Q2 2026 Remitly Global Inc Earnings Call - Post-Earnings Q&A

August 10, 2026

Speaker #1: For those of you on the call, you can email me or submit questions through the portal. We have about 45 minutes and a lot to get through, so why don't we get started?

[Analyst] (William Blair): For those of you on the call, you can email me or submit questions through the portal. We have about 45 minutes and a lot to get through, why don't we get started? Thanks again for joining us. Sebastian, this question was asked on the earnings call, I think it is worth asking again. What are you most excited about as you head into H2 2026 and enter 2027?

Cris Kennedy: For those of you on the call, you can email me or submit questions through the portal. We have about 45 minutes and a lot to get through, why don't we get started? Thanks again for joining us. Sebastian, this question was asked on the earnings call, I think it is worth asking again. What are you most excited about as you head into H2 2026 and enter 2027?

Speaker #1: And thanks again for joining us. So, Sebastian, this question was asked on the earnings call, and I think it's worth asking again: What are you most excited about as you head into the second half of 2026 and enter 2027?

Speaker #2: Well, Chris, first, thank you for hosting this. Yes, we had an excellent quarter, and we—I think the company is hitting on many hits in this, and it's hard to pick one big idea.

Sebastian Gunningham: Well, Cris, first, thank you for hosting this. Yes, we had an excellent quarter and I find the company is sitting on many cylinders and it is hard to pick one big idea. I think at this point, if you think about our customer, our customer cares about sharp pricing, it cares about moving money fast across a vast network, and it cares about a great service. The company, over the last few months, has been iterating on all of these three, and the three sum up to gaining market share, better trust, more activity. So we think we are focused on the right things. We have a lot of initiatives to keep sharpening our prices across the world, across the 5,000 corridors. We continue to expand our network. We are getting new licenses.

Speaker #2: And I think at this point, it's the summer. If you think about our customer, our customer cares about sharp pricing, it cares about moving money fast across the vast network, and it cares about great service.

Speaker #2: And so, the company, over the last few months, has been iterating on all of these three, and the three sum up to gaining market share, better trust, more activity.

Speaker #2: So we think we're focused on the right things. We have a lot of initiatives to keep sharpening our prices across the world, across the 5,000 corridors. We continue to expand our network, we're getting new licenses, and the money is moving faster.

Sebastian Gunningham: The money is moving faster and our service in many ways, whether it be through the help of AI or all kinds of things that we are doing in our customer centers and the features that we are giving customers, continues to improve. The reason, in strategy, you want to focus on what is changing, but you also want to spend a lot of time on what is not changing. There will not be a customer in the next 100 years who wants to pay more money for transferring money across the world. There will not be a customer who will tell you, "Please move my money slower." There will not be a customer that says, "Give me a worse service." So those things, we are very clear what is not going to change in our business.

Speaker #2: And, you know, our service in many ways—whether it be through the help of AI or all kinds of things that we're doing in our customer centers, and the features that we're giving customers—continues to improve.

Speaker #2: And the reason, you know, in strategy, you want to—you want to focus on what's changing, but you also want to spend a lot of time on what's not changing.

Speaker #2: There will not be a customer in the next 100 years who wants to pay more money for transferring money across the world.

Speaker #2: There will not be a customer who will tell you, "Please move my money slower." And there will not be a customer that says, "Give me a worse service." So those things we're very clear are not going to change in our business.

Speaker #2: And as we get better and better at that, we continue to gain market share, and we continue to gain momentum. I think I could answer this question a year from now probably in exactly the same way, as long as we continue to get better.

Sebastian Gunningham: As we get better and better in that we continue to gain market share and we continue to gain momentum. I think I could answer this question a year from now probably in exactly the same way, as long as we continue to get better.

Speaker #1: Thank you for that. Now, diversifying the business has been a key initiative since the IPO, and clearly it's an area that you're focused on.

[Analyst] (William Blair): Thank you for that. Diversifying the business has been a key initiative since the IPO, and clearly it is an area that you are focused on. Just talk about Remitly's tech stack and its global network that supports and enables your ability to diversify.

Cris Kennedy: Thank you for that. Diversifying the business has been a key initiative since the IPO, and clearly it is an area that you are focused on. Just talk about Remitly's tech stack and its global network that supports and enables your ability to diversify.

Speaker #1: Just talk about Remitly's tech stack and its global network that supports and enables your ability to diversify.

Speaker #2: Well, diversifying the revenue stream is very important. And this is—this is a top priority for the company. It's a top priority for me as the CEO.

Sebastian Gunningham: Well, diversifying the revenue stream is very important. This is a top priority for the company, and it is a top priority for me as the CEO. We have built a fantastic infrastructure to move money across the world, and our initial focus were what we call these core senders, which are these $200 to $300 sends that happen at large scale. We have got 10 million customers that do that. The network that we have built is so good that we suddenly found high amount senders starting to use it. High amount senders are a different profile. They are sending money to themselves, they are sending money to investments around the world. That is diversification number one, which is now we are building a business around that high value sender. Diversification number two happened when we started to see that lots of businesses started to use this infrastructure.

Sebastian Gunningham: Well, diversifying the revenue stream is very important. This is a top priority for the company, and it is a top priority for me as the CEO. We have built a fantastic infrastructure to move money across the world, and our initial focus were what we call these core senders, which are these $200 to 300 sends that happen at large scale. We have got 10 million customers that do that. The network that we have built is so good that we suddenly found high amount senders starting to use it. High amount senders are a different profile. They are sending money to themselves, they are sending money to investments around the world. That is diversification number one, which is now we are building a business around that high value sender. Diversification number two happened when we started to see that lots of businesses started to use this infrastructure.

Speaker #2: And we built a fantastic infrastructure to move money across the world. And our initial focus, what we call these "core senders," are these $200 to $300 sends that happen at large scale.

Speaker #2: And we've got 10 million customers that do that. But the network that we've built is so good that we suddenly found high-amount senders starting to use it.

Speaker #2: And high-amount senders are a different profile. They're sending money to themselves; they're sending money to investments around the world. And so, that is diversification number one, which is, now we're building a business around that high-value sender.

Speaker #2: Diversification number two happened when we started to see that lots of businesses started to use this infrastructure. Businesses can go from small businesses to medium businesses to, you know, the very, very large businesses who move trillions a day.

Sebastian Gunningham: Businesses can go from small businesses to medium businesses to the very large businesses who move trillions a day. We found that small businesses, people that use freelancers, and there are thousands of use cases, and it is really incredible to watch, that are using the Remitly infrastructure. So diversification stream number two is this small business revenue stream. The third diversification has been a receiver world. So we send money, 10 million people send $100 billion a year to 30 or 40 million people around the world. We have never really done anything with the 40 million people that are receiving the money. A combination of the crypto rails and stablecoins and us being able to issue cards has introduced us to the possibility that we could make a business out of the receivers. Early days, we have had some great ideas.

Speaker #2: And so we found that small businesses— people that use freelancers and there's incredible to watch. That are using the Remitly infrastructure so diversification stream number 2 is the small business, is the small business revenue stream.

Speaker #2: And the third diversification has been in the receiver world. So, we send money—10 million people send $100 billion a year to 30 or 40 million people around the world.

Speaker #2: And we've never really done anything with the 40 million people that are receiving the money. But a combination of the crypto rails and stablecoins, and us being able to issue cards, has introduced us to the possibility that we could make a business out of the receivers.

Speaker #2: In the early days, we've had some great ideas. We've launched the app in 170 countries. We're generating some revenue already, so stay tuned on the receiver side.

Sebastian Gunningham: We have launched the app in 170 countries. We are generating some revenue already, so stay tuned on the receiver side. Across all these revenue streams, we have launched our Remitly Global Card, and that is a fantastic card for people that live across borders, we call it. So people that do live in one country but have all their family relationships or that travel across borders, and this card is very focused on serving that community. Either when you travel with a card, when you need to borrow money short term for liquidity issues, where you have loyalty points, where you want to use it, card-to-card sends. There is just a lot of features in this card which we think applies to all our customers. To answer your question, very important focus of the company. We do have one big revenue stream, which is the core senders.

Speaker #2: And then, across all these revenue streams, we've launched our Remitly Global Card, and that's a fantastic card for people that live across borders, as we call it.

Speaker #2: So, people that do live in one country but have all their family relationships or their travel across borders—and this card is very focused on serving that community.

Speaker #2: Either when you travel with the card, when you need to borrow money short term for liquidity issues, where you have loyalty points—where you want to use it, you know, a card-to-card send.

Speaker #2: There are just a lot of features in this card, which we think apply to all our customers. So to answer your question, it's a very important focus of the company.

Speaker #2: We do have one big revenue stream, which is the core senders. We've got three or four in the works, all showing very good traction.

Sebastian Gunningham: We have three or four in the works, all showing very good traction, all growing fast. We have some other ideas, but our mission is to make sure that we keep diversifying the revenue of the business to make us a much more durable and high growth business.

Speaker #2: All growing fast. We have some other ideas, but, you know, our mission is to make sure that we keep diversifying the revenue of the business to make us a much more—you know, a much more durable and high-growth business.

Speaker #1: And Chris, we have a very quantifiable way to measure that, and we have put a goal of, as you know, approximately 5% for this year.

Vikas Mehta: Cris, we have a very quantifiable way to measure that, and we have put a goal of, as you know, 5% approximately for this year, and then over 10% of the revenue mix by 2028. Definitely great traction as Sebastian shared, and very clear goals for us to diversify. I will just add one last point on that, which is this is not only a diversification through different customer types or through different product features. It is also a revenue stream diversification. This is now where we can get into membership revenue, get into interchange, get into float-related interest income. So there is a diversification of income source as well.

Speaker #1: And then over 10% of the revenue mix, you know, by 2028. So definitely great traction, as Sebastian shared, and very clear goals for us to diversify.

Speaker #1: I'll just add one last point on that, which is this is not only a diversification through different customer types, or through different product features.

Speaker #1: It's also a revenue stream diversification. So this is now where we can get into membership revenue, get into interchange, get into, you know, float-related interest income.

Speaker #1: So there's a diversification of income sources as well.

Speaker #3: We'll dive into each of these growth drivers going forward, a little bit later in the discussion. Now, your results have clearly outpaced most—or all—of your peers. Have you seen anything change in the behavior of your competitors?

[Analyst] (William Blair): We will dive into each of these growth drivers going forward a little bit later in the discussion. Your results have clearly outpaced most or all of your peers. Have you seen anything change in the behavior of your competitors? Talk about your opportunities to gain additional market share.

Cris Kennedy: We will dive into each of these growth drivers going forward a little bit later in the discussion. Your results have clearly outpaced most or all of your peers. Have you seen anything change in the behavior of your competitors? Talk about your opportunities to gain additional market share.

Speaker #3: And talk about your opportunities to gain additional market share.

Speaker #2: You know, the— well, we— you know, I honestly haven't spent much time looking at the competitors. I think, as I said, we keep focusing on the core drivers of what makes us gain market share.

Sebastian Gunningham: No. I honestly have not spent much time looking at the competitors. As I said, I think we keep focusing on the core drivers of what makes us gain market share. If you look around the world, we have tailwinds and headwinds and the company adjusts very fast to those. We had the 1% tax on the cash remittances, so that was a bit of a tailwind in the US. We have new licenses. You have the puts and takes of immigration trends all over the world, generally favorable to the business. I would say that not so much. If you look at what I spent the last hour doing this morning is I look at every corridor, I look at the metrics, I look how sharp our pricing is, I look how good the defects, how many calls.

Speaker #2: You know, and if you look around the world, we have tailwinds and headwinds, and the company adjusts very, very fast to those. We had the 1% tax on the cash remittances, so that was a bit of a tailwind in the US.

Speaker #2: We have new licenses. Then you've got the puts and takes of immigration trends all over the world, generally favorable to the business. And so, I'd say that, you know, not so much— we, you know, if you look at what I spent the last hour doing this morning, I look at every corridor, I look at the metrics, I look at how sharp our pricing is, I look at the defects—how many calls—and so basically, if you just keep iterating on what we do well, I think naturally market shares begin to move.

Sebastian Gunningham: If you just keep iterating on what we do well, I think naturally market shares begin to move. We live in a world where you and I are one click away from an alternative in pretty much everything in our life. It is not different from moving money, so you have just got to be the best.

Speaker #2: You know, we live in a world where you and I are one click away from an alternative in pretty much everything in our lives.

Speaker #2: And so, it's not different from moving money. So, you've just got to be the best.

Speaker #1: Right.

[Analyst] (William Blair): Right. Sebastian, you joined earlier this year. You have a history and a passion of using technology to become more efficient. Just talk about some of the tangible opportunities that you see to leverage AI and technology at Remitly.

Cris Kennedy: Right. Sebastian, you joined earlier this year. You have a history and a passion of using technology to become more efficient. Just talk about some of the tangible opportunities that you see to leverage AI and technology at Remitly.

Speaker #3: Now, Sebastian, you joined earlier this year. You have a history and a passion for using technology to become more efficient. Just talk about some of the tangible opportunities that you see to leverage AI and technology at Remitly.

Speaker #2: So AI has— I've said that it has three buckets that we could affect. Obviously, the first one is the cost bucket. I think there's not a CEO in the world who's not getting some benefits from AI's cost.

Sebastian Gunningham: AI, I have said that it has three buckets that we could affect. Obviously, the first one is the cost bucket. I think there is not a CEO in the world who is not getting some benefits from AI as cost. I see it every day. I do not think a week goes by without some kind of wow moment as you are watching a team build something, you start to push and ask questions, and somebody in the back of the room lifts their hand and says, "I can do this at half the price with half the people and triple the speed using AI." As you march down pretty much all the functions of the company, I anticipate that over the next 2 or 3 years, this really is a tailwind, I think, for every business in the world, but we are very AI forward.

Speaker #2: And that's basically— that's, you know, I see it every day. I mean, I don't think a week goes by without some kind of wow moment as you're watching a team build something. You start to push and ask questions, and suddenly, in the back of the room, someone lifts a hand and says, "I can do this, you know, at half the price with half the people and triple the speed using AI." And this is— as you march down pretty much all the functions of the company, I anticipate that over the next two or three years, tailwind.

Speaker #2: I think for every business in the world— but we are, you know, we're very AI-forward. The second bucket is the customer— you know, the customer feature and service bucket.

Sebastian Gunningham: The second bucket is the customer feature and service bucket. AI allows you to do things faster, better, but be careful, not all these chatbots are great. But behind the scenes, you can help people on the phone, you can help people in chat. So there is a general impact of AI of just making the customer experience better and better and faster. Then the third bucket, the most unknown bucket, is how does it affect your top line? So there is no doubt that AI is affecting the bottom line. There is no doubt that generally we will be able to provide a much better service. Then the unknown yet is how much is it going to affect the top line? My basic answer to that is if you can build products faster, products generate revenue.

Speaker #2: AI allows you to do things faster and better, but be careful—not all these chatbots are great. But, you know, behind the scenes, you can help people on the phone, you can help people in chat.

Speaker #2: So there's a general impact of AI of just making the customer experience better and better, and faster. And then the third bucket—the most unknown bucket—is how does it affect your top line?

Speaker #2: So there's no doubt—you know, there's no doubt—that AI is affecting the bottom line. There's no doubt that, generally, we are able to provide a much better service.

Speaker #2: And then the unknown yet is, how much is it going to affect the top line? And my basic answer to that is, if you can build products faster—products generate revenue—if you can build products faster, as you generate products faster, then you generate more.

Sebastian Gunningham: If you can build products faster, as you generate products faster, then you generate more revenue. We are seeing that. We launched the Remitly Global Card, we launched in barely 60 days with a very small team. Throughout all my past and all the great companies I have been at, that would have taken 3, 4, 5x the time that it took us. That is purely an impact of AI. We are living proof that you can launch a product faster, you can start to generate revenue faster. These are early days. I am sure you are seeing it in your company. Everybody who is on the call is living some version of this. I am somewhat obsessed with what AI can do to make us better. I think the company probably feels it, and I think we are going to get a lot of benefits, and I still think it is early days.

Speaker #2: More revenue—we're seeing that. We launched the global card; we launched it barely 60 days ago with a very small team. Throughout all my past roles and all the great companies I've been at, that would have taken three, four, five times longer than it took us.

Speaker #2: And that's purely an impact of AI. So we are living proof that you can launch a product faster, you can start to generate revenue faster—so, and these are early days.

Speaker #2: I'm sure you're seeing it in your company. Everybody who's on the call is living some version of this. I am somewhat obsessed with what AI can do to make us better.

Speaker #2: I think the company probably feels it, and I think we're going to get a lot of benefits. I still think it's early days.

Speaker #2: I mean, it was December that you had the first Anthropic—you know, kind of the first jump in the Opus release for building products, for engineers.

Sebastian Gunningham: It was December that you had the first Anthropic, the first jump in the Opus release for building products for engineers. Every 3 or 4 months since then, we have had Claude was the latest. Now you are getting another view with Codex, and you have got the open source models coming in. I predict that by December this year, we will probably have 2 or 3 more aha moments. This is a journey we are all on, and I think that we are very plugged into how to use this and learning to be efficient as a result.

Speaker #2: Every three or four months since then, we've had a—you know, Fable was the latest. Now you're getting another view with Codex, and you've got the open-source models.

Speaker #2: Coming in, I predicted by December this year, we'll probably have two or three more 'aha' moments. So this is a journey we're all on, and I think that we're very, very plugged into how to use this and learning to be efficient as a result.

Speaker #3: Thank you for that. In addition to technology, I think you've made some structural changes to Remitly. Can you just talk a little bit about those and what the potential outcomes are?

[Analyst] (William Blair): Thank you for that. In addition to technology, I think you have made some structural changes to Remitly. Can you just talk a little bit about those and what the potential outcomes are?

Cris Kennedy: Thank you for that. In addition to technology, I think you have made some structural changes to Remitly. Can you just talk a little bit about those and what the potential outcomes are?

Sebastian Gunningham: Personally, I think that the new and driven by AI. AI is going to drive smaller teams with collapsing skill sets. When you had a designer, you had a software engineer, you had a product manager. Those, over time, are going to collapse into one skill. A, the teams get smaller, the skills collapse. Naturally, the hierarchical structures of the past are going to have to evolve. I have made a huge jump forward. I have flattened the organization. I am pushing teams to be smaller. There are some trade-offs, of course. You have to have better coordination. It is a little bit of a messier process, but you move a lot faster. Decisions are made faster. The information can flow through all these different tools much faster.

Speaker #2: The new wave—personally, I think that the new—and driven by AI—AI is going to drive smaller teams with collapsing skill sets. So where you had a designer, you had a software engineer, you had a product manager.

Speaker #2: Those, over time, are going to collapse into one skill. So, A, the teams get smaller; the skills collapse. So naturally, the hierarchical structures of the past are going to have to evolve.

Speaker #2: And I've made a huge jump forward. I've flattened the organization. I'm pushing teams to be smaller. There are some trade-offs, of course. You have to have better coordination.

Speaker #2: It's a little bit of a messier process, but you move a lot faster. Decisions are made faster, and information can flow through all these different tools much more quickly.

Speaker #2: So I'm evolving the organization to many small teams, moving very fast in a much flatter structure, which I think is going to have an impact on our results and the products that we can deliver over the next few years.

Sebastian Gunningham: I am evolving the organization to many small teams moving very fast in a much flatter structure, which I think is going to have an impact on our results and the products that we can deliver over the next few years.

Speaker #3: Great, thank you for that. Let's move to the pivot—to the numbers, the cost. Can you just remind us of some of the dynamics that we should remember as we look into the back half of this year?

[Analyst] (William Blair): Great. Thank you for that. Let us pivot to the numbers. Vikas, can you just remind us of some of the dynamics that we should remember as we look into the H2 of this year, the low fraud costs or the difficult comparison in the December quarter?

Cris Kennedy: Great. Thank you for that. Let us pivot to the numbers. Vikas, can you just remind us of some of the dynamics that we should remember as we look into the H2 of this year, the low fraud costs or the difficult comparison in the December quarter?

Speaker #3: You know, the load fraud costs or the difficult comparison in the December quarter.

Speaker #2: Yeah, I'd say, first of all,

Vikas Mehta: Yeah. I would say, first of all, we have had an excellent start to the year. The H1 has been excellent. Really strong traction in multiple areas, as well as maintaining cost discipline. One of the things that we did as Sebastian joined was to take a stock of different initiatives and see where we wanted to invest. We have now firmed up on those initiatives, so we will be unlocking those investments over the H2. As we look at some of the categories like transaction loss, as you said, we have seen a lot of fantastic benefits from AI, as well as the team has done a great job. Fraud prevention is a top priority. At the same time, we know that it is when we are innovating and we open up surface area, whether it is new geographies or new payment types, threat vectors do open up.

Speaker #1: You've had an excellent start to the year; the first half has been excellent. You know, really strong traction in multiple areas, as well as maintaining cost discipline.

Speaker #1: One of the things that we did as a batch and joined was to take stock of different initiatives and see where we wanted to invest.

Speaker #1: We have now, you know, formed up on those initiatives. So we'll be unlocking those investments over the second half. As we look at some of the categories, like transaction loss—as you said—we have seen a lot of, you know, fantastic benefits from AI, as well as the team has done a great job.

Speaker #1: You know, fraud prevention is a top priority. At the same time, we know that it's— you know, when we are innovating and we open up surface area, whether it is new geographies or new payment types, threat vectors to open up.

Speaker #1: And so, we want to be cautiously optimistic over there. So we continue to maintain the stance we did, which is a 9 to, you know, 13 basis points on average.

Vikas Mehta: We want to be cautiously optimistic over there as we continue to maintain the stance we did, which is a 9 to 13 bps off an average, where the next two quarters will be around 11 bps. But outside of that, we feel really optimistic. Finally, I would say that H2 of the year is always a setup for the next year and how well we do. So we will be investing in marketing for growth. We feel that right now it is the time to gain more market share, and our Skip the Line campaign has been very successful in the H1, and we will be continuing to double down on that effort as well. Overall, very optimistic about the H2. The setup is really good.

Speaker #1: Where, you know, over the next two quarters, it'll be around 11 bps. But outside of that, we feel really optimistic. And finally, I'd say that, you know, the second half of the year is always a setup for the next year and how well we do.

Speaker #1: So we'll be investing in marketing for growth. We feel that right now is the time to, you know, gain more market share. And, you know, our Skip-the-Line campaign has been very successful in the first half.

Speaker #1: And we'll be, you know, continuing to double down on that effort as well. So overall, very, very optimistic about the second half.

Speaker #1: The setup is really good. We had over 10 million quarterly active users, which creates nice, durable revenue growth. As well as cost discipline, helps us, you know, have strong EBITDA margins.

Vikas Mehta: We had 10 million plus quarterly active users, which creates a nice durable revenue growth, as well as cost discipline helps us have strong EBITDA margins, and finally investing for future growth.

Speaker #1: And finally, investing for future growth.

Speaker #3: When it comes to investments, managing investments, and margin expansion, you have that Rule of 40 framework, which is defined by revenue growth plus EBITDA margin. And historically, you've talked about EBITDA margin contribution margins of about 30%.

[Analyst] (William Blair): About investments, managing investments and margin expansion, you have that Rule of 40 framework, which is defined by revenue growth plus EBITDA margin. Historically, you have talked about EBITDA margin, contribution margins of about 30%. It has been much higher than that level over the last couple of quarters. Just talk about those different dynamics and maybe the flexibility of giving you more opportunity to invest. Are we at a new level in terms of margins, contribution margins?

Cris Kennedy: About investments, managing investments and margin expansion, you have that Rule of 40 framework, which is defined by revenue growth plus EBITDA margin. Historically, you have talked about EBITDA margin, contribution margins of about 30%. It has been much higher than that level over the last couple of quarters. Just talk about those different dynamics and maybe the flexibility of giving you more opportunity to invest. Are we at a new level in terms of margins, contribution margins?

Speaker #3: It's been much higher than that level over the last couple of quarters. Just talk about those different dynamics, and maybe, you know, the flexibility of giving you more opportunity to invest.

Speaker #3: And are we at a new level in terms of margin—contribution margin?

Speaker #1: I'd say the Rule of 40 framework has been very helpful for us in our capital allocation, and our capital allocation is simple—you know, drive durable growth.

Vikas Mehta: The Rule of 40 framework has been very helpful for us in our capital allocation. Our capital allocation is simple, drive durable growth, drive profitable growth, and finally invest to build the future. If you look at all the three, we are hyper-focused on each of them. First one, our growth rates have been excellent, and we continue to diversify that growth as well. Secondly, the EBITDA margins with cost discipline with AI and just a very disciplined framework where we only invest when we see a long-term profitability has been a differentiator. Finally, our investment framework is something that we keep sharpening every quarter. Now with Sebastian at the helm, there is a very focused process around goal setting and initiatives review. Overall, feel great about the Rule of 40 framework.

Speaker #1: You know, drive profitable growth, and finally, invest to build the future. And if you look at all three, you know, we are hyper-focused on each of them.

Speaker #1: First, you know, our growth rates have been excellent, and we continue to diversify that growth as well. Secondly, the EBITDA margins, the cost discipline with AI, and just, you know, only investing when we see long-term profitability.

Speaker #1: That has been a differentiator. And finally, our investment framework is something that we keep sharpening every quarter, and now it's a best-in-class approach at the helm.

Speaker #1: You know, there's a very focused process around goal setting and initiatives review. So overall, I feel great about the rule of 40 framework. You know, the goals that we set at Invest Today, we have been marching along quite well.

Vikas Mehta: The goals that we set at Investor Day, we have been marching along quite well. Overall we feel really positive in terms of our key initiatives.

Speaker #1: And overall, we feel really, really positive in terms of our key initiatives.

Speaker #3: Thank you for that. And Sebastian, just along that same line, you mentioned more products as a focus for you. Can you just remind us of, kind of, how long it generally takes before you get comfortable to make that decision—either to reinvest in the business or to potentially pivot into something new?

[Analyst] (William Blair): Thank you for that. Sebastian, just along that same line, you mentioned more products as a focus for you. Can you just remind us of how long does it generally take before you get comfortable to make that decision, either to reinvest in the business or to potentially pivot into something new?

Cris Kennedy: Thank you for that. Sebastian, just along that same line, you mentioned more products as a focus for you. Can you just remind us of how long does it generally take before you get comfortable to make that decision, either to reinvest in the business or to potentially pivot into something new?

Speaker #2: Yeah, it's a good question. There's a bit of an art and a science to this. Obviously, you want to—you know, especially, let me take the Remitly Global card as an example.

Sebastian Gunningham: It's a good question. There's a bit of an art and a science to this. You want to let me take the Remitly Global Card as an example. We've been testing pieces of that card, the membership, the lending, the short-term liquidity, but we've added a pseudo bank account for everybody. We've added the ability to lower. We can be very efficient on prices if you're sending card to card. No foreign transaction fees. You can deposit your salary there. So we've expanded the value of the card, and now it's in the market getting traction. For a business like us, we've said in the next two years, these businesses have to be 10% or are going to be 10% of the total.

Speaker #2: So, you know, we've been testing pieces of that card—the membership, the lending, the short-term liquidity. But we've added a pseudo-bank account for everybody.

Speaker #2: We've added the ability to lower—you know, we can be very efficient on prices if you're sending card to card. No foreign transaction fees.

Speaker #2: You can deposit your salary there. So, we've made—we've expanded the value of the card, and now it's in the market getting traction. And you know, for a business like us, we've said in the next few years, these businesses have to be 10%, or are going to be 10%, of the total.

Speaker #2: So let's say in 2 years or 3 years, we're at $3 billion. Ten percent is $300 million. And we've got some of these in the works.

Sebastian Gunningham: So let's say in two years or three years, we're $3 billion, 10% is $300 million, and we've got some of these in the works. I would unscientifically say we expect if any of these businesses get to $100 million in revenue, I think they are billion-dollar opportunities for Remitly, which means we've crossed that chasm. We've gone from the one to five million growth rates, the high growth rates we're seeing now. When we get to something like $100 million, then you say you've got to double down. This is a billion-dollar business. Some of these products may have a fast start and then plateau. It depends how the market feels about it, at which point you've got to have the discipline to kill them also and allocate to the next product. So it's a good question.

Speaker #2: I would unscientifically say we expect, if any of these businesses get to $100 million in revenue, I think they're billion-dollar opportunities for Remitly.

Speaker #2: Which means we've crossed that chasm. We've gone from the 1, 2, 5 million growth rates—the high growth rates we're seeing now.

Speaker #2: When we get to something like $100 million, then you say you've got to double down. This is a billion-dollar business. Or, you know, some of these products may have a fast start and then plateau.

Speaker #2: It depends what the market feels about it, at which point you've got to have the discipline to build them also, and move and allocate to the next product.

Speaker #2: So it's a good question. You should keep, we should keep asking it. But I'd say, unscientifically, I'm looking to—for these products—they're all in markets that I know could be billion-dollar opportunities for somebody.

Sebastian Gunningham: We should keep asking it, but I'd say unscientifically, I'm looking for these products. They're all in markets that I know could be billion-dollar opportunities for somebody. We have tremendous products in the market. We are a great candidate to make the all, whether it be the business sender, the high-value sender, the receivers, and the card. We think they're all billion-dollar revenue opportunities. The question is, will they be, and how do we decide to double down on them? So far so good. All the products are going really well. We're very excited. But we've got a big revenue base, and so competing against the core business is a tall order.

Speaker #2: We have tremendous products in the market. We are a great candidate to make the call, whether it be the business sender, the high-value sender, the receivers, or the card.

Speaker #2: We think they're all billion-dollar revenue opportunities. The question is, will they be? And how do we decide to double down on them? So far, so good.

Speaker #2: All the products are going really well. We're very excited. But, you know, we've got a big revenue base, and so competing against the core business is a tall order.

Speaker #3: Thank you. Speaking of which, let's pivot to the core remittance business. This is probably 95% of your revenue this year. Now, there are multiple growth levers in this business.

[Analyst] (William Blair): Thank you. Speaking of, let's pivot to the core remittance business. This is probably 95% of your revenue this year. There's multiple growth levers in this business. We think about market share gains, expanding into new geographies, inter-regional transfers. Just talk about the different levels of investment and the time to ramp for each of these levers.

Cris Kennedy: Thank you. Speaking of, let's pivot to the core remittance business. This is probably 95% of your revenue this year. There's multiple growth levers in this business. We think about market share gains, expanding into new geographies, inter-regional transfers. Just talk about the different levels of investment and the time to ramp for each of these levers.

Speaker #3: We think about market share gains, expanding into new geographies, and inter-regional transfers. Just talk about the different levels of investment and the time to ramp for each of these levers.

Speaker #2: Yeah. The, you know, a couple of, you know, there's a couple of core pieces that drive the growth. First of all, you know, we have 5,000 corridors around the world.

Sebastian Gunningham: Yeah. There's a couple of core pieces that drive the growth. First of all, we have 5,000 corridors around the world, and we call it corridors when you can move, say, a pound to some currency in Africa. That's a corridor. Even with 5,000 corridors, which is a tremendous coverage and one of the best in the world, we're only 50% of the way in covering the whole world. So number one is we have a team that's very focused on continuing to expand the places and the ability to move money anywhere in the world at the speed and cost that you can expect from Remitly. The second piece, obviously, we do drive customer acquisitions. We've got a very good engine to drive new customers. We've got a marketing machinery that's improving around the world. We continue to perfect that.

Speaker #2: And we, you know, we call it a corridor when you move, you can move, say, a pound to some currency in Africa. That's a corridor.

Speaker #2: And even with 5,000 corridors, which is a tremendous coverage—among the best in the world—we're only 50%. We're only 50% of the way in covering the whole world.

Speaker #2: So, number one is, we have a team that's very focused on continuing to expand the places and the ability to move money anywhere in the world at the speed and cost that you can expect from Remitly.

Speaker #2: The second piece, obviously, we do drive customer acquisitions. We've got a very good engine to drive new customers. We've got a marketing machinery that's been proven around the world.

Speaker #2: We continue to perfect that. AI gives us some tailwinds to keep personalizing. By communities, you know, the Chinese community is different than the Indian community, is different than the Nicaraguan community.

Sebastian Gunningham: AI gives us some tailwinds to keep personalizing by communities. The Chinese community is different than the Indian community, is different than the Nicaraguan community. We approach all those communities around the world very specifically. We've got lots of programs to keep driving that growth. I'd say that the expanding the network and expanding the precision of our marketing to continue to get new customers and repetition from existing customers are probably the two most significant drivers that we have to growth in the core business. Then, of course, you can never forget that you've got to be price right. So scale matters in this business. We are a scaled business at this point.

Speaker #2: And we, you know, we approach all those communities around the world very, very specifically, and we've got lots of programs to keep driving that growth.

Speaker #2: So I'd say that expanding the network and expanding the precision of our marketing to continue to get new customers, and, you know, repetition from existing customers, are probably the two most significant drivers that we have to growth in the core business.

Speaker #2: And then, of course, you can never forget that you've got to be priced right. And so that's a—you know, scale matters in this business.

Speaker #2: We are a scaled business at this point. We're getting all the benefits of the unit economics and the cost benefits, and that allows us to be very, very price competitive, which is also a key part of winning in this market.

Sebastian Gunningham: We're getting all the benefits of the unit economics and the cost benefits, and that allows us to be very price competitive, which is also a key part of winning in this market.

Speaker #3: Now, immigration patterns is a big topic. Can you just talk about how these trends either have or have not impacted your business?

[Analyst] (William Blair): Now, immigration patterns is a big topic. Can you just talk about how these trends either have or have not impacted your business?

Cris Kennedy: Now, immigration patterns is a big topic. Can you just talk about how these trends either have or have not impacted your business?

Sebastian Gunningham: It is different all over the world. If you look at the actual legal immigration patterns in the US are fairly stable over time. I think there is about 1 million green cards that get given every year. That has not changed that much. You have other countries where it is different. I was in Japan a couple of weeks ago. Japan is importing a lot of labor. As you know, they have a population decrease. The Japan to Philippines corridor, Japan to China corridor is very active these days. You have that immigration. I think at all times around the world, there are these gives and takes. For our business, it has not affected us yet, as you see in the numbers. I think that you and I can agree that over the next 10, 15 years, immigration trends are just going to continue to go up.

Speaker #2: It's different all over the world. I mean, obviously, if you look at the actual legal immigration patterns in the US, they're fairly stable over time.

Speaker #2: I think there's about a million green cards that get given every year, so that hasn't changed that much. You have other countries where it's different.

Speaker #2: I was in Japan a couple of weeks ago. Japan is importing a lot of labor, as you know. They have a population decrease. And so the, you know, the Japan-to-Filipino corridor, Japan-to-China corridor is very active these days.

Speaker #2: So you've got that immigration where, so it's—you know, I think at all times around the world, there are these puts and takes. For our business, it has not affected us yet, as you see in the numbers.

Speaker #2: And I think that you and I can agree that, over the next 10 to 15 years, immigration trends are just going to continue to go up.

Speaker #2: I mean, the world is still moving around, and a lot of the West is importing labor. I think that's going to continue in some form or fashion.

Sebastian Gunningham: The world is still moving around, and a lot of the West is importing labor, and I think that is going to continue in some form or fashion. We have not, despite the noise and the ups and downs, depending on the administration, especially in the US, we have not seen any impact on. Remember, we only work with a banked customer. You cannot open a Remitly account unless you have a bank. That obviously, that piece of the immigration has proven to be quite stable over time.

Speaker #2: So we have not, despite the noise and the ups and downs depending on the administration, especially in the U.S., we have not seen any impact on—remember, we only work with a banked customer.

Speaker #2: So you cannot open a Remitly account unless you have a bank. So, obviously, that piece of the immigration has proven to be quite stable over time.

Speaker #3: Thank you. At your Investor Day, you talked about how Remitly has maybe 10 to 15% market share within your most established markets. Can you talk about the key drivers of growth within your most established regions?

[Analyst] (William Blair): Thank you. At your Investor Day, you have talked about how Remitly has maybe 10% to 15% market share within your most established markets. Just talk about the key drivers of growth within your most established regions.

Cris Kennedy: Thank you. At your Investor Day, you have talked about how Remitly has maybe 10% to 15% market share within your most established markets. Just talk about the key drivers of growth within your most established regions.

Speaker #2: Well, that's a—I'll let Vikas answer, but I'll react to your number. It's actually a good or a bad number. When you say 10%, it means that we have 90% to go.

Sebastian Gunningham: Well, that's I will let Vikas answer, but I will react to your number. It's actually a good or a bad number. When you say 10%, it means that we have 90% to go. When you mean 10%, you say that's a pretty successful piece of market share. I would put both hats on. I think that we have proven to really understand this customer and some of these markets, the bigger markets such as US to Mexico, US to Philippines, US to India, Great Britain to India. By the same token, we are 10%, so we have got a long way to go and a lot of opportunity, a lot of customers who have not used Remitly yet. So we view it as a very big opportunity, yes. But I will let Vikas answer with some more specifics.

Speaker #2: When you mean 10%, you say that's a pretty successful market—piece of market share. So I'd put both hats on. I think that we've proven to really understand this customer and some of these markets.

Speaker #2: The bigger markets, as you can, you know—US to Mexico, US to Philippines, US to India, Great Britain to India. But, by the same token, we're 10%, you know.

Speaker #2: So we've got a long way to go, a lot of opportunity, and a lot of customers who have not used Remitly yet. So we view it as a very big opportunity still.

Speaker #2: But I'll let Vikas answer with some more specifics.

Speaker #3: Yeah. And I think, I think it goes back to where Sebastian started, that, you know, customers care about sharper pricing, the speed, as well as experience.

Vikas Mehta: Yeah, I think it goes back to where Sebastian started, that customers care about sharper pricing, the speed, as well as experience. We know that it's a fragmented market, so it's not like a lot of big players over here. In a fragmented market, continuing to win share is a very important priority for us. We feel offline to online has been a nice secular tailwind through and through of our business. Now, especially with the cash remittance tax, it provides a further catalyst. We believe that that is not over yet. In the H1 we saw benefits, but we extended our Skip the Line campaign, so we will continue to push for that. Beyond that, I would say that as we add more products and create a nice virtual cycle, even the send-to-send loop that we have makes it much stronger.

Speaker #3: And, you know, we know that it's a fragmented market, so it's not like, you know, a lot of big players over here.

Speaker #3: And in a fragmented market, you know, continuing to win share is a very important priority for us. We feel offline-to-online has been a nice secular tailwind through and through for our business.

Speaker #3: But now, especially with the cash remittance tax, it provides a further catalyst. We believe that that is not over yet. In the first half, we saw benefits, but we extended our skip-the-line campaigns.

Speaker #3: We'll continue to push for that. Beyond that, I would say that as we add more products and create a nice virtuous cycle, even the send-receive loop that we have makes it much stronger.

Speaker #3: Secondly, as we move more towards, you know, giving customers the power to have a wallet to send, spend, save, and borrow, it creates further stickiness as well as creates a higher value proposition.

Vikas Mehta: Secondly, as we move more towards giving customers the power to have Remitly Wallet to send, spend, save and borrow, it creates further stickiness as well as creates a higher value proposition. Overall, we feel there is a lot more room, even in the core center, to continue to grow.

Speaker #3: So, overall, we feel there's a lot more room, even in the core center, to continue to grow.

Speaker #2: And just to go back to the second quarter,

[Analyst] (William Blair): Just to go back to the Q2 trends, we did notice a slowdown in Canada and rest of the world. Can you provide a little bit more color as to what drove those trends?

Cris Kennedy: Just to go back to the Q2 trends, we did notice a slowdown in Canada and rest of the world. Can you provide a little bit more color as to what drove those trends?

Speaker #3: Trends. We did notice a slowdown in Canada and the rest of the world. Can you provide a little bit more color as to what drove those trends?

Speaker #1: Yeah, Chris. And before I even jump into that, I'd say that if you look at overall results, our revenue growth was really strong.

Vikas Mehta: Yeah, Cris, before even I jump into that, I would say that if you look at overall results, our revenue growth was really strong, and we beat the guidance considerably. This is where the power of revenue diversification comes into play. Let me start with Canada, for example. We have seen more macro headwinds over there, and that is something that the industry has talked about with more constrained immigration policies there. Clearly, while we see that, we are not sitting on our laurels. We want to continue to win market share. So even in that market, which has been growing slowly, we continue to win market share.

Speaker #1: And we beat the guidance considerably. This is where the power of revenue diversification comes into play. So let me start with Canada, for example.

Speaker #1: We have seen more macro headwinds over there, and that's something that, you know, the industry has talked about, with more constrained immigration policies there.

Speaker #1: Now, clearly, while we see that, we are not sitting on our laurels. We want to continue to win market share. So even in that market, which has been growing slowly, we continue to win market share.

Speaker #1: On the rest of the world, I would say it was more specific to African corridors, where the euro, year-over-year comps were tougher.

Vikas Mehta: On the rest of the world, I would say it was more specific to African corridors where the year-over-year comps were tougher, and hence we saw that rest of world continues to be a growth driver for us, and we will see that over time as well. This is where we can continue to expand markets, as Sebastian shared, as well as increase the send-to-send, as we call it, between the more higher end, call it developed economies where Australia, UK, Europe, I think the transactions within those economies can continue to grow for us. Overall, we are very optimistic about the future. At the same time, revenue diversification is the name of the game, whether it is through corridor diversification or through the different revenue streams or customer categories.

Speaker #1: And hence, we saw that, you know, the rest of world continues to be a growth driver for us. And we'll see that over time as well.

Speaker #1: This is where we can continue to expand—markets, as Sebastian shared, as well as increase the send-to-send, as we call it, you know, between the more higher-end, call it developed economies—where Australia, UK, Europe, I think the transactions within those economies can continue to grow for us.

Speaker #1: So overall, we're very optimistic about, you know, the future. At the same time, revenue diversification is the name of the game—whether it is through corridor diversification, or through different revenue streams or customer categories.

Speaker #3: Thank you for that. And speaking of rest of the world, the UAE, I think, has been a big focus of ours. And, you know, I think you guys entered that market in 2023.

[Analyst] (William Blair): Thank you for that. Speaking of rest of the world, UAE, I think, has been a big focus of ours. I think you guys entered that market in 2023. Earlier this year, you opened an office, you got a new license. Can you just talk about the journey and the opportunity within that market?

Cris Kennedy: Thank you for that. Speaking of rest of the world, UAE, I think, has been a big focus of ours. I think you guys entered that market in 2023. Earlier this year, you opened an office, you got a new license. Can you just talk about the journey and the opportunity within that market?

Speaker #3: Earlier this year, you opened an office. You got a new license. Can you just talk about the journey and the opportunity within that market?

Speaker #2: Yeah. Well, we've been focused on the UAE for years, but it's, you know, it's a very important country for us. $50 billion in annual remittances, 90% of that population are migrants.

Sebastian Gunningham: Well, we have been focused on the UAE for years, but it is a very important country for us. USD 50 billion in annual remittances, 90% of that population are migrants. 50% of outbound is digital, so it is a very highly fragmented market. This new license allows us to bring a whole group of new products to market, including our Remitly Global Card, so we are very excited. I think we have to earn our spot there. We have been there for years. We have got an office there. We are growing the team. So far so good. I think it is actually a perfect market for Remitly, and one that I think we are going to win in.

Speaker #2: Fifty percent of outbound is digital. So, it's a very highly fragmented market. This new license allows us to bring a whole group of new products to market, including our global card.

Speaker #2: And so we're very excited. I think it's a—you know, I think we have to earn our spot there. We've been there for years.

Speaker #2: We've got an office there. We're growing the team. So far, so good. I think it's a, it's, it's, it's actually a perfect market for Remitly and one that I think we are, we're going to win in.

Speaker #3: Let's pivot to stablecoins. It's been a big focus of investors. Just talk about how you're using stablecoins today. What are the benefits? And talk about, maybe, the rationale for joining the OpenUSD initiative.

[Analyst] (William Blair): Let's pivot to stablecoins. It's been a big focus of investors. Just talk about how you're using stablecoins today, what are the benefits, and talk about maybe the rationale for joining the Open USD initiative.

Cris Kennedy: Let's pivot to stablecoins. It's been a big focus of investors. Just talk about how you're using stablecoins today, what are the benefits, and talk about maybe the rationale for joining the Open USD initiative.

Speaker #2: Yes. I'll start with the, with the OpenUSD initiative. I mean, it's, it's, you know, I think the, the, the world is still trying to figure out where and how the consumer is going to use stablecoins at scale.

Sebastian Gunningham: Yes. I'll start with the Open USD initiative. I think the world is still trying to figure out where and how the consumer is going to use stablecoins at scale. I think that the OUSD consortium was a really good move in the direction to make sure you globalize the stablecoin that you use, that many companies come to either share it. For a stablecoin, you're going to need trust. You're going to need adoption, and you're going to need shared economics. In our view, OUSD does all three, which is the companies involved are part of the world's current movement of money. Adoption seems to be a key part of this, and all of us that have signed up are going to be obviously adopting this new stablecoin in our products.

Speaker #2: And I think that the OUSD consortium was a really good move in the direction to make sure you globalize the stablecoin that you use.

Speaker #2: That many companies come to, you know, share it. And so, for a stablecoin, you're going to need trust. You know, you're going to need adoption.

Speaker #2: And you're going to need shared economics. And in our view, OUSD does all three, which is—the companies involved are, you know, part of the world's current movement of money. Adoption seems to be a key part of this, and all of us that have signed up are going to be obviously adopting this new stablecoin in our products.

Speaker #2: And number three is that we share in the economics of the value that's created from the use of this stablecoin. So it's early days.

Sebastian Gunningham: Number three is that we share in the economics of the value that's created from the use of this stablecoin. It's early days. We haven't launched anything specific with OUSD yet, but we're working on a few products, and so we'll see how that plays out. On the broader stablecoin use, there's a few use cases for us. Obviously, we can use it in our treasury settlements, as we can move money 24/7 into some of our destinations. We pre-position money across the world to make sure we can deliver it very fast. There are corridors where, if there's enough liquidity, moving to a stablecoin model allows us to do that faster without having to pre-position money, because we can do it in one second through the stablecoin rails. There is a consumer use case.

Speaker #2: We haven't launched anything specific with OUSD yet, but we're working on a few products, so we'll see how that plays out.

Speaker #2: On the broader stablecoin use, you know, there are a few use cases for us. Obviously, we can use it in our treasury settlements. As we can move money 24/7 into some of our destinations, we pre-position money across the world to make sure we can deliver it very fast.

Speaker #2: And there are corridors where, if there's enough liquidity, moving to a stablecoin model allows us to do that faster, without having to pre-position money.

Speaker #2: Because we can do it in one second, through the stablecoin rails. There is a consumer use case—it's very small still.

Sebastian Gunningham: It's very small still, and the consumer use case is there's a large part of the world who wants to hold their money in dollars, and that is difficult to do in today's fiat model. Stablecoins and stablecoin wallets and stablecoin cards, where allowed, allow a mass of the world to be able to hold dollar currencies. That's a use case that we've launched a card in Argentina, we've launched a card in Pakistan. If you're sending money to somebody in Argentina, you can send it to the stablecoin wallet. That person will receive it in a wallet. They can keep it in a card, they can spend it. It's small, but I think that could have, depending how all the regulatory framework evolves, that could be a use case that's interesting. As far as the actual rails, we're very cost efficient.

Speaker #2: And the consumer use case is, there's a large part of the world who wants to hold their money in dollars, and that is difficult to do in today's fiat model.

Speaker #2: And stablecoins and stablecoin wallets and stablecoin cards were allowed, allow a mass of the world to be able to hold dollar currencies. That's a use case that we—you know, we've launched a card in Argentina.

Speaker #2: We've launched a card in Pakistan. If you're sending money to somebody in Argentina, you can send it to the stablecoin wallet. That person will receive it in a wallet.

Speaker #2: They can spend, they can keep it in a card. They can spend it. It's small, but I think that could, you know, could have, depending on how all the regulatory framework evolves, that could be a use case that's interesting.

Speaker #2: And then, as far as the actual rails, you know, we're very cost efficient. Any place around the world where we find that stablecoins can improve our costs, it's one more tool in our arsenal.

Sebastian Gunningham: And any place around the world where we find that stablecoins can improve our costs, it is one more tool in our arsenal, and we will happily be using it. So it is not a one-size-fits-all. It is early days, but we are adopting it where it makes sense and where it makes sense for our customers, too.

Speaker #2: And we will, we will happily be using it. So it's not a one-size-fits-all. It's early days, but we are adopting it where it makes sense and where it makes sense for our customers, too.

Speaker #3: Let's say we have about 10 more minutes. Let's move to the growth accelerators, which, as you said earlier, should represent about 5% of revenue this year, with a goal of at least 10% in 2028.

[Analyst] (William Blair): We have 10 more minutes. Let us move to the growth accelerators, which, as you said earlier, should represent about 5% of revenue this year, with a goal of at least 10% in 2028. Maybe we will start with high-value senders. I asked the question earlier, but talk about your tech stack enables high-value senders, because our work suggests that not every provider can do that. So just talk about your comfort level and some of the risks to power that business.

Cris Kennedy: We have 10 more minutes. Let us move to the growth accelerators, which, as you said earlier, should represent about 5% of revenue this year, with a goal of at least 10% in 2028. Maybe we will start with high-value senders. I asked the question earlier, but talk about your tech stack enables high-value senders, because our work suggests that not every provider can do that. So just talk about your comfort level and some of the risks to power that business.

Speaker #3: Maybe let's—well, we'll start with high-value senders. I asked the question earlier, but talk about how your tech stack enables high-value senders, because our work suggests that not every provider can do that.

Speaker #3: So, just talk about your comfort level and some of the risks to power that business.

Speaker #1: Yeah, I can, I can, I can start there, Sebastian. You can add. You know, high, high-value sender is such a, such an important you know, growth driver for us.

Vikas Mehta: Yeah, I can start there, Sebastian. You can add. High-value sender is such an important growth driver for us. As you said, Cris, the first reason is that the network already exists. We already have customers who want to send and call it 12 months back because of partner constraints or otherwise we were not able to enable. We have worked a lot on the product to enable that. We had our first $300,000 transactions, not one, many. This last quarter, we had one customer send more than $1 million in the most recent quarter. So overall, there is a huge unlock that is happening, and this is where we have not really even invested in marketing and creating awareness. So we feel the upside here is right in front of us. So overall, feel very excited about high-value senders, and that will continue to be a growth focus for us.

Speaker #1: As you said, Chris, the first reason is that the network already exists. We already have customers who want to send.

Speaker #1: And call it 12 months back, because of partner constraints or otherwise, we were not able to enable it. We have worked a lot on the product to enable that.

Speaker #1: We had our first $300,000 transactions—not one, many. This last quarter, we had one customer send more than $1 million. In the most recent quarter—so overall, you know, there's a huge unlock that's happening.

Speaker #1: And this is where we haven't really even invested in marketing and creating awareness. So we feel the upside here is right in front of us.

Speaker #1: So overall, we feel very excited about high-value senders, and that will continue to be a growth focus for us.

[Analyst] (William Blair): In addition to marketing, I assume you are going to be adding additional services to help capture that market. On the call, you mentioned adding wire capabilities. Can you just talk about some of the additional services that this market requires?

Cris Kennedy: In addition to marketing, I assume you are going to be adding additional services to help capture that market. On the call, you mentioned adding wire capabilities. Can you just talk about some of the additional services that this market requires?

Speaker #3: In addition to marketing, I assume you're going to be adding additional services to help capture that market. On the call, you mentioned adding wire capabilities.

Speaker #3: Can you discuss some of the additional services that this market requires?

Speaker #2: Yeah. And you know, the default for anybody to send a high amount of money around the world is usually your bank. But this, you know, so the—and the reason you use your bank is because you trust it.

Sebastian Gunningham: Yeah. The default for anybody to send high amount of money around the world is usually your bank. The reason you use your bank is because you trust it, and you have had a long relationship with it, and it is easy to move. That is where you have your money. We have to compete against a very well-functioning system that has worked for 50, 60, 70 years, whatever the number. Maybe hundreds of years, really, if you think of how the world has moved money. There is a segment of the population who really. We are very well price competitive. We move money very fast. That customer needs a white glove service. They need to be able to really address problems when they happen very fast. We are moving into that space. We have launched a white glove service. You should try us, by the way.

Speaker #2: And you've had a long relationship with it. And it's easy to move—to move the, you know, that's where you have your money. So we have to compete against a very well-functioning system that's worked for 50, 60, 70 years, whatever the number—maybe hundreds of years, really, if you think of how the world has moved money.

Speaker #2: And so, but there is a segment of the population who, really, you know, we were very well-priced, competitive. We move money very fast.

Speaker #2: That customer needs a white glove service. They need to be able to really address problems when they happen, very fast. And so, we're moving into that space.

Speaker #2: We've launched a white glove service. You should try us, by the way—if you have to pay somebody around the world in our money, use Remitly, and you'll see that the app is a little bit different.

Sebastian Gunningham: If you have to pay somebody around the world a lot of money, use Remitly and you will see that the app is a little bit different because you have got to focus, you are optimizing for different things. Things like foreign exchange, count more than fees. If you are sending $100,000, a $2 fee is not that important, but the FX is. We were evolving the product very fast. The signals are very good. People are using us to send money in large amounts, and in some of those corridors where we have a lot of reach, it is working very well for us. It is a new segment for us. It is a new revenue stream for us, and we think it is large, and we are just getting started.

Speaker #2: Because you've got to focus—you're optimizing for different things. You know, things like foreign exchange count more than fees. You know, if you're sending $100,000, a $2 fee is not that important.

Speaker #2: And the FX is... And so, we're evolving the product very fast. The signals are very good. People are using us to send money.

Speaker #2: In large amounts and in some of those corridors where we're very well—where we have a lot of reach—it's working very well for us.

Speaker #2: So it's, you know, it's a, it's a new segment for us. I mean, it's a new, it's, it's a new, it's a new revenue stream for us.

Speaker #2: And we think it's large, and we're just getting started.

Speaker #3: Moving to SMB, there are a lot of companies that are going after that business. Sebastian, you talked about it earlier. Just talk about your right to win, and who you are really focused on going after within the SMB business?

[Analyst] (William Blair): Moving to SMB. There are a lot of companies that are going after that business. Sebastian, you talked about it earlier. Just talk about your right to win, and who are you really focused on going after within the SMB business?

Cris Kennedy: Moving to SMB. There are a lot of companies that are going after that business. Sebastian, you talked about it earlier. Just talk about your right to win, and who are you really focused on going after within the SMB business?

Sebastian Gunningham: I think it is the small S in SMB is what I primarily focus on. The use cases, I was in the Philippines a month ago, and I sat down with freelance. I sat down with salespeople who get paid by US companies to do sales calls. I sat down with people that do. There was one person who analyzes roof pictures for an insurance company in the US who bids on changing roofs. You take a picture of the roof, and this person runs it through their software. You have all these use cases which kind of match sometimes big companies, so sometimes S, small S, and even the Ms, but mostly to a freelancer type of population around the world. It really is amazing, if you go through all the use cases. It is a very big market. There are just so many use cases.

Speaker #2: I think it's the small 'S' in SMB that I primarily focus on. The use cases—I was in the Philippines a month ago.

Speaker #2: And I sat down with freelancers. I sat down with salespeople who get paid by US companies to do sales calls. I—there are—I sat down with people that do—there was one person who analyzes roof pictures for an insurance company in the US.

Speaker #2: Who you know, bids on changing roofs. So you take a picture of the roof, and this person runs it through their software. You have all these use cases, which kind of match sometimes with big companies.

Speaker #2: So sometimes S, small S, and even the Ms. But mostly to a freelancer type of population around the world. And there are it's it really is amazing to if you go through all the use cases, and it's a very big market, very, very you know, there's just so many use cases.

Speaker #2: So it's a very, very fragmented market. We are going to get very, very good at the small end of small businesses and that freelancer.

Sebastian Gunningham: It is a very, very fragmented market. We are going to get very, very good at the small and the small businesses and that freelancer. Those virtual cycles get built between the connection between the freelancer and the company they are working for, and they usually freelance for a number of companies. They introduce Remitly to other companies. It is a very global market. We see countries like Pakistan, Mexico, providing lots of different types of business services. We are early days. It is a very large market, a very large market, very fragmented. You have to be good, and you have to figure out your growth market if we are going to get large in this market. So far, so good.

Speaker #2: Those virtuous cycles get built between the connection between the freelancer and the company they're working for. And they're usually freelancing for a number of companies.

Speaker #2: So they, they introduce Remitly to other companies. It's a very global market. We see, we see, you know, we see countries like Pakistan, Mexico providing lots of different types of business services.

Speaker #2: So, we're in the early days. It's a very large market—I guess that's the point. It's a very large market and very fragmented. So, you have to be good, and you have to figure out your go-to-market if we're going to get large in this market.

Speaker #2: But so far, so good.

Speaker #3: And then, similar to high-value senders, are there additional services that are required to kind of go after what you want to go after?

[Analyst] (William Blair): Similar to high-value senders, are there additional services that are required to go after what you want to go after?

Cris Kennedy: Similar to high-value senders, are there additional services that are required to go after what you want to go after?

Speaker #2: Yes. You have to it's a, it's a different KYC process. I don't know your customer if you don't know your business. It's a more it's a bit more friction involved, as you sign up as a business.

Sebastian Gunningham: Yes. It is a different KYC process. Know your customer. It has got to know your business. There is a bit more friction involved as you sign up as a business. You need features like being able to pay 10 people at the same time versus one at a time. You need to be able to plug into the different accounting systems and ERP systems that the small businesses use. We have got a team dedicated to building the product. It has improved dramatically. We have launched it in the EU also. We are going to expand globally. Yes, it requires additional features. It requires additional process, and it requires a different type of service also.

Speaker #2: You need features like being able to pay 10 people at the same time, versus one at a time. You need to be able to plug into the different accounting systems and ERP systems that small businesses use.

Speaker #2: So there is a we're, we're, we've got a team dedicated to building the product. It's, it's improved dramatically. We're seeing we've launched it in the, in the EU also.

Speaker #2: So we're going to expand globally. So yes, it requires additional features, it requires additional processes, and it requires a different type of service also.

Speaker #3: And last but not least, you know, I think you've kind of unified the strategy around Flex, Wallet, Send Now, Pay Later, into the card offering.

[Analyst] (William Blair): Last but not least, I think you have unified the strategy around Flex, Wallet, send now, pay later into the card offering. Can you just talk about the strategy there and what differentiates Remitly relative to some of the other competitors?

Cris Kennedy: Last but not least, I think you have unified the strategy around Flex, Wallet, send now, pay later into the card offering. Can you just talk about the strategy there and what differentiates Remitly relative to some of the other competitors?

Speaker #3: Can you talk about the strategy there and what differentiates Remitly relative to some of the other competitors?

Speaker #2: Yeah, I think we were probably guilty of too many ideas, and so we launched too many products—and ended up probably even confusing ourselves.

Sebastian Gunningham: Yeah. I think we were probably guilty of too many ideas, so we launched too many products and ended up probably even confusing ourselves. We have simplified it all under the construct of a card. The card now provides, it has the send now, pay later product, which is a short-term liquidity lending product. We have got a membership product where we are launching data plans for people that are traveling. So we include a data plan for your phone and the ability to get liquidity. We have launched different price points when you are sending card to card, because for us, we can manage those rails directly. The Remitly Global Card, I think, is a milestone product for the company because we have a very long list of new things we can put into our customers.

Speaker #2: So we've simplified it all under the construct of a card. And the card now provides—it has the 'Send Now, Pay Later' product, which is a short-term liquidity.

Speaker #2: It's a lending product. We've got a membership product where we're launching data plans for people that are traveling. So we include a data plan for your phone.

Speaker #2: And the ability to get liquidity. We've launched, you know, different price points when you're sending card to card, because for us, we can manage those rails directly.

Speaker #2: And so, we—the Remitly Global card, I think, is a milestone product for the company, because we have a very long list of new things we can put into our customers' hands.

Speaker #2: And with this card construct, it's very easy just to insert them into the card. And so, you know, the team was telling me yesterday they want to launch cards for kids, for example.

Sebastian Gunningham: With this card construct, it is very easy just to insert them into the card. The team was telling me yesterday they want to launch cards for kids, for example. So a parent has a card, the kid can have a card, and you can have pocket money. I am not saying we are launching that immediately, but I am just saying that an idea like that, it just completely starts to fit into the card. So we are very excited. We have years of work to make this the most incredible card on the planet for people that move around different countries.

Speaker #2: So, a parent has a card. You can have—kids can have a card. And you can have pocket money. And I'm not saying we're launching that immediately.

Speaker #2: But I’m just saying that an idea like that just really starts to fit into the touch, so we’re very excited. We have years of work to make this the most incredible card on the planet for people that move around different countries.

Speaker #3: Can I just ask some questions also? Just want to add some flavor to that. I think this does create a nice, you know, use case where there is send, spend, save, borrow.

Vikas Mehta: I guess I just saw some questions also. I just want to add some flavor to that. I think this does create a nice use case where there is send, spend, save, borrow, which does create one of the important goals for us is to have bigger wallet balances that ultimately start creating that revenue diversification. Unit economics on this is powerful. The other point around the borrow, send now, pay later, we have a phenomenal team behind the scenes. We have seen very thoughtful management of risk over here, so we will continue to do that. That is why the focus is on all the send, spend, save, and borrow. We are moving away from just send now, pay later. We are moving much more into a card product.

Speaker #3: Which does create—like, one of the important goals for us is to have, you know, bigger wallet balances. That ultimately, you know, starts creating that revenue diversification.

Speaker #3: And unit economics on this is powerful. The other point around, you know, the borrow, send now, pay later—you know, we have a phenomenal team behind the scenes.

Speaker #3: We have seen, you know, very thoughtful management of risk over here, so we'll continue to do that. And that's why the focus is on all the send, spend, save.

Speaker #3: And borrow, not just like, you know, we are moving away from just send now, pay later. We are moving much more into a card product.

Speaker #3: And that is the reason for that.

Vikas Mehta: That is the reason for that.

Speaker #2: Okay.

[Analyst] (William Blair): Okay, great. Thank you for that. One last question real quickly on capital allocation. Clearly, share buybacks and internal investment is a key priority, but what is your latest thoughts on M&A?

Cris Kennedy: Okay, great. Thank you for that. One last question real quickly on capital allocation. Clearly, share buybacks and internal investment is a key priority, but what is your latest thoughts on M&A?

Speaker #3: Great, thank you for that. One last question, real quickly, on capital allocation. Clearly, share buybacks and internal investments are a key priority, but what's your latest thoughts on M&A?

Speaker #2: Yeah. So, right now, we believe our capital allocation plans as they stand are the right ones. We, you know, we have a share buyback program.

Sebastian Gunningham: Yeah. We believe our capital allocation plans as they stand right now are the right ones. We have a share buyback program. We are looking to allocate money to growth, since we have the opportunities, because we are in a very big market. We have a lot of growth opportunities. We want to be very balanced in this capital allocation. As of right now, no plans. We are very busy, and we have a long list of our own ideas to keep the growth growing. So no M&A plans as of right now, and we are going to stick with our capital allocation plans as they stand right now.

Speaker #2: We are looking to allocate money to growth, since we have the opportunities. Because this is a, you know, we're in very big markets. We have a lot of growth opportunities.

Speaker #2: We want to be very balanced in this capital allocation. So as of right now, no plans. We have a we have a we're very busy.

Speaker #2: And we have a long list of our own ideas to keep the growth going. So, no M&A plans as of right now. We're going to stick with our capital allocation plans as they stand right now.

Speaker #3: And Chris, one additional thing that happened over the last six months is with AI. The bot has risen very high, right? And as Sebastian said, the speed and velocity of innovation internally has gone really, really fast.

Vikas Mehta: Cris, one additional thing that happened over the last six months is with AI, the bar has risen very high, right? As Sebastian said, the speed and velocity of innovation internally has gone really fast. So, our organic roadmap is very strong.

Speaker #3: So you know, our organic roadmap is very strong.

Speaker #1: Well, unfortunately, we're going to have to leave it there. I want to thank everyone for joining us today, and special thanks to Vikas and Sebastian. We look forward to continuing the conversation.

[Analyst] (William Blair): Well, unfortunately, we are going to leave it there. I want to thank everyone for joining us today, and special thanks to Vikas and Sebastian. We look forward to continuing the conversation. Have a good afternoon.

Cris Kennedy: Well, unfortunately, we are going to leave it there. I want to thank everyone for joining us today, and special thanks to Vikas and Sebastian. We look forward to continuing the conversation. Have a good afternoon.

Speaker #1: Have a good afternoon.

Speaker #2: Thank you, Chris. That's great. Thank you.

Sebastian Gunningham: Thank you, Cris. That's great. Thank you.

[Analyst] (William Blair): Thank you.

Cris Kennedy: Thank you.

Q2 2026 Remitly Global Inc Earnings Call - Post-Earnings Q&A

Request DemoDemo

Remitly Global

Earnings