Remitly (RELY) - 2025 Q1 - Quarterly Report

Customer Growth and Engagement - Active customers increased to approximately 8.0 million, representing a 29% growth compared to 6.2 million in the same period last year[106] - The mobile app has a 4.9 rating on the iOS App Store with over 3.4 million reviewers and a 4.8 rating on Google Play with over 1.0 million reviewers, indicating strong customer satisfaction[98] - Seasonal trends affect customer activity, with peaks typically observed during the fourth quarter around the Christmas holiday[115] Financial Performance - Revenue increased by $92.5 million, or 34$361.6 million for the three months ended March 31, 2025, compared to $269.1 million for the same period in 2024[134] - Net income for the three months ended March 31, 2025, was$11.4 million, compared to a net loss of $21.1 million for the same period in 2024[132] - Adjusted EBITDA for the three months ended March 31, 2025 was$58.4 million, significantly higher than $22.8 million in the same period of 2024, reflecting improved operating performance[156] Transaction and Operational Metrics - Send volume rose 41$16.2 billion for the three months ended March 31, 2025, up from $11.5 billion in the same period last year[109] - The company operates in over 5,200 corridors, allowing efficient money transfers without the need for local operations in each country[98] - Transaction expenses rose by$31.5 million, or 35%, to $121.4 million for the three months ended March 31, 2025, primarily due to increased processing costs[136] Expenses and Investments - Investments in technology and development are expected to increase expenses in the short term but are aimed at long-term growth through new product innovations and enhanced customer experiences[116] - Customer support and operations expenses increased by$2.5 million, or 12%, but decreased as a percentage of revenue to 6% from 7%[138][139] - Marketing expenses increased by $5.3 million, or 8$132.9 million, a substantial increase from cash used in operating activities of $56.8 million in the prior year[162] - The company had cash and cash equivalents of$493.9 million as of March 31, 2025, up from $368.1 million at the end of 2024, indicating strong liquidity[158] - Future capital requirements will depend on revenue growth, sales and marketing expansion, and new product introductions, with expected increases in operating expenses to support business growth[160] Risk Management - Proprietary risk models and machine learning processes are utilized to manage fraud and other illegitimate activities, maintaining a differentiated customer experience[117] - The company engages with reputable pay-in and disbursement partners to mitigate credit risk and conducts credit reviews before onboarding[177] - The company monitors market risk exposures continuously to mitigate potential economic losses from adverse changes in market factors[176] Foreign Currency and Accounting Policies - A hypothetical 10$19.5 million and $17.4 million for customer transaction-related assets and liabilities as of March 31, 2025, and December 31, 2024, respectively[179] - The company does not currently use derivatives to hedge foreign currency exchange risk but may consider doing so in the future[180] - The company has not reported material changes in critical accounting policies compared to the previous annual report[174]