Remitly at Wolfe FinTech Forum: Growth Strategy and Market Expansion

On Tuesday, 11 March 2025, Remitly Global Inc (NASDAQ: RELY) shared its strategic vision and financial performance at the Wolfe FinTech Forum. The company highlighted its robust growth trajectory and market expansion, while addressing investor concerns about marketing expenditures. Remitly’s strategy focuses on growth, profitability, and investment, aiming to capture a larger share of the $2 trillion remittance market.

Key Takeaways

• Remitly reported a 33% revenue growth in Q4 2024 and a 34% increase for the full year.
• The company achieved a 32% growth in its customer base and a 40% increase in transaction volume in the second half of 2024.
• CFO Vikas Mehta emphasized a strategy of "growth plus profitability plus investment."
• Remitly has expanded from 1,400 corridors at IPO to 5,100 corridors in four years.
• The company holds a 3% market share in a rapidly growing $2 trillion market.

Financial Results

• Q4 2024 revenue growth reached 33%, with full-year growth at 34%.
• Customer growth for Q4 2024 was 32%, with transaction volume rising by 40% in H2 2024.
• Revenue Less Transaction Expense (RLT) grew by 37% in H2 FY24.
• RLT as a percentage of revenue increased from 60% to 66% between FY22 and FY24.
• Since IPO, Remitly’s revenue doubled, while RLT tripled.

Operational Updates

• Focus on high-dollar senders and micro-SMBs, providing tailored experiences.
• Revenue from non-top-three receiving countries grew by over 50%.
• Customer support and operations expenses decreased from 10% to 6.5% of revenue.
• Remitly’s flywheel strategy leverages product experiences to drive volume and growth.

Future Outlook

• Remitly aims for durable growth, profitability, and strategic investments.
• Platform investments target low-cost innovation and high ROI marketing channels.
• Opportunities include ancillary products and expansion beyond the top three countries.
• The company plans to enhance micro-SMB workflows with improved reconciliation and reporting features.

Q&A Highlights

• Remittances remain resilient despite economic and political challenges.
• Customers prioritize trust and experience over the lowest cost.
• Investments in technology enable rapid innovation and new opportunities.

For more detailed insights, readers are encouraged to refer to the full transcript.

Full transcript - Wolfe FinTech Forum:

Daniel Krebs: Hey, everyone. My name is Daniel Krebs. I work with Darren Peller on the payments processors and IT services team.

Happy to be joined here this morning, with Remitley CFO, Vikas Mehta. Welcome.

Vikas Mehta, CFO, Remitly: Daniel, it’s great to be here. Thank you for the invitation. I’m I’m looking forward to Yeah.

Daniel Krebs: Happy to have you here for your first time at at the Fintech Forum. So maybe if we could start a little higher level. Obviously, 04/2024, very strong. Exit rates, 33% revenue growth, 32% customer growth, 38% on the volume side. Could you maybe help us break down the bridge between those growth rates and the 24% to 2525% guidance?

Vikas Mehta, CFO, Remitly: Yes. So first of all, it’s been an exciting journey for me being here for six months. And we really exited FY ’twenty four on a high note, on a strong note. And in fact, if you zoom out, the strength of our cohorts and the durability of the business that you see continued to transpire across FY ’twenty four and was really strong in H2. Specifically, as you said, we ended the year with 33% growth for Q4, but for the full year 34% growth.

And in the second half of the year, we had 40% volume growth. So we’re all great stats there. The most important one there was we had new customer acquisition that was at a record high. And that gives us a lot of confidence going into FY ’twenty five. So as you think about FY ’twenty five, we have guided Q1 to 28% to 29% growth.

And if you keep in mind, that’s even while it’s lapping a leap year. Q1 tends to be a slower quarter from a seasonality perspective. And as we start the year, we feel great. So it’s a great start to the year. What gives us confidence in the FY ’twenty five full year is just the fact that a lot of our revenue, significant majority, comes from cohorts that we added in the prior years.

And as we even double click into that, once a cohort stays on our platform for more than a year, we retain majority of the revenue going forward. It’s a pretty nice plateau of a curve that we have. So that gives us a lot of great confidence. As we think about the full year ’twenty five, we have a plan that is growth plus profitability plus investment, and that sets a foundation for you know, a strong future for us.

Daniel Krebs: Great. And then, you know, you mentioned just about six months in in the CFO seat now. Could you maybe describe for investors, you know, how you want your guidance philosophy to be perceived, broadly? Is this the world as you see it? Are we baking in any sort of room or conservatism?

Vikas Mehta, CFO, Remitly: Yes. So first of all, as I was sharing with you earlier, I deeply care about the investor feedback. And that’s been sort of, you know, a key foundation into my thought process on guidance as well. So when I came into my role, I did a investor listening tour, talked to, you know, sell side as well as buy side. And a few things that came out from that, we started a formal guidance process, which was a quarterly guidance, both on top line, bottom line.

In addition to that, we increased our transparency across the specific drivers of the business. And we talk the same language as the investors, just unpacking revenue, unpacking revenue less transaction expense, unpacking the leverage across different expense items. So we’ve been a lot more, I’d say, deliberate in creating that transparency. So overall, I’d say that guidance philosophy is balanced for the growth opportunities we have ahead and prudent with the current macro environment.

Daniel Krebs: Yeah. Great. And then moving to the second pillar that you talked about, growth plus profitability. It’s been a margin improvement story from mid single digits a few years ago to now strongly in the low double digit range in terms of adjusted EBITDA margin for 2025. Could you maybe unpack in past years, you’ve shown a lot of great leverage on whether it’s customer support, the G and A side of things.

You know, now it looks like that shift might be towards the marketing expense in 2025. Is that is that accurate? And is that kind of the the main lever to pull here in 2025?

Vikas Mehta, CFO, Remitly: Yeah. So you you you are spot on. As as we think about FY ’25, the thought process is to really drive durable growth, to drive profitability along with that and invest in building a strong future. And as we do that, I talked about this in our Q4 earnings, but we think about our flywheel strategy, and this is essentially at the core of your question there as to how we build growth along with leverage and profitability and invest in future. So let me unpack that for a little bit.

So as we drive great product experiences, we attract strong growth in volume and customers and that helps us lower our cost structure and that we can then invest in the business past to the bottom line and invest in more service selection and that fuels our growth and then that flywheel continues to drive. And that’s what you saw over the last, I would say, five years. Since IPO, our revenue has doubled, but RLT has tripled. If you see in the second half of FY ’twenty four, our revenue grew 36%, but our RLT dollars grew 37. And even as you think about leverage below that, if you take customer support and operations, it was 10% of revenue couple of years back.

Now it is 6.5%. So pretty significant improvement there. If you think about G and A, given the IPO timeframe in ’twenty one, the expenses had spiked, but there has been a significant improvement in the leverage there. The other aspect, if you look at ’24, we saw leverage across each and every line. So we feel that the margin potential of this business is really good given the flywheel approach that we have.

Now to your question, like as we look at FY 2025, we feel that the strong growth that we have had and the cohort durability that we have gives us you know, an ability to leverage on the marketing side. So we’ll continue to be hyper focused on growth. We’ll be focused on customer acquisition. At the same time, we feel that given our strong product experiences, given our data driven approach to marketing and given the focus on incremental ROI in marketing that we are driving. We feel that all of this is just part of the flywheel as we keep building that.

We start driving more leverage. So overall, I feel really good about FY ’20 ’5 and our ability to, you know, again, grow, drive profitability and invest in the future.

Daniel Krebs: Great. So it sounds like and to give a common point of concern from the investor community is that if Vermitle has to turn down the marketing dial, what does that do to growth? But it sounds like you’re seeing whether it’s increased evidence of word-of-mouth acquisition or stronger data driven opportunities, you remain focused on that top

Vikas Mehta, CFO, Remitly: line in regards to that. So we are not pulling back on marketing. Yeah. So I think that that’s one thing that look, the positive thing is when we see good ROI, we feel good about it. We don’t want to invest in low ROI approach.

So for example, going back to the marketing point, we draw pretty good line at 6x CAC to LTV, LTV to CAC. And our payback periods have been under twelve months. Like these are really, really high class numbers. And as we think about the incremental dollar investment, we want to be very thoughtful that we draw again a line to say, hey, you know, for a particular channel, we don’t want to go below four, even though the average may be 7.5 or seven. And that discipline has enabled us to make the right bets, rather than just pursue growth at all cost.

Daniel Krebs: Sure. Absolutely. And so similar topic, if we could hone in on, the RLT and and the gross margin side for a minute. As you mentioned, you know, that’s tripled as revenues have have doubled over the past few years. But now there’s an expectation that the margin should be relatively stable from here or show much more incremental changes.

Could you talk about some of the drivers of that, especially some of the lapping commentary that you had in the last quarter?

Vikas Mehta, CFO, Remitly: Again, going back to the flywheel, I feel that the core of the business is strong. And as we can accelerate volume growth, our ability to work with our partners to bring better pricing to our customers as well as driving higher profitability continues to improve. So that’s at the core of the thesis. As I shared in my prior question, you have seen RLT as a percentage of revenue grow from around 60% to 66%. It was 60% in FY 2022.

So we’ve seen a pretty dramatic improvement there. And a lot of this improvement is step changes, right? It doesn’t happen in a single year. And a few things are at the core. The first is the integrations, the product experiences that we build that help drive that.

Secondly, mix plays a role, and that is also something we have to constantly think through. Finally, similar to what you were saying earlier, as we think about specific things, then we had a partner a couple of partner renewals that happened or negotiations that happened in FY twenty twenty three Q4. And that gave us a pretty nice bump in terms of RLD as a percentage of revenue for FY 2024.

Daniel Krebs: That’s on the direct integration side?

Vikas Mehta, CFO, Remitly: That is on the, I’d say, the pay in and payout partnerships that we had.

Daniel Krebs: Okay.

Vikas Mehta, CFO, Remitly: And as we did that, these are multi year agreements, so they don’t accrue every single year Sure. And now are part of our base. So that’s at the crux of, call it, the thought process on the specific, call it, commentary we gave on RLT as a percentage of revenue for FY ’25. At the same time, as I said, as our volume continues to grow at a local as well as at a global level, it gives us a much better play in terms of driving continuous improvement.

Daniel Krebs: Yes. Over time, that volume base gives you more essentially negotiating power and a bigger seat at the table, correct? Absolutely. So that’s kind of always

Vikas Mehta, CFO, Remitly: Yeah. It’s a win win for our partners as well. Yeah.

Daniel Krebs: Got it. Okay. I’d like to spend a minute on some customer behavior and potential behavior changes. And we’ve seen, you know, I don’t wanna call it cyclicality, but changes throughout the last, you know, on a longer horizon, three to five years changes in the amount that customers are sending on a quarterly or annual level, however you wanna look at it. But that volume per customer metric has been elevated recently.

Could you kind of unpack what you see as the drivers of late?

Vikas Mehta, CFO, Remitly: Yes. So first, we are really excited about the fact that in Q4, we had volume per customer growth of 5.5%, and this was the highest we’ve seen in last three years. Underlying key driver was the transaction frequency, which was at the record high in Q4. And we saw a little bit of that trend in Q3 also, so it was a continuation of that trend. And as we even look at FY 2025, we believe those broader trends should persist.

And what gives us really good confidence there is going back to the product experiences that we have built, create a lot of stickiness in the product. Secondly, the focus on delivering trust and committing to what we have said and fulfilling those promises has helped us take much more market share as well as consolidate the wallet share that customers are spending. So that gives us great confidence and we feel that the volume per customer going up is a great testament to that. In addition to that, a couple other things. Mix also plays a role in this and especially as we focus on high dollar centers or SMB while this is at a very early stage, it’ll start impacting that as well in a positive way.

And finally, I’d say that you know, it is just a good metric to help us understand that, you know, being able to drive more activity at a user level is something that we have been focusing from product experience as well as our our flywheel approach, and that just gives us confidence that it’s working well.

Daniel Krebs: Mhmm. Do you think there were any were there any discrete updates, changes in the product or or anything, you know, whether it was in February or March that maybe led to this or

Vikas Mehta, CFO, Remitly: I think it’s more incremental from our perspective. No big step changes there, but more focused on the high dollar sender kind of experiences where if we increase our send limits and we can improve our risk based scoring, that just helps us improve the send per customer.

Daniel Krebs: Great. So I’ll squeeze in one more on the send per customer and then I’d love to move to the those new cohorts that you’re referencing there with the high dollar. But a lot of the feedback and commentary that we get is how do we know that it’s product improvement and increased retention versus you know, pay the U. S. Dollar is strengthening rapidly or now weakening rapidly and that’s driving more activity on the platform?

Vikas Mehta, CFO, Remitly: Yeah. Yeah. So one benefit of being a diversified business is exactly addressing the question that you asked, which is, as we look at our revenue, both from a send and a receive perspective, we are becoming more and more diversified. So for example, if you take Q4 or FY 2024 in general, the rest of world business that we have continues to grow at a rapid pace. And we grew north of 40% in that business.

And if you look at The U. S. Versus non U. S, The U. S.

Share is now less than two third compared to what it was a couple years back. So we continue to see this diversification. On the receive side, it is even more pronounced. So we have three top corridors or three top countries from a receive perspective, Mexico, Philippines and India. And if you if you remove that and look at just the the, you know, non top three, then, you know, our business grew north of 50, for for those regions, the non top three, and it makes up more than 50% of our revenue.

Right? So from both both those perspective, diversification happening. So now when FX changes happen, a strong US dollar, could be a a weaker, Canadian dollar or GBP, or vice versa. Mhmm. And so you you you see that at more of a micro level, but at a macro level, things offset each other.

Daniel Krebs: Sure.

Vikas Mehta, CFO, Remitly: So for Q4, for example, we did not see any specific FX related headwind or tailwind. It was offset within those categories. So I would say going back to the benefit of diversification is that we are able to cruise through some of these volatility in a much more balanced way.

Daniel Krebs: Got it. Yes. And that comes from the 30 plus Send markets, right, covering

Vikas Mehta, CFO, Remitly: 170 plus

Daniel Krebs: Most of the major markets, right, on the Send side. Great. So let’s talk about some of those incremental types of customers now. And first, if you could describe maybe put a finer point on when you say high dollar, what’s from at least cutoff? How do you qualify someone as a high dollar sender?

And maybe what is the difference in terms of someone sending a $300 to $400 transaction versus what, however you define high dollar?

Vikas Mehta, CFO, Remitly: So first of all, the high dollar sender amount depends on the market. Right? So it’s not a specific dollar because Canadian market could be different than Australian to The US. So we don’t take a strict definition to that. The second point is more around the experiences that we deliver.

If you think about someone who is sending a large amount, the trust that is needed in the system is much higher, right? So it’s not just $200 it’s $1,000 2 thousand dollars dollars And the customer wants a very strong service support system where they can feel that my money will be reaching my recipient timely in an assured way and with a very trustful experience with different options, pain and payout that work best for them. And this market is also, I would say, much more sensitive about trust and experience than they are about pricing, right. So that’s again another reason why it’s an interesting market and something that we are excited about. So if you look at our trust scores, you know, whether it’s the Trustpilot scores or whether it’s the scores on the apps that we have both on iOS as well as Google App Store, you know, we are four point nine, four point eight with total number of reviews around 4,000,000.

So there’s a lot of very strong processes we have built that helps us get this high feedback and we are continuing to invest to make sure that the customer experience is top notch. There’s a little bit of thought process on the targeting and marketing that is specific to these type of customers.

Daniel Krebs: Sure.

Vikas Mehta, CFO, Remitly: But overall, it comes back to the trust and customer experience.

Daniel Krebs: Do you see a customer when you acquire a high dollar customer? Are they testing the product with, you know, sort of a quote unquote normal sized transaction and then ramping up over time? Or is this something where, you know, they gain trust through reading reviews and then kind of go all in at their normal activity levels?

Vikas Mehta, CFO, Remitly: Yeah. I I a lot of it is word-of-mouth for us. Then that that again goes back to the marketing leverage and all of the points that we were talking about earlier. And that that’s the flywheel effect where once, you know, we have we start seeing good reviews, you know, these reviews are not just made on the App Store, etcetera. Behind the scenes, they are talking to their friends, and that starts shaping the perception.

So we deeply care about the perception of our our platform. And so we feel it’s much more word-of-mouth.

Daniel Krebs: And then in terms of potentially I’m gonna get the same answer again of word-of-mouth. But do you have to change the product in any way? Or is this just you know, shifting where you’re directing marketing spend in order to acquire these kind of new areas of customer growth? And and to be clear for the audience, it’s not just high dollar senders, but you’ve also talked about micro SMBs and the the Seafarer cohorts. Could you talk a little bit about the go to market motion there?

Vikas Mehta, CFO, Remitly: Love it. As you think about the newer experiences, I’d say, first of all, the investment that we have made on a scalable extensible platform is extremely helpful. So everything comes from the same platform. Right? So we don’t have to really spin up a new process completely or a new app.

We are using the platform to drive that. The second is, these are unique experiences, whether it’s seafarers, whether it’s SM, micro SMB, whether it is high dollar senders. And they all have different, call it, you know, endpoint needs, if you may. And and take micro SMB, for example, instead of know your customer, there would be know your business. So there’s different workflow for that, which has to be efficient.

It has to be comprehensive. And at the same time, it has to be very high fidelity because these are business transactions happening, and they they want a high degree of certainty. And there is, I’d say, one to many kind of a transaction system, like one one center is sending to many, recipients. So there’s a there’s a different workflow to that. So the product plays a critical role in that.

Absolutely. Send limits example is is true for high dollar senders, for example. They They want assurance, but they want good pay in and payout approaches so that the dollar higher dollar amount can be sent through more trusted mechanisms. At the same time, they are all different target markets and the marketing effort needs to be more targeted at those specific markets. So it’s an end, both product experiences and marketing that helps us get traction with these different use cases.

Daniel Krebs: And so if I was a micro business on the on the Remitly product today, could I send that sort of batch recipient payroll type transaction out there? Or does it need to be a a one to one right now?

Vikas Mehta, CFO, Remitly: I’d say it’s early days right now Okay. Where we are using more of the consumer experiences Mhmm. To drive the micro SMB. And over time, we’ll continue to enhance it. But I’d say it’s more of the consumer platform.

And what we realized with micro SMB was a lot of customers were already sort of micro SMBs that were on our platform. And they reached out to us to say, hey, you know, if instead of KYC, there would be a KYB or a few other things in the workflow, it’ll make it easier. And we love that because that’s that’s a very clearly articulated need. And we understand that, you know, these are our customers who want a better experience. So for us, that’s that’s music to our ears.

So early days, but we’ll we’ll work on different stages in that process.

Daniel Krebs: Do they want do they want or need more reconciliation, reporting, or, you know, some sort of maybe automated software solution so that they can track what they’re doing on your platform? Is that provided to them now? Or is that, again, maybe a longer tail?

Vikas Mehta, CFO, Remitly: Yeah. So that’s the reason we are very specific about calling it micro business than SMB specifically. So as we go stepwise, I’d say this is the call it cusp of the consumer and the business. As we get deeper into micro SMB and SMB, you know, the feature list will continue to include all the things that you’re talking about. But at this point, early days.

Daniel Krebs: Okay. So we’ve talked a lot about how you’re trying to deepen your relationship with customers in current markets. I I think maybe what gets overlooked and potentially has been on the back burner for Remitley is expanding geographically in terms of just total corridors. I believe 5,100 corridors served now hasn’t really moved much materially higher over the last year. But maybe you could talk about how you rebalanced that opportunity between current corridors and there’s 20,000 potential out there for the future.

Vikas Mehta, CFO, Remitly: Yes. So similar to what you said earlier, we have more than 30 countries and more than 170 received countries. So really a very strong foundation. If you even go back couple of years back, at IPO, we had around 1,400 corridors. And right now, 5,100 corridors in around four years.

So we’ve really scaled fast. And at this point, we realized that a lot of the corridors that we added over the last couple of years are very nascent. And we can improve our market share in these specific corridors and build more critical mass. That gives us the flywheel effect with better volumes, better partner ecosystem, lower cost structures, profitability. So I’d say, as we think about a lot of these corridors, it’s more in the early innings.

We are really excited about Middle East and North Africa. That’s where we have made a lot of investments over the last, I’d call it, two years. And we are seeing good traction. So as we think about our corridor expansion strategy, we have a very clear playbook for that given sort of 5,100 corridors, and we are following that playbook.

Daniel Krebs: Got it. Okay. Great. And then maybe if we could move on towards talking about, you know, you mentioned investments and continuing to invest in things like, tech and development side moving forward. Could you help frame for us how much is going into or maybe take it a step back and let’s talk about how over time this maybe predates you by a year or so, but the movement to a singular platform to build everything for Remitly and then how that maybe shapes what proportion of your investments are now going towards optimizing the current product versus building for more product building?

Vikas Mehta, CFO, Remitly: First of all, we are a growth company. And we don’t see shortage of growth opportunities. This is where a strong technology and development platform plays a role in creating a durable long term scalable growth strategy. As we think about that long term growth and again, keep in mind, we are only 3% market share in a $2,000,000,000,000 market that’s growing approximately 8%. So as we think about that massive opportunity and even as we open up newer verticals like the micro SMB and high dollar sender and send to send, etcetera, investment in platform is where we felt we will get the highest ROI.

And that’s what we have done over the past couple of years where we really focused on creating a platform where new innovation cost is very low. And in order to do that, we have to invest in authentication, security and all the different services in a very thoughtful way that it can start scaling. So that’s where we feel really excited. That’s why, as you have seen over the last year, we have been talking a lot more about the newer use cases, and that’s all enabled by the platform. So so for us, you know, the investment in platform is has started to pay off from our ability to innovate quickly and unlock some of that opportunity.

At the same time, if you look back, similar to what I said earlier, each and every expense category leveraged in FY 2024 and so did Tech and Dev. It was small because we have been investing in it. But we have been investing in a very thoughtful and a disciplined way. So again, goes back to growth plus profitability and disciplined execution plus investment as an approach.

Daniel Krebs: How do you view thinking about newer ancillary products to serve your current customers and the wealth of opportunities from a competitive landscape in terms of what people can use now in terms of a neobank, a digital wallet. Everyone is trying to have every product for every consumer. And you’ve been very disciplined about taking the time to build out the product correctly. Is there any rush? Or do you feel confident that you can retain the customers?

Are your customers using someone else for those products now that you’re trying to take them from? Or is this kind of a net new for your clients?

Vikas Mehta, CFO, Remitly: So first, I’d go back to the volume per customer growth that we have seen, and that makes us feel that we are doing the right things from a product experience perspective. And that that’s helping us take more share and even have a higher wallet share. So we feel really good about that. At the same time, we feel that our customers who use Remitly, we can broaden the use case for them. Right now, they are using for the remittance and transaction.

We can think about the value chain all the way from storing value to creating liquidity and being able to package that in a long term way. So I’d say, you know, that’s again early days for that, but we feel that if we can do it thoughtfully, do it in a platform centric approach that we have been talking about, I think we we will be able to deliver rich experiences for our customers and then the flywheels effect will start happening. And that’s I’d say that’s the service selection

Daniel Krebs: Mhmm.

Vikas Mehta, CFO, Remitly: Aspect of our flywheel, which again, we are very excited about.

Daniel Krebs: And to be clear, there’s potential services to offer for both the customers on the sent side and the customers on the receive side.

Vikas Mehta, CFO, Remitly: I think that you’re spot on. I think that there is a huge opportunity on both sides. And even if you think about send to send markets, that’s an interesting opportunity. The receive side is a whole new TAM in that sense. So I get really excited as I think about that.

Daniel Krebs: That. And if we kind of walk down that path a little bit and go back towards customer behavior, in order to get that consumer adoption on the receive side, you need a much more digitally native receiver. Can you maybe talk about how, I know you’ve talked about increased penetration on digital receive? Correct. But could you maybe size that for us a little bit?

Or where are we in that sort of evolution? Maybe you have to talk about it by region in order to do it accurately?

Vikas Mehta, CFO, Remitly: Yes. First of all, you’re right. I think it’s a mix effect and every receive region corridor has a different digital maturity. Overall, we have seen one simple trend that’s digital receive continues to increase. We saw that even in the most recent quarter where digital receive increased three fifty basis points.

So it’s really, really nice inflection there. And that also helps drive that high frequency of transactions, which reached a record last quarter. So that’s a given. Now as you connect that to as those receive markets get mature from a digital adoption perspective, our ability to leverage those receive markets can open up a huge market. So, again, it’s very market centric.

In general, the trend has been digital adoption has been increasing. Overall, I would say it’s mid leanings and not maturity by any scale of imagination. So we feel really excited about that.

Daniel Krebs: Have you given a recent, even in the past couple of years, in overall, what percentage of funds are distributed cash or digitally at Vermillion?

Vikas Mehta, CFO, Remitly: Well, we we have not. But as I said, it’s it’s middle innings right now. Yep. And there’s more, more, opportunity there.

Daniel Krebs: Sure. At this time, we’ll open up the floor to any questions in the audience for a minute. And as people are thinking, I’m not gonna let you get out of this talk without asking about the current political environment and maybe how you see Remitly in the current, you know, being a a digital first provider, how that maybe, insulates you or creates some more safety given the potential risks from the Trump administration, immigration policy, etcetera?

Vikas Mehta, CFO, Remitly: Yes. A few layers to this question. First, if you think about the remittances in general, they have been durable as a category given the nondiscretionary type of spend. And even before we were born, like if you think about the two thousand and eight financial crisis, remittances held up strong. We saw that during pandemic where remittances were strong and durable, right.

And for us specifically as you think about diversification, given all the stats I shared earlier, we are very well diversified, both from a send perspective and a receive perspective. And in fact, we are seeing more growth from rest of the world as well as more growth from the non top three received countries. So diversification helps us. So overall, we feel that, you know, given the strength of remittances as a category, given the strength of our cohorts and what we have seen historically that it increases the predictability and the durability of that revenue, we feel feel feel really good about it.

Daniel Krebs: Yeah. And especially on the on the digital sense side, you you’ve got that bank KYC already done in the background for you. That’s correct. So potentially better insulated. If I could if I could maybe push on the question, though, and and to get to a a higher level, I mean, generally on a global basis, nationalistic tendencies are increasing.

You mentioned the total market growing, call it mid to high single digits annually. Is there a risk to that over time? Or do you think that these things are cyclical and migration will bounce back on a global basis?

Vikas Mehta, CFO, Remitly: Yes. No, look, we have gone back couple decades to see the trends. And if you look at those trends, they are very durable in nature. And we have seen it across different administrations. We have seen it in different countries and geographies.

And I’d say that the more diversified we are, the more balanced we can become. And again, I’ll go back to 3% market share in a 2,000,000,000,000 market where we have not even opened up other opportunities like SMB, etcetera. So we feel the bottom line for us is that there’s no shortage of growth opportunities. And there’s a lot more for us to do and that’s a lot more that we will do.

Daniel Krebs: Great. Final call, if any audience questions?

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