Chris Kennedy

Chris Kennedy asked Sebastian Gunningham to provide more color on the opportunity for AI at Remitly, given his background in data science and enthusiasm for AI.

Answer

Sebastian Gunningham (CEO, Remitly) made general comments about AI's potential across customer-facing applications, internal efficiencies, and the software development process. He expressed optimism that AI adoption would provide significant tailwinds for an incumbent like Remitly, acting as a strong multiplier over time due to its robust business model, unit economics, and customer loyalty.

Chris Kennedy asked Incoming CEO Sebastian Gunningham to elaborate on the opportunities for AI at Remitly, given his background in data science and enthusiasm for AI.

Answer

Incoming CEO Sebastian Gunningham broadly categorized AI opportunities into customer-facing applications, internal efficiencies, and software product development. He stated that for an incumbent like Remitly with a strong business model and customer loyalty, AI adoption will provide significant tailwinds over the next few years, acting as a strong multiplier for the company.

Chris Kennedy of William Blair & Company, L.L.C. asked for an update on the Helix business prospects given regulatory changes, and the opportunity to expand the 50 SMB customers on the Digital Banking Platform.

Answer

CFO Jonathan Price stated that there have been no significant regulatory changes impacting the Helix business outlook in the last three months, with continued opportunities in core modernization and strong renewals of existing clients. Regarding SMB, he and CEO Matt Flake emphasized the significant opportunity within the 500 digital banking customers, viewing SMB as a focus area for institutions and a gateway to larger commercial accounts, driving more revenue through utilization.

Chris Kennedy asked for an update on the Helix business, including its prospects given regulatory changes, and the opportunity to expand the metric of 50 SMB customers on the Digital Banking Platform.

Answer

CFO Jonathan Price stated that there have been no significant regulatory changes impacting Helix, which continues to see opportunities in core modernization and has successfully renewed large existing clients. He and CEO Matt Flake highlighted SMB and commercial as a huge growth area, with strong demand for commercial solutions helping Q2 win in the market, especially as larger banks may abandon smaller businesses.

Chris Kennedy asked for an update on the revenue contribution from Riskified's non-Chargeback Guarantee products for 2025. He also questioned the long-term margin profile of Riskified, considering investments in machine learning and the growth of non-Chargeback Guarantee products.

Answer

Eido Gal, Co-founder and CEO, reported that non-Chargeback Guarantee products have shown very strong growth, over 100%, instrumental in securing longer-term contracts and winning new business. Regarding long-term margins, he noted that it varies significantly based on product mix, with the primary focus being on increasing gross profit dollars.

Chris Kennedy asked for an update on the revenue contribution from Riskified's non-Chargeback Guarantee products for 2025 and how the company views its long-term margin profile given investments in machine learning and non-Chargeback Guarantee products.

Answer

CEO Eido Gal reported that revenue from non-Chargeback Guarantee products has been very strong, growing over 100%, and has been instrumental in securing longer-term contracts and winning new business. Regarding the long-term margin profile, he noted it varies significantly based on the mix of different products, with the primary focus being on increasing gross profit dollars.

Chris Kennedy asked about the revenue growth contribution from newer products like Policy Protect, Dispute Resolve, and Account Secure. He also inquired about the company's capital allocation strategy regarding M&A versus share repurchases.

Answer

CEO Idogal stated that revenue growth from new products was well over 100%, in the range of 150%, and confirmed they are on track to contribute a low-double-digit percentage of total revenue for the year. On capital allocation, he reiterated a consistent strategy: pursuing small, tuck-in technology acquisitions to cross-sell to their enterprise base and consolidating smaller players, while also opportunistically repurchasing shares based on valuation.