Q2 2024 Remitly Global Inc Earnings Call

Okay.

Operator: And thank you for standing by. Welcome to the Remitly second quarter 2024 earnings call. At this time, all participants are in a listen-only mode.

Operator: And thank you for standing by.

Speaker Change: And thank you for standing by and welcome to the remainder of the second quarter 'twenty 'twenty four 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 one on your telephone you wouldn't hear an automated message advising your hand is raised to withdraw your question. Please press <unk>.

Operator: Welcome to the Remitly 2nd quarter of 2024 earnings call. At this time, our participants are on listen-only mode. After the speaker's presentation, there will be a question-and-answer session. So ask the question during the session, and you will need to press star one one on your telephone. You will then hear an automated message advising. Your hand is raised. To withdraw your question, please press star one one again. Please be aware that today's conference is very recorded.

Operator: 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 1-1 on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I will now turn the conference over to your speaker today, Stephan Shulstein, Vice President of Investor Relations. Please go ahead.

Speaker Change: One again, please be advised that today's conference is being recorded.

Operator: I would like to hand the conference over to your speaker today.

Speaker Change: I turn the conference over to your Speaker today, Stefan Schulz Senior Vice President of Investor Relations. Please go ahead.

Stephen Shulstein: Stefan Shulstein, Vice President of Invest Relations. Please go ahead.

Stephen Shulstein: Thank you. Good afternoon, and thank you for joining us for Remitly 2nd quarter of 2024 earnings call. Joining me on the call today are Matt Oppenheimer, co-founder and chief executive officer of Remitly, and Hemanth Munipalli, chief finance officer.

Stephen M. Shulstein: Thank you. Good afternoon, and thank you for joining us for Remitly's second 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 and presentation slides, which can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Investor Relations website.

Stephen M. Shulstein: Thank you good afternoon, and thank you for joining us for <unk> second quarter 2024 earnings call. Joining me on the call today are Matt Oppenheimer co founder and Chief Executive Officer permanently came out probably our chief financial Officer.

Stephen Shulstein: Our results and additional management commentary are available in our earnings release and presentation slides, which can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Invest Relations website.

Speaker Change: Our results and additional management commentary are available in our earnings release and presentation slides, which can be found at IR dot dot com.

Speaker Change: Please note that this call will be simultaneously webcast on the Investor Relations website before.

Stephen Shulstein: Before we start, I would like to remind you that we'll be making forward-looking statements within the meaning of the federal securities laws, including but not limited to statements regarding where we release future financial results and management expectations and science. These statements are neither promises nor guarantees and involve risks and uncertainties that make our actual results 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 filing for some more information regarding the risk factors that may affect our results.

Stephen M. Shulstein: Before we start, I would like to remind you that we'll be making forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Remitly's future financial results and management expectations and plans. 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.

Before we start I would like to remind you that we'll be making forward looking statements within the meaning of the federal securities laws, including but not limited to statements regarding <unk> future financial results and management's expectations.

Speaker Change: These statements are neither promises or guarantees and involve risks and uncertainties that may cause actual results to vary materially from those presented here.

Speaker Change: 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 on this conference call, including responses to your questions are based on current expectations as of today, everyone assumes no obligation to update or revise them whether as a result.

Stephen M. Shulstein: 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 on 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. 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 to begin.

Stephen Shulstein: Any forward-looking statements made on 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 development or otherwise, except as required by law.

Speaker Change: New developments or otherwise, except as required by law.

Stephen Shulstein: Following presentation contains non-GAAP financial measures for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric. Please, sir, earnings press release and the appendix, sir, earnings presentation which are available on the IR section of our website.

Speaker Change: Presentation contains non-GAAP financial measures for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric.

Speaker Change: Please see our earnings press release, and the appendix to 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 Oppenheimer: Now, I will turn the call over to Matt to begin.

Matthew Oppenheimer: Thank you, Stefan. And thank you all for joining us to discuss Remitly as long-term strategic priorities, strong second quarter results, and our increased outlook for 2024. We continue our journey to transform lives with trusted financial services that trend send borders. We are doing this by reinventing international payments for our customers in a way that has not been done before, making the cross-border payment experience as seamless as any domestic payment transactions. At the same time, we are solving for a myriad of additional problems faced by those sending money across borders. We are excited about the array of opportunities to invest efficiently to drive high growth, increase market share, and deliver sustainable cash flow over the long term.

Matthew B. Oppenheimer: Thank you, Stephen, and thank you all for joining us to discuss Remitly's long-term strategic priorities, strong second quarter results, and our increased outlook for 2024. We continue our journey to transform lives with trusted financial services that transcend borders. We are doing this by reinventing international payments for our customers in a way that has not been done before, making the cross-border payment experience as seamless as any domestic payment transaction. At the same time, we are solving for a myriad of additional problems faced by those sending money across borders.

Matt: Thank you Stephanie and thank you all for joining us to discuss remit. These long term strategic priorities strong second quarter results and our increased outlook for 2024.

Matt: We continue our journey to transform lives the trust in financial services that transcend boarders were doing that by reinventing international payments for our customers in a way that has not been done before making the cross border payment experience as seamless as any domestic payment transaction.

Speaker Change: At the same time, we are solving for a myriad of additional problems faced by those sending money across borders. We are excited about the array of opportunities to invest efficiently to drive high growth increased market share and deliver sustainable cash flow over the long term.

Matthew B. Oppenheimer: We are excited about the array of opportunities to invest efficiently, to drive high growth, increase market share, and deliver sustainable cash flow over the long term. In order to deliver on these opportunities, we remain focused on our strategic priorities, as you can see on slide four. These priorities allow us to execute our near-term goals while setting us up to drive even more long-term returns in a large and growing addressable market where we only have an approximately 2.5% share.

Matthew Oppenheimer: In order to deliver on these opportunities, we remain focused on our strategic priorities, as you can see on slide four. These priorities allow us to execute our near-term goals while setting us up to drive even more long-term returns in a large and growing addressable market, where we only have approximately 2.5 percent share. We are positioning well today an expected benefit from the ongoing rapid shift in customer preference to more digital options. Our strong second quarter results an improved outlook validate that our strategy is both the right one and delivering the outcomes we are looking for.

Speaker Change: In order to deliver on these opportunities we remain focused on our strategic priorities as you can see on slide four.

These priorities allow us to execute our near term goals, while setting us up to drive even more long term returns in a large and growing addressable market, where we only have approximately two 5% share.

Matthew B. Oppenheimer: We are positioned well today and expect to benefit from the ongoing rapid shift in customer preference toward more digital options. Our strong second quarter results and improved outlook validate that our strategy is both the right one and is delivering the outcomes we are looking for. These results also demonstrate the resilience of our customer base and the differentiated experience we are building for our customers to send money across borders seamlessly and delightfully. Now, let's get into some of the details of our second quarter results on slide five. We delivered $306 million in revenue, a 31% increase year over year and ahead of our expectations.

Speaker Change: We are positioned well today and expect to benefit from the ongoing rapid shift in customer preference to more digital options.

Speaker Change: Our strong second quarter results and improved outlook validate that our strategy is both the right one and delivering the outcomes we are looking for.

Matthew Oppenheimer: in 2004. These results also demonstrate the resilience of our customer base and the differentiated experience we are building for our customers to send money across borders seamlessly and delightfully. Now let's get into some of the details of our second quarter results on 5.5. We delivered 306 million in revenue, a 31% increase year over year, and ahead of our expectations. We saw robust growth in quarterly active customers and strong customer engagement. We delivered 25 million and adjusted the EBITAS, been in a fitting from strong top-lying growth and scale efficiencies across our operating expense base. Based on our performance this quarter and our expectations for continued strong execution, we are raising our 2024 revenue and adjusted EBITAS outlook.

Speaker Change: These results also demonstrate the resilience of our customer base and the differentiated experience. We are building for our customers to send money across borders seamlessly and delight fleet.

Speaker Change: Now, let's get into some of the details of our second quarter results on slide five we.

Speaker Change: We delivered $306 million in revenue, a 31% increase year over year and ahead of our expectation.

Matthew B. Oppenheimer: We saw robust growth in quarterly active customers and strong customer engagement. We delivered $25 million in adjusted EBITDA, benefiting from strong top-line growth and scale efficiencies across our operating expense base. Based on our performance this quarter and our expectations for continued strong execution, we are raising our 2024 revenue and adjusted EBITDA outlook. We now serve approximately 6.9 million quarterly active customers, as you can see on slide six, which is up 36% or 1.8 million from the second quarter of last year.

Speaker Change: We saw robust growth in quarterly active customers and strong customer engagement we.

Speaker Change: We delivered $25 million and adjusted EBITDA benefiting from strong top line growth and scale efficiencies across our operating expense base.

Speaker Change: Based on our performance this quarter and our XP to expectations for continued strong execution, we are raising our 2020 for revenue and adjusted EBITDA outlook.

Matthew Oppenheimer: We now serve approximately 6.9 million quarterly active customers that you can see on 5.6, which is about 36% or 1.8 million from the second quarter of last year. We saw strengthen both our record new customer acquisition and engagement of existing customers. The majority of our customers send regularly with predictable and durable sending patterns. This is a direct result of the quality of our product combined with the necessity of remittances for our customers and their families to support basic living needs. This predictable behavior is also elevated by specific holidays that happen throughout the year: Mother's Day, Christmas, Eve, and New Year's, just to name a few.

Speaker Change: We now serve approximately $6 9 million quarterly active customers as you can see on slide six which is up 36% or $1 8 million from the second quarter of last year.

Matthew B. Oppenheimer: We saw strength in both our record new customer acquisitions and the engagement of existing customers. The majority of our customers send regularly with predictable and durable sending patterns. This is a direct result of the quality of our product combined with the necessity of remittances for our customers and their families to support basic living needs. This predictable behavior is also elevated by specific holidays that happen throughout the year, such as Mother's Day, Christmas, Eid, and New Year, just to name a few.

Speaker Change: We saw strength in both our record new customer acquisition and engagement of existing customers.

Speaker Change: The majority of our customers and regularly with predictable and durable spending patterns.

Speaker Change: This is a direct result of the quality of our product combined with the necessity of remittances for our customers and their families to support basic living needs.

Speaker Change: This predictable behavior is also elevated by specific holidays that happen throughout the year mother's day Christmas Eve.

Speaker Change: Our new year's just to name a few.

Matthew Oppenheimer: And these sending occasions vary by corridor and globally. This results in predictable seasonal patterns, with Q4 being the strongest quarter seasonally and Q2 being the second strongest quarter in terms of customer activity impact. As expected, there were more sending occasions such as Mother's Day and the second quarter of this year as compared with the first quarter. Additionally, in some corridors, we saw some modest benefits from a stronger US dollar, which helped to drive some additional activity on our platform. With fewer key holidays, the upcoming third quarter is typically seasonally weaker from a customer activity perspective.

Matthew B. Oppenheimer: And these sending occasions vary by corridor globally. This results in predictable seasonal patterns, with Q4 being the strongest quarter seasonally and Q2 being the second strongest quarter in terms of customer activity impact. As expected, there were more sending occasions, such as Mother's Day, in the second quarter of this year as compared with the first quarter. Additionally, in some corridors, we saw some modest benefits from a stronger U.S. dollar, which helped to drive some additional activity on our platform. With fewer key holidays, the upcoming third quarter is typically seasonally weaker from a customer activity perspective.

Speaker Change: And these sending occasions very by corridor globally. This results in predictable seasonal patterns with Q4 being the strongest quarter seasonally and Q2 being the second strongest quarter in terms of customer activity impact.

Speaker Change: As expected there were more syndicate occasion, such as mother's day in the second quarter of this year as compared with the first quarter.

Speaker Change: Additionally, in some corridors, we saw some modest benefit from a stronger U S dollar, which helped to drive some additional activity on our platform.

Speaker Change: With fewer key holidays, the upcoming third quarter is typically seasonally weaker from a customer activity perspective as a result.

Matthew Oppenheimer: As a result, we expect the sequential change in quarterly active customers in the third quarter to be lower than the sequential change we saw in the second quarter and then increase as we move from the third to the fourth quarter. Ultimately, improvements to our product and platform were the foundation to drove our customer growth and improving cost structure. As you can see on slide seven, we are making significant progress on delivering a customer experience that is fast and reliable, while driving efficiencies that allow us to invest even more into the customer experience, driving a flywheel of growth and efficiency.

Matthew B. Oppenheimer: As a result, we expect the sequential change in quarterly active customers in the third quarter to be lower than the sequential change we saw in the second quarter and then increase as we move from the third to the fourth quarter. Ultimately, improvements to our product and platform were the foundation that drove our customer growth and improving cost structure. As you can see on slide 7, we are making significant progress on delivering a customer experience that is fast and reliable while driving efficiencies that allow us to invest even more in the customer experience, driving a flywheel of growth and efficiency. Our transactions continue to get faster, with more than 90% completed in less than an hour, and customer support contacts continue to decline, with more than 95% of transactions proceeding without a customer support contact.

Speaker Change: We expect the sequential change in quarterly active customers in the third quarter to be lower than the sequential change we saw in the second quarter and then increase as we move from the third to the fourth quarter.

Speaker Change: Ultimately improvements to our product and platform, where the foundation that drove our customer growth and improving cost structure. As you can see on slide seven we are making significant progress on delivering a customer experience.

Speaker Change: Fast and reliable, while driving efficiencies that allow us to invest even more into the customer experience driving a flywheel of growth and efficiency.

Matthew Oppenheimer: Our transactions continue to get faster, with more than 90% dispersed in less than an hour, and customer support contacts continue to decline, with more than 95% of transactions proceeding without a customer support contact. Improvements in both these metrics on a year-over-year and sequential basis are directly attributable to our product investments. These customers have also recognized the progress we have made across these dimensions, with our Trustpilot score continuing to increase throughout the second quarter and was recently the highest among major competitors. Investment have also delivered significant reductions in customer support costs as percentage of revenue in a customer centric way.

Speaker Change: Our transactions continue to get faster with more than 90% disbursed in less than an hour and customer support contracts continued to decline with more than 95% of transactions proceeding without a customer support contact.

Matthew B. Oppenheimer: Improvements in both these metrics on a year over year and sequential basis are directly attributable to our product investment. These customers have also recognized the progress we have made across these dimensions, with our Trust Pilot score continuing to increase throughout the second quarter and recently being the highest among major competitors. Investments have also delivered significant reductions in customer support costs as a percentage of revenue in a customer-centric way. We delivered 260 basis points of leverage in customer support in the second quarter compared with the second quarter of last year and spent less on an absolute dollar basis year over year even though we grew active customers by 36% and onboarded a record number of new customers. We were especially pleased that our customer support contact rate in the second quarter was the lowest it has ever been, even while onboarding a record number of new customers during a seasonally strong quarter.

Speaker Change: Improvements in both these metrics on a year over year and sequential basis are directly attributable to our product investments.

Speaker Change: These customers have also recognize the progress we have made across these dimensions with our trust pilot score continuing to increase throughout the second quarter and was recently the highest among major competitors investment has also delivered significant reductions in customer support costs as percentage of revenue in a customer centric way.

Matthew Oppenheimer: We delivered 260 basis points of leverage in customer support in the second quarter compared with the second quarter of last year and spent less on an absolute dollar basis year over year, even though we grew active customers by 36% and onboarded a record number of new customers. We were especially pleased that our customer support contract rate in the second quarter was the lowest it had ever been, even while onboarding a record number of new customers during a seasonally strong quarter. Kennedy decreasing customer support contract rate, as I mentioned previously. The virtual assistant is currently focusing on transfer-related customer problems. For example, if a transfer is delayed or a customer needs to amend or cancel a transfer.

Speaker Change: We delivered 260 basis points of leverage in customer support in the second quarter compared with the second quarter of last year and spent less on an absolute dollar basis year over year, even though we grew active customers by 36% and onboard a record number of new customers.

Speaker Change: We were especially pleased that our customer support contact rates in the second quarter was the lowest it has ever been even while onboarding record number of new customers during a seasonally strong quarter.

Matthew B. Oppenheimer: Driving some of this improvement was our launch of an AI-powered virtual assistant experience to help customers solve even more problems without the need to contact a live customer support associate. We are seeing strong initial results in both customer satisfaction and decreasing customer support contact rates, as I mentioned previously. The virtual assistant is currently focusing on transfer-related customer problems. For example, if a transfer is delayed or a customer needs to amend or cancel a transfer.

Speaker Change: Driving some of this improvement was our launch of an AI powered virtual assistant experience to help customers solve even more problems without the need to contact a live customer support associated we.

Speaker Change: We are seeing strong initial results in both customer satisfaction and decreasing customer support contact rates as I mentioned previously.

Speaker Change: The virtual assistant is currently focusing on transfer related customer problems. For example, if a transfer is delayed or a customer needs to amend or cancel a transfer.

Matthew Oppenheimer: The virtual assistant also answers how do I type questions leveraging generative AI and our existing health center content. If customers need help with something that the virtual assistant does not support, it seamlessly passes the complete context of the customer issue to an associate. We have found that the virtual assistant can resolve issues within two to four minutes, four times faster than we are interacting with associates. Customers also love this experience. This is resulting in savings across our support organization. And we expect our savings to continue to grow as we expand coverage to more languages and enable more in use cases for self-service resolution.

Matthew B. Oppenheimer: The virtual assistant also answers how do I type questions, leveraging generative AI and our existing help center content. If customers need help with something that the virtual assistant does not support, it seamlessly passes the complete context of the customer issue to an associate. We have found that the virtual assistant can resolve issues within two to four minutes, four times faster than we interact with associates.

Speaker Change: The virtual assistant also answers how do I type questions, leveraging generative AI and our existing health Center count content.

Speaker Change: If customers need help with something that the virtual assistant does not support it seamlessly passes the complete context of the customer issue to an associate.

Matthew B. Oppenheimer: Customers also love this experience, and this is resulting in savings across our support organization. And we expect our savings to continue to grow as we expand coverage to more languages and enable more use cases for self-service resolution. Looking ahead, we intend to add more use cases and expect the AI-powered virtual assistant to handle a majority of support contacts in chat, a key driver of an improved customer experience and efficiency in our customer support expenses.

Speaker Change: We have found that the virtual assistant can resolve issues within two to four minutes four times faster than we're interacting with associates.

Speaker Change: Customers also love. This experience this is resulting in savings across our customer our support organization and we expect our savings to continue to grow as we expand coverage to more languages and enable more use cases for self service resolution looking ahead, we intend to add more use cases and expect that the AI.

Matthew Oppenheimer: Looking ahead, we intend to add more use cases and expect the AI powered virtual assistant to handle a majority of support contacts in chat. A key driver of an improved customer experience and efficiency in our customer support expenses. This would enable our highly trained customer associates to focus even more on delighting our customers when they contact us. Continuing with investments and the returns we are generating, the investment in our technology platform allowed us to provide a better experience for cruise ship workers, also known as the seafarers, that we launched this course. With an estimated 1.89 million seafarers worldwide, including a significant number from the Philippines and India, seafarers play a crucial role in the global economy, often spending months away from their families to ensure a smooth operation of international trade and travel.

Speaker Change: <unk> virtual assistant to handle a majority of support contacts in chat a key driver.

Speaker Change: An improved customer experience and efficiency in our customer support expenses.

Matthew B. Oppenheimer: This would enable our highly trained customer associates to focus even more on delighting our customers when they contact us. Continuing with investments and the returns we are generating, the investment in our technology platform allowed us to provide a better experience for cruise ship workers, also known as seafarers, that we launched this quarter. With an estimated 1.89 million seafarers worldwide, including a significant number from the Philippines and India, seafarers play a crucial role in the global economy, often spending months away from their families to ensure the smooth operation of international trade and travel.

Speaker Change: This would enable our highly trained customer associates to focus even more on delighting our customers when they contact us.

Speaker Change: Continuing with investments and the returns we are generating the investment in our technology platform allowed us to provide a better experience for cruise ship workers also noted the seafarers that we launched this quarter.

Speaker Change: With an estimated $1 $8 9 million seafarers worldwide, including a significant number from the Philippines, and India seafarers play a crucial role in the global economy after spending months away from their families to ensure a smooth operation of international trade and travel.

Matthew Oppenheimer: I personally met several seafarers in Q2, and their journeys are inspiring and remarkable. The remittances they send home are a lifeline for their families and their loved ones. Seafarers typically have faced high seas, difficult KYC processes, and inconvenient non-digital options when sending money home. During the quarter, we launched our Remittly for Seafarers products with an all new in-app onboarding experience, specifically designed with the unique needs of seafarers in mind. We improved the way in which seafarers can find us and complete onboarding. Seafarers can simply take a photo of their ship ID and passport, upload it to our app, and start sending money home.

Matthew B. Oppenheimer: I personally met several seafarers in Q2, and their journeys are inspiring and remarkable. The remittances they send home are a lifeline for their families and their loved ones. And seafarers typically face high fees, difficult KYC processes, and inconvenient non-digital options when sending money home. During the quarter, we launched our Remitly for Seafarers product with an all-new in-app onboarding experience specifically designed with the unique needs of seafarers in mind. We improved the way in which Seafarers can find us and complete their tasks onboard. Seafarers can simply take a photo of their ship ID and passport, upload it to our app, and start sending money home.

Speaker Change: I personally met several key fairs in Q2 and their journeys are inspiring and remarkable.

Speaker Change: The remains as they send home around lifeline for their families and their loved ones and FIFA is typically have faced high fees difficult <unk> processes and inconvenient non digital options Winston sending money home.

Speaker Change: During the quarter, we launched our <unk> product with an all new in App Onboarding experience, specifically designed with the unique needs of seafarers in mind.

Speaker Change: We improved the way in which <unk> can find us and complete onboarding.

Speaker Change: <unk> can simply take a photo of their ship IBM passport uploaded to our app and start sending money home.

Matthew Oppenheimer: As a result, we have seen a significant increase in seafarers as new customers. Our nimble technology platform will allow us to rapidly localize and target more types of customers that are sending money across borders. Our technology investments have also driven additional progress in tailing our product to attract additional customers. We are focused on providing these alternatives and localized payment methods because they are becoming more ubiquitous and preferred by customers, and they are typically lower cost, which allows us to drive our growth and cost efficiency flywheel. An example of this is our launch of Interac as a Pay-In method in Canada for all corridors in the corridor.

Matthew B. Oppenheimer: As a result, we have seen a significant increase in seafarers as new customers. Our nimble technology platform will allow us to rapidly localize and target more types of customers that are sending money across borders. Our technology investments have also driven additional progress in tailoring our product to attract additional customers, including higher dollar senders, to our platforms. Our strategy includes adding relevant payment options that provide great customer experiences and an attractive value proposition, regardless of the size of the transaction.

Speaker Change: As a result, we have seen significant increase in sea fares as new customers are nimble technology platform will allow us to rapidly localized and target more types of customers that are sending money across borders.

Speaker Change: Our technology investments are also driven additional progress and tailoring our product to attract additional customer types.

Speaker Change: Including higher dollar senders through our platform.

Speaker Change: Our strategy includes adding relevant payment options that provide great customer experiences and an attractive value proposition regardless of the size of the transaction.

Matthew B. Oppenheimer: We are focused on providing these alternative and localized payment methods because they are becoming more ubiquitous and preferred by customers, and they are typically lower cost, which allows us to drive our growth and cost efficiency flywheel. An example of this is our launch of Interact as a pay-in method in Canada for all corridors in the corridor. Interact is Canada's predominant electronic P2P money transfer solution and is a widely adopted payment method.

Speaker Change: We are focused on providing these alternative and localized payment method.

Speaker Change: They're becoming more ubiquitous and preferred by customers and they are typically lower cost, which allows us to drive our growth and cost efficiency flywheel.

Speaker Change: An example of this is our launch of interest.

Speaker Change: A pay in method in Canada for all corridor in the quarter.

Matthew Oppenheimer: Interact as Canada's predominant electronic P2P money transfer solution and as a widely adopted payment method. Compared to traditional bank payments, Interact provides much faster speed at a lower cost than card payments, and we look ahead options for customers to fund transactions rapidly with their bank account, including faster payments in the US will make our product more attractive, diversifier transaction mix and lower our cost. We have been able to increasingly target new types of customers, such as those sending higher transaction amounts, as a result of our technology platform investments. As a result, we have been able to apply a more risk-based approach to sending limits.

Speaker Change: Interactive is a candidate as candidates predominant electronic PDP money transfer solution and is a widely adopted payment method.

Matthew B. Oppenheimer: Compared to traditional bank payments, Interact provides much faster speed at a lower cost than card payments. As we look ahead, options for our customers to fund transactions rapidly with their bank account, including faster payments in the US, will make our product more attractive, diversify our transaction mix, and lower our cost. We have been able to increasingly target new types of customers, such as those sending higher transaction amounts, as a result of our technology platform investment.

Speaker Change: Paired with traditional bank payments interact.

Speaker Change: Provides much faster speed at a lower cost and card payments.

Speaker Change: We look ahead options for customers to fund transactions rapidly with their bank accounts, including faster payments in the U S. We will make our product more attractive diversify our transaction mix and lower our costs.

Speaker Change: We have been able to increasingly target new types of customers such as those sending higher transaction amounts as a result of our technology platform investments.

Matthew B. Oppenheimer: As a result, we have been able to apply a more risk-based approach to sending limits. In the past, we had broad sending limits that were not tailored specifically to the individual customer risk profile, which added friction to customers who were looking to send larger amounts.

Speaker Change: As a result, we have been able to apply a more risk based approach to spending limits in the past we have that broad spending limits that were not tailored specifically to the individual customer risk profile, which added friction to customers who are looking to send larger amounts.

Matthew Oppenheimer: In the past, we have had broad sending limits that were not tailored specifically to the individual customer risk profile, which added friction to customers who were looking to send large amounts. Now we are able to make dynamic risk decisions and reduce friction significantly for this customer base. As a result, we have seen strong customer behavior trends, a higher sending amount, especially in our US to India corridor, which was weighted towards higher dollar senders.

Matthew B. Oppenheimer: Now we are able to make dynamic risk decisions and reduce friction significantly for this customer base. As a result, we have seen strong customer behavior trends at higher sending amounts, especially in our U.S. to India corridor, which was weighted towards higher dollar sends. Now, let's turn to our marketing efforts on Friday.

Speaker Change: Now, we are able to make dynamic risk decisions and reduce friction significantly for this customer base.

Speaker Change: As a result, we have seen strong customer behavior trend at higher sending amount, especially in our U S to India corridor, which was weighted towards higher dollar centers.

Matthew Oppenheimer: Now let's turn to our marketing efforts on Friday. On the new customer acquisition front, we benefited from long-term trust, grabbing word of mouth, and product improvements that reduced friction for our customers. This allows us to execute marketing investments at even stronger ergonomics. We use our deep knowledge and large data sets to invest at a D average and target pack that aligns with customer life and value. This approach allows us to be intentional about how much we're willing to invest to acquire new customers. In addition to the trust products and efficient marketing, we also have a competitive advantage in our ability to continually leverage large data sets to optimize price in an analytical and targeted manner to drive both near term and long term customer life on value.

Speaker Change: Now, let's turn to our marketing efforts on Friday.

Matthew B. Oppenheimer: On the new customer acquisition front, we benefited from long-term trust, driving word-of-mouth, and product improvements that reduced friction for our customers. This allows us to execute marketing investments at an even stronger unit economy. We use our deep knowledge and large data sets to invest at a de-averaged and target CAC that aligns with customer lifetime value.

Speaker Change: On the new customer acquisition front, we benefited from long term trust grabbing word of mouth and product improvements that reduced friction for our customers.

Speaker Change: This allows us to execute marketing investments at an even stronger unit economics.

Speaker Change: We use our deep knowledge and large datasets to invest at a D averaged and target that aligns with customer lifetime value.

Matthew B. Oppenheimer: This approach allows us to be intentional about how much we're willing to invest to acquire new customers. In addition to trusted products and efficient marketing, we also have a competitive advantage in our ability to continually leverage large data sets to optimize price in an analytical and targeted manner to drive both near-term and long-term customer lifetime value. All of this occurs on an ongoing basis and is not in response to any specific competitive pricing changes in the court.

Speaker Change: This approach allows us to be intentional about how much we're willing to invest to acquire new customers.

Speaker Change: In addition to the trusted products and efficient marketing. We also have a competitive advantage in our ability to continually leverage large datasets to optimize price and an analytical and targeted manner to drive both near term and long term customer lifetime value.

Matthew Oppenheimer: All of this occurs on an ongoing basis and does not respond to any specific competitive pricing changes in the quarter. As a result, we delivered another record number of new customers in the second quarter, year over year growth in new customer acquisitions, with the strongest we have seen in the past four quarters. Our new customers are also increasingly sending to markets outside our top three receive markets of India, Mexico, and the Philippines, with the majority of newly acquired customers in the second quarter sending outside of these markets. While our mix of markets has continued to diversify, we also acquired a record number of customers in the quarter that sends to our top received markets such as India, Mexico, and the Philippines.

Speaker Change: All of this occurs on an ongoing basis and is not in response to any specific competitive pricing changes in the quarter.

Matthew B. Oppenheimer: As a result, we delivered another record number of new customers in the second quarter. Year-over-year growth in new customer acquisition was the strongest we have seen in the past four quarters. Our new customers are also increasingly sending to markets outside our top three received markets of India, Mexico, and the Philippines, with the majority of newly acquired customers in the second quarter sending outside these markets. However, while our mix of markets has continued to diversify, we also acquired a record number of customers in the quarter that sent to our top received markets, such as India, Mexico, and the Philippines. This diversification brings a host of benefits, including less volatility and exposure to specific FX or macro events in local economies.

Speaker Change: As a result, we delivered another record number of new customers in the second quarter year over year growth in new customer acquisition with the strongest we have seen in the past four quarters.

Speaker Change: Our new customers are also increasingly spending to market outside our top three receive markets of India, Mexico, and the Philippines with the majority of newly acquired customers in the second quarter spending outside of these markets.

Speaker Change: While our mix of markets has continued to diversify we also acquired a record number of customers in the quarter that sent to our top receive markets such as India, Mexico, and the Philippines. This diversification brings a host of benefits, including less volatility and exposure to specific FX or macro events and local <unk>.

Matthew Oppenheimer: This diversification brings a host of benefits, including less volatility and exposure to specific effects or macro events in local economy. Marketing also delivered an increasing mix of customers from unpaid channels, such as Search Engine Optimization, as we continue to optimize across all marketing channels.

Speaker Change: Enemies.

Matthew B. Oppenheimer: Marketing also delivered an increasing mix of customers from unpaid channels, such as search engine optimization, as we continue to optimize across all marketing channels. We are increasingly testing the elasticity of investments across areas such as performance marketing and promotions for new customers with the goal of driving even more efficient marketing spend. Our data-driven analytics allows us to deeply understand the incremental and marginal costs of our marketing investments. We saw some initial success with this elasticity testing in the second quarter in reducing certain areas of spending with a limited impact on new customer acquisition.

Speaker Change: Marketing also delivered an increasing mix of customers from unpaid channels, such as search engine optimization.

Speaker Change: As we continue to optimize across all marketing channels.

Matthew Oppenheimer: We are increasingly testing the U.S. testing investments across areas such as performance marketing and promotions for new customers with the goal of driving even more efficient marketing spend. Our data-driven analytics allows us to deeply understand the incremental and marginal costs of our marketing investments. We saw some initial success with this elasticity testing in the second quarter in reducing certain areas of spending with limited impact on new customer acquisition. We will continue to monitor the effectiveness of all our marketing channels and make adjustments to continually improve our senior economics. Overall, our marketing investments continue to deliver very strong returns, and our global payback remains very attractive at less than 12 months.

Speaker Change: We are increasingly testing the elasticity of investments across areas, such as performance marketing and promotions for new customers with the goal of driving even more efficient marketing spend are data driven analytics allows us to deeply understand the incremental and marginal costs of our marketing investments.

Speaker Change: We saw some initial success with this elasticity testing in the second quarter and reducing certain areas of spending with limited impact on new customer acquisition.

Matthew B. Oppenheimer: We will continue to monitor the effectiveness of all our marketing channels and make adjustments to continually improve our unit economy. Overall, our marketing investments continue to deliver very strong returns, and our global payback remains very attractive at less than 12 months. In summary, we are excited about our progress so far this year in delivering strong growth across multiple time horizons, all while delivering significant operating leverage in the business and improving return on our investments.

Speaker Change: We will continue to monitor the effectiveness of all our marketing channels and make adjustments to continually improve our unit economics.

Speaker Change: Overall, our marketing investments continue to deliver very strong returns in our global payback remains very attractive at less than 12 months.

Matthew Oppenheimer: In summary, we are excited about our progress so far this year in delivering strong growth across multiple time horizons, all of delivering significant operating leverage in the business and improving return on our investments. In a complex industry, our strong product, customer experience, and therefore trusted brand is the foundation for this growth. As we look forward, I am confident in our 2024 outlook and beyond as we execute our vision to transform lives with trusted financial services that transcend borders.

Speaker Change: In summary, we are excited about our progress so far this year and delivering strong growth across multiple planning horizon, all while delivering significant operating leverage in the business and improving return on our investments in a complex industry are strong product customer experience and therefore trusted brand.

Speaker Change: <unk> is the foundation for this growth.

Matthew B. Oppenheimer: In a complex industry, our strong product, customer experience, and, therefore, trusted brand is the foundation for this growth. As we look forward, I am confident in our 2024 outlook and beyond as we execute on our vision to transform lives with trusted financial services that transcend borders. Before I turn the call over to Hemanth, I'd like to make an announcement about a change to our executive leadership team. Hemanth Munipalli, our CFO for the past two years, has informed us that he would like to leave the company based on a need to spend more time with his family in India in a true professional manner and with care for Remitly.

Speaker Change: As we look forward I am confident in our 2020 for outlook and beyond as we execute on our vision to transform lives with trusted financial services that transcend boarders before I turn the call over to him I'd like to make an announcement about a change to our executive leadership team.

Matthew B. Oppenheimer: He generously supported our search for a potential CFO replacement so that Remitly could seamlessly move forward along its strategic path. Hemanth has been a key driver of our success, and I would like to thank him for his many contributions. Since Hemanth joined Remitly, he has helped lead significant customer growth, with the number of quarterly active users more than doubling since he joined. In his role, he not only supported this growth, but he also enabled us to achieve these milestones with better control, efficiency, and effectiveness.

Matthew Oppenheimer: Before I turn the call over to Heymont, I'd like to make an announcement about a change to our executive leader 15. Heymont, Unipali, our CFO for the past two years, has informed us that he would like to leave the company based on a need to spend more time with his family in India. In true professional manner, and with care for Remitly, he generously supported our search for potential CFO replacement so that Remitly can seamlessly move forward along its strategic path. Heymont has been a key driver of our success, and I would like to thank him for his many contributions.

Speaker Change: Hey, Marc <unk>, our CFO for the past two years has informed us that he would like to leave the company based on a need to spend more time with his family in India in true professional manner and with care for remittance in generously supported our search for a potential CFO replacement. So that we can seamlessly move forward along it.

Speaker Change: Strategic path.

Speaker Change: <unk> has been a key driver of our success and I would like to thank him for his many contributions.

Matthew Oppenheimer: Since Heymont's joined Remitly, he has helped lead significant customer growth, with the number of quarterly active users more than doubling since he joined. In his role, he not only supported this growth, but he also enabled us to achieve these milestones with better control, efficiency, and effectiveness. Most importantly, he built a strong financing that I have confidence will continue to support Remitly's efficient growth. Heymont, I'm grateful for your leadership, partnership, and for all that you taught me during our work together. I am also grateful that Heymont has agreed to serve in an advisory capacity until September 30th.

Speaker Change: Hey, Michael joined <unk>. He has helped lead significant customer growth with the number of quarterly active users more than doubling since he joined <unk>.

Michael: In his role he not only supported this growth, but he also enabled us to achieve these milestones with better controls efficiency and effectiveness.

Matthew B. Oppenheimer: Most importantly, he built a strong finance team that I have confidence will continue to support Remitly's efficient growth. Hemanth, I'm grateful for your leadership, partnership, and for all that you've taught me during our work together. I'm also grateful that Hemanth has agreed to serve in an advisory capacity until September 30th. Replacing Hemanth as CFO, effective August 19th, will be Vakas Meht

Speaker Change: Most importantly, he built a strong finance team that I have confidence we will continue to support remotely efficient grip kamath and grateful for your leadership partnership and for all that you taught me during our work together I am also grateful that Hamas has agreed to serve in an advisory capacity until September 30th.

Matthew Oppenheimer: For plaguing Heymont's CFO, effective August 19th, will be Vikha Smitha. Vikha says over 25 years of global experience across software, FinTech, and e-commerce, driving hyper growth, business transformation, and operational excellence. He has worked for some of the most renowned Fortune 500 companies and has experienced expertise in strategy, investor relations, and financial management. He is also a Remitly customer and a passion for our customer base. We believe that Vikha's experience will be instrumental as we continue to drive growth and high returns for our shareholders.

Harmit Samaria: Replacement demand the CFO effective August 19th will be the cost method.

Matthew B. Oppenheimer: VCASA has over 25 years of global experience across software, FinTech, and e-commerce driving hyper-growth, business transformation, and operational excellence. He has worked for some of the most renowned Fortune 500 companies and has expertise in strategy, investor relations, and financial management. He is also a Remitly customer and has a passion for our customer base. We believe that Picasa's experience will be instrumental as we continue to drive growth and high returns for our shareholders. With that, and with thanks, I'll turn the call over to Hemant. Thank you, Matt.

Speaker Change: The cost is over 25 years of global experience across software Fintech and ecommerce driving hyper growth business transformation and operational excellence here.

Speaker Change: He has worked for some of the most renowned fortune 500 companies and has experience expertise and strategy Investor Relations and financial management. He is also a remittance customer and has a passion for our customer base. We believe that the cost of his experience will be instrumental as we continue to drive growth and high.

Speaker Change: Terms for our shareholders with that and with thanks, I will turn the call over to Emma. Thank you Matt the strong results. We delivered in the quarter are a testament to our customers' resilience and the consistent execution by our global teams, our customer activity and growth remain highly durable and predictable and we are pleased with our top line results with improving.

Hemanth Munipalli: With that and with thanks, I'll turn the call over to Emma.

Hemanth Munipalli: Thank you, Matt. The strong results we delivered in the quarter are a testament to our customer's resilience and the consistent execution by our global teams. Our customer activity and growth remain highly durable and predictable, and we are pleased with our top-line results, with improving operating efficiency.

Hemanth Munipalli: The strong results we delivered in the quarter are a testament to our customers' resilience and the consistent execution by our global teams. Our customer activity and growth remain highly durable and predictable, and we are pleased with our top line results and improving operating efficiency. I'll begin by reviewing some of the high-level drivers of our financial performance and finish with more details on our improved outlook for 2024. With that, let's turn to our second quarter results. As a reminder, I will discuss non-GAAP operating expenses and adjusted EBITDA in my remarks. These metrics exclude items such as stock-based compensation, acquisition, integration, restructuring, and other costs, and foreign exchange gain or loss.

Emma: Operating efficiencies.

Speaker Change: By reviewing some of the high level drivers of our financial performance and finished with more details on our improved outlook for 2024.

Emma: With that let's turn to our second quarter results.

Emma: As a reminder, I will discuss non-GAAP operating expenses and adjusted EBITDA in my remarks.

Emma: These metrics exclude items, such as stock based compensation acquisition integration restructuring and other costs and foreign exchange gain or loss reconciliations to GAAP results are included in the earnings release.

Hemanth Munipalli: Thank you very much for your time. Thank you very much.

Hemanth Munipalli: Let's begin on slide 10 with our high-level financial performance in the second quarter. Our revenue and active customer growth were both about our expectations as we delivered solid execution and benefited from the seasonally consistent customer behavior in the second quarter that we described in our last call, along with record new customer acquisition. Our adjusted EBITDA profitability also improved as we benefited from scale and a deliberate focus on driving efficiencies through all parts of the business. Quarterly active customers grew by 36% euro per year to 6.9 million. Send volume grew 38% Euro per year to approximately 13.2 billion dollars, resulting in revenue growth of 31% Euro per year to 306 million dollars.

Hemanth Munipalli: Reconsiderations to gap results are included in the earnings release. Let's begin on slide 10 with our high-level financial performance in the second quarter. Our revenue and active customer growth were both above our expectations as we delivered solid execution and benefited from the seasonally consistent customer behavior in the second quarter that we described in our last call, along with record new customer acquisition. Our adjusted EBITDA profitability also improved as we benefited from scale and a deliberate focus on driving efficiencies to all parts of the business.

Emma: Let's begin on slide 10, with our high level financial performance in the second quarter.

Emma: Revenue and active customer growth were both above our expectations as we delivered solid execution and benefited from the seasonally consistent customer behavior in the second quarter that we described on our last call along with record new customer acquisition.

Emma: Our adjusted EBITDA profitability also improved as we benefited from scale and a deliberate focus on driving efficiencies through all parts of the business.

Emma: Active customers grew by 36% year over year to $6 9 million.

Emma: Spend volume grew 38% year over year to approximately $13 2 billion.

Hemanth Munipalli: Quarterly active customers grew by 36% year-over-year to 6.9 million, and volume group grew 38% year-over-year to approximately $13.2 billion, resulting in revenue growth of 31% year-over-year to $306 million. Our GAAP net loss of $12.1 million narrowed in the second quarter, an improvement of 36% year-over-year, as we benefited from leverage across the P&L. Our net loss included $37 million of stock compensation expense, and we did not have any restructuring charges in the quarter.

Emma: Resulting in revenue growth of 31% year over year to $306 million.

Hemanth Munipalli: Our gap net loss of 12.1 million narrowed in the second quarter and improvement of 36% euro per year as we benefited from leverage across the PNL. Our net loss included 37 million of stock compensation expense, and we did not have restructuring charges in the quarter. Strong revenue growth combined with efficiency across operating expenses led to adjusted EBITDA of 25.1 million in the quarter and above our expectations.

Emma: Our GAAP net loss of $12 1 million narrowed in the second quarter, an improvement of 36% year over year as we benefited from leverage across the P&L.

Emma: Net loss included $37 million of stock compensation expense and <unk> and we did not have restructuring charges in the quarter strong revenue growth combined with efficiency across operating expenses led to adjusted EBITDA of $25 1 million in the quarter and above our expectations.

Hemanth Munipalli: Strong revenue growth, combined with efficiency across operating expenses, led to adjusted EBITDA of $25.1 million in the quarter and above our expectations. As you can see on slide 11, our focus remains on four key areas to drive sustainable long-term returns, continuing to deliver strong revenue growth, reducing transaction expenses to scale efficiencies and technological advancements, acquiring new customers with efficient marketing, and driving operational efficiency. By focusing on executing across these four areas, we're improving the long-term cash flow generation of our business.

Hemanth Munipalli: As you can see on slide 11, our focus remains on 4 key areas to drive sustainable long-term returns. Continuing to deliver strong revenue growth, reducing transaction expenses to scale efficiency and technological advancements, acquiring new customers with efficient marketing, and driving operational efficiencies. By focusing on executing across these four areas, we're improving the long-term cash flow generation of our business. This is the ultimate measure of value we deliver to our shareholders.

Emma: As you can see on slide 11, our focus remains on four key areas to drive sustainable long term returns continuing to deliver strong revenue growth, reducing transaction expenses through scale efficiencies and technological advancements acquiring new customers with efficient marketing and driving operational efficiencies.

Emma: By focusing on executing across these four areas, we're improving the long term cash flow generation of our business. This is the ultimate measure of the value we deliver to our shareholders.

Hemanth Munipalli: This is the ultimate measure of value we deliver to our shareholders. Now, let's turn to slide 12 to review some of the key drivers of our second quarter performance. Revenue was up 31% year-over-year in the second quarter on a reported and constant currency basis.

Hemanth Munipalli: Now let's turn this slide 12 to review some of the key drivers of our second quarter performance. Revenue was up 31% euro per year in the second quarter on a reported and constant currency basis. Our better than expected second quarter revenue growth was driven by a high retention of existing customers and strong sees no sending patterns in line with the expectations we outlined on our last call. We also achieved benefits from investments in improving customer engagement to product enhancements, our growing global expansion, and record new customers we acquired in the quarter. Turning to our transaction expenses, which include cost related to our pay and partners, displacement partners, and fraud losses, transaction expense as a percentage of revenue increased 90 basis points Euro per year in the second quarter.

Emma: Now, let's turn to slide 12 to review some of the key drivers of our second quarter performance.

Emma: Revenue was up 31% year over year in the second quarter on a reported and constant currency basis.

Hemanth Munipalli: Our better-than-expected second quarter revenue growth was driven by a high retention of existing customers and strong seasonal sending patterns in line with the expectations we outlined on our last call. We also achieved benefits from investments in improving customer engagement through product enhancements, our growing global expansion, and the record new customers we acquired in the quarter. Turning to our transaction expenses, which include costs related to our pay-in partners, disbursement partners, and fraud losses.

Emma: Our better than expected second quarter revenue growth was driven by a higher retention of existing customers and strong seasonal spending patterns in line with the expectations. We outlined on our last call. We also achieved benefits from investments in improving customer engagement through product enhancements, our growing global expansion and record new customers.

Emma: We acquired in the quarter.

Hemanth Munipalli: Transaction expense as a percentage of revenue increased 90 basis points year over year in the second quarter. This was primarily due to higher than expected fraud losses that we experienced in the latter part of the quarter, partially offset by efficiencies from increasing volumes. However, excluding fraud losses, transaction expense as a percentage of revenue improved by approximately 50 basis points. As we have noted before, fraud losses can be temporarily volatile.

Emma: Turning to our transaction expenses, which include cost related to our pay and partners disbursement partners in fraud losses.

Emma: <unk> expense as a percentage of revenue increased 90 basis points year over year in the second quarter. This was primarily due to higher than expected fraud losses that we experienced in the latter part of the quarter, partially offset by efficiencies from increasing volumes, excluding fraud losses transaction expense as a percentage of revenue improved by <unk>.

Hemanth Munipalli: This was primarily due to higher than expected fraud losses that we experienced in the latter part of the quarter, partially offset by efficiencies from increasing volumes. Including fraud losses, transaction expense as a percentage of revenue improved by approximately 50 basis points. As we have noted before, fraud losses can be temporarily volatile. However, total fraud losses were within our historical tolerance range, and we quickly reacted to this unwanted activity with optimization of risk controls and improvements to our machine learning models, bringing down fraud losses while maintaining a great customer experience. As a result of our rapid response, we expect fraud levels to be at a more normalized level in the back half of the year as we continue to balance the customer experience and manage fraud losses within our thresholds.

Hemanth Munipalli: However, total fraud losses were within our historical tolerance range, and we quickly reacted to this unwanted activity with optimization of risk controls and improvements to our machine learning models, bringing down fraud losses while maintaining a great customer experience. As a result of our rapid response, we expect fraud levels to be at a more normalized level in the second half of the year as we continue to balance the customer experience and manage fraud losses within our threshold.

Emma: Similarly, 50 basis points.

Speaker Change: As we have noted before fraud losses can be temporarily volatile. However, total fraud losses were within our historical tolerance range and we quickly reacted to this unwanted activity with optimization of risk controls and improvements to our machine learning models, bringing down fraud losses, while maintaining a great customer experience.

Speaker Change: As a result of our rapid response, we expect fraud levels to be at a more normalized level in the back half of the year as we continue to balance the customer experience and manage fraud losses within our thresholds.

Hemanth Munipalli: Our longer-term trend of improving transaction expense and overall variable cost structure provides us with a significant competitive advantage in delivering value to customers and building a sustainable business model. We are proud of our continued progress on operating more efficiently. In the second quarter, customer support and operations expense as a percentage of revenue was down to 60 basis points on a year-of-year basis as we have continued to make significant progress on lowering expenses and improving our customer's experience. In fact, on an absolute dollar basis, customer support expenses declined year-over-year even as we grew quarterly active customers by 36%.

Hemanth Munipalli: Our longer-term trend of improving transaction expense and overall variable cost structure provides us with a significant competitive advantage in delivering value to customers and building a sustainable business model. We are proud of our continued progress on operating more efficiently. In the second quarter, customer support and operations expense as a percentage of revenue was down 260 basis points on a year-over-year basis, as we've continued to make significant progress on lowering expenses and improving our customers' experience. In fact, on an absolute dollar basis, customer support expenses declined year over year, even as we grouped quarterly active customers by 36%.

Speaker Change: Our longer term trend of improving transaction expense and overall variable cost structure provides us with a significant competitive advantage in delivering value to customers and building a sustainable business model.

Speaker Change: We are proud of our continued progress on operating more efficiently.

Speaker Change: In the second quarter customer support and operations expense as a percentage of revenue was down 260 basis points on a year over year basis. As we have continued to make significant progress on lowering expenses and improving our customers' experience.

Speaker Change: In fact on an absolute dollar basis customer support expenses declined year over year, even as we grew quarterly active customers by 36%.

Hemanth Munipalli: This performance reflects improving customer satisfaction and realizing the benefits from technology investment made to improve both our product and customer support experience. By increasing the automation of various manual tasks such as risk reviews and targeted elimination of various issues that cost customers to contact us, our product and customer service teams have consistently delivered efficient fees. Also, as Matt mentioned, we've made significant improvement in the self-help experience with the role of our AI-based virtual assistant for our customers and our team's strong progress across both customer satisfaction and efficiency metrics. DNA expense as a percentage of revenue decreased 80 basis points year-over-year and was essentially flat sequentially on an absolute dollar basis.

Hemanth Munipalli: This performance reflects improving customer satisfaction and realizing the benefits from technology investments made to improve both our product and customer support experience. By increasing the automation of various manual tasks, such as risk reviews and targeted elimination of various issues that cause customers to contact us, our product and customer service teams have consistently delivered efficient. Also, as Matt mentioned, we've made significant improvements in the self-help experience with the rollout of our AI-based virtual assistant for our customers and are seeing strong progress across both customer satisfaction and efficiency metrics. The GNA expense as a percentage of revenue decreased 80 basis points year over year and was essentially flat sequentially on an absolute dollar basis.

Speaker Change: This performance reflects improving customer satisfaction and realizing the benefits from technology investments made to improve both our product and customer support expands.

Speaker Change: By increasing the automation of various manual tasks, such as risk reviews, and targeted elimination of various issue that caused customers to contact us our product and customer service teams have consistently delivered efficiencies.

Speaker Change: So as Matt mentioned, we've made significant improvement in the self help experience with the rollout of our AI based virtual assistant for our customers and are seeing strong progress across both customer satisfaction and efficiency metrics.

Speaker Change: G&A expense as a percentage of revenue decreased 80 basis points year over year and was essentially flat sequentially on an absolute dollar basis overall, our focus remains on continued discipline across both head count and non head count expenses and over the medium or long term, we expect to see continued moderation in G&A expense.

Hemanth Munipalli: Overall, our focus remains on continued discipline across both headcount and non-headcount expenses, and over the medium- to long-term, we expect to see continued moderation in DNA expense as a percentage of revenue. Our marketing investment delivered a record number of new customers in the quarter, highly attractive unit economics. We fully expect these customers to deliver a long stream of revenue, less transaction expense, for many years to come. Our marketing expense was 73 million dollars in the second quarter as we achieved additional marketing efficiencies through elasticity testing and the benefits of word amount while bringing a record number of new customers.

Hemanth Munipalli: Overall, our focus remains on continued discipline across both headcount and non-headcount expenses, and over the medium and long term, we expect to see continued moderation in G&A expense as a percentage of revenue. Our marketing investments delivered a record number of new customers in the quarter, delivering highly attractive unit economics. We fully expect these customers to deliver a long stream of revenue, less transaction expense, for many years to come. Our marketing expense was $73 million in the second quarter as we achieved additional marketing efficiencies through elasticity testing and the benefits of word of mouth while bringing a record number of new customers.

Speaker Change: As a percentage of revenue.

Speaker Change: Our marketing investments delivered a record number of new customers in the quarter highly attractive unit economics, we fully expect these customers to deliver a long stream of revenue less transaction expense for many years to come.

Speaker Change: Our marketing expense was $73 million in the second quarter as we achieved additional marketing efficiencies through elasticity testing and the benefits of word of mouth, while bringing a record number of new customers.

Hemanth Munipalli: This reflects our deep data driven insights into marketing efficiently across both lower and upper funnels. We expect to continue to apply new customers at highly attractive returns to ensure strong revenue growth for many years to come. Technology and development expenses were 47 million in the second quarter. These investments are enabling operational efficiency across our P&L. We're reducing our transaction expenses over time and driving down customer support contacts. These investments are also critical to ensuring our platform can deliver new features and complimentary new products to our customers, in addition to maintaining high levels of security compliance and enabling higher productivity up our engineering team.

Hemanth Munipalli: This reflects our deep data-driven insights into marketing efficiently across both lower and upper funnels. We expect to continue to acquire new customers at highly attractive returns to ensure strong revenue growth for many years to come. Technology and development expenses were $47 million in the second quarter.

Speaker Change: This reflects our deep data driven insights into marketing efficiently across both lower and upper funnels, we expect to continue to acquire new customers at highly attractive returns to ensure its strong revenue growth.

Speaker Change: For many years to come.

Speaker Change: Technology and development expenses were $47 million in the second quarter. These investments are enabling operational efficiencies across our P&L, we're reducing our transaction expenses over time and driving down customer support contacts. These.

Hemanth Munipalli: These investments are enabling operational efficiencies across our P&L. We're reducing our transaction expenses over time and driving down customer support contacts. These investments are also critical to ensuring our platform can deliver new features and complementary new products to our customers, in addition to maintaining high levels of security, compliance, and enabling higher productivity of our engineering team. Turning to our staff compensation, in the second quarter, the growth rate of our stock compensation expense slowed significantly to 6%.

Speaker Change: These investments are also critical to ensuring our platform can deliver new features and complementary new products to our customers. In addition to maintaining high levels of security compliance and enabling higher productivity of our engineering teams.

Hemanth Munipalli: Williams. Turning to our stock compensation expense. In the second quarter, the growth rate of our stock compensation expense loads significantly to 6%. This is a significant improvement from prior quarter's growth rate and reflects our focus on moderating our head count growth rates. On a full year basis, we continually expect stock compensation expenses to grow slower than revenue. We're also highly focused on managing the number of shares issued to help moderate dilution over the long term. An example of this is providing more cash compensation to new hires. This results in additional compensation being reflected in adjusted EBITDA and lowering share dilution impacts.

Speaker Change: Turning to our stock compensation expense in the second quarter the growth rate of our stock compensation expense slowed significantly to 6%. This is a significant improvement from prior quarters growth rate and reflects our focus on moderating our head count growth rates on a full year basis, we continue to expect stock compensation expenses to grow.

Hemanth Munipalli: This is a significant improvement from prior quarters' growth rates and reflects our focus on moderating our headcount growth rates. On a full year basis, we continue to expect stock compensation expenses to grow slower than revenue. We're also highly focused on managing the number of shares issued to help moderate dilution over the long term. An example of this is providing more cash compensation to new hires.

Speaker Change: Slower than revenue. We're also highly focused on managing the number of shares issued to help moderate dilution over the long term and example of this is providing more cash compensation and new hires.

Hemanth Munipalli: This results in additional compensation being reflected in adjusted EBITDA and lowering share dilution impact. Now, let's turn to our updated 2024 outlook on slide 13. We now expect revenue to be between $1.23 billion and $1.25 billion for the year, which is $5 million higher at the low end of our prior outlook. This increase reflects the outperformance in the second quarter and our expectations for continued strong execution in driving both existing and new customer activity in the back half of the year.

Speaker Change: This results in additional compensation being reflected in adjusted EBITDA and lowering share dilution impacts now, let's turn to our updated 2020 for outlook on slide 13, we now expect revenue to be between 123 billion and $1. Two 5 billion for the year, which is $5 million higher at the low end of our prior outlook.

Hemanth Munipalli: Now, let's start our updated 2024 outlook on slide 13. We now expect revenue to be between 1.23 billion and 1.25 billion for the year, which is $5 million higher at the low end of our prior outlook. This increase reflects the outperformance in the second quarter and our expectations for continued strong execution in driving both existing and new customer activity in the back half of the year. Assuming various mixed factors such as customer preferences for pay-in and disbursement options, quarter makes and transaction sizes remain largely consistent to the second quarter. We expect a similar relationship between revenue and stand volume for the balance of the year as compared with the second quarter.

Speaker Change: This increase reflects the outperformance in the second quarter and our expectations for continued strong execution in driving both existing and new customer activity in the back half of the year.

Hemanth Munipalli: Assuming various mix factors such as customer preferences for pay-in and disbursement options, corridor mix, and transaction sizes remain largely consistent with the second quarter, we expect a similar relationship between revenue and spend volume for the balance of the year as compared with the second quarter. As we look ahead to the third quarter, we expect revenue growth in Q3 to be approximately 32% as we have now lapped some difficult comps in the first half of the year.

Speaker Change: Assuming variance mixed factors, such as customer preferences for pain, and disbursement options corridor mix and transaction sizes remained largely consistent to the second quarter. We expect a similar relationship between revenue and volume for the balance of the year as compared with the second quarter.

Hemanth Munipalli: As we look ahead to the third quarter, we expect revenue growth in Q3 to be approximately 32 percent, as we have now lapped some difficult calms in the first half of the year. While we have significant visibility into near-term results, revenue growth rates in any given quarter can be impacted by volatility in foreign exchange rates, new customer acquisition timing, and seasonal customer activity. While we expect to remain in a gap net loss position, we expect adjusted EBITDA to be between 90 and 100 million for the year, which is a $5 million increase at the midpoint from our prior outlook.

Speaker Change: As we look ahead to the third quarter, we expect revenue growth in Q3 to be approximately 32% as we have now lapped some difficult comps in the first half of the year.

Hemanth Munipalli: While we have significant visibility into near-term results, revenue growth rates in any given quarter can be impacted by volatility in foreign exchange rates, new customer acquisition timing, and seasonal customer activity. While we expect to remain in a gap net loss position, we expect adjusted EBITDA to be between $90 and $100 million for the year, which is a $5 million increase at the midpoint from our prior outlook.

Speaker Change: While we have significant visibility into near term results revenue growth rates in any given quarter can be impacted by volatility in foreign exchange rates, new customer acquisition timing and seasonal customer activity.

Speaker Change: While we expect to remain in a GAAP net loss position, we expect adjusted EBITDA to be between 90 and $100 million for the year, which is a $5 million increase at the midpoint from our prior outlook the increase in our adjusted EBITDA outlook is driven both by our strong performance in the second quarter as well as additional growth and operational efficiencies.

Hemanth Munipalli: The increase in our adjusted EBITDA outlook is driven both by our strong performance in the second quarter, as well as additional growth and operational efficiencies we expect to deliver in the back half of the year. As we look ahead to the third and fourth quarters, we would expect adjusted EBITDA dollars to be roughly balanced between these quarters. This improved outlook also gives us the opportunity to acquire additional customers at strong unit economics, especially during seasonally strong periods of customer activity, such as in Q4.

Hemanth Munipalli: The increase in our adjusted EBITDA outlook is driven both by our strong performance in the second quarter and additional growth and operational efficiencies we expect to deliver in the back half of the year. As we look ahead to the third and fourth quarters, we would expect adjusted EBITDA dollars to be roughly balanced between these quarters. This improved outlook also gives us the opportunity to acquire additional customers at strong unit economics, especially during seasonally strong periods of customer activity, such as in Q4.

Speaker Change: We expect to deliver in the back half of the year.

Speaker Change: As we look ahead to the third and fourth quarters, we would expect adjusted EBITDA dollars to be roughly balanced between these quarters. This improved outlook also gives us the opportunity to acquire additional customers that strong unit economics, especially during seasonally strong periods of customer activity such as in Q4.

Hemanth Munipalli: Overall, we're pleased with our solid execution thus far this year and excited about the opportunities ahead to deliver on our commitments to customers and shareholders. Before we move to Q&A, I would like to thank Matt and the entire Remitly team for the opportunity to have been part of significant growth over the last few years. It has been a fast-paced, impactful journey, and I'm very proud of the progress we've made in driving transformative change across all facets of the finance function at Remitly.

Hemanth Munipalli: Overall, we're pleased with our solid execution thus far this year and are excited about the opportunities ahead to deliver on our commitments to customers and shareholders.

Speaker Change: Overall, we are pleased with our solid execution. Thus far this year and are excited about the opportunities ahead to deliver on our commitments to customers and shareholders.

Hemanth Munipalli: Before we move to Q&A, I would like to thank Matt and the entire Remedy team for the opportunity to have been part of significant growth over the last few years. It has been a fast-paced, impactful journey, and I'm very proud of the progress we've made in driving transformative change across all facets of the finance function at Remittly. I have personally grown, partnering with Matt. Was an amazing leader and CEO. Grateful for being part of a very strong executive leadership team and to every single Remittian who do their very best to delight our customers.

Speaker Change: Before we move to Q&A I would like to thank Matt and the entire <unk> team for the opportunity to have been part of significant growth over the last few years.

Speaker Change: It hasnt been a fast paced impactful journey and I'm very proud of the progress we have made in driving transformative change across all facets of the finance function at dramatically.

Hemanth Munipalli: I have personally grown partnering with Matt, who is an amazing leader and CEO. Grateful for being part of a very strong executive leadership team and to every single Remitlyan who does their very best to delight our customers. I look forward to spending more time with my family in India.

Speaker Change: Personally grown partnering with Matt was an amazing leader and CEO.

Speaker Change: Grateful for being part of a very strong executive leadership team and to every single <unk> will do their very best to delight our customers.

Hemanth Munipalli: I look forward to spending more time with my family in India. I'm excited for and highly confident about Remittly's journey towards its both and exciting vision of transforming lives with trusted financial services that transcend borders. I remain a loyal customer and a strong advocate for him at these continued successes.

Speaker Change: Look forward to spending more time with my family in India, I am excited for and highly confident about <unk> journey toward its both an exciting vision of transforming lives with trusted financial services that transcend boarders.

Hemanth Munipalli: I'm excited for and highly confident about Remitly's journey toward its bold and exciting vision of transforming lives with trusted financial services that transcend borders. I remain a loyal customer and a strong advocate for Remitly's continued success. It has been a pleasure to work with all of you in the investment community. Thanks so much, Marc.

Speaker Change: Remain a loyal customer and a strong advocate for them at least continued successes.

Hemanth Munipalli: It has been a pleasure to work with all of you in the investment community. Thanks so much, Marc.

Speaker Change: It has been a pleasure to work with all of you in the investment community.

Operator: And with that, we'll turn the call over to the operator to begin Q&A. Thank you, and at this time, we will conduct a question and answer session. As a reminder, to ask a question, you'll need to press star 1 1 on your telephone and wait for a name to be announced. To withdraw your question, please press star 1 1 again.

Speaker Change: Thanks, so much Marc and with that I will turn the call over to the operator to begin Q&A.

Operator: And with that, we'll turn the floor over to the operator to begin Q&A. One moment for our first question. Our first question will come find a team thing for him from JP Morgan. He line is open. Thanks a lot, Hemanth.

Speaker Change: Thank you and at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one on your telephone and wait for NIM to be announced to withdraw. Your question. Please press star one again, please standby we compile the Q&A roster.

Operator: Please stand by while we compile the Q&A roster. One moment for our first question. Our first question comes from Tina Tseng Huang from J.P. Morgan. Your line is open.

Speaker Change: For first question.

Speaker Change: Our first question comes from the line of <unk> Singh Huang from Jpmorgan. Your line is open.

Tina Tseng Huang: Thanks a lot, Hemanth. All the best to you as you move back. I'm back to India here.

Speaker Change: Thanks, a lot and then with all the best to you as you move back thank.

David Scharf: All the best to you as you move back back to India here. I did want to start. Maybe if you don't mind just asking on the big growth and customers, which was nice to see him. I'm curious if that growth, the big growth, is related to the increase in fraud. And why you're confident the increase in fraud is temporary. Yeah, thanks, Vincent, for the wishes as well. No, it's not related. Actually, you were really pleased with the growth of our customers and Q2. Some of that was a seasonal seasonality. We talked about both on existing customers.

Matthew B. Oppenheimer: I did want to start, maybe if you don't mind, just asking about the big growth in customers, which was nice to see. I'm curious if that growth, the big growth, is related to the increase in fraud and why you're confident the increase in fraud is temporary? Yeah, thanks, Vincent, for the wishes as well. No, it's not really related, actually.

Speaker Change: Thanks, Andrea here I did want to start maybe if you don't mind, just asking on the big growth in customers, which was nice to see them I'm curious if that grows the big growth is related to the increase in fraud.

Speaker Change: And why Youre confident the increase in fraud is temporary.

Hemanth Munipalli: We were really pleased with the growth of our customers in Q2. Some of that was the seasonality we talked about, both on existing customers. We also had record new customers in the quarter. On the fraud point, very different. We saw it in certain quarters. It was very temporary in nature, something we saw towards the later part of the quarter, and we were quickly able to fix it.

Speaker Change: Yes, thanks, Dan Central that wishes as well no it's not related actually we're really pleased.

Speaker Change: With the growth of our customers in Q2.

Speaker Change: Some of that was seasonal seasonality, we talked about both on existing customers. We also had record new customers in the quarter on the Frac point and very different we saw it in second quarter. So it's very temporary in nature, something we've thought towards the later part of the quarter and were quickly able to fix it so.

Hemanth Munipalli: We also had record new customers in the quarter. On the fraud point, very different. We saw it in certain quarters. It was very temporary in nature. Something we saw towards the last later part of the quarter. And we were quickly able to fix it. So levels have been normalized and well with the not threshold at this point. So unrelated, allows you to the record growth of our customers.

Hemanth Munipalli: So levels have been normalized and well within our threshold at this point, so largely unrelated largely to the record growth of our customers. Great. Good to know. And just my follow-up. And then I'll open it up.

Speaker Change: Levels have been normalized and well within our thresholds at this point, so unrelated largely to the record growth of our customers.

David Scharf: Great. Not good to know.

Speaker Change: Great good to know and just my follow up.

David Scharf: And just my follow-up, and then I'll open it up. Just be looking at the take rate. I know there's a lot of complexity to the take rate, but I'll ask it anyway. It was down sequentially and in your year. I think it's typically up second quarter over the first quarter. So why the change in pattern there? Yeah, thank you, Vincent. So, as we mentioned, and I appreciate your caveat in the question, we don't manage the business to take rate given that it's impacted by average transaction size, geo mix shifts, continuous pricing optimization, pay and payout method mix.

Tina Tseng Huang: Just looking at the take rate, I know there's a lot of complexity to a take rate, but I'll ask it anyway. It goes down sequentially and year over year. I think it's typically up in the second quarter over the first quarter. So why the change in pattern there?

Speaker Change: And then I'll open it up just looking at the take rate I know, there's a lot of complexity to the take rate, but I'll ask it anyway.

Speaker Change: Down sequentially and year over year, I think it's typically up second quarter over the first quarter. So why the change in pattern there.

Hemanth Munipalli: Yeah, paying attention. So, as we mentioned, and I appreciate your caveat in the question, we don't manage the business to take rate given that it's impacted by average transaction size, geomix shift, continuous pricing optimization, pay-in, pay-out method mix. So, take rate is more of an output in that respect.

Tien Tsin: Yeah, Thanks, Tien tsin.

Speaker Change: So as we mentioned and I appreciate your caveat in the question, we don't manage the business to take rate given that its impacted by average transaction size Geo mix shift continuous pricing optimization pay in payout method mix.

Hemanth Munipalli: We manage more to revenue per transaction, profit per transaction, and LTV. And when you look at it from that lens, it's business as usual in Q2, with no major shifts in competitive pricing. It wasn't due to any sort of pricing pressure.

Hemanth Munipalli: We, so take rate more is more of an output in that respect. We manage more to revenue for transaction profit per transaction, LTV. And when you look at it from that lens, it's business as usual in Q2; no major shifts in competitive pricing. It wasn't due to any sort of pricing pressure. Ultimately, as we mentioned in the past, for business it comes down to that trusted and reliable product. And part of that trust is providing a fairly priced product, but not the best. And if you look at some of the other metrics around the trusted product that we're delivering, the improvements on CS front, some of the virtual AI system features that we rolled out.

Speaker Change: So take rate more is more of an output in that respect we managed more to revenue per transaction profit per transaction LTV and when you look at it from that lens, it's business as usual in Q2, no major shifts in competitive pricing it wasn't due to any sort of pricing pressure ultimately as we mentioned in the past our business comes down to that trusted and reliable.

Hemanth Munipalli: Ultimately, as we mentioned in the past, our business comes down to that trusted and reliable product. And part of that trust is providing a fairly priced product, but not the best. And if you look at some of the other metrics around the trusted product that we're delivering, the improvements on the CS front, some of the virtual AI assistant features that we've rolled out, I think there are further proof points that our product and some of the elements around the seamlessness and the trusted nature of it are what is actually driving the kind of growth from a revenue and retention standpoint. So, I'm really pleased with the quarter. Thank you. Please take a moment for our next question. Our next question comes from the line of Andrew Schmidt from Citi. Your line is open. Hey Matt.

Speaker Change: And part of that trust has provided providing a fairly priced product, but not the best and if you look at some of the other metrics around the trusted product that we're delivering the improvements on CFS front. Some of the virtual AI assistant features that we've rolled out I think there are further proof points to that.

Matthew Oppenheimer: I think they're further proof points that our product and some of the elements that are around the seamlessness and the trusted nature of it are what is actually driving the kind of growth from revenue and retention standpoint. So really pleased with the court.

Speaker Change: Our product and some of the elements around.

Speaker Change: The seamlessness and the trusted nature of it or what is actually driving the kind of growth from revenue and retention standpoint, so really pleased with the quarter.

David Scharf: Thank you, guys. Thank you.

Speaker Change: Okay. Thank you guys.

Andrew Schmidt: One moment for next question. Our next question comes to line of Andrew Schmidt from City. Your line is open. Hey, Matt. Hey, mom. Thanks for taking my questions and Mom. Best of luck. Pleasure to work with you.

Speaker Change: Thank you next question.

Speaker Change: Our next question comes from the line of Andrew Schmidt from Citi. Your line is open.

Speaker Change: Sure.

Andrew Garth Schmidt: Hey Hemanth, thanks for taking my questions. Hemanth, best of luck.

Andrew Garth Schmidt: Hey, Matt Hey, Thanks for taking my questions and amount.

Speaker Change: Best of luck pleasure to work with you.

Hemanth Munipalli: It is a pleasure to work with you. If I could dig into the EBIDTA outlook in the... I know, Hemanth, you addressed this a little bit in terms of the EBITDA dollars being balanced in the third and the fourth quarter and creating some optionality for new customer ads in the back half. It just seems like we're lapping some pretty significant upticks in marketing expense in the fourth quarter, which does leave you guys in a good position to either A, drop some of that to the bottom line, or B, acquire a significant number I know this all comes back to LTVDAC and union economic decisions, so maybe you can just walk us through the thought process there and how you're setting things up at this point. Thanks a lot.

Hemanth Munipalli: If I could dig into the EBITDA outlook in the back half, I know Hemanth you addressed this a little bit in terms of the EBITDA margin or EBITDA dollars being balanced in the third and the fourth quarter and creating some optionality for new customer ads in the back half, it just seems like you know we're laughing some pretty significant upticks and marketing expense in the fourth quarter which does leave you guys a good position either a you know drop you know some of that to the bottom line or be um acquire a significant number of customers that'll set you up pretty well for FY25 maybe you know I know it all comes back to LGBTTAC and new economic decision to decision so maybe just walk us through the thought process there and how you're setting things up at this point thanks a lot yeah thanks Andrew and I think like we've had in prior years as well I think we wanted to make sure that as we look at sort of the back half particularly in Q4 which is a seasonally high quarter particularly joyous to acquire new customers we retain optionality in terms of being of the deploy our marketing to acquire customers if you look forward to the 2025 beyond again we're really focused on unit economics and the LTV cap phase series and we continue to continue to do that so that's one of the thinking that as we looked at sort of the EBITDA guide for the balance of the year and particularly as you look at sort of the margin for Q4 jive it understood and then maybe just a larger related question maybe talk longer term in terms of your confidence to scale sales and marketing based on what you've been seeing in the market the elasticity testing you know word of mouth referrals stepping up and other things you have going on maybe just you talk about how that confidence may have evolved over time given what you've seen more recently thanks a lot yeah thanks for the question Andrew I think that when you look at the scalability of our market I think that we're feeling more confident than ever on the front and we're excited about the record number of new customers and the efficiency that we're getting and I think that's a reflection of the fact that we have trusted brand as you alluded to your question the word of mouth continues to improve and our unit of economics continue to be well below our 12 month payback target and so what that means us is that we have a lot of optionality in terms of how much we spend to grow versus how much we let float at the bottom line and we're we're well positioned from a marketing standpoint and then more broadly to build on your first question that Hamlet also answered our business is just getting a lot of scale and leverage and it's in a special place in that respect and that we grew 31% year on year from revenue standpoint but you know you look at our confidence adjust to be able to guide and the overall leverage we're getting and everything from customer support costs to a variety of aspects of the P&L and I think it's a reminder that scale matters and payments businesses both to deliver a differentiated quality customer experience and to be able to continue to get leverage and profitability as a business totally agree thank you very much that appreciate the comments thank you thank you one moment for our next question our next question of conflana Ramsey as I saw from Goldman's from Barclays line is open Hi, this is Allison on ProRamsey, so thank you guys so much for taking your question and Hemanth it's been great working with you.

Speaker Change: If I could dig into the EBITDA outlook in the in the back half I know you addressed this a little bit in terms of the EBITDA margin or EBITDA dollars being balanced in the third and the fourth quarter and creating some optionality.

Speaker Change: <unk> for new customer adds in the back half that it just seems like we're lapping some pretty significant upticks in marketing expense.

Speaker Change: In the fourth quarter, which does leave you guys a good position either a drop.

Speaker Change: Some of that to the bottom line or be.

Speaker Change: Acquire a significant number of customers that will set you up pretty well for FY 'twenty five maybe I know it all comes back to LTV to CAC and huge economic decisions decision. So maybe just walk us through the thought process there and how you are setting things up at this point thanks a lot.

Hemanth Munipalli: Yeah, thanks, Andrew. And, like we've had in prior years as well, I think we wanted to make sure that as we look at sort of the back half, particularly in Q4, which is a seasonally high quarter, particularly for acquisition of new customers, we retain optionality in terms of being able to deploy our marketing to acquire customers. We look forward to 2025 and beyond. Again, we're really focused on unit economics and the LTV cap ratios, and we will continue to do that. So that's sort of thinking that as we've looked at sort of the EBITDA guide for the balance of the year, and particularly as you look at sort of the margin for Q4. Got it, understood.

Speaker Change: Yes, Thanks, Andrew I think like we've had in prior years as well I think we wanted to make sure that as we look at sort of the back half, particularly in Q4, which is a seasonally high quarter, particularly to acquire new customers we retain.

Speaker Change: Optionality in terms of being able to deploy our marketing to acquire customers and look forward to.

Speaker Change: For 2025 and beyond again, we're really focused on unit economics, and the LTV cafes to us and we continue continue to do that.

Speaker Change: That's sort of the thinking that as we looked at sort of the EBITDA guide for the balance of the year and particularly as you look at sort of the margin.

Speaker Change: For Q4.

Matthew B. Oppenheimer: And then maybe just a larger related question. Maybe talk longer term in terms of your confidence to scale sales and marketing based on what you've been seeing in the market, the elasticity testing, you know, word of mouth referrals, stepping up, and other things you have going on. Maybe just, you know, talk about how that confidence may have evolved over time, given what you've seen more recently. Thanks a lot.

Speaker Change: Got it understood and then maybe just a larger related question, maybe talk longer term in terms of your confidence to scale sales and marketing based on what you've been seeing in the market. The elasticity testing order for mouth referrals stepping up.

Speaker Change: Other things you have going on maybe just talk about how that confidence may have evolved over time, given what you've seen more recently, thanks a lot.

Matthew B. Oppenheimer: Yeah, thanks for the question, Andrew. I think that when you look at the scalability of our marketing, I think that we're feeling more confident than ever on that front. And we're excited about the record number of new customers and the efficiency that we're getting. And I think that's a reflection of the fact that we have a trusted brand. As you alluded to in your question, word of mouth continues to improve. And our unit economics continue to be well below our twelve month payback target.

Speaker Change: Yes. Thanks for the question Andrew I think when you look at the scalability of our marketing I think we're feeling more confident than ever on that front and.

Speaker Change: We're excited about with the record number of new customers and the efficiency that we're getting and I think that's a reflection of the fact that we have a trusted brand as you alluded to in your question. The word of mouth continues to improve and our unit economics continue to be well below our 12 month payback target and so what that leaves us is that we have a lot of optionality in terms.

Matthew B. Oppenheimer: And so what that means to us is that we have a lot of optionality in terms of how much we spend to grow versus how much we let flow to the bottom line. And we're well positioned from a marketing standpoint and then more broadly to build on your first question, which Hemanth also answered. Our business is just getting a lot of scale and leverage, and it's in a special place in that respect. And we grew thirty-one percent year on year from a revenue standpoint.

Speaker Change: And how much we spend to grow versus how much we let flow to the bottom line and.

Speaker Change: We're well positioned from a marketing standpoint, and then more broadly to build on your first question that Hey, Mark also answered our business is just getting a lot of scale and leverage and it's in a special place in that respect and that we grew 31% year on year from revenue standpoint, but you look at our.

Matthew B. Oppenheimer: But, you know, you look at our confident adjusted EBITDA guide and the overall leverage we're getting on everything from customer support costs to a variety of aspects of the P&L, and I think it's a reminder that scale matters in payments businesses, both to deliver a differentiated and quality customer experience and to be able to continue to get leverage and profitability as a business.

Speaker Change: Confident adjusted EBIT guide and the overall leverage we're getting and everything from customer support costs to a variety of aspects of the P&L and I think it's a reminder, that scale matters and payments businesses, both to deliver a differentiated and quality customer experience and to be able to continue to get leverage and profitability of the business.

Speaker Change: Totally agree. Thank you very much Matt I appreciate the comments.

Andrew: Thanks, Andrew.

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

Andrew Garth Schmidt: Thank you very much, Matt. Appreciate the comments. Thanks, friends. Thank you. One moment for our next question. Our next question will come from Ramsey El-Assal from Barclays. Your line is open. Hi, this is Allison on behalf of Ramsey.

Speaker Change: Our next question comes from the line of Ramsey El <unk> from.

Speaker Change: From Goldman from Barclays. Your line is open.

Speaker Change: Hi, This is Allison on for Ramsey. So thank you guys. So much for taking our question at mob, it's been great working with you.

Allison Sara Gelman: So thank you guys so much for taking our question, and Hemanth, it's been great working with you. So just thinking through the ongoing momentum you're seeing in the new ads. On that, I wanna go back to the Seafarer product that you spoke about, which does seem like a nice opportunity to capture new customers. So how big of a lift is it to get these types of specialized products off the ground from an investment standpoint, and how easy is it to replicate this type of product for other groups?

Allison Gelman: So just thinking through the ongoing momentum you're seeing, a new ads on that, I want to go back to this see fairer product that you spoke about, which does seem like a nice opportunity to capture new customers. So how big of a list is it to get these types of specialized products off the ground from like an investment standpoint and how easy is it to replicate this type of product to other groups? So like, is that something that we could see in the product pipeline going forward? Thanks. Thanks, Allison. Yeah, great question and great to hear from you.

Speaker Change: So just thinking through the ongoing momentum youre seeing in your add on that I wanted to go back to the seafarer product that you spoke about which does seem like a nice opportunity to capture new customers. So how big of a lift is it to get these types of specialized products off the ground from an investment standpoint, and how easy is it to replicate this type of <unk>.

Speaker Change: Product to other groups. So like is that something that we could see in the product pipeline going forward. Thanks.

Matthew B. Oppenheimer: So, like, is that something that we could see in the product pipeline going forward? Thanks, Allison. Yeah, great question and great to hear from you. We're excited about the CFAIRS products, and I think it's indicative. We've talked about some of the technology investments we've made in our platform, but those technology investments have enabled us to more nimbly and efficiently adjust our product to be able to serve multiple audiences. CFAIRS is a prime example of that.

Alison: Thanks, Alison yet.

Speaker Change: Great question and great to hear from you. We're excited about the <unk> product and I think its indicative we've talked about some of the technology investments we've made in our platform, but those technology investments have enabled us to more nimbly and efficiently.

Hemanth Munipalli: We're excited about the See Fairs product, and I think it's indicative we've talked about some of the technology investments we've made in our platform. But those technology investments have enabled us to more nimbly and efficiently adjust our product to be able to serve multiple audiences. See fairers is a prime example of that. We often talk about high-dollar senders, but you could apply that to a wide range of different types of customer profiles and different geographies. I think that we're getting faster and better at doing that. And the result is continued growth in the numbers that you've seen from the volume and revenue standpoint.

Speaker Change: Adjust our product to be able to serve multiple audiences seafarers as a prime example of that.

Speaker Change: We also talked about high dollar senders, but you could apply that to a wide range of different types of customer profiles in different geographies I think that we're getting faster and better at doing that and the result is continued growth in the numbers that you've seen from a volume and revenue standpoint, and so I would say with seafarers.

Matthew B. Oppenheimer: We also talked about high-dollar senders, but you could apply that to a wide range of different types of customer profiles and different geographies. I think that we're getting faster and better at doing that, and the result is continued growth in the numbers that you've seen from a volume and revenue standpoint. I'd say with CFAIRS, as I mentioned, I had an opportunity to interact with CFAIRS last quarter, and it's an underserved demographic that I think our product is serving very well, and there are 1.89 million CFAIRS that work across the globe. It's one of many segments that you can expect us to continue to grow in and serve even better customers. Great, really helpful.

Allison Gelman: And so I'd say with see fairs, as I mentioned, I had an opportunity to interact with see fairs last quarter. And it's an underserved demographic that I think our product is serving very well. There's $1.8 million dollars. 1.9 million see fairs that work across the globe to one of many segments that you can expect us to continue to grow in and serve even better. Great, really helpful.

Speaker Change: As I mentioned I had an opportunity to interact with seafarers last quarter and.

Speaker Change: It's an underserved demographic that I think our product is serving very well and theres 189 million seafarers that work across the globe. It's one of many segments that you can expect us to continue to grow in and serve even better.

Speaker Change: Great really helpful. Thanks.

Operator: Thanks.

William Nance: One moment for next question. Can I make a question on conflina? Will Nance from Goldman Sachs?

Speaker Change: Okay.

Operator: One moment for our next question. All right, a question from Confidence at Will Nance from Goldman Sachs. Your line is open.

Speaker Change: Our next question.

Speaker Change: Our next question comes from the line of will Nance from Goldman Sachs. Your line is open.

William Nance: Thank you, guys. Thank you for taking the question tonight. Matt, I actually also wanted to follow up with some of the comments you made on customer acquisition. I think you also mentioned higher-dollar senders and the fact that the majority of your customers are reoccurring senders each week or month. I'm just wondering if there's been any noticeable or meaningful shifts in the profile of the incremental customer. I think there's been a lot of focus on the third party data around app downloads, and it seems like the momentum in the business is continuing very strong. So I'm just wondering if there's been any shifts in sort of the profile of the existing customer over the last couple of quarters.

William Alfred Nance: Hey guys, appreciate you taking the question tonight. Matt, I actually also wanted to follow up with some of the comments you made on customer acquisition, you know, so the CFAIR example, I think you also mentioned higher dollar senders and the fact that the majority of your customers are kind of reoccurring, are reoccurring senders, you know, each week or month. And so I'm just wondering, maybe at a high level, if there's been any noticeable or meaningful shifts in sort of the profile of the incremental customer. I think there's been a lot of focus on kind of third-party data around app downloads.

William Alfred Nance: Hey, guys appreciate taking the question Tonight, Matt.

William Alfred Nance: Actually also wanted to follow up on some of the comments you made on customer acquisition.

William Alfred Nance: Seafarer example, I think you also mentioned higher dollar senders and the fact that the majority of your customers are kind of reoccur, a reoccurring centers each week or month. So I was just wondering if maybe high level. If you can hit on theirs.

Matthew B. Oppenheimer: And, you know, it seems like, you know, the momentum in the business is continuing very strong. So I'm just wondering if, you know, there's been any shifts in sort of the profile of the existing customer over the last couple of quarters. Thanks, Will. Great. Yeah, great question.

Speaker Change: Theres been any noticeable or meaningful shifts in sort of the profile of the incremental customer I think there's been a lot of focus on that.

Speaker Change: Third party data around App downloads and it seems like it seems like the momentum in the business is continuing very strong. So I'm just wondering if theres been any shifts in sort of the profile of the existing customer over the last couple of quarters. Thanks.

Matthew Oppenheimer: Thanks. Great. Yeah, great question. I would say that the mix in terms of the profile of the customers has not changed substantially in the last quarter or last even year or two. I think that what I like about the business in terms of where it's at now is the portfolio of kind of different geographies, which we've proven we can deliver different segments of customers. So I view this as additional additions to a very diverse portfolio of customers and having started the business 13 or 14 years ago. I will tell you that kind of business is much more resilient, much more predictable than when we were just in U.S.

Matthew B. Oppenheimer: I would say that the mix in terms of the profiles of customers has not changed substantially in the last quarter or the last even year or two. I think that what I like about the business in terms of where it's at now is the portfolio of kind of different geographies in which we've proven that we can deliver different segments of customers. And so I view this as additional additions to a very diverse portfolio of customers.

Speaker Change: Thanks, Bill Great Great question, I would say that the.

Speaker Change: The the mix the mix in terms of the profiles of customers does not change substantially in the last quarter or last even year or two I think that what I like about the business in terms of where it's at now is the portfolio kind of different geographies, which we've proven we can we can deliver.

Speaker Change: Different segments of customers and so I view this as additional additions to a very diverse portfolio of customers and having started the business 13 or 14 years ago. I will tell you that kind of business is much more resilient much more predictable than when we were just in the U S. The Philippines call It which we were in for the first two years of the business alone.

Matthew B. Oppenheimer: And having started the business 13 or 14 years ago, I will tell you that kind of business is much more resilient, much more predictable than when we were just in the U.S., the Philippines, call it that, which we were in for the first two years of the business alone. You look at the business now, and that diversification, which is only becoming more diversified, gives even more, as I mentioned, predictability to the business.

Matthew Oppenheimer: to the Philippines, call it, which we were in for the first two years of the business alone. You look at the business now and that diversification, which only becomes, is only becoming more diversified, give even more of them into predictability to the business. And I would view it as continuation on that journey when you look at the absolute number of customers from these new segments as opposed to a rapid change in any way, shape, reform.

Speaker Change: If you look at the business now and that diversification, which only becomes is only becoming more diversified.

Speaker Change: Even more as I mentioned predictability to the business and I would view it as a continuation on that journey. When you look at the absolute number of customers from these new segments.

Matthew B. Oppenheimer: And I would view it as a continuation of that journey when you look at the absolute number of customers from these new segments, as opposed to a rapid change in any way, shape, or form. Got it. And then I, you know, given Hemanth in the announcement, I wanted to allow the CFO question as well, just on the fraud cost this quarter. It looks like I was looking at the queue; it looked like fraud losses of maybe five, six million dollars sequentially.

Speaker Change: As opposed to a.

Speaker Change: Rapid change in any way shape or form.

William Nance: Thank you. I appreciate that.

Speaker Change: Got it I appreciate that and then.

William Nance: And then I, you know, given Hemanth in the announcement, I wanted a lot to see if I'll question as well, just on the fraud, the fraud cost was quarter. It looks like I was looking at the queue; it looked like the fraud losses would maybe have five, six million dollars sequentially. Is that about the right number to think about, kind of the impact in the quarter, and just confirming you kind of expect to be back at normal patterns in the back half? Appreciate it. And I'm also saying great working with you over the last few years.

Speaker Change: Given the.

Speaker Change: Mark.

Speaker Change #133: <unk> I wanted to lots of CFO question as well just on the fraud fraud costs. This quarter. It looks like I was looking at the Q. It looked like the fraud losses are maybe up $5 $6 million sequentially is that about the right number.

Speaker Change #111: Think about kind of the impact in the quarter and just confirm you kind of expect to be back at normal patterns in the back half I appreciate it and <unk> has been great working with you over the last few years.

William Alfred Nance: Is that about the right number to think about kind of the impact in the quarter and just confirming you kind of expect to be back at normal patterns in the back half? Appreciate it, and Hemanth, it's been great working with you over the last two years. Thanks, Will. Thank you. No, sounds great.

Operator: Thanks, Will. Thank you. Yeah, you are. Great. Go ahead. Sounds great. Let's go to the next question.

Lou: Thanks Lou.

Lou: Thank you.

Speaker Change: Okay.

Speaker Change: Great.

Speaker Change: Go ahead.

Operator: Let's go to the next question. One moment for our next question. Our next question will come from David Scharf from Citizens J&P. Your line is open. Hi, good afternoon.

Speaker Change: Sounds great let's go to the next question.

David Scharf: One moment for our next question. Our next question will come flying to David Scharf from the city's citizens, JMP. You line is open. Yeah, good afternoon. Thanks for taking my question. Maybe just a follow-up on a couple topics that have been touched upon first, just on the fraud. Just curious, you know, you would talk in your prepared remarks, Matt, on, you know, implementing risk-based, more risk-based underwriting, if you will, you know, for larger dollar senders.

Speaker Change: One moment for our next question.

Speaker Change: Our next question will come from the line of David Scharf from city's citizens JMP. Your line is open.

David Michael Scharf: Thanks for taking my questions. Maybe just to follow up on a couple topics, touched upon first just on the fraud. Just curious, you know, you talked in your prepared remarks, Matt, about, you know, implementing risk-based, more risk-based underwriting, if you will, you know, for larger dollar senders. Was the temporary bump in fraud related to large dollar senders anything that was either very geographic focused? Size $1.00, something that, you know, is very easy to identify and gives you comfort for it being ephemeral.

David Michael Scharf: Hi, good afternoon. Thanks for taking my questions, maybe just to follow up on a couple of topics.

David Michael Scharf: There have been touched upon.

David Michael Scharf: First just on the fraud.

David Michael Scharf: Just curious you had talked in your prepared remarks, Matt.

Matt: Implementing risk based more risk based underwriting if you will.

Speaker Change: For larger dollar centers was the temporary bump and fraud related to large dollar centers.

Matthew Oppenheimer: Was the temporary bump in fraud related to large dollar senders, anything that was either very geographic-focused or, you know, dollar size, something that, you know, was very easy to identify and gives you comfort for it being ephemeral? Yeah, yeah. Thanks for the question. It was not related to higher dollar senders to answer that directly. And I think that the important element, can we think about the fraud systems that we have? Is there a constant balance between optimizing for fraud loss rights and for maintaining a great user experience and not having what we call higher sideline rates, meaning manual reviews for good customers?

Speaker Change: That was either very geographic focused or.

David Michael Scharf: Dollar size something that was very easy to identify and gives you comfort for it being a femoral.

Matthew B. Oppenheimer: Yeah, thanks for the question. It was not related to higher dollar senders to answer that directly. And I think that the important element when you think about the fraud systems that we have is that there is a constant balance between optimizing for fraud loss rates and maintaining a great user experience and not having what we call higher sideline rates, meaning manual reviews for good customers.

Speaker Change: Yes, yes. Thanks for the question it was not related to higher dollar senders to answer that directly and I think that the important element. When you think about the fraud systems that we have.

Speaker Change: We have is there is a constant balance between optimizing for fraud loss rates and for maintaining a great user experience and not not having what we call higher sideline rates, beating manual reviews for good customers and I think that as we've said in the past there will be times, where we have more sophisticated fraud.

Matthew B. Oppenheimer: And I think that, as we've said in the past, there will be times where we have more sophisticated fraud attacks. And I think we've shown in Q2 and over the longer journey that we're good at responding to those. And, if anything, we've just gotten better because of a lot of the data and analytics that we can feed into our machine learning models that can help do that delineation.

Matthew Oppenheimer: And I think that, as we've said in the past, there will be times where we have more sophisticated fraud attacks. And I think we've shown in Q2 and over the longer journey that we're good at responding to this. And if anything, we've just gotten better because of a lot of the data and analytics that we can feed into our machine learning model that can help do that delineation. And so that's what happened in Q2. Is there was an uptick as we continue to have that optimization across that efficient frontier of sideline rate and fraud loss?

David Michael Scharf: Tax and I think we've shown in Q2 and over the longer journey that we're good at responding to this and if anything we've just gotten better because of a lot of the data and analytics that we can feed into our machine learning models that can help do that delineation.

Matthew B. Oppenheimer: And so that's what happened in Q2, there was an uptick as we continue to have that optimization across that efficient frontier of sideline rate and fraud loss. We pulled it back into our levels that are going into Q3, back within our range of goals and normality, while, again, maintaining low sideline rates. So excited about what's to come.

David Michael Scharf: And so that's what happened in Q2 as there was an uptick as we continue to have that optimization across that efficient frontier of sideline right and fraud loss, we pulled it back into our levels that are going into Q3 back within our range of those of normality well again, maintaining low sideline right. So excited about what's to come in.

David Scharf: We pulled it back into our levels that are going into Q3, back within our range of goals and normality, while, again, maintaining low sideline rates. So excited about what's to come, and you should expect in the business some variation, but it's always very temporary. And we bring that back under control as we didn't Q2. Got it, understood.

David Michael Scharf: And you should expect in the business some variation, but it's always very temporary, and we bring that back under control, as we did in Q2. I think we understand it. And maybe, you know, following up on the EBITDA guidance and maybe approaching it from a different angle, you know, at least on a revenue basis. You know, Remitly is actually one-third as big as Western Union, you know, based on your full year guide.

David Michael Scharf: Should expect in the business some variation, but it's always very temporary and we bring that back under control as we did in Q2.

Speaker Change: Got it.

David Scharf: And maybe, you know, following up on the EBITDA guidance and maybe approaching it from a different angle, you know, at least on a revenue basis, you know, it's actually one-third as big as Western Union is now. You know, based on your full-year guidance, when we look at their total revenue ex-USD-US transfers. And, you know, I'm just wondering; you've clearly shown an ability to scale already. There have been quarters where you've delivered outsized margins, and you know, as we just think about the trajectory of where margins could head, whether it's next year or three years out, do you feel normal feeling in terms of the size and the market share you can achieve or certain, you know, milestones in which you say, you know what, now is the time to focus, you know, less on customer acquisition and more on profitability?

Speaker Change: Stood.

Speaker Change: Maybe.

Speaker Change: Following up on the EBITDA guidance, and maybe approaching it from a different angle.

Speaker Change: Yes.

Speaker Change #149: At least on a revenue basis.

Remit Lee: Remit Lee is it's actually one third as big as Western Union is now.

Speaker Change #104: Based on your full year guidance when we when we look at their total revenue ex U S to U S.

Matthew B. Oppenheimer: We look at their total revenue X, U.S. to U.S. transfers. You know, I'm just wondering if you've clearly shown an ability to scale already. There have been quarters where they delivered outsized margins and, you know, as we just think about the trajectory of where margins could head, whether it's next year or three years out. Did you feel that way? normal ceiling in terms of the size and the market share you can achieve or certain, You know, milestones at which you say, you know what? Now's the time to focus less on customer acquisition and more on profitability, because it's been quite remarkable how quickly the company has grown in Western Union, obviously. It hasn't really grown in 20 years, not that I know of.

Speaker Change: Transfers and.

Speaker Change: I'm just wondering.

Speaker Change: Clearly shown an ability to scale already.

Speaker Change: There have been quarters, where.

Speaker Change: You've delivered outsized margins and.

Speaker Change: As we just think about <unk>.

Speaker Change #108: Trajectory of where margins could head, whether it's next year three years out.

Speaker Change: Or do you feel.

Speaker Change: Normal ceiling in terms of size and the market share you can achieve or or certain.

Speaker Change #101: Milestones of which you say.

Speaker Change #100: But now is the time to focus less on customer acquisition and more on profitability.

Matthew Oppenheimer: Because it's been quite remarkable, you know, how quickly the company has grown. In Western Union, obviously, it has really not grown in 20 years. Not that it's a, it might be an artificial ceiling, you know, to how big a global remittance provider could get that 4 billion revenue mark. But, you know, just curious about how you think about, you know, what is the milestone out there, whether it's account growth, corridor numbers, or revenue, in which you kind of signify to you that there's more of a focus. You know margin expansion versus account acquisition. Yeah, yeah, thanks, David. I think that the answer is, if you look at our current business, we're really proud of you. We're at 1.2 billion in revenue trailing 12 months, and we're continuing to show that leverage in the business. And so we do have the ambition, and we talk about this internally, to become the largest remittance company on the planet. And we are, you know, you see the glide path to be able to do that.

Speaker Change: It's been quite remarkable.

Speaker Change: How quickly the company has grown and Western Union, obviously is really not grown in 20 years not that it's at.

Matthew B. Oppenheimer: It might be an artificial ceiling, you know, to how big a global remittance provider could get that $4 billion in revenue mark, but, you know, just curious about what the milestone out there is, whether it's account growth, corridor numbers, or revenue which kind of signifies to you that there's more of a focus. Yeah, yeah, David. I think that the answer is, if you look at our current business, we're really proud. I mean, we're at $1.2 billion in revenue for the trailing 12 months, and we're continuing to show that leverage in the business.

Speaker Change: It might be an artificial ceiling.

Speaker Change: Hey, good global remittance provider could get that $4 billion revenue mark but.

Speaker Change #117: Just curious about how you think about.

Speaker Change: What is the milestone out there whether it's account growth.

Speaker Change: Corridor numbers or revenue and which kind of signifies to you that there is more of a focus on.

Speaker Change: Margin expansion versus account acquisition.

Speaker Change: Yes, yes, thanks, David I think that the answer is if you look at our current business, we're really proud of and we're at $1 2 billion in revenue trailing 12 months.

Matthew B. Oppenheimer: And so we do have ambitions, and we talk about this internally, to become the largest remittance company on the planet. And we are, you know, on the glide path to be able to do that. But we can do that while continuing to show leverage on the bottom line.

Speaker Change: And we're continuing to show that leverage in the business and so we do have ambitions and we talk about this internally to become the largest remittance company on the planet and we are you see the glide path to be able to do that but.

Matthew Oppenheimer: But we can do that while continuing to show leverage on the bottom line, and I did a fireside chat with Tencent at a JP Morgan conference recently where I kind of went through different aspects of the piano and talked through where there's leverage as a technology company doing remittances and what you see is whether that in this quarter leverage on the customer support side where we continue to see that to leverage on the marketing element because of the word of mouth components to leverage on overall. Headcount as we just get more scale as a payments company, you see a business that continues to be able to deliver really remarkable top line growth for our scale inside while showing leverage on the bottom line, and we're excited to continue to deliver that.

Matthew B. Oppenheimer: And I did a fireside chat with Tencent at a JPMorgan conference recently, where I kind of went through different aspects of the P&L and talked through where there's leverage as a technology company doing remittances. And what you're seeing is, whether that's in this quarter, leverage on the customer support side, where we continue to see that, leverage on the marketing element, because of the word of mouth components, and leverage on overall headcount, as we just get more scale as a payments company.

Speaker Change: But we can do that while continuing to show leverage on the bottom line and I did.

Speaker Change: Fireside chat with Tencent at JP Morgan Conference recently, where I kind of went through different aspects of the P&L and talk through where there's leverage as a technology company doing remittances.

Speaker Change: And what you see is whether or not in this quarter leverage on the customer support side, where we continue to see that to leverage on the marketing element because of the word of mouth components to leverage on overall head count as we just get more scale as a payments company you see a business that continues to be able to deliver really remarkable.

Matthew B. Oppenheimer: You see a business that continues to be able to deliver really remarkable top line growth for our scale and size while showing leverage on the bottom line. And we're excited to continue to deliver that. Thanks very much.

Speaker Change: Loan growth for our scale and size, while showing leverage on the bottom line and we're excited to continue to deliver that.

Operator: Thanks very much.

Speaker Change: Got it thanks very much.

Darrin Peller: Thank you. One moment for next question. Next question of Confluent, Darren Peller from Wolf Research. Your line is open. Hey guys, thanks. Sorry, my phone.

Operator: Thank you. One moment for our next question. Our next question comes from Darin Peller from Wolf Research. Your line is open.

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

Speaker Change: Our next question will come from the line of Darrin Peller from Wolfe Research. Your line is open.

Darrin David Peller: Hey guys, thanks. Sorry, my phone, first of all, Hemanth, just wanted to wish you congrats as well, but I guess just on the overarching growth in the customer ads, Matt, if you could just take a step back and review the strategy, what's changed in it, if anything, in the last, let's call it a few quarters, to deliver the kind of growth you're seeing, still being sustainable, and maybe just give a little more color on the corridor plans.

Darrin David Peller: Hey, guys. Thanks.

Speaker Change #115: Sorry my phone.

Matthew Oppenheimer: First of all, I just wanted to know what you can grab as well, but I guess just on the overarching growth in the customer eyes. Matt, if you could just take a step back and review the strategy, what's changed in it, if anything, in the last, let's call, a few quarters to deliver the kind of growth you're seeing, still being sustainable, and maybe just give a little more color on the corridor plans. You know again you're out about I think five thousand is what I saw lately, but like you know when you compare to what it could be, is there any intentional shift around different corridors or any push into new markets.

Darrin David Peller: First of all just wanted to wish you congrats as well but.

Darrin David Peller: I guess just on the overarching growth in the customer adds.

Darrin David Peller: Matt If you could just step back and review the strategy Whats changed if anything in the last let's call. It a few quarters.

Speaker Change: To deliver the kind of growth youre seeing still being sustainable and maybe just give a little more color on the corridor plans again youre at about I think 5000 is what I saw lately, but like yes.

Darrin David Peller: You know, again, you're at about, I think 5,000 is what I saw lately, but when you compare to what it could be, is there any intentional shift around different corridors or any push into new markets that we should expect in the next, let's call it 12 months? Just a quick follow-up, let's put it all together, on pricing. So if there's any discussion you could share with us around trends you're seeing in the market, there's been different yield.

Speaker Change #109: When you compare to what it could be is there any intentional shift around different corridors already push into new markets. So we should expect in the next let's call. It 12 months.

Matthew Oppenheimer: So we should expect in the next, let's call it, 12 months.

Matthew Oppenheimer: Just a quick follow-up. I'll put it all together on pricing. So if there's any discussion you could share with us around trends you're seeing in the market. There's been different yield. I know fraud in some cases here was a little bit more of an impact, but in some of the competitors, we've been seeing some spread widening between growth on revenue and transactions. So any color you're seeing could better be great. Thanks, guys. Yeah, yeah, thanks there. And I think there were kind of three parts of your question.

Speaker Change #103: Just a quick follow up as you put it altogether is on pricing.

Speaker Change: So if there is any discussion you could share with us around the trends youre seeing in the market there has been.

Darrin David Peller: I know fraud in some cases here had a little bit more of an impact, but in some of the competitors, we've been seeing some spread widening between growth in revenue and transactions. So any color you're seeing competitively would be great.

Speaker Change #136: Different yield I know fraud in some cases here was a little bit more of an impact but.

Speaker Change #106: And some of the competitors, we have been seeing some spread widening between growth on revenue and transactions. So any color on what youre seeing competitively would be great.

Speaker Change: Thanks, guys Okay.

Speaker Change: Yes.

Matthew B. Oppenheimer: Thanks guys, yeah, Yeah, thanks, Aaron. I think there were kind of three parts to your question, so I'll answer them each briefly. On the net ads point, it was what we said to some extent in Q1, in that there's some seasonality when you look at quarterly active users. And so we know that the market looks at that and infers that metric of Q1 to Q2 change in quarterly active users.

Speaker Change: Yes, Thanks, Darren I think they were kind of three three parts of your question. So I'll answer them. Each briefly on the net adds point. It was what we said some of that in Q1 and that there is some seasonality when you look at quarterly active users and so we know that the market looks at that and for that metric in Q1 to Q2 change in.

Matthew Oppenheimer: So I have for a speech briefly. And then that at a point, it was, it was what we said, some extent Q1 in that there's some seasonality when you look at quarterly active users. And so we know that the market looks at that, and first that metric of Q1 to Q2 change in quarterly active users. And I think it was exactly as expected in that there's more holidays and reasons that folks send in Q2 combined with a, with record number of new customers and continued strong retention that we're really proud of, given our exceptional product.

Speaker Change: Quarterly active users and I think it was exactly as expected and that Theres more holidays and reasons that folks ended Q2 combined with a with record number of new customers and continued strong retention that we're really proud of given our exceptional product and so.

Matthew B. Oppenheimer: And I think it was exactly as expected in that there were more holidays and reasons that folks send in Q2, combined with a record number of new customers and continued strong retention that we're really proud of, given our exceptional product. And so in some respects, it was business as usual on that front. On the corridor side, we're in about 5,000 corridors now.

Matthew Oppenheimer: And so, in some respects, it was business as usual on that front. On the corridor, on the corridor side, we're at about 5,000 corridors now. Over time, in the long run, we plan to expand the 15 to 20,000 globally. But the reality is we have so much room to grow in the 5,000 corridors we're in. So you should expect us to continue to add corridors in a methodological way as we've always done. But the takeaway there is lots of room to grow since you said 12 months, lots of room to grow in the next 12 months in our existing course.

Speaker Change #116: In some respects it was business as usual on that front on the corridor on the corridor side.

Speaker Change: We're in about 5000 corridors now.

Matthew B. Oppenheimer: Over time, in the long run, we plan to expand to 15 to 20,000 globally. But the reality is, we have so much room to grow in the 5,000 corridors we're in. So you should expect us to continue to add corridors in a methodological way, as we've always done. But the takeaway is that there is lots of room to grow. Since you said 12 months, there is lots of room to grow in the next 12 months in our existing corridors.

Speaker Change: Over time in the long run we plan to expand the 15% to 20000 globally, but the reality is we have so much room to grow in the 5000 corridors. We're in so you should expect us to continue to add corridors.

Speaker Change: In a methodological way as we've always done but the takeaway there is lots of room to grow since you said 12 months lots of room to grow in the next 12 months in our existing stores and on the pricing front no material changes.

Matthew B. Oppenheimer: And on the pricing front, no material changes in Q2 on pricing. We, as always, are continuing to do price optimization so that we provide a fair value to customers, as well as, more importantly, improve our product so it's trusted and reliable, which is the foundation for what customers look at when they choose a remittance provider.

Matthew Oppenheimer: And on the pricing front, no material changes in Q2 on pricing. We, as always, are continuing to do price optimization so that we provide a fair value to customers, as well as, more importantly, improve our products. So it's crafted in reliable, which is the foundation for what customers look at when they choose to remit and to provide.

Speaker Change: In Q2 on pricing.

Speaker Change: As always are continuing to do price optimization, so that we provide a fair value to customers as well as more importantly, improve our products. So its trusted and reliable which is the foundation for.

Speaker Change: What customers look at when they choose the remittance provider.

Matthew Oppenheimer: Okay, that's helpful. Thanks. Thanks, Aaron.

Darrin David Peller: Okay, that's helpful. Thanks, Pat. Thanks, Aaron. Thank you. One moment for our next question. Our next question will come from Chris Kennedy on behalf of William Blair. Your line is open.

Speaker Change #105: Okay. That's helpful. Thanks, Pat.

Darren: Thanks Darren.

Cristopher Kennedy: Thank you. One moment for our next question. Our next question will come from the line of Chris Kennedy from William Blair. Your line is open. Great. Thanks for taking the question, and Emma, thank you for working with you. So we've seen some smaller peers have some struggles and shut down.

Darren: Thank you one moment for our next question.

Speaker Change #120: Our next question comes from the line of Chris Kennedy from William Blair. Your line is open.

Cristopher David Kennedy: Great. Thanks for taking the question, and Hemanth, thank you. It's been good working with you. We've seen some smaller peers have some struggles and shut down. Can you just talk about the structural cost advantages that Remitly has relative to others in the industry?

Cristopher David Kennedy: Great. Thanks for taking the question.

Cristopher David Kennedy: Good working with you.

Cristopher David Kennedy: We've seen some smaller peers have some struggles and shutdown can you just talk about the structural cost advantages that recently has relative to others in the industry.

Cristopher Kennedy: Can you just talk about the structural cost advantages that Remitley has relative to others in the industry? Yeah, absolutely. And I can answer that as a founder, having been sub-scale. I think it's really hard to succeed in this business without scale. And by succeed, I mean deliver an exceptional customer experience while continuing to get leverage and profitability as a company. And so it's not a surprise to see some sub-scale players, whether those are sub-scale digital players or sub-scale pass-based players. And I think we're the beneficiary of, and ultimately our customers, the beneficiary of being able to have enough scale to deliver a lot of the things that we've talked about, whether that's some of the data analytics on our fraud side, our virtual AI assistant, and the scale required to deliver that exceptionally are pay-in, pay-out partners, our word-of-mouth.

Matthew B. Oppenheimer: Yeah, absolutely. And I can answer that as a founder having been subscale. I think it's really hard to succeed in this business without scale. And by succeed, I mean deliver an exceptional customer experience while continuing to get leverage and profitability as a company. And so it's not a surprise to see some subscale players, whether those are subscale digital players or subscale cash-based players.

Speaker Change #110: Yeah, absolutely and I can answer that as a founder having been subscale.

Speaker Change #118: I think it's really hard to succeed in this business without scale and <unk> delivered exceptional customer experience.

Speaker Change #118: While continuing to get leverage and profitability.

Speaker Change #118: As a company and so it's not a surprise to see some subscale players whether those are sub scaled digital players or subscale task based players.

Matthew B. Oppenheimer: And I think we're the beneficiary of, and ultimately, our customers are the beneficiary of, being able to have enough scale to deliver a lot of the things that we've talked about, whether that's, you know, some of the data analytics on our fraud side, our virtual AI assistant, and the scale required to deliver that exceptionally, our pay-in, pay-out partners, our word of mouth. I could go on and on, but scale is important, and I think that folks that are subscale are having challenges, and folks that are especially digital-first at scale are delivering the kind of growth and retention numbers that you're seeing from us in QCF. Thank you for that. And then last quarter, I think you talked about Africa as being a big opportunity for you. Can you just talk about some of the dynamics of that market? Thank you. Yeah, sure.

Speaker Change #118: And I think we're the beneficiary and ultimately our customers are the beneficiary of.

Speaker Change #110: <unk>.

Speaker Change #110: Being able to have enough scale to deliver a lot of the things that we've talked about whether thats. Some.

Speaker Change #110: Some of the data analytics on our fraud side, our virtual AI assistant and the scale required to deliver that exceptionally our pay in payout partners. Our word of mouth I could go on and on but scale is important and I think.

Matthew Oppenheimer: I could go on and on, but scale is important. And I think that folks that are sub-scale are having challenges. And folks that are especially digital first-ass scale are delivering the kind of growth and retention numbers that you're seeing from us in QSU. Thank you for that.

Speaker Change #110: That.

Speaker Change #110: The folks that are subscale, or having having challenges and folks that are especially digital first at scale are delivering the kind of growth and retention numbers that youre seeing from us in Q2.

Speaker Change #113: Thank you for that and then last quarter I think you talked about Africa as being a large opportunity for you can you just talk about some of the dynamics of that market. Thank you.

Matthew Oppenheimer: And then last quarter, I think you talked about Africa as being a large opportunity for you. Can you just talk about some of the dynamics of that market? Thank you. Yeah, sure. Big opportunity simply because we haven't been there as long as you look at just the 13-year history of the company. And it's a good example where, when I say we have a lot of room to grow in the 5,000 portals, we're in lots of room to grow across Africa. And obviously within Africa, there's East Africa, markets like Kenya, where the origin story came from and I lived before starting the business.

Matthew B. Oppenheimer: Big opportunity simply because we haven't been there for so long if you look at just the 13-year history of the company. And it's a good example of where, when I say we have a lot of room to grow in the 5,000 corridors we're in, lots of room to grow across Africa. And obviously, within Africa, there's East Africa, markets like Kenya, where, you know, the origin story came from, and I lived before starting the business. There are a lot of countries in West Africa, but the punchline there is a rapid shift towards digitization, both on the origination and the disbursement side, especially in disbursement options like mobile wallets.

Speaker Change #167: Yes, sure big opportunity simply because we haven't been there as long if you look at just the 13 year history of the company and it's a good example of where when I say, where we are.

Speaker Change: Lot of room to grow in the 5000 corridors brand lots of room to grow across Africa, and obviously within Africa East.

Speaker Change: East Africa markets like Kenya, where the origin story came from and I lived before starting the business.

Matthew Oppenheimer: There's a lot of countries in West Africa, but the punchline there is rapid shift towards digitization. Both on the origination and the disbursement side, especially in disbursement options like mobile wallet. And we feel really well positioned to offer a great product in several countries in Africa to be able to drive growth. Thank you.

Speaker Change: There is a lot of countries in West Africa, but the punch line there is <unk>.

Speaker Change: Rapid shift towards Digitization, both on the origination and the disbursement side, especially.

Speaker Change: Just first one options like mobile wallet, and we feel really well positioned to offer a great product.

Matthew B. Oppenheimer: And we feel really well positioned to offer a great product in several countries in Africa to be able to drive growth. Thank you.

Speaker Change: In several countries in Africa to be able to drive growth.

Speaker Change #125: Okay. Thank you.

Speaker Change #124: Thank you one moment our next question.

Alexander Markgraff: One moment for next question. Our next question on Confluent of Alex Markgraff from Keybank Capital Markets. Your line is open.

Operator: One moment for our next question. Our next question will come from Alex Markgraff from KeyBank Capital Markets. Your line is open. Hey guys, thanks for taking my questions. Matt, one for you and then one for Hemanth. Just on the virtual assistant that you mentioned for customer support, any way to sort of characterize how big of an unlock the language expansion is, maybe in the context of like what mix of interactions or engagements on the support side are not in English, and then just how big of an effort it is to broaden the language coverage for that.

Speaker Change #135: Our next question comes from the line of Alex <unk> from Keybanc capital markets. Your line is open.

Matthew Oppenheimer: Hey guys, if you're taking my questions, Matt went for you and then went for him on just on the virtual assistant that you mentioned for customer support. Any way they sort of characterize how big of an unlock the language expansion is, just maybe in the context of like what mix of interactions or engagements on the support side are not in English, and then just how big of an effort it is to broaden the language coverage for that. Yeah, great question. I do think that, in general, when you look at a lot of the AI tools, the language translation capabilities and material, and so I think there's opportunities there.

Speaker Change: Okay.

Alex: Hey, guys. Thanks for taking my questions, Matt One for you and then one for him on.

Alex: On the virtual assistant that you mentioned for customer support.

Alex: Any way to sort of characterize how big of an unlock the language expansion is just maybe in the context of like what mix of interactions or engagements on the support side are not.

Speaker Change #147: In English and then just how big of an effort is to broaden the.

Speaker Change: Language coverage for that.

Operator: Yeah, great question. I do think that, in general, when you look at a lot of AI tools, the language translation capabilities are pretty good. And so I think there's opportunities there. I think most of where we've driven it thus far is in English, but easy expansion when it comes to, you know, multiple languages.

Speaker Change: Yes, Great question I do think that in general when you look at.

Speaker Change: A lot of the AI tools that language translation capabilities are material and so I think theres opportunities. There I think most of where we've driven thus far is in English, but easy expansion when it comes to multiple languages and if you look at the number of use cases, and we can also expand the number of use cases for the types of problems, we can solve when customer.

Hemanth Munipalli: I think most of where we've driven it thus far is in English, but easy expansion when it comes to multiple languages. And if you look at the number of use cases, we can also expand the number of use cases for the types of problems we can solve when customers are using that virtual AI assistant. So excited about the potential there for both better customer experience as well as helping our customer support agents do things that they can uniquely do with their skills, but at a more specialized level.

Alexander Wexler Markgraff: And if you look at the number of use cases, we can also expand the number of use cases for the types of problems we can solve when customers are using that virtual AI assistance. So I'm excited about the potential there for both a better customer experience as well as helping our customer support agents do things that they can uniquely do with their skills, but at a more specialized level. Okay, thanks. And then Hemanth, just on, I apologize if this was said already, but just on the transaction margin expansion for the year in consideration of the higher expense rate in 2Q. How should we be thinking about that level of expansion in the second half and for the full year?

Speaker Change: They are using that virtual AI assistant.

Speaker Change: So.

Speaker Change: Excited about the potential therefore, both better customer experience as well as helping our customer support agents.

Speaker Change: Do things that they can uniquely do with their skills.

Speaker Change: At a more.

Speaker Change: Specialized level.

Hemanth Munipalli: Okay, thanks.

Speaker Change #119: Okay. Thanks, and then.

Hemanth Munipalli: And then him on just done apologize if this was there already, but just on the transaction margin expansion for the year and consideration of the higher expense rate in two queue. How should we be thinking about that level of expansion in the second half and for the full year. Yeah, yeah, thanks for the question. I think we would continue to focus on improving transaction, reducing transaction expenses over time. I think we've, you know, I think the rate of improvement will be more moderated. We had some really significant improvements last year, particularly in the second half.

Speaker Change #145: Just on I apologize. If this was said already but just on the transaction margin expansion for the year in consideration of the <unk>.

Speaker Change #170: Higher expense rate in Q2, how should we be thinking about that level of expansion in the second half.

Speaker Change #119: And for the full year.

Speaker Change #164: Yes. Thanks for the question Alex So I think we would continue to focus on improving transaction, reducing transaction expenses over time I think.

Hemanth Munipalli: Yeah. Yeah. No, I think we'll continue to focus on improving transactions and reducing transaction expenses over time. I think we've, you know, I think the rate of improvement will be more moderated. We had some really significant improvements last year, particularly in the second half.

Speaker Change #175: I think the rate of improvement will be more moderated we had some really significant improvements last year, particularly in the second half so we're going to be comping through that.

Hemanth Munipalli: So we're going to be comping through some of that, but in terms of what we're doing with the focus on whether direct integrations reducing our, you know, improving our customer experience and so many different levels, especially as you've gotten a lot of scale and volume growth. But we do continue to see opportunities to reduce our reduced transaction expenses over the next coming years.

Hemanth Munipalli: So we're going to be commuting through some of that. But in terms of what we're doing with the focus on whether direct integrations, reducing our, you know, improving our customer experience and so many different levels, especially as we've gotten a lot of scale and volume growth, we do continue to see opportunities to reduce our transaction expenses over the coming years. Thank you. It's a pleasure working with you, Hemanth.

Speaker Change #119: Some of that but in terms of what we're doing with the focus on whether it's direct integrations using our.

Speaker Change #119: Improving our customer experience.

Speaker Change #119: And so many different levers, especially as you've gotten a lot of scale in.

Speaker Change #119: Volume growth, we do continue to see opportunities to reduce our reduced transaction expenses over the next.

Speaker Change #114: Coming to us.

Hemanth Munipalli: Thank you, but you're working with you in month.

Speaker Change #128: Thank you pleasure working with you a few months.

Speaker Change #128: Okay.

Operator: Thank you.

Alexander Wexler Markgraff: Thank you. One moment for our next question. Our next question comes from the line of Andrew Bauch from Wells Fargo. Your line is open.

Andrew Bauch: One moment for our next question. Our next question comes from the line of Andrew Bauch from Wells Fargo, where your line is open. Hey, thanks for taking the question, and Hamash, wishing you the best.

Speaker Change #134: Thank you one moment for our next question.

Speaker Change #182: Our next question comes from the line of Andrew Bock from Wells Fargo. Your line is open.

Andrew Thomas Bauch: Hey, thanks for taking the question. And Hamash, wishing you the best. It's been a pleasure. Looking at volume per customer, it inflected positively in the second quarter for I think the first time in about two years. I'm sure the holidays had something to do with that.

Speaker Change #177: Hey, Thanks for taking my question.

Speaker Change #122: Wishing you invest.

Andrew Bauch: It's been a pleasure. Looking at the volume of the customer, it's been flexed positively in the second quarter for I think the first time in about two years. I'm sure the holidays had something to do with that. Is there any way to kind of parse out what those holidays could have contributed to that metric? Is trying to get a sense of we could potentially start modeling that flat deposit going forward. Yeah, yeah, thanks for the question. I don't know. I think it's, I think as we call out last quarter, we do see when we go from Q1 to Q2 that there is a significant increase in sort of the sequential growth of active customers.

Speaker Change #174: Been a pleasure.

Speaker Change #139: Looking at volume per customer.

Speaker Change #163: Selected positively in the second quarter for US I think the first timing about two years.

Speaker Change #138: Sure the holidays had something to do with that is there any way to kind of parse out what those holidays could have contributed to that metric just trying to get a sense that we could potentially start modeling that flat to positive going forward.

Hemanth Munipalli: Is there any way to kind of parse out what those holidays could have contributed to that metric? Just trying to get a sense of whether we could potentially start modeling that flat to positive going forward. Yeah, yeah, thanks for the question, Andrew. No, I think it's, I think, as we called out last quarter, we do see when we go from Q1 to Q2, that there is a significant increase in sort of the sequential growth of active customers.

Speaker Change #138: Yeah, Yeah. Thanks for the question, Andrew I think it's I.

Speaker Change #138: I think as we called out last quarter, we do see when we go from Q1 to Q2.

Speaker Change #138: A significant increase in sort of the sequential growth.

Hemanth Munipalli: And I think what we saw as it sort of played out, I think we did see a degree of outperformance, particularly given some of the product improvements we've been making. And those enhancements have contributed as well to just improving retention and engagement with customers. And I think the other piece here is, as we've called out before, transaction intensity continues to improve as there is more and more digital mix in the disbursement options.

Speaker Change: Of active customers and.

Matthew Oppenheimer: And I think what, and we saw that as it sort of played out. I think we did see a degree of our performance, particularly given some of the product improvements we've been making. And those enhancements have contributed as well to just improving retention and engagement with customers. And I think the other piece here is, as you've called out before, transaction intensity continues to improve as there's more and more digital mixing the displacement options. And we have an advantage there as well in terms of our product offering. So I think those are some of the factors that show that demonstrated increased sort of customer engagement in the quarter on top of us.

Speaker Change: I think what we saw that as a sort of played out I think we did see a degree of outperformance, particularly given some of the product improvements that we've been making and those enhancements have contributed as well because it is improving retention and engagement with customers and I think the other piece here is as you've called out before transaction intensity continues to improve as this more.

Hemanth Munipalli: And we have an advantage there as well in terms of our product offering. So I think those are some of the factors that demonstrated increased sort of customer engagement in the quarter on top of a seasonal pattern that we expected. And then maybe just to follow on top of that with a macro kind of related question, anything that you guys are seeing in the market today, be it from geopolitical, economic, or otherwise, that you're monitoring that helps inform, you know, the guide that you're putting out today?

Speaker Change: And more digital mixing displacement options.

Speaker Change: We have an advantage there as well in terms of our product offerings. So I think those are some of the factors that show.

Speaker Change: Demonstrated increased sort of customer engagement.

Speaker Change: In the quarter on top of a seasonal pattern that we expected.

Matthew Oppenheimer: He's not bad on that that we expected.

Matthew Oppenheimer: And then maybe just to follow on top of that with a macro kind of related question, anything that you guys are seeing in the market today via from geopolitical, economic or otherwise that you're monitoring that helps inform the guy that you're putting out today. I know reminches are generally pretty stable from a macro perspective, but I just want to make sure we're covering our bases. Yeah, yeah, I can take that one. I think that we certainly monitor the geopolitical landscape not only domestically, but globally now that we're in 170 countries. And the first thing I'd say is coming mid-around for prior election cycles.

Hemanth Munipalli: I know remittances are generally pretty stable from a macro perspective, but just want to make sure we're covering our bases. Yeah, yeah, I can take that one. I think that we certainly monitor the geopolitical landscape, not only domestically, but globally now that we're in 170 countries.

Speaker Change #182: And then maybe just a follow on top of that with a macro kind of a related question.

Speaker Change #141: Anything that you guys are seeing in the markets today be it from geopolitical economic.

Speaker Change #143: Or otherwise that you are monitoring that helps inform.

Speaker Change #150: The guide that you are putting out today.

Speaker Change #127: Businesses are generally pretty stable from a from a macro perspective, but just want to make sure we're covering our basis.

Speaker Change #129: Yes, yes, I can take that one I think that we certainly monitor the geopolitical landscape not only domestically, but globally now that we're at 170 countries and the first thing I'd say is having been around for a prior election cycles and for over a decade, we have seen various cycles unfold and the.

Matthew B. Oppenheimer: And the first thing I'd say is, having been around for prior election cycles and for, you know, over a decade, we have seen various cycles unfold. And the criticality of remittances and the predictability is something that has been there through a variety of, whether it's geopolitical or economic cycles. And so I'd say we are taking those into account. And we feel, even with those, that we have high confidence in our guide, to No Developments to Speak Up. No developments to speak of, either.

Matthew Oppenheimer: And for over a decade, we have seen various cycles unfold and the criticality of reminches and the predictability of something that has been there through a variety of whether it's geopolitical or economic cycles. And so I think we are taking this into account, and we feel even with those that we have high confidence in, our guide to no development to speak up. No development to speak up now. Great, thanks.

Speaker Change #129: The criticality of remittances and the predictability is something that has been there through a variety of.

Speaker Change #129: Whether it's geopolitical or economic cycles.

Speaker Change #129: And.

Speaker Change: So I'd say, we are taking those into account and we feel even with those.

Speaker Change: We have high confidence in our in our guidance.

Speaker Change: So no developments to speak up.

Speaker Change: No developments to speak up now.

Speaker Change #130: Great. Thanks.

Operator: Thank you.

Andrew Thomas Bauch: Great, thanks. Thank you. One moment for our next question. Our next question comes from Rufus Hone from BMO. Your line is open. Hey guys, thanks for the question. I wanted to ask about the G&A trajectory, and you saw a meaningful step down in the G&A percentage sequentially this quarter. Sounds like you're being measured around hiring, but also maybe looking to increase the mix of cash comp here. So, I'd love any color you'd like to share on the G&A outlook.

Speaker Change #153: Thank you one moment our next question.

Rufus Hone: One moment for a next question. Next question, Coffin, Rufus Hon, from BMO. Your line is open. Hey guys, thanks for the question. I wanted to ask about the GNA trajectory, and you saw a meaningful step down and the GNA percentage sequentially this quarter. Sounds like you're being measured around hiring, but also maybe looking to increase the mix of cash comp here. So if you love any color, you'd like to share on the GNA outlook. Thanks. Yeah, thanks, Rufus. Yeah, I think it's a GNA and across the P&L. We've been really focused on operational efficiencies. You've seen that on the customer service side.

Rufus Hone: Thanks. Yeah, thanks, Rufus. Yeah, I think it's G&A and across the P&L, we've been really focused on operational efficiencies. We've seen that on the customer service side, and we're seeing that now across other aspects of the operating expenditures. So G&A, you know, would follow a similar trend; we would expect that the growth rates there will be moderated going forward.

Speaker Change #180: Our next question comes from the line of Rufus Hone from BMO. Your line is open.

Rufus Hone: Hey, guys. Thanks for the question I wanted to ask about the G&A trajectory and you sort of a meaningful step down in the G&A percentage sequentially. This quarter. It sounds like youre being measured around hiring but also may be looking to increase the mix of cash comp here. So I'd love any color you'd like to share on the G&A outlook.

Speaker Change: Thanks.

Hemanth Munipalli: And, you know, we see technology, we see process efficiencies, the way we're managing our software spend, there are so many dimensions to this, and we've continued to put focus on it to drive efficiencies in G&A. Okay. And then just a quick follow-up on Remitly Circle and other new products that you're working on. I was wondering if there was any update on progress and the level of spend associated with that as well. Yeah, thanks.

Speaker Change #144: Yes, Thanks, Joe for US, Yes, I think G&A and across the P&L, we've been really focused on operational efficiencies.

Speaker Change #178: Seen that on the customer service side, and we're seeing that across other aspects will be operating expenditures to G&A.

Hemanth Munipalli: We're seeing that now across other aspects of the operating expenditures. The GNA, you know, would follow a similar trend. We would expect that the growth rates will be moderated going forward. And, you know, we see technology. We see process efficiencies the way we're managing our software spend. There's so many dimensions to this. And we've continued to focus on it to drive efficiencies in GNA.

Speaker Change #121: Would follow a similar trend we would expect that the growth rates there would be moderate going forward.

Speaker Change #156: And we see.

Speaker Change #121: Technology, we see process efficiencies the way, we're managing our software spend theres. So many dimensions to this and we will continue to put focus on it to drive efficiency in G&A.

Hemanth Munipalli: Okay, and then just on a quick follow-up on Remitly Circle and other new products that you're working on, I was wondering if there was any update on progress and level of spend associated with that as well. Thanks. Yeah, thanks. If you look at our broader vision of transform wise with trusted financial services that transcend borders, we are highly confident in the broad range of pain points that our customers have, starting with remittances and international payments, but extending to other areas, including some of the areas that Circle is solving. And if you look at the early trajectory there, I think it's encouraging, and we're excited.

Speaker Change #161: Okay, and then just a quick follow up on room at least circle and other new products that Youre working on I was wondering if there was any update on progress and the level of spend associated with that as well. Thanks.

Matthew B. Oppenheimer: If you look at our broader vision of changing lives with trusted financial services that transcend borders, we are highly confident in the broad range of pain points that our customers have, starting with remittances and international payments but extending to other areas, including some of the areas that Circle is solving. And if you look at the early trajectory there, I think it's encouraging and we're excited, but it's in the broader context of this technology platform that we've built out that enables us to innovate and launch new products in a more modular fashion based on APIs and other elements that we have started to improve in our technology stack. And so I'd say that that also ties to the cost point, and it costs less to launch and ramp up new products.

Speaker Change #172: Yes. Thanks.

Speaker Change #148: If you look at our broader vision of transform lives with trusted financial services that transcend boarders.

Speaker Change #187: We are highly confident in the broad range of pain points that our customers have starting with remittances and international payments, but extending to other areas, including some of the areas that circle is sampling and if you look at the early trajectory. There I think is encouraging and we're excited but it's.

Matthew Oppenheimer: But it's in the broader context of the technology platform that we built out that enables us to innovate and launch new products in a more modular fashion based on APIs and other elements that we have started to improve in our technology stack. And so I say that that also ties to the cost point. It costs less to launch and ramp new products. We're investing in a pretty disciplined way in that area, but excited about what's become, and it's critical for us to continue to scale that. And we look forward to talking about it more as it does reach efficient scale and make sense to talk about more detail.

Speaker Change #148: In the broader context of this technology platform that we built out that enables us to innovate and launch new products and a more modular fashion based on.

Speaker Change #148: Apis and other elements that we have started to improve and our technology stack and so.

Matthew B. Oppenheimer: We're investing in a pretty disciplined way in that area, but excited about what's to come. And it's critical for us to continue to scale that. And we look forward to talking about it more as it does reach an efficient scale and makes sense to talk about in more detail. Thank you. One moment for our next question. Our next question comes from Gus Galla from Nance, Crosby, Hard & Company. The line is open. Hi Matt. Hi Hemanth.

Speaker Change #148: I would say that that also ties to the cost point and it cost us less to launch and ramp new products, we're investing in a pretty disciplined way in that area, but excited about what's to come and it's critical for us to continue to scale that.

Speaker Change #148: We look we look forward to talking about it more as it does reach.

Speaker Change #148: Patient scale and makes sense to talk about in more detail.

Operator: Thank you.

Speaker Change #148: Okay.

Operator: One moment for next question. Our next question comes from Lina. Hi Matt.

Speaker Change #148: In Q1.

Speaker Change #152: One moment our next question.

Speaker Change #121: Our next question comes from the line of Gus Gala.

Speaker Change #184: And then Scott pretty hard and company. Your line is open.

Operator: Best wishes tomorrow, by the way. Can we talk about transaction expense mechanics a little bit differently? Can you help us think about, as this scales, how does volume, as the volume gets bigger, is there a reset in the pricing? How often does that happen?

Operator: I am on all the best wishes of our part of the way. Can we talk about the exact expense mechanics a little bit differently? Can you help us think of has this scales? How do volume as volume gets bigger? Is there a reset in the pricing? How often does that happen? Just how to think about that?

Gus Gala: Hi, Matt Hi amount.

Speaker Change #171: All the best wishes to Mark by the way.

Speaker Change #173: Can we talk about transaction expense mechanics, a little bit differently.

Speaker Change #132: Can you help us think of has the skills how do volume.

Speaker Change #159: As the volume gets bigger is there a reset in the pricing how often does that happen.

Gus Galla: Just how to think about that. And then the other one, the mix of customers you're bringing on. Can you talk about what you're seeing in initial spend, maybe in terms of intensity and AOV, or transaction size, for those non-India, Mexico, Philippines customers? Thanks. Yeah, I think you called that out.

Matthew Oppenheimer: And then the other one is a mix of customers you're bringing on. Can you talk about what you're seeing in initial spend, maybe in terms of intensity and AOV or transaction size for those none in the Mexico Philippines customers. Thanks. Yeah, I think you called out that thanks for I think you called out one of the key levers as we've gotten more volume and we negotiate with our pay and displacement partners. There certainly are some volume tears. These will happen over time. We've been negotiating some very large contracts. I think we called out in the last couple of quarters.

Speaker Change #159: Just how to think about that.

Speaker Change #159: And then the other one.

Speaker Change #158: Customers, you're bringing on can you talk about what youre seeing in initial spend maybe in terms of intensity.

Speaker Change #132: Or transaction size.

Speaker Change #132: And then on India, Mexico, Philippines customers. Thanks.

Hemanth Munipalli: Thanks. I think you called out one of the key levers as we've gotten more volume and we negotiate with our pay and disbursement partners. There's certainly some volume here. This will happen over time. We've been negotiating some very large contracts. I think we called that out in the last couple of quarters.

Speaker Change #186: Yes, I think you called out good thanks. Thank you.

Speaker Change #189: All about one of the key levers as we've gotten more volume and we negotiate with RP and disbursement parked cars. There is certainly some volume tiers and these will happen over time, we have been negotiating some very large contracts I think we called out in the last couple of quarters.

Matthew Oppenheimer: There's some of the partnership with some of the larger global payment providers, and that's been an ongoing thing. So we'll see this fan out as we get more and more volume and scale, and that's one of the bigger levels in being able to get volume-related economics as well. and your second question in terms of mix, I think what we're seeing is broadly the mix of customers haven't really changed. What we're seeing is that they're largely have the very similar behavior and patterns of resiliency that we experienced now for many, many quarters and years. So that that fundamentally hasn't hasn't really changed, and I think that will fully state the same at these years we look forward certainly as part of our guidance, and then as we think about the coming years.

Hemanth Munipalli: Some of the partnership with some of the larger global payment providers, and that's been an ongoing thing. So we'll see this pan out as we get more and more volume and scale, and that's one of the bigger levers in being able to get volume-related economics as well. That'll flow through. And your second question in terms of mix.

Speaker Change #186: Some of the partnership with some of the larger global payment providers and that's been an ongoing thing. So we'll see this pan out as we get more and more volume and scale and Thats one of the bigger levers.

Speaker Change #132: In being able to get volume related economics that will flow through.

Speaker Change #169: And your second question in terms of.

Hemanth Munipalli: I think what we're seeing is that, broadly, the mix of customers hasn't really changed. What we're seeing is that they largely have the very similar behavior and patterns of resilience that we've experienced now for many, many quarters and years. So that fundamentally hasn't really changed, and I think that'll probably stay the same at least here as we look forward, certainly as part of our guidance, and then as we think about the coming years. Thank you. Thank you. Please take a moment for our next question. Our next question comes from Matthew O'Neill from FT Partners. Your line is open.

Speaker Change #132: Mix I think what we're seeing is broadening the mix of customers haven't really changed to what we're seeing is that they're largely have the very similar behavior and patterns of resiliency that we've experienced that for many many quarters and years.

Speaker Change #132: That fundamentally Hasnt hasnt really changed and I think that will probably stay the same the case here as we look forward certainly as part of our guidance and then as we think about the coming years.

Operator: Thank you.

Speaker Change #132: Thank you.

Matthew Oppenheimer: One moment for our next question. Our next question will come from the line of Matthew O'Neill from FT Partners. The line is opening. Yes, thanks for squeezing me in at the end here. Appreciate it, and Hemanth, congratulations and best wishes. I thought I would just ask a couple of follow-ups; a lot of good questions asked and answered. When Western Union provided their prepared remarks on their earnings call, they talked about how they viewed the higher interest rate environment as forcing out some rational competition in the market and driving out some marginal players. They're just curious, you know, broadly, you know, what is your experience been last few months from the competitive front, you know, would you sort of share some of those views or anything else that you've seen.

Speaker Change #142: Thank you for a moment for our next question.

Speaker Change #185: Our next question comes from the line of Matthew O'neill from Ft Partners. Your line is open.

Matthew B. Oppenheimer: Yes, thanks for squeezing me in at the end here. I appreciate it. Hemanth, congratulations and best wishes. I thought I would just ask a couple of follow-ups. A lot of good questions asked and answered. When Western Union provided their prepared remarks on their earnings call, they talked about how they viewed the higher interest rate environment as forcing out some rational competition in the market and driving out some marginal players. I was just curious, broadly, what has your experience been in the last few months on the competitive front? Would you share some of those views or anything else that you've seen?

Matthew B. Oppenheimer: Yes, Thanks for squeezing me in at the end here I appreciate it and.

Speaker Change #157: Congratulations and best wishes.

Speaker Change #181: I thought I would just ask.

Speaker Change #190: Couple of follow ups, a lot of good questions asked and answered.

Speaker Change #166: When western Union provided their prepared remarks on their earnings call. They talked about how they view the higher interest rate environment.

Speaker Change #131: Forcing out some rational competition in the market and driving up some marginal players I was just curious.

Speaker Change #155: What has your experience been last few months on the competitive front.

Speaker Change #168: Would you sort of share some of those views or anything else that you've seen.

Hemanth Munipalli: And then if I could just do my follow-up quickly, I was just curious on the heightened fraud. Just to confirm, it sounds like you guys have gotten your arms around it and already it's come back down. And, you know, was it a particular geography or a new type of vector that kind of popped up, or any color you could provide there? Thanks so much.

Speaker Change #188: And then if I could just do my follow up quickly I was just curious on.

Matthew B. Oppenheimer: Then, if I could just do my follow-up quickly, I was just curious about the heightened fraud. Just to confirm, it sounds like you guys have gotten your arms around it, and it's already come back down. Was it a particular geography or a new type of vector that popped up, or any color you could provide there?

Speaker Change #160: The heightened fraud just to confirm it sounds like you guys have gotten your arms around it and already it's come back down in <unk>.

Speaker Change #160: Particular, geography, or a new type of vector that kind of popped up or any color you can provide there. Thanks so much.

Matthew Oppenheimer: Yeah, great question on the second one, Matt. Yes, to having optimized the fraudness back within our typical ranges, and it was in a few geographies that we focus on and run it down on the former. On the former, when it comes to the smaller players and just concept capital, I think that there is definitely some truth to that in the sense that they. If you look back to even the Remitley journey, I think it does impact the ability for sub scale players to be able to get to scale because it's harder to raise capital. I also think there's benefits from the standpoint of marketing efficiency, given that there's not as many irrational, you know, crypto and other advertisers that might make the marketing environment more competitive.

Matthew B. Oppenheimer: Thanks so much. Yeah, great question. On the second one, Matt, yes to having optimized fraud, and it's back within our typical ranges. And it was in a few geographies that we focused on and brought it down on the former.

Speaker Change #160: Yeah, Great question, Secondly, Matt, yes to having.

Speaker Change #162: Optimizing fraud, and it's back within our typical ranges and it was in a few geographies that we focus on and brought it down.

Speaker Change #176: On the former.

Speaker Change #131: Okay.

Matthew B. Oppenheimer: On the former, when it comes to the smaller players and just the cost of capital, I think that there is definitely some truth to that in the sense that they, If you look back to even the Remitly journey, I think it does impact the ability for subscale players to be able to get to scale because it's harder to raise capital. I also think there's benefits from the standpoint of marketing efficiency, given that there are not as many irrational crypto and other advertisers that might make the marketing environment more competitive.

Speaker Change #131: On the former.

Speaker Change #137: When it comes to that.

Speaker Change #137: The smaller players and just cost of capital I think that there is definitely some truth to that in a sense that they.

Speaker Change #137: If you look back to even the remittance journey I think it does impact the ability for subscale players to be able to get to scale because it's harder to raise capital I also think there's benefits from the standpoint of marketing efficiency given that there's not as many irrational crypto and other advertisers that might make marketing environment more competitive.

Matthew Oppenheimer: So I think we're a beneficiary of that. I think that you look at just how well position we are as a digital player at scale, and we're really excited about that. I think it does make it so there's probably going to be additional consolidation in the market around players that have scale. And the only thing I would add is the digital players that scale, I think, have a competitive advantage, and where we sit, we feel right in that sweet spot. Thanks so much. Appreciate it.

Matthew B. Oppenheimer: So I think we're a beneficiary of that. I think that you look at just how well positioned we are as a digital player at scale, and we're really excited about that. And I think it does make it so that there's probably going to be additional consolidation in the market around players that have scale.

Speaker Change #137: I think we're a beneficiary of that I think that you look at just how well positioned we are as a digital player at scale and we're really excited about that and I think it does make it so.

Speaker Change #137: So there is probably going to be additional consolidation in the market around players that have scale and the only thing I would add is the digital players at scale I think I have a competitive advantage and where we sit we feel right in that sweet spot.

Matthew B. Oppenheimer: And the only thing I would add is that digital players at scale, I think, have a competitive advantage, and where we sit, we feel right in that sweet spot. Thanks so much. Appreciate it. Thank you, Matt. That's all the time we have for Q&A today.

Speaker Change #137: Thanks, so much I appreciate it.

Operator: Thank you.

Matt: Thanks, Matt.

Operator: I would like to turn the call back over to Matt Oppenheimer for any closing remarks. Okay. Thanks, operator. And thanks, everyone, for the thoughtful questions. As we do at Remitly, I'd like to end the call by highlighting Kyung, who is another one of our amazing customers. Kyung sends money from the U.S. to his family in South Korea, and he was one of the many customers who shared their feedback with us last year.

Matthew Oppenheimer: That's all the time we have for Kira and me today. I want to like to send the call back over to Matt Upinheimer for any closer marks. Great. Thanks, operator, and thanks everyone for the thoughtful questions as we do it remitley.

Speaker Change #151: Thank you.

Speaker Change #151: At the time, we have for Q&A today, I want to like to turn the call back over to Matt Oppenheimer for any closing remarks.

Operator: Kyung commented, "I love Remitly. I have recommended it to a few friends, and they love it, too. It is convenient and safe. You can view the current exchange rates in real time, and sending funds is right at your fingertips.

Matthew B. Oppenheimer: Great. Thanks, operator, and thanks, everyone for the thoughtful questions as we do it remotely I'd like to end the call by highlighting Ken who is another one of our amazing customers can send money from the U S to their family in South Korea, and they were one of the many customers who shared their feedback with us last year and Kevin commented I Love.

Matthew Oppenheimer: I'd like to end the call by highlighted comes who is another one of our amazing customers. Johnson's money from the US to their family in South Korea. And they were one of the many customers who shared their feedback with us last year. And Young commented that I love Remitley. I have recommended it to a few friends, and they love it too. It is convenient and safe. You can view the current exchange rates in real time, and sending funds is right at your fingertips.

Kevin: Remit Lee I have recommended it to a few friends and they love it too it is convenient and safe.

Speaker Change #179: You can view the current exchange rates in real time, and sending fund is right at your fingertips. So thank you everybody for joining US. We appreciate your support and we are excited about the opportunities ahead in 2024 and beyond and look forward to sharing our progress as we continue to execute on our vision of transforming lives with trusted financial services that transcend boarders.

Matthew B. Oppenheimer: So, thank you everybody for joining us. We appreciate your support, and we are excited about the opportunities ahead in 2024 and beyond. 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 Oppenheimer: So thank you, everybody, for joining us. We appreciate your support, and we are excited about the opportunities ahead in 2024 and beyond. And look forward to sharing our progress as we continue to execute on our vision of transforming lives with trusted financial services that transcend borders.

Kevin: Okay.

Operator: Thank you for your participation in today's conference. This doesn't clear the program. You may now disconnect everyone. Have a great day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone have a great day. Goodbye.

Speaker Change #146: Thank you for your participation in today's conference. This does conclude the program you may now disconnect everyone have a great day.

Operator: Goodbye.

Speaker Change #146: Goodbye.

Speaker Change #146: Yes.

Speaker Change #146: [music].

Speaker Change #146: Yes.

Speaker Change #146: Yes.

Speaker Change #146: Okay.