Q2 2025 Remitly Global Inc Earnings Call
Release and presentation slides, which can be found at irrelevant.
Please note that this call will be simultaneously webcast on the Investor Relations website.
Before we start, I would like to remind you that we will be making forward-looking statements within the meaning of federal Securities laws. Including but not limited to statements regarding remedly future Financial results and Management's, 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.
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, and remedy 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.
we will reference non-gaap operating expenses and adjust the deba in this call,
These metrics exclude items, such as stock based compensation, payroll taxes related to stock based compensation our pledge, 1% contribution, integration restructuring, and other costs, and other income and expense for a Reconciliation of non-gaap financial measures to the most directly comparable, gaap metric. Please. See the earnings press release and the appendix to the earnings presentation, which are available on the IR section of our website.
Now, I will turn the call over to Matt to begin.
Thank you love and thank you to everyone for joining us. For our second quarter earnings call Q2 is a defining quarter for remitly. Not only did we deliver exceptional financial performance but we also achieved breakthrough product Innovation. The cost will cover remley's exceptional, financial performance in detail. So I will use my time today to focus on the new products services and experiences that we have introduced into the market. In the first half of the Year. These Innovations are changing customers lives. Expanding our tan and further fortifying our business model, positioning us, to shape the future of Global Financial Services.
Our vision continues to be clear: to transform lives with trusted financial services that transcend borders.
With over 8.5 million customers. We are no longer simply enabling cross border peer-to-peer payments. We are becoming the modern Financial platform for globally. Connected people and businesses.
Today, I am excited to share the momentum behind our product, Innovation engine and why Q2 represents an inflection point for remitly across multiple Dimensions. I will highlight 4 core. Focus areas of product innovation in 2025, shown on slide 5.
First, I'll start with our product momentum, on remitly business.
Second, I am excited to introduce Remaley 1, a first-of-its-kind membership for customers with cross-border needs.
Third, I will share our Innovative stable coin initiative.
And forth.
I'll showcase our approach to a genetic AI to create a more personalized frictionless experience.
In all these areas, we are building on our existing strengths as well as leveraging new technology innovations to further strengthen our lead.
Let's dive deeper into each one, starting with Remitly Business.
With Remitly Business, we expanded our TAM more than tenfold from approximately $2 trillion to over $22 trillion. As we aim to serve the 1.5 billion freelancers and millions of small businesses, we are increasingly focused on paying international contractors, vendors, and employees.
We are starting with small businesses in Freelancers in this category, who primarily need reliable fast and affordable service, something that remitly does uniquely well.
Formally launched in the US and Q2 remaley business is already emerging as an engine of growth.
Control and compliance standards small business requires.
We are excited about upcoming launches in the UK, Canada, Australia and the EU alongside vertical specific onboarding flows, which will further accelerate our growth and broaden our Global reach.
With fast onboarding automated eky and instant reached over 100 countries. Businesses can go live in
Minutes, our transparent competitive pricing is differentiated while built-in fraud detection in real time. At test station help, ensure transactions are secure
We're also rolling out additional features, like, bulk and recurring, payouts, payment requests, and streamlined reconciliation to simplify operations and support growth at scale.
We are seeing strong early momentum and have onboarded thousands of businesses in QQQ average. Transaction sizes are nearly twice as large as those of our core consumers. Thus far retention signals are also tracking ahead of our expectations, leading to business customer lifetime value. Roughly 6 times higher than consumer senders
We are confident that remitly business anchored by an unrivaled customer experience. And best-in-class pricing will be a contributor to sustainable Revenue. Growth margin expansion, and long-term shareholder value.
Looking ahead, Remitly is becoming the platform of choice, not only for individuals but for the millions of businesses powering the borderless economy.
moving to the second area. I am thrilled to give you a preview of remitly 1.
A new membership program you uniquely targeting cross border needs. Remitly 1 will launch in September.
With Remy 1. We are announcing not just another set of features. We are launching a bold, new relationship for the first time. Customers can become members of a platform customized to address their cross-border financial needs.
Remotely 1 is our first ever membership program designed not around transactions, but around customer relationships, it's a single seamless membership that brings together cross border payments, with financial products to store. Spend grow your funds. Get liquidity, and other value added Services. All through a consistent and optimized experience.
Remotely 1 will be anchored at launch with 2 initial products.
Remitly wallet.
And remotely Flex.
Wallet and flex are available Standalone to customers today. But remitly 1 members will get you unique benefits with their membership. Let me double. Click into remitly, wallet and remitly flex.
Remitly wallet will serve as a secure multicurrency store of value for both fiat and stablecoins, designed to meet the needs of our customers.
Fully integrated into our platform, the wallet will allow customers to manage balances, plan payments, and engage with their finances in a centralized, trusted environment.
It will provide access to both Fiat currencies and stable coins.
Operating a safe flexible way to hold and use funds across borders.
Early customer feedback in the US shows, strong promise with the remaley wallets potential as a daily Financial companion.
Remotely 1 members will get access to special benefits that are like interests such as cash rewards on balances, as well as other benefits, like, cashback on transactions and dollar credits for using their wallet.
Remitly Flex is our flexible Funding Solution offering short-term liquidity allowing eligible customers to send now pay later.
This structure provides an essential safety net for time-sensitive payments like medical emergencies or tuition, without any interest or late fees associated with traditional Lending.
importantly, Flex is powered by our proprietary transaction and other customer data giving us a unique real-time view into customer Behavior, Prosper, or payment history and
Technical patterns.
This allows us to consider risk responsibly.
And without friction in customer categories, where others cannot?
Remitly 1 member will get access to special benefits like flexible repayment schedules, free, instant funding and more. We have seen strong early demand and good repayment history for Flex as well as powerful upsell to membership or the additional benefits.
Benefits and the underlying offerings, like Wallet and Flex, will be integrated into the Remitly experience.
Accessible from the same app, our millions of customers already Trust.
There will be a unified experience that will scale with their needs. No learning curve, just more value every day.
And this is just the beginning.
Remotely 1 is the foundation of the new ecosystem 1 where membership drives daily engagement, emotional loyalty and long-term Financial growth.
We will continue to add an expanding set of benefits, all designed for their lives when they need them. Most
We look forward to showcasing Remitly 1, including customer use cases and demos, as well as what comes next at our upcoming product launch event on September 9th. This is our first of a signature series we are starting called "Remitly Re-imagined."
Now.
Moving on to the third area, stable coins.
The toughest Channel.
Stable coin, users is ensuring secure on and off-ramps to fiat currency.
Our Global money movement Network regulatory licenses and deep compliance expertise uniquely position us to integrate stablecoin capabilities at scale.
Our stablecoin initiatives position us.
To lead the next wave of modernization in cross-border financial infrastructure through three specific initiatives.
First customers will have the option to store and manage stablecoin balances along with traditional Fiat in their remaley wallet.
This will especially be beneficial for customers in inflationary economies with high currency fluctuations.
We are in beta testing and plan to launch this. In September working with circle. If Financial technology company that is accelerating stablecoin adoption,
Second.
Customers will be able to receive cross border payments in stablecoin compatible wallets.
Seamlessly routed from our established Fiat infrastructure.
1 of our mittal core, differentiators is our highly scaled Fiat Network, which enables instant cross-border transfers across 170 countries
We are excited to extend this network by integrating blockchain rails, starting with stablecoin dispersement.
This Innovation enhances, both our payout flexibility and Global reach.
The rollout is also in beta and planned to launch in September in partnership with Bridge a strike company.
Third, for internal efficiencies. We've integrated tokenized US dollar stable coins like usdc into internal treasury operations. The fund liquidity, across Global markets, this allows near instant settlement settlement across time zones and weekends which will enable quicker transaction processing rate or reliability and lower costs when customers send money with us.
Together.
These stablecoin initiatives enable us to modernize cross-border money movements.
Firmly positioning us at the Forefront of stablecoin innovation. In cross-border payments.
Following the stablecoin update, the fourth area that I am excited to showcase is our approach to a genetic AI.
A remitly, we believe the next Frontier of digital financial services will be intelligent, conversational and personalized.
That's why we are building.
An agentic AI platform for this future.
Purpose-built for customers who use cross-border financial services.
Today our agentic AI enabled support experience handles. Nearly 2 million real-time interactions with customers resolving issues, predicting intent, and adapting contextually.
All while reducing cost to serve and increasing satisfaction.
We do not view AI. Merely as an efficiency unlock. We Believe AI helps us generate revenue and bring new customers into our platform.
As an example, based on industry data, a significant portion of cross border transactions in the US to Latin America markets are still conducted offline.
Our agentic AI Innovations. Including remitly on WhatsApp.
Will enable us to drive this secular offline to online shift.
Customer acquisition and onboarding.
With remotely on WhatsApp, we've reimagined the cross-border payment experience. As a simple conversational, flow spend money, check exchange rates, get help all via WhatsApp.
Our vision is to make remitly trusted embedded and intelligent wherever customers are and it's working conversion rates for remitly on WhatsApp, are highest among customers who were previously transacting offline, proving that conversational AI can be a powerful on-ramp to digital inclusion.
Remitly on WhatsApp is already available to our us and Spanish customers sending to 11 countries, including Mexico and India.
Our platform Innovation goes beyond WhatsApp, the same agentic AI. Powered experience can be scaled across any conversational interface, where our customers live and communicate, whether that's meta's messenger, which is launching soon. Conversational platforms that are emerging or platforms that haven't even emerged yet.
In a world where financial institutions are still adapting. The basic automation.
We are not only constantly looking for ways to stay ahead of the curve. We are helping to find it.
Within genetic, AI, Remitly is building not just a better interface, but a smarter relationship that makes cross-border finance feel as seamless as chatting with a friend.
And we are just getting started.
In closing.
Our vision at Remitly remains bold and unwavering: to transform lives with trusted financial services that transcend borders, with over 8.5 million customers and a platform built for both individuals and businesses. We are a global fintech platform, purpose-built for the digital age, meeting the full financial needs of global citizens and businesses who have long been underserved by legacy systems.
we are doing this leveraging, the latest technology innovating with AI and stable coins to deliver intuitive agentic and trusted Financial experiences.
From enabling agentic AI for cross border payments to the launch of remaley 1 wallet flex and our business product. We are not just expanding our platform.
We are creating entirely new categories of digital Financial engagement.
the thing that's most exciting is that we can uniquely do this, given our scale,
We've talked about our flywheel in the past and our flywheel is working. We are delivering on our commitment to profitable growth investing in high Roi opportunities, that expand our Tam and extend our advantage.
And we are doing so while accelerating Innovation expanding into new customer categories and unlocking, massive Tam.
We are proud of what we have built. We are energized about what lies ahead and we are just getting started.
Now I'll hand it over to the cost to walk through our financial and operational highlights from the quarter.
Thank you, Matt and good afternoon everyone.
We delivered another strong quarter of growth.
Expanded profitability margins while also investing in innovation.
As shown on slide 12, second quarter Revenue was 411.9 Million.
34% year-over-year. And I just did a bit down about 64 million dollars, representing a 16% margin.
Results exceeded expectations, with revenue $28 million above and adjusted EBITDA $18 million above the midpoint of our Q2 guidance.
We again, delivered Gap profitability and important Milestone that we expect to sustained going forward.
Before I dive into our quarterly results and Outlook, let me address a macro topic that has been top of mind for investors remittance tax.
The 1 big beautiful bill, which applies a 1% tax to cash and other physical instruments. Exams digital crossborder transfers funded via bank accounts credit and debit cards.
All of our transactions are digitally funded and typically passed through both bankay standards at the payment instrument level, as well as incremental kyc standards on remed Lees platform, which gives us a structural advantage against Legacy cash based providers. We expect this text to further. Accelerate, the shift from offline to online, benefiting remedly, when it's implemented on January 1st 2026,
The Tailwind for our business. And as Matt highlighted earlier, our product Innovation around agent, AI will further accelerate the shift from offline to online
Now, I will begin with an overview of our second quarter results and then share our outlook for the full year and third quarter 2025.
Let me unpack Revenue growth. Drivers, send volume group, 40% to 18.5 billion driving this strong volume growth, send volume per active, customer increase the record, 12% year-over-year.
Growth both in transactions per active customer and average transaction size. As we continue to win, share and gain traction with high amount centers and micro business customers.
Quarterly active customers increase 24% year-over-year to over 8.5 million in line with our expectations driven by continued retention and strength in new customers acquired in the quarter.
Decree, it was 2.23% in line with our expectations.
Now let me dive deeper into our revenue, outperformance from a geographic and customer category perspective.
A key Dimension offer scale is geographic diversification. From a send perspective us Revenue grew 35% in line with last quarter driven by continued share gains.
Rest of the world group 40% year old year, I had of our overall Revenue growth.
On the receive side revenue from regions outside of India, the Philippines and Mexico group.
41% year-over-year.
By the overall remittance Market to Mexico remaining soft in Q2, our maximum received business Revenue, growth outpaced, our overall Revenue growth. This outperformance is a clear indication that we are continuing to gain share in the Mexican market. Growing meaningfully faster than the broader industry.
Besides Geographic diversification, we are also seeing success in diversifying, our customer categories.
As we noted last quarter, high amount centers is a key area of strategic, Focus for us.
Using AI, we are able to reduce friction and enable higher send amounts without compromising compliance.
Combined with our deep partner Integrations, we have raised transaction limits significantly and streamline The Experience end to end.
This has led to a record year-over-year, send volume growth of over, 40% for customers sending more than $1,000 and the volume mix from these customers increased by 300 basis points year over year.
We introduced 2 new features sent to self and multi-core Corridor sending designed specifically to reduce operational friction and unlock new. Use cases for expats international professionals and globally, mobile families.
Given that high amount centers is a new category for us. We are also making deliberate strategic investments in competitive pricing to attract and retain this valuable cohort into accelerate adoption in H2. We have launched targeted marketing.
Bush dealer specifically.
To the needs and motivations of high-amount centers.
Turning to our focus on driving profitable growth on, slide 13.
Transaction expenses. This quarter were 143.8 million and is the percentage of Revenue over 34.9%
Excluding provision for transactional losses. Other transaction expenses were 115.7 million, improving 175 basis points year-over-year, as a percentage of Revenue.
The mix of digital received transactions increased year-over-year by more than 300 basis points, continuing a trend that has been positive for our business and customers.
provision for transaction. Losses was 28 million or 15.2 basis points as a percentage of sand volume?
This came in above our expectations, due to a sophisticated fraud incident in May.
We responded swiftly closing off the text vectors and bolstering.
Robust fraud, detection systems.
This was an isolated event and led to a discrete non-recurring loss of 3.8 million.
Excluding this 1-time item provision for transaction. Losses would have been 24.2 million or 13.1 basis points consistent with our expectations.
looking ahead will continue to enhance our AI driven risk models to proactively adapt to evolving broad patterns without compromising the seamless, customer experience that defines remedy
As I've shared in Prior quarters. RTE expansion is an indicator of the long-term business model, success,
Rlt dollars, grew 35% to 268.1 million, reflecting strong new and existing customer activity and economies of scale.
Rlt as a percentage of Revenue, this quarter was 65.1% modestly better than the percentages we saw last year.
As you will note, while there is a mixed impact of high amount Sanders on take rates in the short term, over the long term, these customers help us drive incremental rlt dollar growth.
We are focused on long-term rlt dollar growth as we continue to attract new customers, Innovative with new, use cases and scale.
With that, let me walk you through the specific non-gaap expense categories on slide 14.
Marketing span was 79.8 Million up 10.4% year-over-year.
As a percentage of Revenue, it declined 422 basis points.
To 19.4% reflecting improved efficiency. This performance was driven by games in both digital and brand marketing as well as continued strength from Word of Mouth.
In Q2, we also deepened our brand relevance with key audiences through High Impact Sports Partnerships.
Notable ones include a multi-year.
Sponsorship of the England and Wales Cricket Board. Our partnership. With concacaf Gold Cup, a soccer tournament that reached record-breaking viewership this year and our ongoing support of Major League cricket in the United States.
These campaigns are designed to connectally with our core customer base of Global Citizens celebrating cultural connection and driving awareness in high density. Corridors
Marketing spend per quarterly active, customer was 9.38 in Q2 uh 11% year-over-year decline underscoring our focus on returns from marginal Investments.
Customer support and operations expenses were $204.6 million, which represents 6% of revenue. This marks an improvement of 46 basis points year-over-year, continuing a trend that we have seen over the last couple of years.
Our AI based virtual assistant and product improvements have enabled lower agent, contact rates, and strong customer satisfaction ratings.
Technology and development expense was 53.4 million and is the percentage of Revenue improved by 225 days is 0.08 over a year.
Technology and development expenses. Grew 15% year-over-year as we become more efficient in managing our spend while, delivering breakthrough product innovation.
We are delivering on the metrics that matter. Most
in Q2, over 93% of transactions, were dispersed in under an hour more than 97% were completed without customer support contact.
And our platform delivered 99.99% uptime.
These are not just operational steps.
They are proof points of the trust. We are earning at scale.
GNX expense was 46.3 million and was modestly higher as a percentage of Revenue.
We saw modestly higher Provisions related to collectibility of amounts due from certain processing partners with unique risk. Indicators in the quarter.
We proactively assess the collectibility of balances with various partners and prudently. Reserved, when appropriate
We are also investing in AI across the organization, from writing code.
Ations and processes.
For investors. That means we are building a smarter more agile remedy 1 that scales. Faster, serves customers better and delivers long-term shareholder value.
Overall, we continue to maintain rigorous discipline on hiring and non-headcount spend while investing in compliance, geographic expansion, and AI tools.
Strong revenue growth, combined with efficiency and discipline, led to adjusted debt down of $64 million. We delivered our second consecutive positive GAAP net income quarter with $6.5 million GAAP net income, a significant improvement compared to a $12.1 million net loss in the second quarter of 2024.
Stock-based compensation was $38.1 million and is a percentage of revenue at 9.2%, approximately 288 basis points lower than the second quarter of 2024.
Now, moving on to our outlook on slide 15.
Given that we are 7 months into the year. We have a stronger line of sight into performance and underlying Trends which gives us greater confidence in our updated Outlook.
This guidance reflects a more realistic and grounded view of where we expect to lend for the full year.
For the third quarter of 2025, we expect revenue of $411 million to $413 million, or 22% to 23% growth.
As you will note, the third quarter faces the toughest revenue comp of the year?
The majority of our Revenue in 2025 comes from prior year cohorts, giving us greater visibility into the durability of our Revenue growth.
If we unpack the revenue growth expectations further, we expect Revenue to outgrow quarterly active customers due to continued strength in high amounts centers and micro business customers
Growth in sand volume.
For the quarter, active customers are expected to increase in the mid-single digits, primarily due to a higher frequency of transactions and continued strength in higher amount centers and micro businesses.
Consistent with recent trends, we also expect send volume growth to outpace revenue growth for both Q3 and FY 2025.
Higher transaction sizes lead to higher, send volume growth driving RL dollars, higher, even with moderating, take rates, given our traction with high amount centers and micro business customers, We Believe, volume growth is a stronger indicator of our future growth potential. In addition to quarterly active customers,
For the full year, we expect revenue between 1.61 and 1.62 billion reflecting a growth rate of 27% to 28%.
This Outlook reflects the outperformance in the first half of 2025 the confidence, we have in durable, customer behavior and strong returns from our marketing Investments
Note, we will be lapping tougher coms. In the second half of 2025, due to the outperformance in the back half of 2024,
Shifting to our adjusted a bit, the Outlook. We expect Q3 adjusted with the to be between 53 and 55 million translating to 13% margins.
Starting with transaction expense.
The expected Q3 transaction expenses are anticipated to align with the percentage of revenue for the full year 2024.
please note in FY 2025, we are lapping the benefits from E Payment Processing Partnerships that we realized in 2024
We are aware of recent developments where some partner banks, are introducing fees for API access, which may increase costs for fintechs, that rely heavily on AC.
However, the vast majority of our funding comes through debit cards and credit cards.
As we have shared before transaction losses may vary from quarter to quarter, and we remain disciplined in optimizing, customer lifetime value, and rigorously managing risk.
Shifting to marketing.
And membership.
We will make these Investments while prioritizing efficiency.
Our LTV to CAC was about 6X in Q2 while our payback period remained Under 12 months.
as a reminder, our marketing Investments Drive returns for many years beyond our initial Investments, given repeat Behavior,
Recall. We began delivering the meaningful marketing per qau efficiencies in the second half of 2024. So as we left, those improvements in the second half of 2025, we would expect marketing per qau to grow by mid single digits as we support product innovation.
for the full year, we expect adjusted the Vida to be between 225 and 230 million representing, an adjusted ibida margin of 14%
We expect to generate modest positive, gaap, net income in the third quarter of 2025, as we plan to make growth enhancing Investments, improve adjusted beta, as well as manage dilution, netburn rate and stock compensation expensively.
Overall, we expect to deliver positive gaap. Net income for the full year. This Outlook provides us with the flexibility to make e growth Investments. While at the same time deliver efficiencies across our operating expense base.
As part of this balanced approach to investing for growth while maintaining Financial discipline we are also taking thoughtful steps to strengthen. Our Capital position in late, June 2025, we closed on an upsized, 550 million secured revolving credit facility replacing the 325 million agreements from 2021.
As our business continues to scale. This increased facility provides the additional. Liquidity required to refund Rising customer, transaction, volume, especially around Peak periods, like holiday weekends. When transaction volumes are significantly higher
This ensures we can continue to deliver seamless. Real-time money movement.
Across Global corridors.
Gap, profitability, strong, free cash flow generation and optimism in our future. Give us the confidence to authorize a hundred million dollars, share repurchase program.
While we continue to invest organically in our business, opportunistically investing in a share buyback program, to manage dilution is also important.
To our Capital deployment strategy.
We do not have a specific timetable for repurchases and will act judiciously, consistent with our disciplined capital allocation approach. The share repurchase program reflects confidence in our ability to deliver for our customers while also building long-term value for our shareholders.
To summarize we delivered the rule of 15 for the second consecutive quarter with 34% Revenue growth and 16% adjusted the Vida. Margins while also investing in innovation.
This momentum reflects remedies diverse durable, Revenue, growth along with profitability and we remain committed to Relentless innovation.
With that met. And I will open up the call for your questions. Operator, thank you, as a reminder, to ask a question. Please press star 1, 1 on your telephone, and wait, for your name to be announced.
To withdraw your question. Please press star 1 1. Again in the interest of time, we ask that you limit yourself to 1 question so we can accommodate as many questions as possible. Please stand by while we can pile the Q&A roster.
And our first question comes from fingon Wong of JP Morgan. Your line is open.
Great. Thank you so much. Matt, appreciate your enthusiasm here around all these uh these fun initiatives. I'll ask on that if you don't mind just
Anything else you can share on the expected timeline and the geographic phasing for the rollout of these products, like business and Remitly 1 Wollaton remittances? And I'm curious if you can just comment on if you expect these.
Properly to to your user base.
Is that going to alter your profit commitments in any way?
Thanks.
Yeah, I'll I'll, uh, I'll start and then I can let, uh, the cost. Uh, add on some of the, the, the latter part of your questions. Um, yeah. Tencent, I appreciate the question. We are incredibly excited about, uh, both expanding to new customer segments like remotely business, which we mentioned, we launched in q1, continue to grow really nicely in Q2 and then, uh, excited about remitly 1, which is our membership product that includes, uh, 2 products that are already live remotely, uh, Flex, which is our send now pay later solution, and remitly wallet, which is the ability to store, uh, both Fiat and overtime stable coins as well. So incredibly excited about the foundation that gives us to continue to innovate serve new customers. Serve our existing customers with additional services and I don't expect it to impact. Um, you know, marketing line, items areas like that. I think that we have clear plans to be able to continue to grow those products.
Yeah, let me just add a few, uh, quick points. So, first of all, uh, you know, we have given uh, a detailed guide uh, for Q3 and the full year so that that, you know, covers uh everything that uh, we've discussed and all the new products. Uh, a few double clicks, though, that may be helpful over here. Uh, the first is as the highlighted, uh, you know, we are seeing strong success, early success with SMB.
Uh, where the transaction sizes are larger. Uh, the retention profile is better. So clearly that has its own Dynamics with, regards to stands and per, qau, as well as take rates. Um,
Beyond that. If you look at the pnl line items, uh, you know, thus far, we have not specifically invested in marketing, in new areas, but now starting second half, we will be focusing, uh, with targeted campaigns, uh, on newer areas. So, so definitely that's already, you know, um, built into our guide but just just, uh, highlighting that which will, of course, uh, you know, Drive additional marketing Investments. But again, uh, all within the envelope of what we have shared, uh, in addition to that Tech and Dev, uh, we'll also be an important area of uh, investment especially as we innovate overall, you know, uh as I shared earlier uh it's all part and parcel of our um guide that we have given uh so so no specific changes um and very excited about the Innovation that's coming ahead of us.
Thank you.
And our next question comes from will Nance of Goldman Sachs. Your line is open.
Hey guys. Uh, thank you for taking the question and, uh, would Echo 10's comments on the new products. It's, uh, it's great to see some of the momentum and, uh, some of the Investments we've been making paying off. I, I wanted to talk. Maybe on the I'll just kind of pick on room, Italy, wallet for a second. Uh, maybe you can talk a little bit in more detail about the customer profile that you'd be going after, how you think about kind of cross sell to the existing customer base versus. Maybe unlocking a different type of customer and just how you think about unit economics in that space and and pricing and just how it may alter the complexion of the business. Uh, you know, as that as that product sales.
Yeah, absolutely. Happy. Happy to Will and, uh, I'm glad you can sense the excitement. It was. It's definitely a defining quarter for remitly when it comes to the wallet. Uh, we are excited about giving our customers, the ability to store both Fiat and stable coins. Um, and I think that in terms of the types of customers that we we can serve, I think there's opportunities to cross the board. I think that, you know, starting with our existing customer base, we have 8.5 million
Quarterly active users that I think have a need to store multi-currencies across the globe. And then over time I think that oftentimes a place you know that we can capture demand is when customers move to a new country, there's a there's a broad Financial Services, you know, set of needs that they have getting money back to their families, is where we focused on historically. And I think also getting that initial bank account set up is, uh, is a, is an area where, uh, there's a, a pain point. So, I think that, uh, lots of opportunities there and, um, really excited about, what's to come.
And our next question comes from Ramsey, LSL from barklay, your line is open.
Comes to stablecoin demand from your customers. Um, there's obviously a kind of emerging market use case already, sort of an inflation hedging use case for your customers. Are you getting signals that they're looking for you to provide these capabilities? Or is this more sort of like you're laying in these solutions just to be prepared as the market evolves? If that makes sense.
Yeah.
Yeah, uh thanks for answering whenever I look at new technologies, whether it's AI or stable coin. I look at, you know, what is the problem that can be solved for customers? And, uh, I think that the first problem that can be solved is exactly what you said, there is a demand in a lot of countries for customers to hold a less volatile currency. And I think stable coins are a potential solution for that, uh, the uh, solution that we're offering. Uh, when it comes to how to leverage stable coins is 1. The ability to hold stable coins as part of their rimli wallet and then the second is, we are incredibly good at getting funds to customers the way that they want to receive them. And we can do that via 4 billion bank accounts and uh, and mobile wallets. We can do that via over 400,000 cash. Pickup locations. We can even do door-to-door delivery in some markets where its popular in the Dominican Republic. What we're excited about today is announcing that we'll be giving our customers the ability to send money to stablecoin while it's the globe to give them a
Another option of a way to send money um, back home to their families and we'll be doing that in partnership with with Bridge, which is obviously a stripe company. And so, uh, I see those 2 solving. The first pain point is customers in Emerging Markets, wanting to hold a stable currency. And then the second is, we could be the potential customer and um, we have already launched within our treasury team. The ability to leverage stable coins to improve our FX Treasury and cash management. Now, to your point Ramsey, that's the future, that's where the world is. Headed, modest usage now because sometimes technology takes time to adopt especially in financial services, but I think we're investing in the future. We're ahead of the curve and we're excited about what's to come.
Thank you.
And our next question comes from Chris Kennedy of William Blair. Your line is open.
Yeah, good afternoon. Thanks for all the details. Can you just talk a little bit more about your wallet initiative? Kind of
how you're thinking that the, that your customers would utilize and spend those balances and kind of talk about the float opportunities for remitly
Yeah. Yeah, absolutely Chris and I'll build on a little bit more too of what I answered with uh with Will. So I think that there is as I mentioned that the desire to hold multi currencies, whether the Fiat or stable coins. And the exciting thing is we're putting it in the overall context of a membership solution. And so that's where remitly 1 comes into play. Customers will be able to hold balances
Without a remotely 1 membership. But then by becoming a remaly 1 member, they'll be able to earn interest, like rewards to be able to actually increase those cash balances and they'll be more seamless Integrations with things like being able to send money. So we will talk more about the wallet about flex, and about remotely 1, the membership that gives customers additional benefits of those 2 products and others at the, uh, uh, product launch event remotely reimagined, that I mentioned, will be happening in September, so excited to hear even more than
Thank you.
And our next question comes from David sharf of Citizens, Capital markets. Your line is open.
Uh yeah, thanks for taking my call.
um,
Go up on the stable coin discussion. Um you know, given that FX markup is is a significant component of the fee structure of of any send.
Can you discuss how holding a stable?
Sort of impacts the unit.
Are we should we be thinking about a different Revenue model for stable coin type transactions, either on the send or receive side.
Continue to be in the business of currency conversion. And we're very well positioned to do with that, with stablecoin, as we've been with Fiat,
Thank you.
And our next question comes from Alex, Mark graph of kbcm. Your line is open.
Thanks, uh, appreciate the question. Um, Matt, could you talk about remitly business a little bit? I mean, I think from a Pam standpoint pretty compelling you shared some unit economics, but maybe just, uh, some thoughts on competition and the pricing Dynamic and, and B2B versus P2P remittances. Um, and then just anything, you'd you'd flag on sort of first party versus partnership type opportunities with from every business. Thanks.
Yeah, thanks. Alex. I would love to talk about remotely business. So remotely business was born out of the fact that we, we had a lot of customers coming to our platform, trying to use it. Um, and it was not, uh, previously optimized in terms of a, a streamlined automated KYB. Meaning know your customer flow and a lot of other features that I mentioned in my opening remarks that small and micro businesses needs. So, the question is, why were customers coming to our platform to use it in the first place? Despite the fact that there was friction in the early days and it's because that segment of customers. Um we're talking about folks who are sending money to Freelancers, who might you know, be on the lower end of the overall business or Essence
We can segment in terms of average transaction size that segment we believe is not well served. The reason it ties a bit to your cost point is because ...
The they do not need a lot of the additional features, but what they do need is a reliable fast and affordable product. And what we've done in the consumer space is we have really optimized the unit economics for exactly that. And really optimize the experience for exactly that. And so uh we're really excited now that we've actually optimized our products for small businesses. We believe we can continue to kind of move up Market over time. I think that we can add the business, the the the features that uh initially micro and small businesses require and then um you know over the medium to long term. I think that we can continue to serve a wide range of businesses. Because as I mentioned, it's 10 times, the overall tan uh increasing our tan to 22 billion. And we always say, we're just getting started, we are very much just getting started with remotely business.
Question comes from gcal of Mones cresy, heart and Company. Your line is open.
Hey guys, thanks for taking my question. Um, I wanted to ask about the cock for quarterly active moderation in the back half.
Is it kind of, I mean, you're talking about performance marketing to drive business, but is there something beyond that? Maybe for the core business? Are we putting in more in the top funnel in the back half?
Um, just to help us think about that. And one, click on. I can squeeze it in, uh, the guidance you clearly raised by more than the beat. How much of that is any of that coming from new individuals? Um, clearly the business part is some of it because it's been in markets since Q2. But just to help us delineate that, thank you.
Thanks, guys. I'll take this 1, uh, let me answer the second part of your question. Um, if you look at the guide and the beat, I'd say, uh, given that a lot of the new initiatives are early, uh, in addition to that, you know, as Matt clarified, uh, remedy 1 launches, in September. Uh, so clearly early days. So a lot of The Upside you are seeing is from The Core Business. Um,
Now, moving to your question around marketing. Uh, let me clarify a few things, I think the first is, uh, we've seen a very efficient, you know, marketing engine, uh with uh, you know, continuous 6X plus uh, Tech to LTV LTV to CAC, as well as a payback, period is less than 12 months, so that continues to remain a strength for us.
Of, uh, you know, the Outlook of marketing, what we have shared, uh, but overall marketing continues to be, uh, a very important level for us, uh, in attracting new, customers and building for our future.
Thank you.
And our next question comes from Zachary Gunning of FTA Partners; your line is open.
Hey there, thanks for taking my question. Uh I also wanted to just follow up on the stablecoin dynamic. So today, if we break down your transaction expenses pay in and pay out cost to reach about 30 basis points of overall volume. So for transactions, where customers want to receive cross border payments in stable coins, how do those relative economics compared? Especially when you might have a party like Bridge involved, who would want to share in those economics?
Yeah.
I think, overall I think that it's comparable. Um, when you look at it as a dispersement option effectively and then I think there's upside for us as we think about the remotely wallet product, where we're actually storing, stable coin value, whether that's earning, you know, uh, net interest income in in areas like that or whether it's earning other benefits. I think that there's lots of opportunity as we, as we think about, uh, stablecoin adoption for the economics to work very well for us.
Thank you. I'm showing no further questions at this time. I'd like to turn it back to Matt. Oppenheimer for closing remarks.
Great. Thank you so much. And thank you, everyone, for the incredibly thoughtful questions. As always, I will end with a customer story. This one is from a Remitly business customer named Tony, and Tony shared with us that the first transaction was flawless.
And it was convenient, and it was fast. So I have been hooked ever since.
We thank Tony for his loyalty and for trusting Remitly to get money to his business reliably and seamlessly. Thank you, everybody, for joining us. We appreciate your support. We are excited about the opportunities ahead, and we look forward to sharing our progress as we continue to execute on our vision of transforming lives with trusted financial services that transcend borders.
This concludes today's conference call. Thank you for participating, and you may now disconnect.