to reinforce the customer behavior patterns have been as well as super consistent we've seen increased engagement transaction intensity.

Andrew Garth Schmidt: All these patterns and we track our activity rates and so on with our customers.

Matthew B. Oppenheimer: Yeah, really excited. I think we've had a really strong start to the year. Q1 was well within our expectations. We expected, obviously, seasonal patterns that are known to us historically, so nothing different in Q1 that we've seen in some of the other quarters as well. Very consistent, and just to reinforce, the customer behavior patterns have been, as well, super consistent. We've seen increased engagement, transaction intensity, all these patterns when we track our activity rates and so on with our customers. Very consistent. We had record new customer acquisition as well. So, we've seen a lot of consistent patterns in Q1, and we continue to be excited about the year.

Andrew Garth Schmidt: Very consistent we had record new customer acquisition as well so we've seen a lot of consistent patterns in Q1.

Matthew B. Oppenheimer: Andrew, the only thing I'd add is having built this business over the last 10 plus years, there is seasonality to the business and Q1, you know, has less seasonal activity, as I mentioned in the opening remarks, just due to fewer holidays. But if you look at the overall performance of our cohorts, if you look at the overall fundamentals of our business, things are looking, you know, very strong and so excited about the rest of the year and excited about the fact that, you know, out of the gates we grew 32% year-on-year for a business that now, you know, trailing 12 months is at over a billion in annualized revenue, in annual revenue and that's something that those two metrics in combination combined with the improvement on adjusted EBITDA give us a great start to the year that we're really proud of.

Andrew Garth Schmidt: There'll be excited about the year.

Speaker Change: Yes, the only thing I'd add is having built this business over the last 10 plus years.

Speaker Change: There is seasonality to the business in Q1 has less seasonal activity as I mentioned in the <unk>.

Speaker Change: <unk> remarks, just due to fewer holidays, but if you look at the overall performance of our cohort. If you look at the overall fundamentals of our business.

Speaker Change: Things are looking very strong and so excited about the rest of the year and excited about the fact that out of the gates. We grew 32% year on year for a business that now trailing 12 months.

Andrew Garth Schmidt: No, absolutely not. No, it's a great growth rate.

Andrew Garth Schmidt: At over 1 billion in annualized revenue in.

Andrew Garth Schmidt: Annual revenue.

Andrew Garth Schmidt: <unk>.

Andrew Garth Schmidt: That's something that those two metrics in combination combined with the improvement on adjusted EBITDA gives us a great start to the year that we're really proud of.

Andrew Garth Schmidt: That's fair. Maybe dig into marketing expenses just a little bit. So understand, again, the seasonality in the first quarter, but it's a little bit lower versus our expectations. You know, has the strategy around performance marketing changed at all? You know, were you able to deploy as much marketing as, you know, you wanted to in the quarter, given track levels? And then, as we think about the full year and understand that there's some scale in the back half, potentially with marketing expense, how should we expect, you know, at least what are you thinking about right now? Marketing expense trend. Thanks a lot, guys.

Speaker Change: Absolutely, it's a great growth rate.

Speaker Change: That's fair.

Speaker Change: Maybe just dig into the marketing expense just a little bit so understand again the seasonality in the first quarter.

Speaker Change: So, there's a little bit lower versus our expectations.

Speaker Change: Has the.

Speaker Change: Is the strategy around performance marketing changed at all we're able to deploy as much marketing as you wanted to in the quarter given CAC levels and then as we as we think about the full year.

Speaker Change: And understand that there are some scale in the back half potentially with marketing expense how should we expect.

Speaker Change: At least what are you thinking about right now marketing expense trends. Thanks, a lot guys.

Hemanth Munipalli: Thanks, Andrew. Yeah, a great question. Again, I think when we look at marketing, again, the whole quarter was very much in line with our expectations. The same applies to marketing. To your point, we did sequentially reduce marketing expenses, again, as expected and on plan, and we were able to acquire record new customers in the quarter as well. So we look at unit economics very closely, and I think that's one of our competencies that we have built over the years.

Speaker Change: Yes, Thanks, Andrea Great question again, I think when we look at marketing again, the whole quarter was very much in line with our expectations same applies to marketing to your point, we did sequentially reduced marketing expense, where it began expected in plan.

Speaker Change: Able to acquire.

Speaker Change: Our record new customers in the quarter as well. So we look at unit economics are very closely and I think thats one of our competencies that we've built over the years and we look at the lifetime values of our customers. We look at cost of acquisition and look at those ratios very consistent across the board we've seen again on the LTV front consistent.

Hemanth Munipalli: And we look at the lifetime values of our customers. We look at the cost of acquisition, and we look at those ratios, very consistent across the board. We've seen, again, on the LTV front, consistent behavior from our customers. So it gives us continued conviction that the investments we're making in marketing make a lot of sense for us when we think about payback. And these investments have a payback of less than 12 months, as we called out in the prepared remarks as well.

Speaker Change: And we hear from our customers. So gives us continued conviction that the investments, we're making in marketing mix a lot of sense for us when we think about payback and these investments have less than 12 months payback as we called out in the prepared remarks as well in terms of trends.

Hemanth Munipalli: In terms of trends, it's similar to what we called out last quarter; we do think that as we get to the back half of the year, some of the growth rates in marketing will decelerate in the back half of the year, which is also reflected in our guide for the year. So no change in our strategies and on marketing investment; excited about the customers we're acquiring and the paybacks that we're seeing.

Speaker Change: Similar to what we called out last quarter, we do think that as we get to the back half of the year some of the growth rates in marketing will will decelerate.

Speaker Change: In the back half of the year.

Speaker Change: <unk> is also reflected in our guide for the year. So no change in our strategy is around marketing investment excited about the customers who are acquiring and the payback. So we're seeing.

Andrew Garth Schmidt: Got it. Thank you very much, Hemanth. Appreciate the comments. Thank you. One moment for our next question, please. And it comes from Ramsey El Assal with Barclays. Please proceed. Hi, this is Allison on behalf of Ramsey. Thank you so much for taking our question. So it seems like customer acquisition is a key focus.

Speaker Change: Got it. Thank you very much I appreciate the comments.

Operator: Thank you. One moment for our next question, please. And it comes from Ramsey El Assal with Barclays. Please proceed. Hi, this is...

Speaker Change: Thank you one moment for our next question. Please.

Speaker Change: And it comes from Ramsey El <unk> with Barclays. Please proceed.

Speaker Change: Hi, This is Allison on for Ramsey. Thank you so much for taking our question. So it seems like customer acquisition is a key focus here.

Allison: Some really interesting marketing initiatives in the works do you think you could give us some updated thoughts on where you're seeing new users come from and maybe how that was.

Allison: Today's results. So just where are you taking share from when you are a client or a customer is a customer who's brand new to remittances are they coming from a digital channel or brick and mortar just some updated thoughts here on <unk>.

Speaker Change: General dealer adds would be really helpful.

Matthew B. Oppenheimer: Yeah, thanks, Allison. If you look at where our customers are coming from, there's a wide range of competitors. It's a very fragmented market, of which, as we've mentioned, we're only 2% of the overall market. Most customers, it really depends on the market, but most customers we have, you know, are not necessarily new immigrants, given that there are 250 plus million immigrants that live and work outside the country they were

Speaker Change: Yes, Thanks Allison.

Speaker Change: If you look at where our customers are coming from.

Speaker Change: Ride range of.

Speaker Change: Competitors, it's a very fragmented market of which as we've mentioned, we're only 2% of the overall market.

Speaker Change: Most customers it really depends on the market, but most customers have.

Speaker Change: Not necessarily new immigrants given that there are 250 plus million immigrants that live and work outside the country, they're born and so lots of room to grow within that customer base and <unk>.

Speaker Change: Lots of marketing opportunity to talk a little bit to Andrew's question, but we have no shortage of opportunities of high return marketing channel to invest in and we're seeing.

Matthew B. Oppenheimer: And so, lots of room to grow within that customer base and lots of marketing opportunities. It ties a little bit to Andrew's question, but we have no shortage of opportunities for high-return marketing channels to invest in. And we're seeing some of the channels that I talked about in the opening remarks in terms of being able to focus on certain geographies, like LA, seeing good returns from marketing channels like that. And our product continues to get better and better every day in terms of reliability and speed.

Speaker Change: Some of the channels that I talked about in the opening remarks in terms of.

Speaker Change: Being able to focus in certain geographies like la <unk> seen.

Speaker Change: Good returns from marketing channels like that and our product continues to get better and better every day in terms of reliability and speed and so that also creates a word of mouth effect that we're really excited about so while you do see the quarterly net adds being lower in Q1 because of the seasonality of the retention the number of.

Matthew B. Oppenheimer: And so that also creates a word of mouth effect that we're really excited about. So, while you do see the net ads being lower in Q1 because of seasonality, the retention, and the number of new customers coming in at record numbers is really exciting for what it holds for the rest of the year. Thanks so much.

Speaker Change: New customers coming in at record numbers is really exciting for what it holds for the rest of the year.

Speaker Change: Thanks, so much very helpful.

Matthew B. Oppenheimer: Thank you. One moment for our next question, please, and he's on the line with Will Nance with Goldman Sachs. Please proceed.

Speaker Change: Thank you Mohammed.

Speaker Change: Our next question please.

Speaker Change: And he is from the line of will Nance with Goldman Sachs. Please proceed.

William Alfred Nance: Hey guys, appreciate you taking the question. I wanted to ask about maybe some of the interplay between the revenue yield on volume and the transaction cost that you mentioned, just knowing that that's a very dynamic pricing. And it seems like there's been a lot of shift just in terms of the rates of digital versus versus in-person disbursement. I'm just wondering if there's anything to be aware of as we think about a kind of continued reduction in transaction costs and sort of your reaction function to gross revenue.

William Alfred Nance: Hey, guys I appreciate you taking the question.

William Alfred Nance: Wanted to ask about maybe some of the interplay between the revenue yield on volume and the transaction costs that you mentioned just knowing you guys are very dynamic pricing and it seems like theres been a lot of mix shift just in terms of the way, it's a digital versus versus in person dispersal.

William Alfred Nance: I'm just wondering if theres anything to be aware of as we think about a kind of a continued reduction in transactional costs and sort of your reaction function to gross revenue.

William Alfred Nance: When you see these shifts to either lower cost payment methods or you gain scale, I guess you should set it a different way. Like, are you guys passing on any of the benefits of transaction costs to the customers? And if we see benefits of transaction costs, should we also expect all the people to see the gross take rate come down?

William Alfred Nance: When you see these shifts to either lower cost payment methods are you gain scale I guess said a different way like are you guys passing on any of the benefits of transaction cost to.

William Alfred Nance: To the customers and if we see benefits for transaction cost should we also expect all else equal that the gross take rate come down.

William Alfred Nance: Yeah, thanks Will for the question. There's a lot in there to unpack, but maybe just beginning with underpinning it around LTV. We really focus on making sure that we're improving and growing LTV with our customers. And that's where the real value is.

Speaker Change: Yes. Thanks for the question there is a lot in there to unpack, but maybe just beginning with underpinning it around LTV, we really focus on making sure that we're improving and growing the LTV with our customers and Thats, where the real value is and we look at obviously customer behavior trends, which we've talked about and.

Hemanth Munipalli: And we look at, you know, obviously, customer behavior trends, which we talked about. And I think you called out the digital trend there as well. And we've seen improved mix towards digital transactions, which again, the 500 basis points this quarter, similar to last quarter as well. So as a digital first player, and now at a significant scale globally, we're excited about that trend. And that certainly has, you know, a degree of impact in terms of the mixed shifts that we're seeing. But I would say broadly when you ask about take rate, there's a lot, there's other mixed factors in there. We're obviously in multiple geos, etc.

William Alfred Nance: I think you called out the digital trend there as well and we've seen an improved mix towards digital transactions, which again to 500 basis points. This quarter similar to last quarter as well so as a digital first players now have significant scale globally. We're excited about that trend and that certainly has.

Hemanth Munipalli: Three of impact in terms of the mix shifts that we're seeing.

Hemanth Munipalli: But I would say broadly on you asked about take rate.

William Alfred Nance: There's other mix factors in there where obviously in multiple geos.

Hemanth Munipalli: When we see our overall take rate with an average of an average.

Hemanth Munipalli: And when we see our overall take rate, with an average of an average, you know, we continue to remain in a band that, you know, we're comfortable with. It's in the two to two and a half percent range, which was very close to what we had sequentially last quarter as well. So no real changes, but there are obviously some underpinning mixed shifts that we called out a particular digital trend there. On the transaction cost side, yeah, we continue to improve.

William Alfred Nance: We continue to remain in a band that we're comfortable with it and the 2% to 5% range was.

William Alfred Nance: Very close to what we had sequentially last quarter as well so no real.

Hemanth Munipalli: Changes there is obviously some underpinning mix shifts that we called out, particularly that theres still trend there on.

Hemanth Munipalli: We think that, you know, having more direct connections, reducing friction with, you know, friction in the entire process are all things that will help us reduce transaction costs, and Matt talked about that in his prepared remarks as well. So I would kind of disconnect a little bit around kind of the take rate percentage and the transaction margin percentages. You know, I think they're somewhat not completely directly related, but we're seeing great value we're providing to our customers reflected in what you're seeing in terms of revenue growth and activities and an improvement on the transaction expense side as well. Anything further to add, Matt?

Hemanth Munipalli: The transaction cost side, yes, we continue to improve.

William Alfred Nance: That having more direct connect.

Matt: Reducing friction with.

Matt: Friction in the entire process.

William Alfred Nance: Are all the things that will help us reduce transaction costs and Matt talked about that in his prepared remarks as well. So I would kind of disconnect a little bit around kind of the take rate percentage in the transaction margin percentages.

William Alfred Nance: They are somewhat not completely directly related.

William Alfred Nance: We are seeing great value, we're providing to our customers.

Matt: Reflected in what Youre seeing in terms of revenue growth and activities and an improvement on the transaction expense side as well anything further to add mark.

Matthew B. Oppenheimer: I think, yeah, Will, it's a great question. I think the punchline answer to the take rate question is "makeshift." So that's within the normal band.

Matt: Yes, well, it's a great question I think the punchline answer to the take rate question is mix shift so thats within the normal band, there's nothing that's happening from a competitive standpoint in Q1, the change that and then I Love. Your question around digital disbursement, because I think that we have a strategic advantage with our digital first approach at scale.

Matthew B. Oppenheimer: There's nothing, you know, that's happening from a competitive standpoint in Q1 that has changed that. And then I love your question around digital disbursement because I think that we have a strategic advantage with our digital first approach at scale to continue to drive variable costs out of the system. And as we do that, we can decide how much we pass along to customers versus how much we pass along to, you know, improving transaction expense.

Matthew B. Oppenheimer: To continue to drive variable costs out of the system and as we do that we can decide how much we pass along to customers versus how much we pass along to improving transaction expense, but lots of room for us to continue to differentiate there and we are leading the way when it comes to Digitization and we're really really excited and proud of that.

Matthew B. Oppenheimer: But lots of room for us to continue to differentiate there, and we're leading the way when it comes to digitization, and we're really, really excited and proud of that and excited about what it will hold for our customers as we look forward.

Matthew B. Oppenheimer: And excited about what it will hold for our customers and we look forward.

William Alfred Nance: Yeah, awesome. It makes a ton of sense. And then just maybe as a follow-up, you know, the seasonality kind of dynamics, I think, you know, kind of coming up every every other quarter. And I hear the commentary on sort of the cadence in the back half of the year, which is, I guess, great to hear the confidence. And I guess I wanted to follow up on the commentary that the growth rate should actually be stronger in the second half of the year on easier comps. And I guess maybe you could just expand a little bit more on that?

Matthew B. Oppenheimer: Okay.

Speaker Change: Yes, awesome makes a ton of sense and then just maybe as a follow up.

William Alfred Nance: The seasonality kind of dynamics I think kind of.

William Alfred Nance: He's coming up every every other quarter and I hear the commentary on sort of the cadence in the back half of the year, which is.

William Alfred Nance: Great to hear the confidence that I guess I wanted to follow up on the commentary that the growth rate should actually be stronger in the second half of the year on easier comps and I guess, maybe can you just expand a little bit more on that I guess, when we think about seasonality. It seems like in every other quarter type of thing and so when you're talking about the stronger growth rates in the back half of the year.

Hemanth Munipalli: Like, I guess, when we think about seasonality, it kind of seems like an every other quarter type of thing. And so when you talk about the stronger growth rates in the back half of the year, is that mostly a comment on the third quarter? Or, you know, are you are you generally expecting to see acceleration even as we lap what was, you know, a pretty stellar performance in the fourth quarter last year? Sorry to be so nitty gritty on the quarters here. Yeah.

Hemanth Munipalli: Is that mostly a comment on the third quarter R. R.

Hemanth Munipalli: Are you generally expecting to see acceleration, even as we lap what was.

Hemanth Munipalli: Pretty stellar performance in the fourth quarter last year, sorry to be so nitty gritty on the quarters here.

Hemanth Munipalli: Yeah, I mean, the way that we were trying to frame this to help people understand seasonality, of course, there are seasonal patterns, which largely relate to sort of holidays and gift-giving periods. And we kind of see that again in Q2, with some of the holidays coming up or have come up earlier this quarter. Now, to your question on growth rates, yeah, I mean, when we look at last year, first half, second half, and this year, first half, second half, we had a really exceptionally strong first half of 2023.

Speaker Change: Yes, I mean, I think the way that we were trying to frame up this to help people understand the seasonality of course, there are seasonal patterns, which largely relate to just sort of holiday and gift, giving periods and we kind of see that again in Q2 with some of the holidays coming up or have come up earlier.

Hemanth Munipalli: Earlier this quarter now to your question on our growth rates, Yes, I mean, I think when we look at last year first half second half and this year first half second half.

Hemanth Munipalli: Were really exceptionally strong first half of 2023, so when we think about.

Hemanth Munipalli: So when we think about, in terms of growth rates, I think that's kind of why we wanted to share a little bit more around how we think about Q2, as you already have the numbers for Q1, but we do think that Q3 and Q4 will have improved revenue growth rates from that context. We're within the guidance range, again reinforcing the 30 to 32% for the full year. So that's how it sort of plays out.

Hemanth Munipalli: In terms of growth rates, I think thats kind of why we wanted to share a little bit more around how do we think about Q2 as you already have the numbers for Q1, but we do think that Q T. At Q4 will have improved revenue growth rates from that context.

Hemanth Munipalli: The guidance range again, reinforcing that 30% to 32% for the full year.

William Alfred Nance: There's the year-over-year comparison, and then there's sort of the seasonal elements underpinning all of that. Also, I just want to point out that we've had record numbers of new customers. We continue to be excited about adding a lot of new customers. Our base has continued to grow, and we're seeing really strong active customer growth. We talk about QAUs and the metric that we share, but we're excited that we continue to build a very strong base of customers here.

Hemanth Munipalli: So thats, how it sort of plays out there as the year over year comparison.

William Alfred Nance: The seasonal elements.

William Alfred Nance: Underpinning all of that also just wanted to point out that we've had record new customers. We continue to be excited about adding a lot of new customers are basis continue to grow and we're seeing really strong active customer growth, we talk about <unk> and the metric that we share but we're excited to work continue to build a very strong base of customers here.

William Alfred Nance: Got it. Appreciate you taking the questions.

Speaker Change: Got it I appreciate you taking the questions.

Operator: Thank you. One moment for our next question, please, and it comes from the line of KCN1 with J.P. Morgan. Please proceed.

Speaker Change: Thank you one moment for our next question. Please.

KCN1: And it comes from the line of Ken Shan Wang with Jpmorgan. Please proceed.

KCN1: Hi, thanks a lot. I just want to clarify on the new marketing efforts. I know you mentioned something here in L.A. Do you think some of these investments will be more focused in the second quarter, or is this more spread out? Do you see it spreading potentially to other cities or regions as well, based on what you learned? Just trying to understand what's new versus structurally changing in your approach to marketing.

KCN1: Alright. Thanks, So I just wanted to clarify on the new marketing efforts I know you mentioned something here in la.

KCN1: Do you think some of these investors investments will be more focused in the second quarter or is this more spread out do you see it spreading to other.

KCN1: Cities or regions as well based on what you learn I'm just trying to understand what's new versus structurally.

KCN1: The change in your approach on marketing.

Matthew B. Oppenheimer: Yeah, thanks, Tinchin. I would say it's a continuation. So this is not something that's dramatically new or different. It's more rolling out what we've done in new geography. So I wouldn't expect there to be large spikes quarter to quarter.

Speaker Change: Yeah, Thanks, Tien tsin.

Matthew B. Oppenheimer: I would say, it's a continuation. So this is not something thats dramatically different it's more rolling out what we found in new geography, So I wouldn't expect there to be large spikes quarter to quarter and we've got a lot of confidence in the playbook that we've rolled out.

Matthew B. Oppenheimer: And we've got a lot of confidence in the playbook that we've rolled out. So I just mentioned the LA example is one, but we've got a lot of other performance marketing channels that are great acquisition channels, especially during times that customers send flowers like Mother's Day and other seasons like that. So continuation and proven channels that we're excited about the continued return from those.

Matthew B. Oppenheimer: So I just mentioned the <unk> example is one but we've got a lot of other performance marketing channels that.

Matthew B. Oppenheimer: Our great acquisition channels, especially during times that customers send like mother's day and other seasons like that so continuation and proven channel that we're excited about the continued return from them.

KCN1: Okay, great. I mean, just quickly on that. I know a lot has been asked around seasonality, but how about... with the volatility in foreign currency, especially the strong dollar here, is there anything to consider with respect to the pull-forward of growth? I know it'd be transient, but just figured I'd ask and also whether FX volatility is a call out with respect to take rate or fees, monetization, that kind of thing

Speaker Change: Okay, Great and then just quickly on that.

KCN1: I know a lot has been asked around seasonality just how about with.

KCN1: With the volatility in foreign currency.

KCN1: Especially strong dollar here is there anything to consider with respect to pull forward of of growth I know it would be transient, but just figured I'd ask can also FX volatility a call out with respect to take rate or fees monetization that kind of thing.

Hemanth Munipalli: Yeah, thanks, Vincent, for the question. Now, when we look at it on a global basis, we don't we don't see that we have an increasingly diversified portfolio of corridors, and we see FX sort of impacts everywhere. And generally speaking, on a cost of currency basis, as you can see, our revenue growth rate was flat. And so, nothing specific to call out in terms of FX. However, there is always going to be some degree of FX sensitivity for short periods of time at certain transaction sizes. And we see that as well, but on an aggregate basis, as we look across, we haven't seen anything that is material or significant to the results.

Speaker Change: Yes, Thanks Vincent for the question when we look at on a global basis, we don't we don't see an increasingly diversified portfolio of corridors and we see FX sort of impacts everywhere and generally speaking on a constant currency basis as you can see our revenue growth rate was.

Hemanth Munipalli: It was flat and so no nothing specific to call out in terms of FX. There is always going to be some degree of FX sensitivity for short periods of time at certain transaction sizes, and we see that as well, but on an aggregate basis as we look across we.

Hemanth Munipalli: We haven't seen anything that is <unk>.

Hemanth Munipalli: <unk> are significant to the results.

Speaker Change: Good thank you.

Operator: Thank you. One moment for our next question, please. And it comes from the line of Rufus Horn with BMO. Please proceed. Hey guys, thanks for the question. I wanted to ask about the brewery.

Speaker Change: Thank you one moment for our next question. Please.

Rufus Horn: And it comes from the line of ruthless Han with BMO. Please proceed.

Rufus Horn: Hey, guys. Thanks for the question I wanted to ask about the broader competitive environment and really just whether you're seeing any incremental change in competitive intensity any extra color that would be great. Thank you.

Rufus Horn: Yeah, yeah, thanks. I would take that one.

Rufus Horn: Yes, yes, thanks, let me take that one.

Rufus Horn: And the headline there is as we look at the competitive dynamics and we haven't seen any material changes in Q1, I think that's indicative of the fact that it is a very large market as we mentioned were 2% of that very large market.

Matthew B. Oppenheimer: And the headline there is, you know, as we do, we look at the competitive dynamics, and we haven't seen any material changes in Q1. I think that's indicative of the fact that it's a very large market. As we mentioned, we're 2% of that very large market, and we're outperforming that market if you look at the scale and size and growth rate combined of the billion and trailing 12-month revenue and 32% year-on-year growth. And when you look at why that's the case, we tend to be more customer-driven than competitor-driven.

Matthew B. Oppenheimer: And we're outperforming that market. If you look at the scale and size and growth rate combined of $1 billion in trailing 12 month revenue was 32% year on year growth and when you look at why that's the case.

Matthew B. Oppenheimer: We tend to be more customer than competitor led and when you look at the products that we have built and that continues to get better every day in terms of reliability in terms of speed in terms of a lot of those descriptor that we called out that our customers use to describe our products that results in strong retention in.

Matthew B. Oppenheimer: And when you look at the product that we have built, and it continues to get better every day in terms of reliability, in terms of speed, in terms of a lot of those descriptors that we mentioned that our customers use to describe our product, that results in strong retention in an industry-leading product. And we're excited about, you know, continuing to have the kind of growth that I mentioned as we look forward.

Matthew B. Oppenheimer: And industry, leading product and we're excited about continuing to have that.

Matthew B. Oppenheimer: The kind of growth.

Matthew B. Oppenheimer: I mentioned as we as we look forward. So no no changes to note in the competitive dynamics other than the structural benefit that we believe we have as a digital first player at scale and how that resonates in our product.

Matthew B. Oppenheimer: So no changes to note in the competitive dynamics, other than the structural benefit that we believe we have as a digital first player at scale and how that resonates in our product. Okay, and a quick kind of unrelated follow-up on Remitly Circle. I was wondering whether there was any update on progress there. Thank you. Yeah, sure.

Matthew B. Oppenheimer: Okay.

Matthew B. Oppenheimer: Okay, and just a quick kind of unrelated follow up on remotely circle I was wondering whether there was any sort of update on progress there. Thank you.

Rufus Horn: We continue to be really excited about the ability to offer broad financial services for our customers. And as I mentioned during last earnings call, we're investing in what we call our technology platform, and that has paid dividends when it comes to the efficiency and velocity of our engineering team in terms of taking what's more of a monolith to a more decoupled platform that we're using to not only deploy code and deliver faster for our remittance customers, but also we're making very targeted investments that are more efficient to make those investments on top of that technology platform in what we call complementary products and services.

Speaker Change: Yes sure.

Rufus Horn: We continue to be really excited about the ability to offer broad financial services for our customers and as I mentioned during last earnings call.

Rufus Horn: We're investing in what we call our technology platform and that has paid dividends when it comes to the efficiency.

Rufus Horn: And velocity of our engineering team in terms of taking with more of a model that to a more decoupled platform.

Rufus Horn: We are using to not only deploy code and deliver faster for our remittance customers, but also we're making very targeted investments.

Rufus Horn: That are more efficient to make those investments on top of that technology platform in what we call complementary products and services and so circle is one of those.

Rufus Horn: And so Circle is one of those. And given our scale and size as a business and just our approach in general, we like to have products get to more materiality before we talk about them broadly, but excited about what's to come with Circle and another area that we're investing in when it comes to complementary products. More to come there in the future, but excited as ever about the opportunity.

Rufus Horn: And given our scale and size of the business and just our approach in general we like to have products get too.

Rufus Horn: More materiality before we talk about them broadly.

Rufus Horn: But excited about what's to come with circle and another area that we're investing and when it comes to complementary products more to come there in the future, but excited as ever about the opportunity.

Operator: Thank you so much. One moment for our next question, please. And it's from the line of Chris Kennedy with William Blair. Please proceed.

Speaker Change: Thank you.

Speaker Change: Thank you so much.

Cristopher David Kennedy: For our next question please.

Operator: Okay.

Operator: And he is from the line of Chris Kennedy with William Blair. Please proceed.

Cristopher David Kennedy: Good afternoon, and thanks for taking the question, Matt you talked about the structure structural profitability of the business can you give us your updated views on the long term margin opportunity here.

Cristopher David Kennedy: Yeah, I can. I can actually. Why don't I let him off? Yeah, that, and then I'm happy to jump in. Yeah, awesome.

Cristopher David Kennedy: Yes, I can I can actually why don't I, let him answer.

Hemanth Munipalli: Awesome. Yeah, thanks.

Cristopher David Kennedy: And then I'm happy to jump, yes, awesome, yes. Thanks. Thanks for the question, Chris Yeah, I think when we when you think about first off maybe stepping back in here I mean, we I think we reiterated that we have a significant growth opportunity in cross border.

Hemanth Munipalli: Thanks for the question, Chris. Yeah, I think when we think about first off, maybe stepping back in here, I mean, we, we, I think we reiterated that, you know, we have a significant growth opportunity in cross-border and remittances, and we're excited about that. So, we really anchor around, you know, the growth trajectory, and we expect to be sort of having that as being the primary focus of all of our investments that we make.

Cristopher David Kennedy: <unk> and we're excited about that so we're really anchored around the growth trajectory and we expect to be sort of having that as being the primary focus of all of our investments that we're making but as you look across look across the P&L as you've seen we've been delivering improvements in transaction expense reduction and frankly also really excited about the work that's.

Hemanth Munipalli: But as we look across the P&L, as you've seen, we've been delivering improvements in transaction expense reduction and, frankly, also really excited about the work that's been done in reducing our customer service expenses, which have been, you know, reducing year over year quite substantially with both processes, as well as bringing some other AI and other technologies into it. We've renewed, or I'd say we have even more focus on operational efficiencies, and you've seen that now with our EBITDA performance in the quarter and our increase in our conference call for the rest of the year in terms of increasing our EBITDA.

Hemanth Munipalli: <unk> done introducing our customers service expenses.

Hemanth Munipalli: Which which has been.

Hemanth Munipalli: Year over year basis quite substantially.

Hemanth Munipalli: Both processes as well as bringing some of the AI and other technologies into it.

Hemanth Munipalli: We renewed our I'd say I have even more focus on operational efficiencies and you've seen that now with EBITDA performance in the quarter and our increase in our conference for rest of the year in terms of increasing our EBITDA. So we are making progress on improving our margin to your question, but I think it's a little bit too early for us to talk about.

Hemanth Munipalli: So, we're making progress on improving our margin, to your question, but I think it's a little bit too early for us to talk about, you know, the long-term margin profile. The business fundamentally has very strong unit economics, and we've seen that continue to play out. We've seen strong retention and those aspects of customer behavior. So, we want to make sure we're taking a balanced approach, but keeping in mind that there is a cost to capital and delivering returns, both for the near, mid, and long term. So, early to talk about long-term margins, but we're making good progress on that front. Yeah, and Chris, the only thing that I would add on that front is.

Chris: Long term margin profile of the business fundamentally it has very strong unit economics, and we've seen that.

Speaker Change: To play out we've seen strong retention and those aspects of customer behaviors. So we wanted to make sure. We're taking a balanced approach, but keeping in mind. There is a cost of capital and delivering the returns both for the near mid and long term. So early to talk about long term margins, but making good progress on that front.

Hemanth Munipalli: Yeah, and Chris, the only thing that I would add on that front is remittance businesses are payments businesses inherently, and payments businesses at scale get a lot of leverage and cash flow when done effectively and correctly, especially digital payments companies. And I think you're seeing that if you look back, I mean, even a year ago, it's easy to lose sight.

Speaker Change: And Chris the only thing that I.

Hemanth Munipalli: Would add on that front is.

Hemanth Munipalli: Remittance businesses, our payments business inherently.

Hemanth Munipalli: And payments businesses at scale.

Hemanth Munipalli: Or get a lot of.

Hemanth Munipalli: Leverage and and cash flow when done effectively correctly, especially digital payments companies and I think youre seeing that if you look back even a year ago. It's easily flattening we had just over $5 million adjusted EBITDA a year ago were $19 million in the first quarter of this year and we've guided to 85% to $95 million in desk.

Matthew B. Oppenheimer: I mean, we had just over $5 million in adjusted EBITDA a year ago. We're $19 million in the first quarter of this year, and we've got between $85 to $95 million in adjusted EBITDA for the year. So that kind of ramp gives you a sense of how the business is getting leverage. Now, we're still growing at 32% year on year while getting that leverage because we want to balance growth and profitability. Five, 10 years ago, it was really hard to start getting leverage out of the business because we just weren't quite large enough.

Matthew B. Oppenheimer: EBITDA for the year, so that kind of ramp gives you a sense of how the business is getting leverage now were still growing at 32% year on year, while getting that leverage because we want to balance growth and profitability, but I will tell you having again run this business for the last 10 plus years.

Matthew B. Oppenheimer: 510 years ago, it's really hard to start getting leverage out of the business because we just werent quite large enough now we really have the dials around how much we want to drive down to the bottom line versus how much we want to grow and we're excited about that.

Matthew B. Oppenheimer: Now, we really have the dials around how much we want to drive down the bottom line versus how much we want to grow. And we're excited about the momentum on both the top and the bottom line and what's to come. Thank you for that. And then just, you mentioned April; can you give any more color on kind of the trends that you saw in that month? Thanks for taking the question. Yeah, I'm happy to take that one, Chris.

Speaker Change: The momentum on both the top and bottom line and what's to come.

Speaker Change: Great. Thank you for that and then just you mentioned April can you give any more color on kind of the trends that you saw in that months. Thanks for taking my questions.

Matthew B. Oppenheimer: I think that, you know, it's a really important and good question because I think that we've been pleased with the activity, customer activity, in April, as we've seen, given the seasonality points that we've made. And obviously, we look at monthly active rates in addition to quarterly active rates. And so as we look at our QAU goals for Q2, we're feeling good about those. And it reinforces that, you know, there's seasonality to the business, and customer retention continues to be strong, and new customer acquisition continues to be strong, which gives us confidence in, you know, the rest of the year, as we mentioned.

Speaker Change: Yes, Im happy to take that one Chris I think that it's really important and good question because I think that we've been pleased with the.

Matthew B. Oppenheimer: The activity customer activity in April as we've seen given the seasonality point that we've made and obviously we look at monthly active rate then the different quarterly active rate and so as we look at our QA U.

Matthew B. Oppenheimer: Goals for Q2, we're feeling we're feeling good about those.

Matthew B. Oppenheimer: And.

Matthew B. Oppenheimer: It reinforces that.

Matthew B. Oppenheimer: The seasonality of the business and customer retention continues to be strong new customer acquisition continues to be strong, which gives us confidence in the rest of the year as we mentioned the one other thing I will make on this because I think it is related is we don't internally used the term net ads. We do obviously look at quarterly active users, but net adds somehow.

Matthew B. Oppenheimer: And the one other thing I'll make on this, because I think it is related, is that we don't internally use the term net ads. We do, obviously, look at quarterly active users, but net ads somehow would signal that these are, like, new customers coming into the business, and different customers are active in different quarters, hence the seasonality. And when you look at the activity rate in April, it further reinforces that we're excited about, you know, our continued retention and the great product that we're continuing to deliver for customers.

Matthew B. Oppenheimer: Good.

Matthew B. Oppenheimer: These are like new customers coming into the business and different customers are active in different quarters, hence the seasonality and when you look at the activity rate in April it further reinforces that we're excited about our continued retention and the <unk>.

Matthew B. Oppenheimer: Product that we're continuing to deliver for customers.

Cristopher David Kennedy: Thank you. One moment for our next question, please. And it comes from the line of Darrin Peller with Wolf Research. Please proceed.

Speaker Change: Thank you.

Speaker Change: Thank you one moment for our next question. Please.

Cristopher David Kennedy: And it comes from the line of Darrin Peller with Wolfe Research. Please proceed.

Darrin David Peller: Hey guys, Can we just circle back to the digital disperse transaction trends in terms of, you know, the amount of the volume per transaction and the trend line has been dropping a bit, and for some time now, I just kind of want to understand some of the dynamics there and what you see in terms of stabilization or maybe when you could see stabilization on that front, and maybe a little more on the dynamics driving that.

Darrin David Peller: Hey, guys.

Darrin David Peller: Can we just circle back to the digital dispersed transaction trends in terms of the amount of the volume per transaction and the trend line has been been dropping a bit and for some time now I was just kind of want to understand some of the dynamics there and what you see in terms of stabilization or maybe when you could see stabilization on that front.

Darrin David Peller: And maybe a little more on the dynamics driving that.

Matthew B. Oppenheimer: Yeah, sure, Darrin. Yeah, great question. I think that we do see in some markets an increase in digital disbursement trends, which we view as a real positive for our business. And it might mean that, you know, customers transact more frequently, but a lower average transaction amount, given how easy it is and that the variable costs and effort of sending to a mobile wallet, as opposed to cash pickup, both take that cost out of the system and make it easier for customers.

Speaker Change: Yeah sure Darrin, yes, great Great question, I think that we do see in some markets and increase in digital disbursement trends, which we view as a real positive for our business and it might mean that customers transact more frequently but at a lower average transaction amount given how easy it is.

Matthew B. Oppenheimer: Variable cost and effort of sending to a mobile wallet as opposed to.

Matthew B. Oppenheimer: Cash pick up but it takes out cost out of the system and makes it easier for customers and so we feel.

Matthew B. Oppenheimer: And so we feel, you know, very well positioned to lead some of those transitions in some markets. But I can't emphasize enough that it really varies depending on the market. We're in 170 countries; some markets remain predominantly cash pickup; some markets are mobile wallet; some markets are bank deposit; a few markets are even home delivery, where a courier will come deliver cash to one's home. And what we're good at is getting customers the funds the way that they want to receive them, looking very intentionally at the variable costs that feed into that lifetime value and then offering a great product to customers that meets their needs.

Matthew B. Oppenheimer: Very well positioned to lead some of those transactions in some markets, but I can't emphasize enough that it really varies depending on the market where on a 170 countries. Some market remain predominantly cash pick up some markets or mobile wallet. Some markets are bank deposit a few markets or even home delivery.

Matthew B. Oppenheimer: Our courier will come deliver cash to winter and what we're good at it.

Matthew B. Oppenheimer: Is getting customers the funds the way that they want to receive them.

Matthew B. Oppenheimer: Looking very intentionally at the variable cost that feed into that lifetime value and then offering a great product to customers that.

Matthew B. Oppenheimer: And given our scale and size, we also have more and more leverage to drive down those costs and do more direct integrations to make that experience more affordable and much faster and more seamless. So we see these trends as positive for our business. And they do vary, though, depending on the country that customers are sending money to.

Matthew B. Oppenheimer: That meet their needs and given our scale and size, we also have more and more leverage too.

Matthew B. Oppenheimer: Drive down those costs and do more direct integrations to.

Matthew B. Oppenheimer: To make that experience more affordable and much faster and more seamless. So we see these trends as positive for our business and.

Matthew B. Oppenheimer: They do vary depending on the country that customers are sending money too.

Darrin David Peller: All right. Thanks, Matt.

Speaker Change: Alright, Thanks, Matt I guess, maybe just one quick follow up would be on the coroner add potential just looks roughly flat if I if I'm reading it right.

Darrin David Peller: I guess maybe just one quick follow-up would be on the corridor advertising potential. It just looked roughly flat, if I'm reading it right. And curious to hear what the opportunity in the pipeline is there. And then, I guess, also a quick follow-up on Circle. I didn't hear anything around timing expectations more than just, you know, obviously it is a big opportunity. Any more color you can give us on potential cadence or timing around that? Thanks a lot.

Darrin David Peller: And curious to hear what the opportunity and the pipeline is there and then just.

Darrin David Peller: I guess also a quick follow up on circle I didn't hear anything around timing.

Darrin David Peller: Expectations more than just obviously it is a big opportunity just any more color you can give us on potential.

Darrin David Peller: Potential cadence or timing around it excellent. Thanks again.

Matthew B. Oppenheimer: Yeah, yeah, on the first question, we are now at over 5000 corridors, and there is no shortage of opportunity for us to grow in both the corridors that we are in as well as new corridors that we can add. And so I mentioned sub-Saharan Africa is one region. I've mentioned a few others in the past.

Speaker Change: Yes, yes on the first question.

Matthew B. Oppenheimer: We are now at over 5000 corridors and.

Matthew B. Oppenheimer: There is no shortage of opportunity for us to grow in both the corridors that we that we're in as well as new corridors that we can add and so I mentioned sub Saharan Africa as one region that was mentioned a few others in the past.

Matthew B. Oppenheimer: But it's not like we need to launch new corridors to drive even shorter medium-term growth. We will still launch new corridors because we're in this for the long term. And that is how we have had compounding growth over the last decade plus. But the point about corridors is there is no shortage of room to grow in corridors that we're in, including corridors we've been in for the last 10 plus years.

Matthew B. Oppenheimer: But it's not like we need to launch new corridor to drive even short or medium term growth, we will still launch new corridors because we're in this for the long term and that is how we have had the compounding growth over the last decade, plus but the point on core doors is there is no shortage of room to grow in corridors that we're in including.

Matthew B. Oppenheimer: Corridors, we've been in for the last 10, plus years, and so lots of opportunity to grow with new and existing corridors.

Matthew B. Oppenheimer: And so lots of opportunity to grow in new and existing corridors. And on Circle, I'd broaden it to complementary products, and it's a fair question around timing. We'll talk more about it once it gets to the material point that we think it makes sense to talk about it. But I would do that as a complementary product and a way that we're deepening relationships with our existing customers and excited about the early results we're seeing there and more to come in the future.

Matthew B. Oppenheimer: And on the circle.

Matthew B. Oppenheimer: I'd broaden it the complimentary products and it's a fair question around timing.

Matthew B. Oppenheimer: John will talk more about it once it gets to the material points that we think it makes sense to talk about it but.

Matthew B. Oppenheimer: But I would view that as a complementary product and a way that we're deepening relationships with our existing customers.

Matthew B. Oppenheimer: And excited about the early results, we're seeing there and more to come in the theater.

Speaker Change: Okay. Thanks, guys.

Darrin David Peller: Thanks. One moment for our next question, please. And it comes from the line of Alex Markgraff with KeyBank Capital Markets. Please proceed.

Speaker Change: One moment for our next question please.

Alexander Wexler Markgraff: And it comes from the line of Alex <unk> with Keybanc capital markets. Please proceed.

Operator: Hey guys, thanks for taking my questions. Just a couple for me.

Darrin David Peller: Yes.

Alexander Wexler Markgraff: Hey, guys. Thanks for taking my questions. Just a couple for me first Matt on the accelerated Hh offering that you mentioned going live later this year any sort of considerations around the economics of that payment method versus what exists today for Italy.

Alexander Wexler Markgraff: First, Matt, on the accelerated ACH offering that you mentioned going live later this year, any sort of considerations around the economics of that payment method versus what exists today for Remitly?

Alexander Wexler Markgraff: Yes, yes, we're excited about watching fast ACTH later this year and the economics are favorable in the sense that we can offer a faster.

Matthew B. Oppenheimer: Yeah, yeah, we're excited about launching fast ACH later this year. And the economics are favorable in the sense that we can offer a faster product without having to pay some of the card processing fees. And so that's something we're excited to be able to offer to our customers later this year.

Matthew B. Oppenheimer: <unk> without having to pay some of the card processing fees and so.

Matthew B. Oppenheimer: That's something we're excited to be able to offer to our customers later this year.

Alexander Wexler Markgraff: Okay, great. And then, um...

Speaker Change: Okay, Great and then.

Alexander Wexler Markgraff: Sorry to belabor the point on net ads, or if that's not the right metric, just quarterly actives. But I guess I'm trying to sort of square some of the comments on seasonal opportunity to add customers with the comments around record new customers. And then what I think a lot of folks do look at externally are net ads. So just, I guess I'm struggling to sort of piece that all together. And if quarterly net ads is not the right metric to look at, just any sort of guidance on how to better think about that and capture how you all are thinking about it internally would be helpful.

Alexander Wexler Markgraff: Sorry to belabor the point on.

Alexander Wexler Markgraff: Or if that's not the right metric just quarterly.

Alexander Wexler Markgraff: Quarterly actives, but I guess I'm trying to sort of square some of the comments on <unk>.

Alexander Wexler Markgraff: Seasonal opportunity to add customers with the comments around record that.

Alexander Wexler Markgraff: Record new customers.

Alexander Wexler Markgraff: And then what I think a lot of folks do look at externally as net adds so just I guess I'm struggling to sort of piece that altogether.

Alexander Wexler Markgraff: Yeah.

Alexander Wexler Markgraff: Quarterly net adds is not the right metric to look at it just any sort of guidance on how to better think about that and capture.

Alexander Wexler Markgraff: How you are thinking about it internally it would be helpful.

Hemanth Munipalli: Yeah, yeah, thanks for the question, Alex. I think, yeah, I think we, obviously, with the metrics we share, we understand the map that's being done there. But we just wanted to make sure there's clarity in the sense that there are customers who are active at different periods of time, and the seasonality there plays into effect. And in terms of the record, so when you think about Q1 in particular, maybe this is the simplest way to answer.

Speaker Change: Yes, yes. Thanks for the question, Alex I think yes, I think we obviously did with the metrics we share we understand the math thats being done there, but we just wanted to make sure. There's clarity in the sense that there are customers who are active in different periods of time and the seasonality there plays into effect in terms of record. So when you think about Q1.

Hemanth Munipalli: January and February are generally much lighter months than most months in the year, and March is where activity starts picking up. And so when we looked at that and saw that a significant portion of new customer acquisition would come in the later part of Q1, so I think this is around. You have to look at almost monthly active users to look at what's going on in terms of rates there. So that's probably one of the better metrics. And we track that internally and are pretty excited about how our marketing and other efforts are helping us acquire new customers.

Hemanth Munipalli: And in particular, maybe this is the simplest way to answer it January and February are generally much lighter months than in most months in the year and margins were activity starts picking up and so when we looked at that and saw that so significant portion of new customer acquisition.

Hemanth Munipalli: Whats come in later part of came in the later part of Q1. So I think this is.

Hemanth Munipalli: This is around you have to look at almost monthly active users.

Hemanth Munipalli: Look at what's going on in terms of.

Hemanth Munipalli: It's there so that's probably the one of the better metrics and we track that internally I'm pretty excited about how our marketing and other efforts that are helping us acquire new customers.

Alexander Wexler Markgraff: Okay, thank you, Hemanth.

Speaker Change: Okay. Thank you very much.

Operator: Thank you. One moment for our next question, please. And he's from Andrew Bauch with Wells Fargo. Please proceed.

Hemanth Munipalli: Thank you one moment for our next question. Please.

Operator: And he is from Andrew Bock with Wells Fargo. Please proceed.

Andrew Thomas Bauch: Hey guys, sorry to ask duplicative questions at the back end here, but I guess looking at the yield trajectory that you're seeing in the business now, I know we've been talking about the digital piece of the business and the like, but is there any way to get comfortable with how we should be modeling this gross yield trajectory through the remainder of the year? And is it mixed that you kind of anticipate shifting back into higher yield corridors, or are we all looking at this kind of the wrong way? Because I think that's the key piece that people are trying to focus on.

Andrew Thomas Bauch: Hey, guys.

Speaker Change: Sorry to ask.

Andrew Thomas Bauch: The questions at the back end here, but I guess looking at the yield trajectory that youre seeing in the business now I know, it's we've been talking about the digital piece of the business and the like but is there any way to get comfortable on how we should be modeling.

Andrew Thomas Bauch: This gross yield trajectory through the remainder of the year and what is it mix that you kind of anticipate shifting back into higher yield corridors or is it are we all looking at this kind of on the wrong way because I think thats. The key piece that people are trying to focus in on.

Hemanth Munipalli: Yeah, I don't think there's necessarily an easy way here, Alex, to model that out, because there are quite a few mixed effects when you look at the take rate, if you will, effectively. But largely, it depends on the average transaction price. And that sort of changes by corridor. It changes based on, obviously, the digital trend that we talked about or other options that customers might choose to prefer. So we do look at it on an aggregate average basis, which just tends to operate in a range. And I think the best way to model that going forward is to keep it within that range.

Speaker Change: Yes, I don't I don't think there is a necessarily an easy way here Alex to model that out because they are quite a few mix effects. When you look at.

Hemanth Munipalli: The take rate if you will actively.

Hemanth Munipalli: But largely depends on depend.

Hemanth Munipalli: It depends on the average transaction price in that sort of changes by corridor. It changes based on obviously the digital trend that we've talked about our other options that customers like to preferred. So we do look at it on an accurate aggregate average basis, which to operate in a range and I think the best way to model that going forward.

Matthew B. Oppenheimer: Yeah, and the only thing I'd add is, I don't, well, we've talked about some digital trends. When you're saying yield, I think you're referring to take rate, and I think that there haven't really been, you know, trends in terms of take rate as much as there is mix shift a bit quarter to quarter, but it's not hugely material when you look at that amount of mix. And what we're focused on is, you know, things like ARPU and specifically average revenue per transaction, profit per transaction, and fewer trends there as much as, you know, how we think about modeling the business. So no, no big trends on the take rate side outside of mix shift.

Hemanth Munipalli: Third is to keep it within the range.

Speaker Change: Yes, the only thing I'd add is we've talked about some digital trends when youre, saying yield I think you're referring to take rate and I think that there hasnt really been trends in terms of take rate as much as there is mix shift a bit quarter to quarter, but it's not hugely material. When you look at that amount of mix and what we're focused on is.

Matthew B. Oppenheimer: Like Avenue.

Matthew B. Oppenheimer: And specifically average revenue per transaction or profit per transaction and fewer trends there as much as.

Matthew B. Oppenheimer: How do we think about modeling the business so no.

Matthew B. Oppenheimer: No big trends on the take rate side outside of mix shift.

Andrew Thomas Bauch: Got it, understood. And then, you know, look, it's been two, three quarters now where we've had these higher levels of marketing spend. And I guess I'm trying to understand when you do, you know, ramp up investments in marketing, what do those, you know, LTB curves look like? Should we be anticipating some more returns in the way of customers, be it on a gross or a net basis in 2024? I'm just trying to wrap my head around if that comment about new customers added in 24 relative to 23 is still something we should be relying on.

Matthew B. Oppenheimer: Got it understood and then look it's been two.

Andrew Thomas Bauch: Two three quarters, now, where we've had higher levels of marketing spend and I guess I'm trying to understand when you do.

Andrew Thomas Bauch: Amp up investments in marketing what are those LTV curves look like should we be anticipating some more returns in the way of customers be it on a gross or net basis in 2024 Im just trying to wrap my head around it to that that comment around new customers added in 24 relative to 'twenty three is still <unk>.

Andrew Thomas Bauch: We should be relying on.

Hemanth Munipalli: Yeah, yeah, nothing fundamentally has really changed in terms of our marketing return profile. It remains very strong and consistent. We've previously shared ratios of LTV to CAC, and they tend to be in the six-fish sort of range, and we pay back the loan in less than 12 months. So there's a lot of consistency in that, and so there's really no change in that. Now, when we think about sort of sequential growth from Q1 to Q2 in terms of quarterly active users, given the trends that we've seen in April that, you know, Matt talked about very much in line with our expectations, we do expect an increase in terms of sort of seasonal growth and other growth with even the new customer acquisitions we're doing for Q2 versus what we had in Q1.

Speaker Change: Yes, yes, nothing fundamentally has really changed in terms of our marketing return profile remains very strong and consistent we previously shared ratios of LTV to CAC and they tend to be in the six ish sort of range and with a payback period of less than 12 months. So.

Hemanth Munipalli: There's a lot of consistency in that and so there's really no change in that now when we think about sort of sequential growth Q1 to Q2 in terms of quarterly active users.

Hemanth Munipalli: Given the trends that we've seen in.

Hemanth Munipalli: In April that <unk>.

Hemanth Munipalli: <unk> talked about very much in line with expectation, we do expect an increase.

Hemanth Munipalli: In terms of sort of seasonal growth and other growth with even the new customer acquisitions, we're doing for Q2 versus what we added in Q1.

Andrew Thomas Bauch: Got it. Thanks for the questions.

Speaker Change: Got it thanks for the questions.

Operator: Thank you so much. One moment for our last question, please. And it comes from Matthew O'Neill with FT Partners. Please proceed.

Speaker Change: Thank you so much one moment for our last question. Please.

Matthew B. Oppenheimer: And it comes from Matthew O'neill with Ft Partners. Please proceed.

Matthew B. Oppenheimer: Hi guys, thanks for excluding me. I think most of the questions have been asked and answered. I'll follow up real quick on Darrin's corridor question. Just curious philosophically, you know, around 5,000 now. I think some competitors are a few multiples of that. Is that something that you guys collectively think about internally as a number that is a target to achieve on a quarterly basis or more of an outcome?

Matthew B. Oppenheimer: Hi, guys. Thanks for squeezing me in here I think most of the questions have been asked and answered all follow up real quick on Darren corridor question.

Matthew B. Oppenheimer: Just curious philosophically.

Matthew B. Oppenheimer: Around 5000, I think some competitors are multiples of that is that something that you guys collectively think about internally.

Matthew B. Oppenheimer: A number that is a target to achieve on a quarterly basis or a more of an outcome.

Matthew B. Oppenheimer: Just kind of happens over time, recognizing that all quarters are not created equal.

Matthew B. Oppenheimer: Yeah, yeah, thanks, Matt. I see us getting into that many corridors in the future, but it's in our DNA given how corridor specific this business is and how unit economic focused this business is to do it in a really intentional way. And so if you go back to the early days of Remitly, you know, we spent a couple of years just focused on the US and the Philippines, and we got that right, and then we scaled in the right way.

Speaker Change: Yeah, Yeah. Thanks, Matt.

Matthew B. Oppenheimer: I view us getting into that many corridors in the future, but it's in our DNA given how corridor specific this businesses and our unit economic focus those businesses too.

Matthew B. Oppenheimer: To do it in a really intentional way and so if you go back to the early days of <unk>. We spent a couple of years just focused on the U S. The Philippines, and we got that right and then we scaled in the right way.

Matthew B. Oppenheimer: And the good news about where we're at now is we have a portfolio of 5,000 corridors to be able to grow in, all of which have growth opportunities. And we also have corridors that we can continue to launch over the coming quarters and years. So no shortage of growth opportunities, as I mentioned, lots of new corridors to be able to grow in currently, and a playbook to launch new corridors in a really intentional way, so we launch them at the right time, with the right efficiency, with the right playbook, as we've always done, to be able to fuel long-term growth.

Matthew B. Oppenheimer: And the good news about where we're at now is we have a portfolio of 5000 corridors to be able to grow in all of which there is growth opportunity.

Matthew B. Oppenheimer: And we also have corridors that we can continue to launch over the coming quarters and years. So no shortage of growth opportunities as I mentioned.

Matthew B. Oppenheimer: Lots of new corridors to be able to grow and currently and playbook to launch new corridors and it really intentional way. So we launched them in the right time with the right efficiency with the right playbook as we've always done to be able to fuel long term growth.

Matthew B. Oppenheimer: Thanks, Matt. And if I could just squeeze in one more follow-up to fully elaborate on the marketing questions. Would you say you're still operating in a bit of a heightened kind of marketing spend paradigm, like you have communicated over the last couple of quarters? And if so, is it maybe more of a structural shift that as you're seeing scale come through in the business and transaction and other costs are coming down structurally, you'll want to sort of put more money towards marketing going forward?

Speaker Change: Thanks, Matt and if I could just squeeze in one more follow up but fully belabor the marketing questions.

Matthew B. Oppenheimer: Would you say you are still operating in a bit of a heightened kind of marketing spend.

Matthew B. Oppenheimer: Paradigm.

Matthew B. Oppenheimer: Have communicated over the last couple of quarters and if so is it maybe more of a structural shift that as youre seeing scale come through in the business and transaction and other costs are coming down structurally that on a more permanent basis youll want to.

Matthew B. Oppenheimer: Put more money towards the marketing going forward.

Matthew B. Oppenheimer: Yeah, thanks Matt. And not to belabor the point at all, I think marketing in the data-driven way that we do is one of our competitive advantages, and Matthew talked about it all day. I wouldn't I wouldn't say that there's a heightened marketing competitive environment right now. I think that it's, you know, continuation in terms of stability on that front. I think our marketing team is continuing to do very well across multiple channels and multiple geographies.

Speaker Change: Yeah, Thanks, Matt and not not belaboring, it all I think marketing.

Matthew B. Oppenheimer: In the data driven way that we do is one of our competitive advantages and so Matthew talked about it all day.

Matthew B. Oppenheimer: I wouldn't I wouldn't say that there is a heightened marketing.

Matthew B. Oppenheimer: Competitive environment right now I think that it's.

Matthew B. Oppenheimer: I think that there is.

Matthew B. Oppenheimer: Continuation in terms of stability on that front I think our marketing team is continuing to execute very well across multiple channels and multiple geographies.

Matthew B. Oppenheimer: And we're excited about the payback. We're excited about the record number of new customers. And given the kind of cohort way that our business works with seasonality, we're excited about what that means for QAUs and revenue and, ultimately, profit growth in the quarter.

Matthew B. Oppenheimer: And we're excited about payback, we're excited about the record number of new customers and given the kind of cohort way that our business works with the seasonality. We're excited about what that means for QA use.

Matthew B. Oppenheimer: Revenue and ultimately profit growth in the quarters to come.

Matthew B. Oppenheimer: Thank you. That was the final question. I will now turn the call back to Matt Oppenheimer for closing remarks.

Speaker Change: Great. Thanks, so much.

Matthew B. Oppenheimer: Thank you and that was the final question I will now turn the call back to Matt Oppenheimer for closing remarks.

Matthew B. Oppenheimer: Great, thanks again everyone for the really thoughtful questions. As we always do at Remitly, I'd like to end the call by highlighting another one of our amazing customers, Ramil. Ramil sends money from the United Kingdom to his family in the Philippines. He was one of the many customers who shared their feedback with us last year, and he commented: trustworthy, reliable, fast, and, most of all, I feel safe. We want to thank Ramil for placing his trust, which is ultimately what our product is all about, in Remitly, and for his recognition of the safety, reliability, and speed of our service.

Matthew B. Oppenheimer: Great. Thanks, Thanks again, everyone for the really thoughtful questions as we always do at remotely I'd like to end the call by highlighting another one of our amazing customers Ramiele Romeo sends money from the United Kingdom to his family in the Philippines.

Matthew B. Oppenheimer: He was one of the many customers who shared their feedback with us last year and Ramiele commented trustworthy reliable fast and most of all I feel safe.

Matthew B. Oppenheimer: We want to thank reveal for placing US trust, which is ultimately what our product is all about in remotely and for his recognition of the safety reliability and speed of our service and we want to thank all of you for joining us and we appreciate your continued support we are excited about the opportunities ahead, and we look forward to sharing our progress as we continue to.

Matthew B. Oppenheimer: We want to thank all of you for joining us, and we appreciate your continued support. We are excited about the opportunities ahead, and we look forward to sharing our progress as we continue to execute on our vision of transforming lives with trusted financial services that transcend borders.

Matthew B. Oppenheimer: Execute on our vision of transforming lives with trusted financial services that transcend boarders.

Operator: Thank you all for participating, and you may now disconnect.

Speaker Change: Thank you all for participating and you may now disconnect.

Operator: Goodbye.

Operator: Okay.

Operator: Yes.