RELY Q1 2025 guides Q2 rev $383-385M; 25-26% FY growth
- Higher send volume per active customer: Analysts noted a 9% year-over-year increase in send volume per active customer—the fastest growth since 2021—and a 45%+ growth in high-dollar transactions over $1,000, indicating strong customer engagement and potential for increased revenue.
- Improved efficiency through direct partner integrations: Executives highlighted that direct integrations (e.g., with WhatsApp, Plin, MACH) lower customer friction and speed up transactions—with over 93% of transfers completed in less than an hour—which enhances the customer experience and supports scalable cost efficiencies.
- Robust marketing efficiency and organic acquisition: Q&A responses emphasized lower marketing spend per active user driven by targeted campaigns and strong word-of-mouth, suggesting improvements in customer acquisition cost efficiency that can support sustainable growth.
- Margin Pressure from Increased Marketing Investment: Management noted that Q1 was seasonally slower, and they plan to scale up marketing spend in Q2 to drive growth. If these additional expenses do not translate into proportional revenue gains, operating margins might compress, negatively impacting profitability.
- Macroeconomic and Regulatory Uncertainties: Several responses raised concerns regarding persistent macroeconomic headwinds and geopolitical tensions (e.g., U.S.-Mexico issues). Such uncertainties could disrupt customer acquisition and revenue in key corridors, raising potential risks for future growth.
- Overreliance on Technological Risk Management: The company’s strategy to leverage advanced machine learning to drive higher send limits represents a critical dependency. Should these systems underperform or fail to effectively mitigate fraud, it could force more conservative limits and result in lost revenue opportunities.
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +34% (from 269,118 thousand USD in Q1 2024 to 361,624 thousand USD in Q1 2025 ) | The increase is driven by a substantial rise in active customer numbers (29% growth) and a shift toward digital disbursements, building on previous gains that boosted transaction volumes and improved customer engagement. |
US Revenue | Increased from 175.39 thousand USD in Q1 2024 to 237.3 thousand USD in Q1 2025 | Growth in US revenue reflects strengthened customer trust, higher transaction volumes and effective marketing efforts that built on prior period performance, resulting in an approximate 35% gain. |
Rest of World Revenue | Increased from 60.78 thousand USD in Q1 2024 to 85.7 thousand USD in Q1 2025 | The Rest of World segment grew due to geographic diversification and increased transaction activity, continuing the trend seen in earlier periods where customer acquisition beyond traditional corridors improved revenue contributions. |
Canada Revenue | Increased from 32.95 thousand USD in Q1 2024 to 38.6 thousand USD in Q1 2025 | Modest growth in Canada revenue is attributed to market stability and a gradual increase in customer activity, reflecting consistent performance improvements from previous periods. |
Operating Income | Turned positive from a loss of 19,953 thousand USD in Q1 2024 to a profit of 12,233 thousand USD in Q1 2025 | The turnaround in operating income resulted from enhanced operating efficiency and cost control measures that allowed revenue growth to outpace expenses, marking a dramatic improvement from the prior period’s losses. |
Net Income | Shifted from a loss of 21,080 thousand USD in Q1 2024 to a profit of 11,352 thousand USD in Q1 2025 | Improved net income is the result of the operating income turnaround coupled with stronger revenue performance and disciplined cost management, reflecting an overall recovery based on previous quarterly performance improvements. |
Cash and Cash Equivalents | Increased from 285,997 thousand USD in Q1 2024 to 493,905 thousand USD in Q1 2025 | The significant strengthening in liquidity was driven by robust operating cash flows and more disciplined cash management, which built on earlier gains in cash flow improvements from past periods. |
Total Liabilities | Decreased from 529,843 thousand USD in Q1 2024 to 377,110 thousand USD in Q1 2025 | The reduction is primarily due to repayment of long-term debt, lower accounts payable, and overall balance sheet optimization measures that were initiated in earlier periods to improve financial leverage. |
Stockholders’ Equity | Increased from 549,358 thousand USD in Q1 2024 to 723,476 thousand USD in Q1 2025 | Enhanced stockholders’ equity reflects the cumulative effects of improved profitability, successful equity issuances, and retained earnings gains that built on past performance improvements and balance sheet strengthening initiatives. |
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Revenue Guidance
Q: What is Q2 revenue outlook?
A: Management expects $383–$385M in Q2 revenue and 25–26% FY growth, driven by durable customer cohorts and organic retention. -
Margin Outlook
Q: What drove improved Q1 margins?
A: Marketing efficiency and reduced transaction costs boosted Q1 adjusted EBITDA to 16%, with seasonal investments planned. -
Send Volume Drivers
Q: Why is send per active increasing?
A: Enhanced customer engagement and 45%+ growth in high-dollar senders, aided by smarter risk decisions, are lifting send volumes. -
Direct Integrations
Q: What benefits do direct integrations offer?
A: They enable faster, lower-cost transactions with fewer support contacts, improving customer retention and reliability. -
WhatsApp Partnership
Q: What is the WhatsApp strategy?
A: By integrating virtual AI into WhatsApp in Latin America, management sees an opportunity for broader, long-term customer acquisition. -
High-dollar & Micro Business
Q: How target high-dollar, micro business senders?
A: Focused marketing and dynamic, risk-based sending limits are driving growth in these higher-value segments. -
Digital Transition
Q: How do macro tensions impact digital shift?
A: Despite geopolitical concerns like U.S.-Mexico tensions, robust bank-linked customers favor digital channels, ensuring steady revenue. -
Risk Control Innovations
Q: How have risk controls improved?
A: Advanced machine learning now supports a dynamic risk-based approach, facilitating higher sending limits for large transactions. -
Product Innovation
Q: What progress is seen with Circle?
A: Circle continues as an innovation sandbox to test new ideas for funds storage and disbursements, enhancing overall service. -
KYC/AML Process
Q: What proportion of customers use bank-level KYC?
A: Nearly all customers link a bank account, ensuring strong, bank-level KYC and minimizing fraud risk. -
Marketing Efficiency
Q: Why is marketing spend per customer declining?
A: Data-driven targeting and robust word-of-mouth have lowered spend per QAU, achieving efficient customer acquisition. -
Environmental Factors
Q: Are current trends sustainable amid uncertainties?
A: Management believes that durable customer behavior and historical retention ensure these trends will persist despite macro uncertainties.
Research analysts covering Remitly Global.