Remitly Reports Fourth Quarter and Full Year 2021 Results

Active customers up 50% year over year
Send volume up 64% year over year
Revenue up 69% year over year

SEATTLE, March 02, 2022 (GLOBE NEWSWIRE) — Remitly Global, Inc. (NASDAQ: RELY), a leading digital financial services provider for immigrants and their families in over 150 countries around the world, reported results for the fourth quarter and full year ended December 31, 2021.

“Reflecting on our strong fourth quarter growth, I’m incredibly proud of all that Remitly delivered and am reminded of the significance of the work we’re doing to transform the lives of our customers,” said Matt Oppenheimer, Remitly’s Chief Executive Officer. “Looking ahead, we’re excited to drive new customer growth, geographic expansion, and new product development through strategic investments in the business. These outcomes will create enduring value for our customers and shareholders alike.”

Fourth Quarter 2021 Highlights and Key Operating Data:
(All comparisons relative to the fourth quarter of 2020)

  • Active customers increased to 2.8 million, from 1.9 million, up 50%.
  • Send volume increased to $6.0 billion, from $3.6 billion, up 64%.
  • Revenue totaled $135.3 million, compared to $80.0 million, up 69%.
  • Average revenue per active customer increased 13% to $47.69.
  • Net loss was $16.6 million, compared to $9.0 million.
  • Adjusted EBITDA was $(7.1) million, compared to $(6.2) million.

Full Year 2021 Highlights and Key Operating Data:
(All comparisons relative to the full year 2020)

  • Send volume increased to $20.4 billion, from $12.1 billion, up 70%.
  • Revenue totaled $458.6 million, compared to $257.0 million, up 78%.
  • Net loss was $38.8 million, compared to $32.6 million.
  • Adjusted EBITDA improved to $(10.5) million, compared to $(19.9) million.

2022 Financial Outlook:
For fiscal year 2022, Remitly currently expects:

  • Total revenue in the range of $605 million to $615 million, representing a growth rate of 32% to 34% year over year.
  • Adjusted EBITDA in the range of $(40) million to $(30) million.

A reconciliation of 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 and stock-based compensation expense which are directly impacted by unpredictable fluctuations in the market price of our common stock.

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 (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 with the Company’s SEC filings.

Webcast Information
Remitly will host a webcast at 5:00 PM Eastern Time on Wednesday, March 2, 2022 to discuss its fourth quarter 2021 financial results. The live webcast 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 non-public 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 presentation, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles (“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 provide 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 loss adjusted by i) interest expense, net; ii) provision for income taxes; iii) noncash charge of depreciation and amortization; iv) other expense (income), net, including gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency; and v) non-cash stock-based compensation expense, as well as non-cash charges associated with our donation of common stock in connection with our Pledge 1% commitment. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by i) non-cash stock-based compensation expense, as well as ii) non-cash charges associated with our donation of common stock in connection with our Pledge 1% commitment.

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 operating results and financial position, including our fiscal year 2022 financial outlook, including forecasted fiscal year 2022 revenue and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, market growth, our market position and potential market opportunities, and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions 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 ability to successfully execute our business and growth strategy, our ability to achieve and maintain future profitability, our ability to further penetrate our existing customer base and expand our customer base in existing and new corridors, our ability to expand into broader financial services, our ability to expand internationally, the effects of seasonal trends on our results of operations, our expectations concerning relationships with third parties, including strategic, banking and disbursement partners, our ability to obtain, maintain, protect, and enhance our intellectual property and other proprietary rights, our ability to keep data and our technology platform secure, the success of any acquisitions or investments that we make, our ability to compete effectively, and our ability to stay in compliance applicable laws and regulations, our ability to buy foreign currency at generally advantageous rates, and the effects of changes to immigration laws, macroeconomic conditions and geopolitical forces on our customers and business operations. 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 are included in our quarterly report on 10-Q for the fiscal quarter ended September 30, 2021 filed with the SEC and our annual report on 10-K for the fiscal year ended December 31, 2021 to be filed with the SEC, all of 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 leading digital financial services provider for immigrants and their families in over 150 countries around the world. Remitly helps immigrants send money home in a safe, reliable and transparent manner. Its digitally-native, cross-border remittance app eliminates the long wait times, complexities and fees typical of traditional remittance processes. Building on its strong foundation, Remitly is expanding its suite of products to further its mission and transform financial services for immigrants all around the world. Founded in 2011, Remitly is headquartered in Seattle and has seven global offices, including London, Kraków, Manila and Managua. For more information, visit Remitly.com.

Contacts

Media:
Danielle Vincent
remitly@inkhouse.com

Investors:
Stephen Shulstein
Vice President of Investor Relations
stephens@remitly.com

REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(unaudited)
 
  Three Months Ended December 31,   Twelve Months Ended December 31,
(in thousands, except share and per share data) 2021   2020   2021   2020
Revenue $ 135,255     $ 80,017     $ 458,605     $ 256,956  
Costs and expenses              
Transaction expenses(1)   56,431       36,158       191,606       110,414  
Customer support and operations(1) (2)   13,090       7,633       45,525       25,428  
Marketing(1) (2)   38,267       22,881       120,906       73,804  
Technology and development(1) (2)   19,128       11,338       64,093       40,777  
General and administrative(1) (2)   23,512       9,648       70,941       31,656  
Depreciation and amortization   1,366       1,201       5,256       4,060  
Total costs and expenses   151,794       88,859       498,327       286,139  
Loss from operations   (16,539 )     (8,842 )     (39,722 )     (29,183 )
Interest income   48       92       140       273  
Interest expense   (208 )     (162 )     (1,256 )     (1,189 )
Other income (expense), net   81       435       3,125       (1,302 )
Loss before provision for income taxes   (16,618 )     (8,477 )     (37,713 )     (31,401 )
Provision for income taxes   (42 )     528       1,043       1,163  
Net loss attributable to common stockholders $ (16,576 )   $ (9,005 )   $ (38,756 )   $ (32,564 )
Net loss per share attributable to common stockholders:              
Basic and diluted $ (0.10 )   $ (0.40 )   $ (0.64 )   $ (1.52 )
Weighted-average shares used in computing net loss per share attributable to common stockholders:              
Basic and diluted   163,616,647       22,272,275       60,728,748       21,459,062  
_______________________                              

(1) Exclusive of depreciation and amortization, shown separately, above.
(2) Includes stock-based compensation expense, net.

Stock-based Compensation Expense, net:
  Three Months Ended December 31,   Twelve Months Ended December 31,
(in thousands) 2021   2020   2021   2020
Customer support and operations $ 76   $ 8   $ 153   $ 22
Marketing   1,118     242     2,325     869
Technology and development   3,409     582     6,931     2,130
General and administrative   3,448     580     7,607     2,243
Total $ 8,051   $ 1,412   $ 17,016   $ 5,264

REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(unaudited)
 
(in thousands) December 31, 2021   December 31, 2020
Assets      
Current assets      
Cash and cash equivalents $ 403,262     $ 186,694  
Disbursement prefunding   119,627       101,558  
Customer funds receivable, net   67,215       50,729  
Prepaid expenses and other current assets   17,448       6,350  
Total current assets   607,552       345,331  
Restricted cash   51       1,381  
Property and equipment, net   9,249       9,675  
Operating lease right-of-use assets   5,302       5,605  
Other non-current assets, net   3,510       997  
Total assets $ 625,664     $ 362,989  
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)      
Current liabilities      
Accounts payable $ 1,210     $ 4,256  
Borrowings         80,000  
Customer liabilities   70,483       54,819  
Accrued expenses and other current liabilities   66,683       39,742  
Operating lease liabilities   3,240       2,959  
Total current liabilities   141,616       181,776  
Operating lease liabilities, non-current   2,907       4,008  
Other non-current liabilities   813       827  
Total liabilities $ 145,336     $ 186,611  
Commitments and contingencies      
Redeemable convertible preferred stock         387,707  
Stockholders’ equity (deficit)      
Common stock   16       2  
Additional paid-in capital   739,503       8,766  
Accumulated other comprehensive income   253       591  
Accumulated deficit   (259,444 )     (220,688 )
Total stockholders’ equity (deficit)   480,328       (211,329 )
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) $ 625,664     $ 362,989  

REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
 
    Year Ended December 31,
(in thousands)   2021   2020
Cash flows from operating activities        
Net loss   $ (38,756 )   $ (32,564 )
Adjustments to reconcile net loss to net cash used in operating activities        
Depreciation and amortization     5,256       4,060  
Stock-based compensation expense, net     17,016       5,264  
Donation of common stock     6,933        
Other     452       2  
Changes in operating assets and liabilities:        
Disbursement prefunding     (18,069 )     (69,719 )
Customer funds receivable     (17,282 )     (20,028 )
Prepaid expenses and other assets     (12,559 )     (1,959 )
Operating lease right-of-use assets     2,780       2,376  
Accounts payable     (3,035 )     4,044  
Customer liabilities     16,097       (29,073 )
Accrued expenses and other liabilities     26,071       25,935  
Operating lease liabilities     (3,295 )     (2,547 )
Net cash used in operating activities     (18,391 )     (114,209 )
Cash flows from investing activities        
Purchases of property and equipment     (1,956 )     (2,064 )
Capitalized internal-use software costs     (2,578 )     (2,306 )
Net cash used in investing activities     (4,534 )     (4,370 )
Cash flows from financing activities        
Proceeds from issuance of common stock upon initial public offering and the private placement, net of underwriting discounts and commissions and other offering costs     305,191        
Repayment of non-recourse promissory note     3,060        
Proceeds from issuance of Series F convertible preferred stock, net of issuance costs     2,980       84,834  
Proceeds from exercise of stock options     8,345       2,382  
Payment of debt issuance costs     (1,373 )      
Proceeds from (repayments of) revolving credit facility borrowings, net     (80,000 )     35,000  
Net cash provided by financing activities     238,203       122,216  
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash     (40 )     918  
Net increase in cash, cash equivalents and restricted cash     215,238       4,555  
Cash, cash equivalents, and restricted cash at beginning of period     188,075       183,520  
Cash, cash equivalents, and restricted cash at end of period   $ 403,313     $ 188,075  
Supplemental disclosure of cash flow information        
Cash paid for interest   $ 934     $ 1,061  
Cash paid for income taxes   $ 756     $ 421  
Supplemental disclosure of non-cash investing and financing activities        
Operating lease right-of-use assets obtained in exchange for operating lease liabilities   $ 2,532     $ 1,523  
Vesting of early exercised options     482       185  
Conversion of preferred stock to common stock     390,687        
Reconciliation of cash, cash equivalents and restricted cash        
Cash and cash equivalents   $ 403,262     $ 186,694  
Restricted cash     51       1,381  
Total cash, cash equivalents and restricted cash   $ 403,313     $ 188,075  

REMITLY GLOBAL, INC.
Reconciliation of GAAP to Non-GAAP Data
(unaudited)
 
Reconciliation of net loss to Adjusted EBITDA:
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
(in thousands)   2021   2020   2021   2020
Net loss   $ (16,576 )   $ (9,005 )   $ (38,756 )   $ (32,564 )
Add:                
Interest expense, net     160       70       1,116       916  
Provision for income taxes     (42 )     528       1,043       1,163  
Depreciation and amortization     1,366       1,201       5,256       4,060  
Foreign exchange (gain) loss     (81 )     (435 )     (3,125 )     1,302  
Donation of common stock                 6,933        
Stock-based compensation expense, net     8,051       1,412       17,016       5,264  
Adjusted EBITDA   $ (7,122 )   $ (6,229 )   $ (10,517 )   $ (19,859 )

Reconciliation of operating expenses to non-GAAP operating expenses:
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
(in thousands)   2021   2020   2021   2020
Customer support and operations   $ 13,090   $ 7,633   $ 45,525   $ 25,428
Excluding: Stock-based compensation expense, net     76     8     153     22
Non-GAAP customer support and operations   $ 13,014   $ 7,625   $ 45,372   $ 25,406
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
    2021   2020   2021   2020
Marketing   $ 38,267   $ 22,881   $ 120,906   $ 73,804
Excluding: Stock-based compensation expense, net     1,118     242     2,325     869
Non-GAAP marketing   $ 37,149   $ 22,639   $ 118,581   $ 72,935
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
    2021   2020   2021   2020
Technology and development   $ 19,128   $ 11,338   $ 64,093   $ 40,777
Excluding: Stock-based compensation expense, net     3,409     582     6,931     2,130
Non-GAAP technology and development   $ 15,719   $ 10,756   $ 57,162   $ 38,647
                 
    Three Months Ended December 31,   Twelve Months Ended December 31,
    2021   2020   2021   2020
General and administrative   $ 23,512   $ 9,648   $ 70,941   $ 31,656
Excluding: Stock-based compensation expense, net     3,448     580     7,607     2,243
Excluding: Donation of common stock             6,933    
Non-GAAP general and administrative   $ 20,064   $ 9,068   $ 56,401   $ 29,413

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