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    Rufus Hone • BMO Capital Markets

    Rufus Hone's questions to Remitly Global Inc (RELY) leadership

    Rufus Hone's questions to Remitly Global Inc (RELY) leadership • Q4 2024

    Question

    Rufus Hone asked if foreign exchange was a tailwind in Q4, how FX is factored into the 2025 outlook, and whether the guided 150 basis points of annual margin expansion is a sustainable medium-term pace.

    Answer

    CFO Vikas Mehta stated that Q4 FX tailwinds from a strong USD were offset by headwinds from a weaker Canadian dollar and other currencies, resulting in no net impact due to diversification. He confirmed the 2025 guidance prudently assumes no FX movements. Regarding margin expansion, he emphasized the vast market opportunity and the strategic priority to invest in long-term growth rather than committing to a specific annual expansion rate.

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    Rufus Hone's questions to Remitly Global Inc (RELY) leadership • Q3 2024

    Question

    Rufus Hone inquired about the long-term adjusted EBITDA margin potential and the anticipated pace of margin expansion for 2025 and beyond, following the strong performance in Q3.

    Answer

    CEO Matt Oppenheimer stated that as a digital payments business, Remitly has significant leverage across the P&L as it scales, which is driving profitability. He expressed excitement about the long-term margin optionality. CFO Vikas Mehta reiterated that Remitly is a growth company focused on disciplined capital allocation and long-term value, but declined to provide specific 2025 EBITDA margin goals at this time.

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    Rufus Hone's questions to Western Union Co (WU) leadership

    Rufus Hone's questions to Western Union Co (WU) leadership • Q4 2024

    Question

    Rufus Hone from BMO Capital Markets asked about the performance of the retail business excluding Iraq, which he calculated was down approximately 3% year-over-year, and inquired about its expected trend through 2025.

    Answer

    CEO Devin McGranahan and CFO Matt Hagan acknowledged the figure but framed it within a broader context of significant improvement. They highlighted that the retail business has seen a 500 basis point improvement in its transaction trend over two years, moving from high-single-digit declines to low-single-digit declines. They attributed the recent pressure to softness in the Americas but pointed to underlying strength and positive trends in Europe, the Middle East, and APAC as reasons for optimism about the continued upward trajectory.

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    Rufus Hone's questions to Western Union Co (WU) leadership • Q3 2024

    Question

    Rufus Hone asked about the competitive and pricing landscape in the digital business and whether the company sees an opportunity to increase marketing spend to pressure smaller competitors.

    Answer

    CEO Devin McGranahan explained their marketing approach is highly disciplined, governed by a lifetime value to customer acquisition cost (LTV to CAC) model. He noted that the current higher interest rate environment is straining smaller, less-capitalized players, which creates market opportunities and fosters more rational pricing behavior that benefits a scaled and disciplined operator like Western Union.

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    Rufus Hone's questions to I3 Verticals Inc (IIIV) leadership

    Rufus Hone's questions to I3 Verticals Inc (IIIV) leadership • Q4 2024

    Question

    Rufus Hone questioned the drivers of the expected organic growth acceleration from 2% in Q4 to the implied 7.5% in FY25, and asked if the weak Healthcare outlook was solely due to consolidation.

    Answer

    Executive Clay Whitson attributed the growth acceleration to several factors: new growth from the large Midwestern utility customer, the education vertical returning to normal growth after lapping one-time setbacks, the SaaS transition headwind leveling out, and the resumption of the delayed Manitoba project. He also confirmed that ongoing industry consolidation is the primary headwind affecting the Healthcare segment's growth.

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    Rufus Hone's questions to Avidxchange Holdings Inc (AVDX) leadership

    Rufus Hone's questions to Avidxchange Holdings Inc (AVDX) leadership • Q3 2024

    Question

    Rufus Hone asked about the progress towards the 80% gross margin target, specifically regarding benefits from AI and automation and whether these tailwinds are diminishing.

    Answer

    CFO Joel Wilhite confirmed the path to 80% involves both yield expansion and unit cost discipline. He highlighted a year-over-year reduction in non-GAAP cost of revenue per transaction (from $1.54 to $1.43), driven by standardization, automation, and AI. He stated that while progress is strong, they are 'not done' and expect continued, though not necessarily linear, margin expansion.

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    Rufus Hone's questions to Avidxchange Holdings Inc (AVDX) leadership • Q2 2024

    Question

    Rufus Hone of BMO Capital Markets asked for a breakdown of the full-year revenue guidance reduction, questioning how much was due to a tougher macro environment versus incremental lead generation headwinds.

    Answer

    CFO Joel Wilhite clarified that the guidance reduction for the second half of the year is driven by projecting forward the trends seen in Q2. He attributed the change to a roughly 50/50 split between two factors: continued moderation in customer spending (volume) and the lighter transaction yield dynamic. He noted that sales funnel activity impacts future revenue, not the current year's.

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    Rufus Hone's questions to Avidxchange Holdings Inc (AVDX) leadership • Q1 2024

    Question

    Rufus Hone questioned the implied EBITDA margin for the rest of the year, which appears to step down from Q1 levels, asking if this is due to lower float income or planned incremental investments.

    Answer

    CEO Michael Praeger acknowledged potential quarter-to-quarter variability in margins. He pointed to a few million dollars of planned sequential investment increases in Q2, particularly in R&D and sales & marketing. However, he affirmed the company's full-year expectation for continued operating leverage and EBITDA margin expansion.

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