Q1 2025 Remitly Global Inc Earnings Call

May 7, 2025

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 will then hear an automated message.

In this way please.

Please note that today's conference is being recorded.

I will now hand, the conference over to your first speaker today.

Michelle: Michelle <unk> Vice President of Investor Relations. Please go ahead.

Michelle: Thank you good afternoon, and thank you for joining us for at least first quarter 2025 earnings call.

Michelle: Joining me on the call today are Matt Oppenheimer co founder and Chief Executive Officer, Lee <unk>, Chief Financial Officer results and additional management commentary are available in the earnings release and presentation slides, which can be found at IR Dobber Midway dotcom.

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

Michelle: Before we start I would like to remind you that we will be making forward looking statements within the meaning of federal securities laws.

Michelle: But not limited to statements regarding <unk> future financial results and management's expectations and plans. These statements are neither promises nor guarantees that 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.

Michelle: Please refer to the earnings release and SEC filings for more information regarding the risk factors that may affect results any forward looking statements made in this conference call, including responses to your questions are based on current expectations as of today.

Michelle: <unk> assumes no obligation to update or revise them, whether as a result of new developments or otherwise except as required by law. The oral presentation contains non-GAAP financial measures referenced non-GAAP operating expenses and adjusted EBITDA. In this call. These metrics exclude items, such as stock based compensation and payroll taxes related to stock based compensation.

Michelle: But 1% contribution integration restructuring and other costs and other income and expense.

Michelle: Previously announced on our last earnings call beginning in Q1, our non-GAAP financial measures exclude payroll taxes related to stock based compensation.

Michelle: This update is intended to improve the usefulness of our non-GAAP financial measures in evaluating the wining operating performance by more completely reflecting the extent of.

Michelle: Stock based compensation and related impacts we have updated our historical periods for consistency.

Michelle: A reconciliation of non-GAAP financial measures to the most directly comparable GAAP metrics. Please see the earnings press release, the appendix to the earnings presentation, which are available on the IR section of our website.

Matt Oppenheimer: With that I will now turn the call over to Matt to begin.

Matt Oppenheimer: Thank you Stefan and thanks, everyone for joining us for our first quarter earnings call. It's energizing to start 2025 with such strong momentum building on the foundation, we laid last year, we delivered another quarter that exceeded expectations with revenue growing 30%.

Matt Oppenheimer: 4% and adjusted EBITDA margin, surpassing 16% as you can see on slide four.

Matt Oppenheimer: That means we exceeded the rule.

Matt Oppenheimer: A benchmark that reflects the rare combination of high growth and strong profitability.

Matt Oppenheimer: It's a clear sign of the durability of our business model and the discipline of our execution.

Matt Oppenheimer: In a world that continues to face uncertainty our customers inspire us their resilience their determination and their trust in <unk> are what drive our success.

Matt Oppenheimer: Because of their continued commitment our teams strong execution and the strength of our flywheel, we are raising our full year outlook for.

Matt Oppenheimer: For both revenue and adjusted EBITDA.

Matt Oppenheimer: I'm going to focus my remaining remarks today on three topics as you can see on slide five.

Matt Oppenheimer: First how we have built a resilient business that has a proven track record of delivering across economic cycles and geopolitical changes.

Matt Oppenheimer: Second I will discuss how this resilience.

Matt Oppenheimer: Just to continue diversifying our business across many dimensions, allowing us to capture more growth and reduce overall risk.

Matt Oppenheimer: Finally, I will discuss how we deliver rusted experiences that drive customer activity, along with a deep focus on our regulatory and compliance program, which enables this sustainable growth.

Matt Oppenheimer: All of these allow us to accomplish our ambitious vision to transform lives with trusted financial services that transcend boarders.

Matt Oppenheimer: Turning to the resilience embedded in our business on slide six.

Matt Oppenheimer: No macroeconomic uncertainty, including the impact of tariffs is at the top of every investors mind at this moment.

Matt Oppenheimer: I will say this correctly.

Matt Oppenheimer: Our strong balance sheet and global diversification positions us well in this evolving environment.

Matt Oppenheimer: Remittances have consistently demonstrated remarkable resilience.

Matt Oppenheimer: Across economic cycles, serving as a vital financial lifeline for millions of families around the world.

Matt Oppenheimer: Even in times of global uncertainties, such as economic downturns or geopolitical changes remittance flows have remained steady or even grown as senders prioritize the needs of their loved ones back home.

Matt Oppenheimer: This unwavering commitment underscores the essential role remittances play in household stability and local economies.

Matt Oppenheimer: We continue to see this resilience reflected in our customers' behavior reinforcing the critical importance of our mission and the reliability of our business model in both stable and challenging macroeconomic environment.

Matt Oppenheimer: We've also embedded resilience into how we manage foreign exchange, which has become a competitive advantage of ours at scale.

Matt Oppenheimer: Remotely rebuilt a treasury function that is not just operationally essential that increasingly a source of differentiation what sets <unk>. Apart is the integration of treasury with our business management and analytics teams as a strategic growth enabler over.

Matt Oppenheimer: Over the last 12 months, we managed nearly $60 billion in sand volume.

Matt Oppenheimer: This enables us to enter into win win partnerships reduce transaction costs and improve customer pricing directly supporting our flywheel and long term profitability.

Matt Oppenheimer: We are building real time data systems to optimize liquidity.

Matt Oppenheimer: <unk> customer behavior, and proactively manage FX and counterparty risk. These efforts allow us to decouple funding from FX risk and reduce the need for pre funding all while strengthening the reliability and efficiency of our network.

Matt Oppenheimer: These capabilities matter more than ever in today's macro environment, where we see foreign exchange volatility.

Matt Oppenheimer: <unk> ability to source currency at competitive rates and respond quickly to market shifts means we can continue offering reliable affordable pricing to customers while protecting margins.

Matt Oppenheimer: Our strong internal systems capital strategy and operational discipline allow us to not just whether FX swings, but turn them into opportunities for sustainable growth.

Matt Oppenheimer: Now I'd like to turn to the progress we are making in diversifying our business on slide seven.

Matt Oppenheimer: Resilience also enables us to diversify which is one of the most powerful levers for long term sustainable growth.

Matt Oppenheimer: By broadening our geographic footprint, expanding our partner network and introducing new products, we reduced dependency on any one corridor or customer type.

Matt Oppenheimer: That not only mitigates risk.

Matt Oppenheimer: Opens up new avenues of opportunity.

Matt Oppenheimer: Along with rapid geographic expansion, we have increased the pain and payout options through direct integrations with key local payment partners in.

Matt Oppenheimer: In Q1 alone, we launched remittance services to Nike Air.

Matt Oppenheimer: Burkina Faso and Molly.

Matt Oppenheimer: Customers can now send to widely used mobile wallets like orange money.

Matt Oppenheimer: These launches reinforce our long term belief in the growth potential of Africa and support financial inclusion in regions that need it most.

Matt Oppenheimer: We also expanded disbursement options with integrations like land in Peru.

Used by millions of people across major bank and.

Matt Oppenheimer: And match in Chile, which serves over 4 million users. We also added orange money in Mali, and Burkina Faso, and Vodafone cash in Egypt. These additions give customers more choice greater convenience and a better experience.

Matt Oppenheimer: The goal is to enable anyone anywhere to send and receive money.

Matt Oppenheimer: Equally as if they were a local.

Matt Oppenheimer: That's why we have completed the rollouts of interact in Canada pay two on Australia and pay by bank via plan in the United States.

Matt Oppenheimer: These payment methods help reduce cost.

Matt Oppenheimer: Improved retention and increased sand volume aligning perfectly with our growth and unit economic goals.

Matt Oppenheimer: Turning to new customer use cases.

Matt Oppenheimer: We have made strong progress on attracting high amount centers over the past four quarters <unk> volume for transactions of more than $1000 has outpaced overall sand volume growth.

Matt Oppenheimer: Most notably in Q1 than volume related to transactions of more than $1000 accelerated to more than 45% year over year growth and the mix increased by approximately 200 basis points year over year.

Matt Oppenheimer: We also saw the largest transfer in company history in Q1, which was sent from Canada to the United States.

Matt Oppenheimer: This growth was fueled by our ability to make dynamic risk decisions using machine learning models, which reduce friction significantly for this customer base by tailoring send limits to customer risk in the past we had broad spending limits that were not tailored specifically to the individual customer risk profile.

Matt Oppenheimer: Which added friction to customers, who are looking to send larger transactions.

Matt Oppenheimer: Our direct integrations have also allowed us to streamline transaction processing and substantially increased spending limits.

Matt Oppenheimer: These advancements have empowered our customers to confidently sand larger amounts across borders with fewer errors and lower friction ultimately delivering a more seamless and reliable experience.

Matt Oppenheimer: Our early traction with micro business customers further supports increasing spend volume per customer as these customers naturally transact at higher average amounts reinforcing the positive trajectory and transaction size and overall sand volume.

Matt Oppenheimer: In the U S business customers have facilitated millions of dollars in transactions underscoring the demand for our solutions are.

Matt Oppenheimer: Our micro business offering has clearly proven its product market fit as reflected in exceptional early retention and substantial transaction volumes for newly engaged customers.

Matt Oppenheimer: Our commitment to meeting customers, where they are continues to guide how we reach and engage new users, especially those who have historically relied on traditional cash based remittance providers.

Matt Oppenheimer: One recent and powerful example is what's apps and a great demonstration of how we're using technology to make cross border money movement more intuitive.

Matt Oppenheimer: Assessable and aligned with how our customers live.

Matt Oppenheimer: And communicated by integrating the same award winning conversational AI technology that powers, our customer service experience into what that.

Matt Oppenheimer: We've created a frictionless intuitive way for customers to send money.

Matt Oppenheimer: And get support.

Matt Oppenheimer: From a product.

Matt Oppenheimer: Already trust.

Matt Oppenheimer: This opens up a powerful new customer acquisition paths, especially for those customers transitioning from offline to online.

Matt Oppenheimer: Finally, we continue to innovate and explore adjacencies to our core offering from helping customers store funds to accessing faster cross border payments to creating additional liquidity in unique ways.

Matt Oppenheimer: We've made meaningful progress through our work with room at least circle, which continues to be a powerful sandbox for innovation at remotely.

Matt Oppenheimer: Circle allows us to test new ideas and a low risk environment with early adopter customers.

Matt Oppenheimer: This approach has enabled us to move quickly and learn deeply before scaling new capabilities across our broader customer base.

Matt Oppenheimer: Many of the insights we've gained such as how storing funds with even faster disbursements align with real customer needs are directly informing our innovation as we evolve the core <unk> experience.

Matt Oppenheimer: Now.

Matt Oppenheimer: Turning to how building trust across all stakeholders has placed us in a very unique position to continue delivering exceptional experiences for our customers and returns for our shareholders.

Matt Oppenheimer: These results are not only possible by delivering a trusted experience to our more than 8 million quarterly active customers across the entire journey of their cross border payments.

Matt Oppenheimer: One powerful example is the Jai.

Matt Oppenheimer: A retired doctor and academic who has served communities across India. The U K, the U S and Saudi Arabia.

Matt Oppenheimer: For years <unk> used his bank in England or.

Matt Oppenheimer: For international transfers and telling noticed high fees on larger transactions in 2023, he began searching for a better more trustworthy option.

Matt Oppenheimer: He found <unk>.

Speaker Change: Quickly discovered our competitive rates low fees and the ease of repeat transfers.

Speaker Change: And you needed to cancel the transfer the refund process with seamless and Swift deepening his pressed in remotely even further.

Speaker Change: Since joining us.

Speaker Change: Has completed nine transfers totaling over $200000, primarily investing in India to help provide for his daughter.

Speaker Change: And grandchildren.

Stories like <unk>, Alright powerful reminder, when we lead with trust, we have the ability to serve a wider variety of use cases for our customers and empower their futures.

Speaker Change: Trust is at the heart of every decision customers like GE I make when sending money to loved ones across borders where speed reliability and security are not negotiable.

Speaker Change: As you can see on slide eight we continue to make progress on the metrics that matter to customers.

Speaker Change: And build trust.

Speaker Change: In the first quarter, a record of more than 93% of transactions were disbursed in less than an hour a record of more than 95% of transactions proceeded without a customer support contact and our uptime was $99 99%.

Speaker Change: This all contributed to driving strong retention incremental customer activity and word of mouth and attracting new customers.

Speaker Change: At <unk> compliance is a key driver.

Speaker Change: Of customer and regulator trust and it's a foundational pillar of our business model.

Speaker Change: We operate in a complex and regulated industry across over 170 countries and we have built robust systems teams and controls to ensure that we meet or exceed local and global standards.

Speaker Change: Trust starts and ends with our customers.

Speaker Change: But the ecosystem in which we operate including the oversight from our regulators has always been a vital part of our culture and strategy.

Speaker Change: We've invested in developing a sophisticated system of controls to perform know your customer evaluation.

Speaker Change: Tax fraud, and money laundering, and perform sanction screening in a centralized manner.

Speaker Change: As a digital first company.

Speaker Change: We leverage advanced technology, and data driven automation to verify customers identities, ensuring faster more secure onboarding, while maintaining strong compliance with global regulations.

Speaker Change: This digital approach not only strengthened security and transparency, but also significantly reduces the operational costs associated with manual in person verification.

Speaker Change: Savings that can be reinvested to improve customer experience and drive growth.

Speaker Change: As a digital only player most of our customers fund their remittance transactions using a card linked to a bank account, which means that they are able to pass bank level KFC signaling an established presence in the country.

Speaker Change: This contrast, with cash based providers that often depend on labor intensive decentralized processes that are harder to scale more expensive to maintain and more prone to inconsistency or fraud.

Speaker Change: These controls are routinely subject to regulatory exam.

Speaker Change: And supervision by U S and foreign financial regulators.

Speaker Change: In addition, we continuously evaluate our system of controls through regular independent testing and make frequent and regular improvements.

Speaker Change: We take a rigorous approach to partner due diligence to ensure compliance security and reliability across our global network.

Speaker Change: For Onboarding any financial institution or payout partner, we conduct due diligence, including regulatory compliance checks financial stability assessments and security evaluations.

Speaker Change: In this way our compliance team confirms that partners appropriately adhere to anti money laundering, and counter tariffs financing regulations as well as applicable laws.

Speaker Change: <unk> also employs a multi layered approach to fraud prevention combined.

Speaker Change: Combining advanced machine learning models real time transaction monitoring and next generation identity verification processes that maintain a strong compliance posture, while imposing fewer burdens on customers.

Speaker Change: Our risk management team continuously analyzes patterns to detect and prevent fraudulent activity, while ensuring a seamless experience for legitimate customers.

Speaker Change: This differentiated approach allows us to continue to manage transaction loss rates, while delivering a continuously improving experience with the goal of optimizing customer lifetime value.

Speaker Change: This improvement was delivered at the same time that our customer support contact rates.

Speaker Change: Revenue to decline to record lows as we make it easier for legitimate customers to complete their transactions.

Speaker Change: All of this builds trust for both customers and regulators, thereby ensuring our customers' money is delivered safely and reliably and our business can continue to expand.

Speaker Change: In closing.

Speaker Change: Even amid macroeconomic and geopolitical uncertainty we remain confident in the resilience of remittances the strength of our diversified business model and the trust our customers have placed in us.

Speaker Change: <unk> remains the cornerstone of our vision.

Speaker Change: To transform lives with trusted financial services that transcend boarders as you can see on slide nine.

Speaker Change: This is what enables us to drive consistent growth deepened customer relationships and expand our global footprint, while delivering strong sustainable profitability.

Speaker Change: We are proud of what we've accomplished so far and we are energized by the opportunities in front of us.

Speaker Change: Our customers.

Speaker Change: Our team.

Speaker Change: And our shareholders for your continued support.

Speaker Change: Now over to the cost.

Speaker Change: Thank you, Matt and good afternoon, everyone.

Speaker Change: We are off to a strong start in 2025, we.

Speaker Change: We delivered another strong quarter with both revenue and adjusted EBITDA ahead of our expectations as you can see on slide 11.

Speaker Change: First quarter revenue was $361 6 million.

Speaker Change: Up 34% year over year, and adjusted EBITDA was $58 4 million draw.

Speaker Change: Driving 16% adjusted EBITDA margin, resulting in a rule of 50 quarter.

Matt Oppenheimer: As Matt mentioned.

Matt Oppenheimer: We delivered over second quarter of GAAP profitability.

Matt Oppenheimer: Rove profitable growth with revenue more than $15 million, a Boe and adjusted EBITDA more than $20 million above the midpoint of our first quarter guidance.

Matt Oppenheimer: These results reinforce the strength of our business model and the resilience of cross border payments is the category even in turbulent economic time.

Matt Oppenheimer: I'll begin with an overview of our first quarter results and then share our outlook for the full year and second quarter of 2025.

Matt Oppenheimer: In the first quarter revenue was $361 $6 million.

Matt Oppenheimer: Up 34% year over year at 36% on a constant currency basis.

Matt Oppenheimer: Quarterly active customers increased 29% year over year to over $8 million in line with our expectations.

Matt Oppenheimer: Driving this strong quarterly active customer growth was continued retention and strength in new customers acquired in the quarter.

Matt Oppenheimer: And volume, but active customer increased 9% year over year, the highest growth rate you have seen since 2021.

Matt Oppenheimer: This was driven by strong growth in transactions per active customer as we take share and to increase the attractiveness of our product or high among senders.

Matt Oppenheimer: As Matt mentioned, we are increasing limits in sneak auditors, allowing customers to confidently send larger amongst across borders with fewer errors and lower friction, while maintaining our strong risk and compliance controls.

Matt Oppenheimer: <unk> volume grew 11% to $16 2 billion.

Matt Oppenheimer: Again outpaced revenue growth gross take rate was two 4% in line with our expectations.

Matt Oppenheimer: As Matt highlighted earlier public.

Matt Oppenheimer: Our business continues to diversify while also delivering strong growth across geographies.

Matt Oppenheimer: During Q1 U S revenue grew 35% accelerating from 33% in Q4, driven by continued share gain.

Matt Oppenheimer: The rest of the World grew 41% year over year ahead of our own.

Matt Oppenheimer: <unk> revenue growth.

Matt Oppenheimer: On the receive side the further diversified revenue from regions outside of India, The Philippines, and Mexico grew 45% year over year.

Matt Oppenheimer: Turning to our focus on driving profitable growth on slide 12.

Matt Oppenheimer: <unk> expenses this quarter was $121 4 million and as a percentage of revenue was 33, 6%.

Matt Oppenheimer: Excluding provision for transaction losses, other transaction expenses were $103 5 million, improving 60 basis point year over year as a percentage of revenue.

Matt Oppenheimer: We continue to see improvement in our economics with be in disbursement partners relating to increasing volumes.

Matt Oppenheimer: The mix of digital receive transactions increased year over year by more than 300 basis points, continuing a trend that has been positive quarterly business and customers.

Matt Oppenheimer: Provision for transaction losses was $17 9 million and as a percentage of that volume was 11 one basis points.

Matt Oppenheimer: This was in line with our expectations as the improved machine learning risk models and at the same time minimize unnecessary friction for customers.

Matt Oppenheimer: As I've shared in prior quarters, our LTE expansion is an indicator of the long term business model success.

Matt Oppenheimer: <unk> grew 34% to $242 million.

Matt Oppenheimer: Reflecting strong new and existing customer activity and economies of scale.

Matt Oppenheimer: R&D as a percentage of revenue this quarter was 66 four percentage largely in line with the percentage as we saw last year.

Matt Oppenheimer: As Matt highlighted we have seen strong growth more than 45% in sand volume related to transactions of more than $1000.

Matt Oppenheimer: As you will note while that is a mix impact of these large transactions on growth take rate in the short term to help us maximize the growth over the long term.

Matt Oppenheimer: We are focused on driving long term idled E S.

Matt Oppenheimer: As we continued to attract new customers.

Matt Oppenheimer: With numerous cases and scale.

Matt Oppenheimer: The strength you've seen here reinforces our flywheel framework that we highlighted last quarter driving sustainable topline growth and profitability.

Matt Oppenheimer: With that let me walk you through the specific non-GAAP expense categories on slide 13.

Matt Oppenheimer: Can I don't know last earnings call. Please note that year over year comparisons exclude payroll taxes related to stock based compensation in both periods.

Matt Oppenheimer: Marketing spend was $68 3 million.

Matt Oppenheimer: And that elevated to seven 5% growth year over year.

Matt Oppenheimer: As a percentage of revenue it was 18, 9% improving 470 basis points year over year.

Matt Oppenheimer: We continue to strike the right balance between growth and efficiency, especially in a seasonally slower quarter from a demand perspective.

Matt Oppenheimer: We benefited this quarter from efficiencies in digital and brand marketing along report of model.

Matt Oppenheimer: Marketing spend per quarterly active customer was eight $5 in Q1 and decreased 17% year over year, reflecting our focus on driving returns from marginal marketing investments we can.

Matt Oppenheimer: <unk> to invest behind big channels, using AI tools to drive further testing and efficiency.

Matt Oppenheimer: As Matt highlighted the trust we have built with customers has enabled us to benefit from word of mouth, which has been a powerful driver of new customer additions, while driving efficiency for us.

Matt Oppenheimer: Customer support and operations expense was $22 3 million and as a percentage of revenue was six 2% improving 89 basis points year over year, continuing a trend that we've seen over the past couple of years.

Matt Oppenheimer: Our EIB as work to electricity and product improvements have enabled lower agent contact rate and strong customer satisfaction ratings.

Matt Oppenheimer: Technology and development expense was $56 million and as a percentage of revenue improved by 144 basis points year over year.

Matt Oppenheimer: Technology and development expenses grew 22% year over year as we become more efficient in managing our spend while delivering product innovation.

Matt Oppenheimer: G&A expense was $40 6 million.

Matt Oppenheimer: And as a percentage of revenue improved 79 basis points year over year, as we maintained rigorous discipline on hiring and non headcount spend.

Matt Oppenheimer: Also implemented additional automation and AI tools Ross functions to help drive even more efficiencies.

Matt Oppenheimer: Strong revenue growth combined with efficiency and discipline across all operating expense categories led to adjusted EBITDA of $58 4 million.

Matt Oppenheimer: We delivered over second positive GAAP net income quarter of $11 4 million.

Matt Oppenheimer: A material improvement compared to $21 1 million net loss in the first quarter of 2024.

Matt Oppenheimer: Stock based compensation was $35 8 million and as a percentage of revenue was at nine 9% approximately 280 basis points lower than the first quarter of 2024.

Matt Oppenheimer: We continue to drive towards a lower burn rate in line with the philosophy I outlined last quarter.

Matt Oppenheimer: Moving to our outlook on slide 14, while the economic and geopolitical environment remains uncertain. We are comforted by the resilience we have seen in our customers.

Matt Oppenheimer: Important to note that our outlook does not assume any material macroeconomic geopolitical or regulatory changes.

Matt Oppenheimer: While the second quarter of 2025, we expect revenue of $383 million to $385 million or.

Matt Oppenheimer: Our 25% to 26% growth.

Matt Oppenheimer: We have no shortage of growth opportunities, including taking share in our existing corridors expanding to new quieter and continued traction with new use cases like higher among senders, and F&B, which will power the growth.

Matt Oppenheimer: Unpack the revenue growth expectations further we expect revenue to outgrow quarterly active customers due to continued strength in higher loan centers growth in sand volume per quarterly active customer is expected to increase modestly driven primarily by higher frequency of transactions.

Matt Oppenheimer: Continued strength in higher among senders.

Matt Oppenheimer: Consistent with recent trends, we also expect <unk> volume growth to outpace revenue growth.

Matt Oppenheimer: What you will do.

Matt Oppenheimer: 2025.

Matt Oppenheimer: Higher transaction sizes lead to higher sand volume growth driving R&D dollars even.

Matt Oppenheimer: With lower take rate.

Matt Oppenheimer: Given our traction with high among senders and SMB customers. We believe volume growth is a stronger indicator of future growth potential in addition to quarterly active customers.

Matt Oppenheimer: For the full year, we expect revenue between one 574, and one $587 million, reflecting a growth rate of 25% to 26%.

Matt Oppenheimer: This outlook reflects the outperformance in Q1, the confidence we have in durable customer behavior and strong returns from our marketing investments.

We will be lapping tougher comps in the second half of 2025 due to outperformance in the back half of 2024.

Matt Oppenheimer: Specifically.

Matt Oppenheimer: Direct revenue comp of the year in Q3.

Matt Oppenheimer: Furthermore, the macro environment.

Matt Oppenheimer: Remain uncertain.

Matt Oppenheimer: As such we believe our guidance is prudent given these videos.

Matt Oppenheimer: Shifting to our adjusted EBITDA outlook, we expect Q2, adjusted EBITDA to be between 45 and $47 million <unk>.

Matt Oppenheimer: Sleeping 12% margin.

Matt Oppenheimer: As we shared last quarter in FY 2025, we are lapping the benefits from E payment processing partnership that we realized in 2024.

Matt Oppenheimer: As a result, we expect Q2 transaction expenses as a percentage of revenue to be in line with the full year 2024.

Matt Oppenheimer: Also note transaction losses can be volatile from quarter to quarter, and we remain focused on optimizing customer lifetime value.

Matt Oppenheimer: We expect our marketing investment in Q2, we will continue to deliver strong auto line.

Matt Oppenheimer: Although we saw strong leverage from our marketing investments in a seasonally less active Q1, we intend to increase our marketing investments to drive growth in Q2, and second half of 2025, given the strong payback period well undergraduate months.

Matt Oppenheimer: As a reminder, our marketing investments drive returns for many years beyond our initial investment given the repeat behavior and the resilience of parameters.

Matt Oppenheimer: Plan to continue to balance our investments with efficiency and expect marketing, but <unk> declined modestly on a year over year basis in Q2.

Matt Oppenheimer: Recall, we began delivering meaningful marketing, but <unk> efficiencies in second half of 2024.

Matt Oppenheimer: As you lap those improvements in the second half of 2025, we should expect marketing, but <unk> to be stable year over year.

Matt Oppenheimer: For the full year, we expect adjusted EBITDA to be between $1 95, and $210 million, representing an adjusted EBITDA margin range of 12% to 13%.

Matt Oppenheimer: We expect adjusted EBITDA to ramp sequentially throughout the balance of the year.

Matt Oppenheimer: Although we delivered GAAP profitability in Q1 that was.

Matt Oppenheimer: Two quarters ahead of our guidance last quarter, we continue to expect to generate positive GAAP net income in the third quarter of 2025.

Matt Oppenheimer: We plan to make growth enhancing investments improve adjusted EBITDA as well as manage dilution net burn rate and stock compensation expense effectively.

Matt Oppenheimer: In the second quarter, we expect stock based compensation to increase sequentially from Q1, reflecting our annual performance cycle.

Matt Oppenheimer: Overall, we continue to expect to deliver positive GAAP net income for the full year. This outlook provides us the flexibility to make key growth investments while at the same time delivering efficiencies across our operating expense base.

Matt Oppenheimer: In closing we are pleased that we delivered both higher than expected revenue and adjusted EBITDA, Despite an uncertain and volatile macroeconomic environment.

Matt Oppenheimer: We have delivered consistent trusted experiences driving increased customer activity.

Matt Oppenheimer: The trust, we have built with our customers also allow us to diversify the business across new use cases, new geographies and new partnership, allowing us to deliver sustainable long term results regardless of economic cycle.

Matt Oppenheimer: That Matt and I will open up the call for your questions operator.

Matt Oppenheimer: Thank you.

Speaker Change: Ladies and gentlemen to ask a question you will need to Westar one one on your telephone and wait for your name to be announced.

Speaker Change: As a reminder, please limit your question to only one question. So that we can accommodate as many questions as possible.

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

Speaker Change: First question.

Speaker Change: Coming from the line of.

Speaker Change: Jensen Huang with Jpmorgan. Your line is now open.

Speaker Change: Thank you great results I wanted to ask on the.

Speaker Change: The sand volume being up <unk>, 9% since 2001, I just wanted to be clear is it the higher send limits that's driving that was there some pull forward mix, maybe some business payments contributing I liked your discussion on the.

Speaker Change: On the Treasury has an answer for you within FX, but just wanted to better understand this trend of.

Speaker Change: <unk> per active.

Speaker Change: So thank you for the question.

Speaker Change: We had a very strong quarter.

Speaker Change: Start to the year as we shared with.

Speaker Change: A strong 34% growth.

Speaker Change: One of the key drivers of that growth as you pointed out was.

Speaker Change: Very strong sense of our quarterly active user growth.

Speaker Change: <unk> seen a trend of strong quarterly.

Speaker Change: Growth in terms of <unk> per active in this this was I'd say it the best we have seen in a long time and as you pointed.

Speaker Change: Hi, Yes group since 2021, a few drivers.

Speaker Change: That has been helping us.

Speaker Change: Drive this important metric first of all just.

Speaker Change: The increased engagement that we have with our customers.

Speaker Change: <unk> been really important driver of this.

Speaker Change: Especially as we invest and frictionless experiences building.

Speaker Change: <unk> technology and innovations that support convenient fast speed easier transactions.

Speaker Change: It plays a critical role here.

Speaker Change: In addition to that with a locked.

Speaker Change: A few quarters, we have been driving meaningful growth in our.

Speaker Change: High dollar high amounts vendor business.

Speaker Change: We noted.

Speaker Change: Over the last four quarters.

Speaker Change: Growth of while you May note high Amman centers has been greater than the total volume growth.

Speaker Change: The same was the case this quarter with 45% plus growth there.

Speaker Change: So that has been the second big driver and the final I'd say is that as we diversify use cases.

Speaker Change: Segments like micro centers.

Speaker Change: These centers have fewer transactions, but boy transaction.

Speaker Change: The amount that the sand is pretty high which helps us drive growth in the sampler what are the active user. So overall trend that we have seen is in this direction again very aligned with our strategy and we feel really good about the direction of the growth yes.

Speaker Change: Yes tension the only the only element that add from a product standpoint is I think our risk product team and our compliance teams have really leveraged.

Speaker Change: Latest technology to be able to take a much more sophisticated approach to our overall, Tim limits and so I mentioned that in my remarks, but I think that is part of the driver of enabling customers that want to send more to do it in a frictionless easy way and then the second is as Vas mentioned, it's early days, but I think that our micro business.

Speaker Change: Customers have a lot of potential and as he said they send less frequently but higher dollar amounts and so excited about what's to come there.

Thank you.

Speaker Change: Next question coming from the line.

Speaker Change: Andrew Schmidt with Citi. Your line is now open.

Andrew Schmidt: Hey, Matt the cost Stephane. Thank you for taking the question.

Speaker Change: Maybe I could just piggyback on the last question. So it sounds like a lot of the benefits that youre seeing are self driven first and environmental maybe you could comment on that and whether there's anything and if all your mental and the numbers as well that are driving the higher sand volume per average active there and then if you think about just the forward outlook.

Speaker Change: Is there any reason why these benefits shouldnt sustain because obviously.

Speaker Change: Good result here it doesn't look like you're flowing through.

Speaker Change: So fully flowing through the revenue beat.

Speaker Change: But clearly.

Speaker Change: It makes sense in the current environment, but would love to sort of get a better sense of those questions. Thank you so much.

Andrew Schmidt: Andrew Thank you for the question and.

Speaker Change: We are really.

Andrew Schmidt: In.

Andrew Schmidt: Business, where durability and visibility help us build.

Andrew Schmidt: Build a lot of confidence.

Speaker Change: <unk> sorry.

Andrew Schmidt: So as you think about our forward looking guide.

Speaker Change: Stated this before and I'll reiterate that majority.

Andrew Schmidt: Our revenue comes from prior quarter cohorts.

Andrew Schmidt: And the redemption of these cohorts really help us get very high visibility and confidence and durability of the revenue. So I think that that's really important.

Andrew Schmidt: Second point is.

Andrew Schmidt: As you think about Q2 and FY 'twenty five.

Andrew Schmidt: Overall the drivers.

Andrew Schmidt: And to remain similar to what we have seen this quarter and even thought quarter. So for example.

Andrew Schmidt: Revenue growth.

Andrew Schmidt: <unk> quarterly active user growth modestly sand volume growth greater than revenue growth. We chose in the take rate and most importantly, as you pointed the cent per active continue to grow modestly. So those drivers will continue through.

Andrew Schmidt: More or less similar.

Andrew Schmidt: What we have seen this quarter.

Speaker Change: As you also pointed out that our macro uncertainties and we want to be prudent.

Speaker Change: That's the reason why we are taking a prudent stance when it comes to the guide for Q2 as well as 2025.

Thank you.

Chris Kennedy: And our next question coming from the line of Chris Kennedy with William Blair. Your line is now open.

Chris Kennedy: Good afternoon, thanks for taking all the questions and for all the details.

Chris Kennedy: Can you just talk a little bit more about your direct partner integrations, it's been a journey.

Chris Kennedy: You've been here, we've been hearing about it for years, just where are you on that journey.

Chris Kennedy: And just remind us about the benefits that you get.

Chris Kennedy: When you have a direct partner integrations.

Chris Kennedy: Yeah, Yeah. Thanks, Chris it's always great to hear from you.

Chris Kennedy: I think that they are.

Chris Kennedy: Our ability at a strategic level to get customers funds the way that they want them quickly and efficiently is something that I think we have built over a decade and counting and so you saw that in some of our <unk>.

Chris Kennedy: Delivery stats in terms of what it gives us but 93% of transactions are dispersed in under an hour, which is a stat that has come up from previous times that we've shared that.

Chris Kennedy: And what do we get from those direct integrations is is as I mentioned faster transactions lower cost more reliability, because if a customer enters the recipient's name and correctly. Then you don't have to go through three or four hops to adjust that you've got a direct integration done to be able to amend that transaction much more.

Chris Kennedy: Frequently and there are many examples in that customer experience bucket.

Chris Kennedy: It could be additional compliance requirements that our partner needs to collect having a direct integration enables us to do that really efficiently and effectively which is also a 95 plus percent of transactions are now delete our now completed without any sort of customer support contact. So I mentioned a few of them I mentioned match I mentioned plan I mentioned a few of.

Speaker Change: <unk> integrations in our in my opening remarks, but I think our scale and size to another example of our flywheel.

Speaker Change: To do more integrations every quarter, we're able to improve the customer experience, which drives more retention and in some markets, where strategically saying, let's go directly into those banking rails.

Speaker Change: And to the local payment rails because of the fact that that's the most efficient way to.

Speaker Change: To provide reliable and low cost transaction that being said, it's not a silver bullet every market is different what we're good at with our scale and size is getting to that last mile and thereby decreasing cost and increasing reliability and retention.

Speaker Change: Thank you our next question coming from the line of wellness with Goldman Sachs. Your line is now open.

Speaker Change: Hey, guys.

Speaker Change: Nice results, 34% and a seasonally slow quarter, so very solid.

Matt Oppenheimer: Matt I wanted to ask just.

Matt Oppenheimer: We'll be environment that youre seeing out there, particularly as it relates to some of the U S Mexico tensions.

Matt Oppenheimer: What are you talking points spoke about some of the benefits of the digital channel when it comes to cost benefits both to you as well as to the consumer.

Matt Oppenheimer: And the consumer experience and I'm wondering if you guys have seen evidence or any kind of interesting behavioral shifts over the past few months as it relates to customer willingness to transition to the digital channel and maybe said a different way.

Matt Oppenheimer: The thing that you guys look at internally around share gains kind of inflected in the relevant corridors as a result of some of the some of the macro incentives that are out there. Thanks for taking the question.

Matt Oppenheimer: Yeah, Yeah, Great question, well I'm glad you asked it I think let me focus first on Latin America, and then I'm happy to answer any follow up questions around the broader macro, but I would say that the.

Matt Oppenheimer: So let me do the opposite I'm going to start with broader macro I think that.

Matt Oppenheimer: It's obviously on a lot of folks' minds immigration tariffs macroeconomic policies and the things that first off.

Matt Oppenheimer: We run this business for 14 years, and having read a lot of other world Bank and other reports over even a longer time period.

Matt Oppenheimer: Our business, specifically is resilient and remittances are resilient through various macro political and regulatory changes. So I think diversification is part of that I think customer profile as part of that which is we're all kind of within the Latin America part of your question and I think that additional use cases are all part of that so on the <unk>.

Matt Oppenheimer: On the diversification point.

Matt Oppenheimer: Greater than 34% of our revenue now is coming from outside the U S and that's up from just 25% four years ago, and then on the receive side.

Matt Oppenheimer: We are non top three countries, meaning Mexico, India, and the Philippines grew 45% and accounted for the majority of our revenue in Q1, the second bucket around customer profile.

Matt Oppenheimer: <unk> majority of our customers have been here, a long time and are sending money to loved ones on a consistent basis and unlike cash based remittance providers most of our U S customers fund their remittance transaction using a card linked to a bank account, which means they are able to pass baked <unk>, even before they get to our platform where we are.

Matt Oppenheimer: Obviously also go through a <unk> process and that suggests in our more established presence in the country and then lastly, just a huge market 3% two trillion every year, we have a lot of room to grow.

Matt Oppenheimer: And so now circling back to the Latin America part of your question.

I think that we've seen strong both both in Mexico and broader Latin America I can share that Mexico grew faster than the overall, 34% that we shared and we're really proud and happy about that and I think it does tie to some of the customer profile dynamics that I mentioned, it ties to being a scaled digital player and the reliability and lower cost.

Matt Oppenheimer: That we can provide and so we feel good about the visibility of our 2025 revenue.

Matt Oppenheimer: Significant majority will come from our existing customers and 2025 is going to be a big year for us and overall I remain confident and optimistic about the future.

Speaker Change: Thank you.

Speaker Change: And our next question coming from the line of.

Ramsey El: Ramsey El <unk> from Barclays. Your line is now open.

Speaker Change: Hi, Thank you very much for taking my question I wanted to ask about the high dollar senders and the micro business customers and just what your strategy is to kind of lean in there and attract those customers is it just.

Speaker Change: <unk> your marketing message or is it different channels is it product.

Speaker Change: Changes partnerships, how do you kind of lean in there to find those folks and get them onto your platform.

Speaker Change: Yeah, Yeah, Great question Ramsey I appreciate that I think it varies depending on the two examples that you mentioned I think high dollar centers certainly tend to be specific to certain corridors in certain geographies and so there are ways to very much targeting scale up that customer base as well as just improve our marketing efficiency, because we're going to have a high.

Speaker Change: Conversion funnel with customers and call. It U S and yes. There is a segment we weren't able to serve very effectively until we took a more sophisticated approach to our spending limits. So I think that one there's marketing channels and other things I think with micro business. The interesting thing is.

Speaker Change: The reason we start we adjusted our Ky see your customer to be automated process and we're still adding different types of business use cases et cetera to do that is we have customers coming to our platform and saying I want to use it for this but having to call our customer support go through a manual process and so with micro business I see theyre already been <unk>.

Speaker Change: <unk> and its about tailoring our products such that when those customers come in who tend to be high lifetime value. We can serve them effectively and I see that we call. It micro business because I think it is that segment that is underserved, hence why they're already coming to our platform wanting to use it and we're going to make it a lot easier for them to do so.

Speaker Change: I will just add to what Matt said.

Speaker Change: One of the interesting characteristic about.

Speaker Change: These use cases is that they are very much on top of our platform that extensible and the incremental cost.

Speaker Change: To support this.

Speaker Change: I'd say incremental and Martino.

Speaker Change: Or is that a step up so that again from a business model perspective, we feel really good about both of these use cases.

Speaker Change: Thank you. Our next question coming from the line of Andrew Baum from Wells Fargo. Your line is now open.

Speaker Change: Hey, guys, great quarter, and thanks for let me take the question.

Speaker Change: One partnership I thought kind of got glossed over in the prepared remarks was that your relationship with Whatsapp.

Speaker Change: Understand that.

Speaker Change: The initial rollout will only be two unlimited amount of location or.

Speaker Change: Same corridors predominantly in Latin America, but in the context of two 6 billion.

Speaker Change: The monthly active users.

Speaker Change: Views to me like a really exciting partnerships. So what's what's the strategy in this partner channel and what do you think could ultimately mean for the business longer term.

Speaker Change: Yes, Thanks, Andrew I appreciate you're drawing out a little more detail on what that because as I mentioned in my opening remarks.

Speaker Change: It's a product that I'm really excited about and kudos to the team for rolling it out really efficiently and effectively I think foundational either way they were able to do that is important context, which is we have our virtual AI agent that we're already using from a customer support standpoint, and so integrating that into our Whatsapp channel.

Speaker Change: Gave us the foundation to do that more effectively and efficiently.

Speaker Change: Focus is the name of.

Speaker Change: The game in terms of <unk> approach.

Speaker Change: And so thats why we are focused on Latin America, but I appreciate you, saying the larger opportunity Andrew because combining that short short term focused in Latin America should not be confused with our really bold ambitions for how we can use that channeled about acquire new customers, who are using the platform, where I think there are big opportunities, especially offline customers as well as being.

Speaker Change: To serve existing customers better and I think we're very much in the early days of how we can leverage that platform.

Speaker Change: <unk> with customers.

Speaker Change: Okay.

Speaker Change: Thank you next question coming from the line of <unk>.

David Sean: David Sean with business capital markets. Your line is now open.

David Sean: Hi, good afternoon.

Speaker Change: Thanks for taking my questions.

David Sean: Mostly been addressed.

David Sean: Really at this point wanted to get a little.

David Sean: Little more color on once again.

David Sean: Margins coming in so much stronger than anticipated.

David Sean: Whether you wanted to kind of call out any of.

David Sean: Expense category in particular, where you may view as sort of a one time variance maybe what the reason for that 16% margin was.

David Sean: And secondly, if theres something seasonally in the business, we ought to be mindful of as we.

David Sean: Think about a lower guided margin structure in the second half.

David Sean: Thank you David.

David Sean: <unk>.

David Sean: If you look at our.

David Sean: Q1 results I think.

David Sean: On both sites revenue growth as well as margin.

David Sean: Really beat our own internal expectations and as Matt shared earlier got to rule of 50 and beyond.

David Sean: And if you.

David Sean: Unpack the expense side further.

David Sean: The biggest area of efficiency, we had was around marketing.

David Sean: And this is an area where.

David Sean: Sure.

David Sean: We were very efficient.

David Sean: We saw great organic results from unpaid channels.

David Sean: As well as all of the work that we have been doing on the product side.

David Sean: Using the customer friction showed up really well.

David Sean: As you think about Q.

David Sean: And beyond and especially Q2.

David Sean: No that Q1 was.

Seasonally slower quarter versus Q2, being a very important crucial Walker, where we plan to invest and invest for future growth of the company.

David Sean: So that is where I would say we are going to invest more on the marketing side at the same time, we will continue to see modest leverage.

David Sean: Marketing as well.

Speaker Change: Second area of investment for Us as <unk>.

David Sean: And we talked a lot about product innovation.

We believe that.

David Sean: The third pillar in addition to growth and profitability the investment and.

David Sean: And we want to build.

David Sean: More use cases, if you want to create more diversification and we wanted to create a portfolio, which drives its own durability.

David Sean: And for that we will continue to invest in tech and Dev So.

David Sean: So we believe.

David Sean: Sure.

David Sean: <unk>.

David Sean: Our outlook for Q2, as well as FY 2025 balanced NV.

David Sean: And we feel really optimistic about the long term strength of our business.

David Sean: Thank you.

Speaker Change: Our next question coming from the line of Darrin Peller with Wolfe Research. Your line is now open.

Darrin Peller: Hey, guys. Thanks for the time.

Darrin Peller: Just maybe a little more detail on any product development and updates for circles and just bigger picture I mean, how do you view the future efforts and distinct from how other neo banks or serving customers similar financial profiles that might exist out there and so just maybe a little more updates on the progress and where we are.

Darrin Peller: Yeah.

Darrin Peller: Yes, Thanks, Darren I think that if you look first on kind of the unique segment and customer that we can serve.

Speaker Change: It goes back to our vision actually which is transform lives with trusted financial services that transcend boarders, that's really important to take as a kind of holistic.

Speaker Change: Financial services that transcend boarders and it's my belief and our team's belief that when you look at the 250 million folks that live and work outside the country. They are born.

Speaker Change: As a big opportunity to increase financial services for that segment and I think we have a deep understanding of the needs of those customers and so our goal with new products is really to fortify the business and deepen relationships with existing customers.

And as I mentioned in my script, we continue to innovate and explore adjacencies around helping customers store funds to access faster cross border payments to.

Speaker Change: To creating additional liquidity in unique ways and so we've made meaningful progress with our work on circle, which continues to be really a powerful sandbox for innovation. It remotely it enables us to test new ideas and a low risk environment outside of our core App, but then enables us to then.

Speaker Change: Take some of the insights that we've gained such as have storing funds with even faster disbursement aligns with real customer needs and that can inform our innovation in terms of how we evolve the core remotely experienced so excited about what's to come there and then we talked about high dollar Senders. In addition to that in addition to.

Speaker Change: The product value added services.

Speaker Change: I put that first area, we talked about and I'm really excited about.

Speaker Change: How were continuing to add new segments, whether that's high dollar senders, whether thats SMB.

Speaker Change: And so I am really really excited about.

Speaker Change: That area is going about what's to come in 2025.

Speaker Change: And beyond.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Next question coming from the line of Alex <unk> with <unk>. Your line is now open.

Speaker Change: Thank you and thanks for taking my question maybe.

Speaker Change: Maybe just I know theres been a number on the sort of higher dollar senders, but just to ask it a different way with them.

Speaker Change: Improvements in risk and fraud capabilities and is there any way to sort of quantify or describe for us. What's been left out of the growth opportunity is you've had to sort of be more constructive around limits in the past.

Alex: Yes, yes, Alex I'm happy to happy to start on that I think what's been left out as they used to be that way.

Speaker Change: It would have just.

Speaker Change: 10 limits that were based on dollar amounts and then very kind of.

Speaker Change: Prescriptive.

Speaker Change: Documents and other things that we need to collect for what we call tier one tier two tier three and those.

Speaker Change: Amounts had certain limits for 30, 60, 90, 180 days and what our team has done obviously with the leveraging data leveraging some machine learning and leveraging the scale and size that we have is being able to take a much more risk based approach, which is a win win because instead of that more rudimentary approach, we can actually be more prescriptive of where we need.

Speaker Change: Information from customers. In addition to what we collected the baseline.

Speaker Change: And also <unk> levels, not just those specific limit and that enables customers like <unk>, who I mentioned earlier, who.

Speaker Change: A large large dollars back to India to support his son and daughter his grandchildren and historically I think we made it.

Speaker Change: More difficult to be able to send a large amount where we've made it a lot easier for customers like that and he is not alone.

Speaker Change: Thank you and our next question coming from the line of Grace Wang with BMO capital markets. Your line is now open.

Speaker Change: Hey, guys. Thanks, maybe come back to a previous question on the marketing spend in the declining spend per <unk>.

Speaker Change: Seeing underlying improvements in the competitive environment for new customers.

Speaker Change: I suppose related to that what are you seeing in terms of what a mouth improvements as you keep gaining share and your 30 markets I appreciate your thoughts thanks.

On the marketing <unk>.

Speaker Change: Leverage of what all we have seen this trend over the last I would say deep waters, where just the overall experience that we have delivered from a product perspective.

Speaker Change: Targeted marketing campaigns that we've had.

Speaker Change: Well as early days, but leveraging AI.

Speaker Change: And technology in order to just be much more data driven.

Speaker Change: Our approach.

Speaker Change: Has been a strong trend for us.

Speaker Change: If you take even this quarter for example from a campaign perspective, we had very focused and targeted campaigns around the month of Ramadan.

Speaker Change: Targeting the specific corridor specific countries and that yield really great results for us. In addition to that we had another marketing campaign, which was called stay close for.

Speaker Change: For countries like Australia.

Speaker Change: The kingdom.

Speaker Change: Targeting.

Speaker Change: Sending to South Africa, Zimbabwe and other countries similarly, and those those campaigns.

Speaker Change: We're very well thought out and got a trade out Hawaii because of one again to data driven aspect learning from the past and being being ready portfolio. In addition to that as I shared earlier, just the word of mouth and and unpaid channels the organic channel.

Speaker Change: Channel like SCO have really been very helpful quarterly marketing Rois. So I'd say, that's a consistent trend that we've seen over the last three quarters.

Speaker Change: We feel really good about our strength in marketing we feel that we'll continue the comps will get harder in the second half, but strength in marketing will continue.

Speaker Change: Thank you and our next question coming from the line of Zachary <unk> with Ft Partners. Your line is now open.

Speaker Change: Hey, there. Thanks for taking my question I appreciate all the detail on the K Y C AML processes.

Speaker Change: I was just curious you mentioned earlier in the remarks that majority of your customers are funding through.

Speaker Change: Think linked cards. So could you just walk through for.

Speaker Change: So the customers that arent.

Speaker Change: What do those <unk> ml, possibly will look like.

Speaker Change: Just any detail you can provide around that and just helping us think about what proportion of your customers do go through those bank level <unk> steps or versus other steps that you might have.

Speaker Change: Thanks.

Speaker Change: Yeah, yeah. Thanks.

Speaker Change: I'm happy to take that one I think I could have been more clear to say that our customers do go through bank level KFC, there might be a very very small percentage of like prepaid cards or something like that but I think that.

Speaker Change: Overall, you can you can assume that it's the vast vast majority of customers that go through a bank level KFC, because if you take a step back and think about it they are using.

Speaker Change: Debit card or a bank account, meaning kind of a rounding number in the U S context, and there are linking that to be able to send money back home and that is just very different than the risk profile.

Speaker Change: <unk>.

Speaker Change: And the and the risk profile of a customer who is going up to a physical cash location and giving physical cash to an agent. We don't have that planned to have that.

Speaker Change: I think the world is about becoming more digitized and it's a lower risk approach.

Speaker Change: And it's a signal that our customers have been in country longer which in today's macro environment is a customer segment that we're really excited to serve and really excited to.

Speaker Change: Continuing to grow.

Does that answer your question.

Speaker Change: Thank you.

Speaker Change: Next question coming from the line of.

Gil: Gil from minus Crespi, Hardt <unk> company. Your line is now open.

Speaker Change: Hey, Hi, Thanks for taking my question.

Speaker Change: Wanted to dig in on the guidance philosophy around top line.

Speaker Change: In the second quarter were a decent portion of the way through April data looks pretty good on that may use we're talking about like a principle remarks, plus 30, how do we think of that gap to getting to the 25, 6% Rev growth. It seems like there was quite a bit of cushion there.

Speaker Change: And then as we think about the QA U the marketing for <unk> in the back half do we expect that to continue improving like at a lesser rate stay flat just any color on that would be incredibly helpful. Thanks for everything.

Speaker Change: Thank you for the question and both very good questions. So let me unpack both of them.

Speaker Change: You take the revenue guide for drew and broadening for the year.

Speaker Change: This is <unk>.

Speaker Change: Don over strong performance in Q1.

Speaker Change: We increased our full year guide.

Speaker Change: Which is reflected in the numbers and from a Q2 perspective.

Speaker Change: Further dissect the drivers.

Speaker Change: They are more or less in line with what we have seen before where the <unk> growth. We believe will be revenue growth will outpace <unk> growth.

Speaker Change: <unk> spent a lot of time talking about all the reasons why we are really optimistic about that and that trend should continue on the other hand volume will outpace revenue growth, which is also a trend we have seen before.

Speaker Change: If you combine all the three.

Speaker Change: If you.

Speaker Change: Really good about.

Speaker Change: The guidance that we have shared with you again keep in mind that given the macro uncertainties. We are thinking from a group perspective as we provide the guide.

Speaker Change: And that said for all the reasons, Matt said earlier and I highlight that we retain majority revenue after cohorts what will your and just the durability of revenue all gives us confidence in the guide.

Speaker Change: As you think about the marketing bulkier au as you rightly pointed out.

Speaker Change: Yeah, we haven't seen great efficiencies, there and the Ottawa on marketing spend it's great.

Speaker Change: Same time in the second half.

Speaker Change: Comps get tougher we saw really.

Speaker Change: Very good leverage in the second half of last year end.

Speaker Change: That means that we start seeing modulation.

Speaker Change: In the marketing book <unk> leverage.

Speaker Change: And it Shouldnt second half start stabilizing.

Thank you I'm showing no further questions in the queue. At this time I will now turn the call back over to Mr. Matt Oppenheimer for any closing remarks.

Matt Oppenheimer: Great. Thanks, so much operator, and just a big thanks to everyone for the thoughtful questions I want to thank as we always do a customer a guy who I talked about earlier and he shared his experience with <unk>, but I think what I've found <unk> to be perfect and quick and we thank him for his loyalty.

Matt Oppenheimer: And for trusting remotely to get money home to its family like we're talking about is some his daughter his grandchildren.

Matt Oppenheimer: Reliably and seamlessly, it's an honor to support customers like attack and thank you everybody for joining US. We appreciate your support we are excited about the opportunities ahead, and we look forward to sharing progress as we continue to execute on our vision, which is to transform lives with trusted financial services that transcend boarders.

Matt Oppenheimer: This concludes today's conference call. Thank you for your participation and you may now disconnect.

Matt Oppenheimer: Okay.