Remitly Global, Inc.

First quarter send volume up 41% and revenue up 34% year over year
First quarter net income was $11.4 million and Adjusted EBITDA was $58.4 million

SEATTLE, May 07, 2025 (GLOBE NEWSWIRE) -- Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the first quarter ended March 31, 2025.

“We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “This performance was driven by the deep and growing trust our customers place in us to deliver a fast, reliable, and secure experience. As that trust continues to grow, so does our ability to scale efficiently and profitably. Based on these strong results, we are raising our full year 2025 outlook for both revenue and Adjusted EBITDA.”

First Quarter 2025 Highlights and Key Operating Data
(All comparisons relative to the first quarter of 2024)

Active customers increased to 8.0 million, from 6.2 million, up 29%. Send volume increased to $16.2 billion, from $11.5 billion, up 41%. Revenue totaled $361.6 million, compared to $269.1 million, up 34%. Net income was $11.4 million, compared to a net loss of $21.1 million. Adjusted EBITDA was $58.4 million, compared to $22.8 million, up 157%.

2025 Financial Outlook
For fiscal year 2025, Remitly currently expects:

Total revenue in the range of $1.574 billion to $1.587 billion, representing a growth rate of 25% to 26% year over year. This outlook reflects an increase from our prior revenue outlook in the range of $1.565 billion to $1.580 billion. GAAP net income to be positive for 2025 and for Adjusted EBITDA to be in the range of $195 million to $210 million. This outlook reflects an increase from our prior Adjusted EBITDA outlook in the range of $180 million to $200 million.

For the second quarter of 2025, Remitly currently expects:

Total revenue in the range of $383 million to $385 million, representing a growth rate of 25% to 26% year over year. A GAAP net loss position for the second quarter of 2025 and for Adjusted EBITDA to be in the range of $45 million to $47 million.

As previously announced on February 19, 2025, the Company's non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The Company considers this adjustment to improve the usefulness of its non-GAAP financial measures in evaluating underlying operating performance by more completely reflecting the extent of stock-based compensation expense, net, and related impacts. This update has no effect on any of the Company's previously reported GAAP results for any period. Non-GAAP financial measures for 2024 and 2023 have been recast to reflect this change, and the financial outlook guidance previously provided on February 19, 2025, was in accordance with this updated presentation. See historical non-GAAP reconciliations included below.

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Reconciliation of GAAP to Non-GAAP Financial Measures
A reconciliation of accounting principles generally accepted in the United States of America (“GAAP”) to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes, stock-based compensation expense, and payroll taxes related to stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.

Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings.

Webcast Information
Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, May 7, 2025 to discuss its first quarter 2025 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event.

We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Non-GAAP Financial Measures
Some of the financial information and data contained in this earnings release, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with GAAP.

We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

We calculate Adjusted EBITDA as net income (loss) adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) other income (expense), net, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, (vii) payroll taxes related to stock-based compensation expense, net, and (viii) certain integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) payroll taxes related to stock-based compensation expense, net, (iii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iv) certain integration, restructuring, and other costs.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future results of operations and financial position, including our fiscal year and second quarter 2025 financial outlook, including forecasted fiscal year and second quarter 2025 revenue, net income (loss), and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, our growth, our position and potential opportunities, and our objectives for future operations. The words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to develop new products and services in a timely manner; our ability to achieve or sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to attract and retain qualified employees; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal policy, foreign trade, or foreign investment), or regional and global conflicts or related government sanctions; our ability to maintain the security and availability of our solutions; our ability to maintain our money transmission licenses and other regulatory clearances; our ability to maintain and expand international operations; and our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our quarterly report on Form 10-Q for the quarter ended March 31, 2025 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2024 filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

About Remitly
Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.

Contacts

Media Inquiries:
[email protected]

Investor Relations:
Stephen Shulstein
[email protected]

REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(unaudited)  Three Months Ended March 31, (in thousands, except share and per share data)  2025    2024  Revenue $ 361,624   $ 269,118  Costs and expenses  Transaction expenses(1)  121,393    89,881  Customer support and operations(1)   22,573    20,119  Marketing(1)   73,349    68,014  Technology and development(1)   73,851    63,206  General and administrative(1)   52,829    44,173  Depreciation and amortization  5,396    3,678  Total costs and expenses  349,391    289,071  Income (loss) from operations  12,233    (19,953 ) Interest income  1,787    2,226  Interest expense  (1,299 )   (769 ) Other income (expense), net  2,221    (1,586 ) Income (loss) before provision for income taxes  14,942    (20,082 ) Provision for income taxes  3,590    998  Net income (loss) $ 11,352   $ (21,080 ) Net income (loss) per share attributable to common stockholders:  Basic $ 0.06   $ (0.11 ) Diluted $ 0.05   $ (0.11 ) Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:  Basic  201,744,601    189,848,799  Diluted  218,414,823    189,848,799

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(1) Exclusive of depreciation and amortization, shown separately.

REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)  March 31,  December 31, (in thousands)  2025    2024  Assets  Current assets  Cash and cash equivalents $ 493,905   $ 368,097  Disbursement prefunding  217,549    288,934  Customer funds receivable, net  213,554    193,965  Prepaid expenses and other current assets  53,710    46,518  Total current assets  978,718    897,514  Property and equipment, net  41,456    31,566  Operating lease right-of-use assets  11,896    13,002  Goodwill  54,940    54,940  Intangible assets, net  8,379    10,463  Other noncurrent assets, net  5,197    5,386  Total assets $ 1,100,586   $ 1,012,871  Liabilities and stockholders’ equity  Current liabilities  Accounts payable $ 38,907   $ 16,159  Customer liabilities  192,186    188,984  Short-term debt  2,421    2,468  Accrued expenses and other current liabilities  114,545    116,652  Operating lease liabilities  4,098    4,745  Total current liabilities  352,157    329,008  Operating lease liabilities, noncurrent  14,728    9,073  Other noncurrent liabilities  10,225    9,319  Total liabilities  377,110    347,400  Commitments and contingencies  Stockholders’ equity  Common stock  20    20  Additional paid-in capital  1,240,310    1,195,390  Accumulated other comprehensive income (loss)  75    (1,658 ) Accumulated deficit  (516,929 )   (528,281 ) Total stockholders’ equity  723,476    665,471  Total liabilities and stockholders’ equity $ 1,100,586   $ 1,012,871

REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)  Three Months Ended March 31, (in thousands)  2025    2024  Cash flows from operating activities  Net income (loss) $ 11,352   $ (21,080 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:  Depreciation and amortization  5,396    3,678  Stock-based compensation expense, net  35,792    34,088  Donation of common stock  959    —  Other  (4 )   249  Changes in operating assets and liabilities:  Disbursement prefunding  71,385    (6,194 ) Customer funds receivable  (16,283 )   (59,432 ) Prepaid expenses and other assets  (6,272 )   (10,377 ) Operating lease right-of-use assets  2,041    1,392  Accounts payable  22,182    (22,707 ) Customer liabilities  2,487    14,744  Accrued expenses and other liabilities  (198 )   10,429  Operating lease liabilities  4,066    (1,598 ) Net cash provided by (used in) operating activities  132,903    (56,808 ) Cash flows from investing activities  Purchases of property and equipment, and other  (13,963 )   (945 ) Capitalized internal-use software costs  (2,949 )   (3,369 ) Net cash used in investing activities  (16,912 )   (4,314 ) Cash flows from financing activities  Proceeds from exercise of stock options  2,392    2,483  Proceeds from issuance of common stock in connection with ESPP  5,768    5,004  Proceeds from revolving credit facility borrowings  1,059,000    275,000  Repayments of revolving credit facility borrowings  (1,059,000 )   (255,000 ) Taxes paid related to net share settlement of equity awards  (1,089 )   (1,366 ) Net cash provided by financing activities  7,071    26,121  Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash  2,728    (1,099 ) Net increase (decrease) in cash, cash equivalents, and restricted cash  125,790    (36,100 ) Cash, cash equivalents, and restricted cash at beginning of period  369,817    325,029  Cash, cash equivalents, and restricted cash at end of period $ 495,607   $ 288,929  Reconciliation of cash, cash equivalents, and restricted cash  Cash and cash equivalents $ 493,905   $ 285,997  Restricted cash included in prepaid expenses and other current assets  632    2,190  Restricted cash included in other noncurrent assets, net  1,070    742  Total cash, cash equivalents, and restricted cash $ 495,607   $ 288,929

REMITLY GLOBAL, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)  Reconciliation of net income (loss) to Adjusted EBITDA:  Three Months Ended March 31, (in thousands)  2025   2024(2) Net income (loss) $ 11,352   $ (21,080 ) Add:  Interest income, net  (488 )   (1,457 ) Provision for income taxes  3,590    998  Depreciation and amortization  5,396    3,678  Other (income) expense, net  (2,221 )   1,569  Donation of common stock  959    —  Stock-based compensation expense, net  35,792    34,088  Payroll taxes related to stock-based compensation expense, net  3,140    3,515  Integration, restructuring, and other costs(1)  908    1,468  Adjusted EBITDA $ 58,428   $ 22,779

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(1) Integration, restructuring, and other costs for the three months ended March 31, 2025 consisted primarily of non-recurring termination benefits. Integration, restructuring, and other costs for the three months ended March 31, 2024 consisted primarily of $0.8 million in restructuring charges incurred, $0.5 million of non-recurring legal charges, and $0.2 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire (O.S.G.) Research and Development Ltd.
(2) As previously announced on February 19, 2025, the Company's presentation of Adjusted EBITDA now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period Adjusted EBITDA has been recast to reflect this change.

Reconciliation of operating expenses to non-GAAP operating expenses:  Three Months Ended March 31, (in thousands)  2025   2024(1) Customer support and operations $ 22,573   $ 20,119  Excluding: Stock-based compensation expense, net  256    353  Excluding: Payroll taxes related to stock-based compensation expense, net  8    10  Excluding: Integration, restructuring, and other costs  —    758  Non-GAAP customer support and operations $ 22,309   $ 18,998   Three Months Ended March 31, 2025   2024(1) Marketing $ 73,349   $ 68,014  Excluding: Stock-based compensation expense, net  4,127    3,979  Excluding: Payroll taxes related to stock-based compensation expense, net  456    493  Excluding: Integration, restructuring, and other costs  490    —  Non-GAAP marketing $ 68,276   $ 63,542   Three Months Ended March 31, 2025   2024(1) Technology and development $ 73,851   $ 63,206  Excluding: Stock-based compensation expense, net  21,237    19,627  Excluding: Payroll taxes related to stock-based compensation expense, net  1,981    2,012  Non-GAAP technology and development $ 50,633   $ 41,567   Three Months Ended March 31, 2025   2024(1) General and administrative $ 52,829   $ 44,173  Excluding: Stock-based compensation expense, net  10,172    10,129  Excluding: Payroll taxes related to stock-based compensation expense, net  695    1,000  Excluding: Donation of common stock  959    —  Excluding: Integration, restructuring, and other costs  418    710  Non-GAAP general and administrative $ 40,585   $ 32,334

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(1) As previously announced on February 19, 2025, the Company's presentation of non-GAAP operating expenses now excludes the impact of payroll taxes related to stock-based compensation expense, net. Prior period non-GAAP operating expenses have been recast to reflect this change.

As previously announced on February 19, 2025, the Company's non-GAAP financial measures have been updated to exclude the impact of payroll taxes related to stock-based compensation expense, net. The below reconciliations show the 2024 and 2023 non-GAAP financial measures under the new presentation, which excludes the impact of payroll taxes related to stock-based compensation expense, net.

In future periods, the Company expects to exclude the impact of payroll taxes related to stock-based compensation expense, net, from the Company's non-GAAP financial measures and will not include the 2024 and 2023 recast reconciliations for this update in future filings.

Reconciliation of net income (loss) to Adjusted EBITDA (New Presentation):  Three Months Ended  Years Ended December 31, (in thousands) Q1 2023  Q2 2023  Q3 2023  Q4 2023  Q1 2024  Q2 2024  Q3 2024  Q4 2024   2023    2024  Net income (loss) $ (28,314 )  $ (18,850 )  $ (35,655 )  $ (35,021 )  $ (21,080 )  $ (12,091 )  $ 1,917   $ (5,724 )  $ (117,840 )  $ (36,978 ) Add:  Interest income, net  (1,635 )   (776 )   (1,223 )   (1,461 )   (1,457 )   (1,197 )   (1,305 )   (877 )   (5,095 )   (4,836 ) Provision (benefit) for income taxes  370    (143 )   258    5,417    998    3,290    1,850    589    5,902    6,727  Depreciation and amortization  3,029    3,187    3,418    3,484    3,678    3,907    4,655    5,814    13,118    18,054  Other (income) expense, net  1,505    1,482    (376 )   (8 )   1,569    (5,962 )   (2,274 )   2,273    2,603    (4,394 ) Donation of common stock  —    —    4,600    —    —    —    2,587    —    4,600    2,587  Stock-based compensation expense, net  29,234    35,200    36,573    35,960    34,088    37,157    39,278    41,614    136,967    152,137  Payroll taxes related to stock-based compensation expense, net  1,901    1,432    1,355    1,058    3,515    1,144    733    1,047    5,746    6,439  Acquisition, integration, restructuring, and other costs  1,173    316    2,901    (193 )   1,468    —    —    —    4,197    1,468  Adjusted EBITDA $ 7,263   $ 21,848   $ 11,851   $ 9,236   $ 22,779   $ 26,248   $ 47,441   $ 44,736   $ 50,198   $ 141,204

Reconciliation of operating expenses to non-GAAP operating expenses (New Presentation):  Three Months Ended  Years Ended December 31, (in thousands) Q1 2023  Q2 2023  Q3 2023  Q4 2023  Q1 2024  Q2 2024  Q3 2024  Q4 2024   2023    2024  Customer support and operations $ 19,931   $ 21,483   $ 21,190   $ 19,917   $ 20,119   $ 19,999   $ 21,792   $ 22,008   $ 82,521   $ 83,918  Excluding: Stock-based compensation expense, net  205    419    386    394    353    259    278    268    1,404    1,158  Excluding: Payroll taxes related to stock-based compensation  31    14    15    11    10    4    5    3    71    22  Excluding: Acquisition, integration, restructuring, and other costs  —    —    739    —    758    —    —    —    739    758  Non-GAAP customer support and operations $ 19,695   $ 21,050   $ 20,050   $ 19,512   $ 18,998   $ 19,736   $ 21,509   $ 21,737   $ 80,307   $ 81,980   Three Months Ended  Years Ended December 31, Q1 2023  Q2 2023  Q3 2023  Q4 2023  Q1 2024  Q2 2024  Q3 2024  Q4 2024   2023    2024  Marketing $ 44,123   $ 53,600   $ 61,351   $ 75,343   $ 68,014   $ 77,056   $ 74,792   $ 83,937   $ 234,417   $ 303,799  Excluding: Stock-based compensation expense, net  2,983    4,727    4,525    3,930    3,979    4,521    4,514    4,595    16,165    17,609  Excluding: Payroll taxes related to stock-based compensation  186    229    217    157    493    236    179    352    789    1,260  Non-GAAP marketing $ 40,954   $ 48,644   $ 56,609   $ 71,256   $ 63,542   $ 72,299   $ 70,099   $ 78,990   $ 217,463   $ 284,930   Three Months Ended  Years Ended December 31, Q1 2023  Q2 2023  Q3 2023  Q4 2023  Q1 2024  Q2 2024  Q3 2024  Q4 2024   2023    2024  Technology and development $ 49,376   $ 54,309   $ 57,014   $ 59,240   $ 63,206   $ 67,554   $ 68,446   $ 70,611   $ 219,939   $ 269,817  Excluding: Stock-based compensation expense, net  16,631    18,588    19,828    19,920    19,627    20,354    21,873    22,527    74,967    84,381  Excluding: Payroll taxes related to stock-based compensation  1,010    745    651    532    2,012    620    351    428    2,938    3,411  Excluding: Acquisition, integration, restructuring, and other costs  —    —    524    700    —    —    —    —    1,224    —  Non-GAAP technology and development $ 31,735   $ 34,976   $ 36,011   $ 38,088   $ 41,567   $ 46,580   $ 46,222   $ 47,656   $ 140,810   $ 182,025   Three Months Ended  Years Ended December 31, Q1 2023  Q2 2023  Q3 2023  Q4 2023  Q1 2024  Q2 2024  Q3 2024  Q4 2024   2023    2024  General and administrative $ 41,408   $ 39,490   $ 49,817   $ 48,657   $ 44,173   $ 45,889   $ 50,920   $ 54,875   $ 179,372   $ 195,857  Excluding: Stock-based compensation expense, net  9,415    11,466    11,834    11,716    10,129    12,023    12,613    14,224    44,431    48,989  Excluding: Payroll taxes related to stock-based compensation  674    444    472    358    1,000    284    198    264    1,948    1,746  Excluding: Donation of common stock  —    —    4,600    —    —    —    2,587    —    4,600    2,587  Excluding: Acquisition, integration, restructuring, and other costs  1,173    316    1,638    (893 )   710    —    —    —    2,234    710  Non-GAAP general and administrative $ 30,146   $ 27,264   $ 31,273   $ 37,476   $ 32,334   $ 33,582   $ 35,522   $ 40,387   $ 126,159   $ 141,825

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