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Remitly Global, Inc. (RELY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered strong top-line and profitability: revenue $351.9M (+33% y/y) and Adjusted EBITDA $43.7M (~12% margin), with active customers up 32% to 7.8M, and send volume $15.4B (+39% y/y) .
  • Results materially outperformed company’s prior guidance: revenue +$12M and EBITDA +$25M vs Q4 guidance midpoints, driven by improved retention, record new customers, and lower unit costs .
  • FY 2025 guidance initiated: revenue $1.565–$1.580B (+24–25% y/y), Adjusted EBITDA $180–$200M (12–13% margin), and positive GAAP net income for the full year; Q1 2025 revenue $345–$348M and Adjusted EBITDA $36–$40M (GAAP net loss in Q1) .
  • Strategic catalysts: accelerating customer engagement (send per active +5.5%), AI-enabled efficiency (lower support costs and transaction losses), and diversified growth across geographies and use cases (seafarers, micro-businesses, high-amount senders) .

What Went Well and What Went Wrong

What Went Well

  • Durable growth with operating leverage: Q4 revenue $351.9M (+33% y/y) and Adjusted EBITDA $43.7M (~12% margin), exceeding internal expectations; active customers +32% to 7.8M and send volume +39% to $15.4B .
  • AI and product execution reduced costs and improved experience: customer support and operations at 6.2% of revenue, down 120 bps y/y; transaction loss rate fell to 9 bps of send volume; record percentage of transactions dispersed in less than an hour without support contact .
  • Management confidence and vision: “We are looking forward to our first $1 billion RLTE year, our first full year of GAAP net income profitability… 2025 is going to be a big year” — Matt Oppenheimer .

What Went Wrong

  • GAAP profitability still mixed in Q4: net loss of $5.7M despite significant progress y/y (vs $35.0M loss in Q4 2023) .
  • Seasonality and comp headwinds guide a softer Q1: revenue growth expected to slow sequentially and transaction expense mix to be in line with FY 2024; GAAP net loss expected in Q1 2025 .
  • EBITDA margin guide below 2H24 levels due to lapping 2024 payment processing benefits and continued long-term product investments (tech & dev) .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$306.0 $336.5 $351.9
Net Income (Loss) ($USD Millions)$(12.1) $1.9 $(5.7)
Diluted EPS ($USD)—$0.01 $(0.03)
Adjusted EBITDA ($USD Millions)$25.1 $46.7 $43.7
Adjusted EBITDA Margin (%)—~14% “over 12%”

Segment/Geography (growth only; company does not report segment revenues):

RegionQ4 2024 YoY Growth
U.S. Revenue Growth+33%
Rest of World Revenue Growth+41%

KPIs and Efficiency

KPI / EfficiencyQ2 2024Q3 2024Q4 2024
Active Customers (Millions)6.9 7.3 7.8
Send Volume ($USD Billions)$13.2 $14.5 $15.4
Gross Take Rate (%)—2.32% 2.28%
RLTE ($USD Millions)—$221.0 $233.5
RLTE as % of Revenue——66.4%
Marketing Expense per QAU ($)—$9.61 $10.2 (−15.6% y/y)
Customer Support & Ops (% of Revenue)—6.4% 6.2%
Transaction Losses (% of Send Volume)—11.5 bps 9 bps

Q4 vs Prior Year and vs Prior Quarter (selected metrics):

  • Revenue: $351.9M vs $264.8M (+33% y/y) and vs $336.5M (+4.6% q/q) .
  • Net Income (Loss): $(5.7)M vs $(35.0)M y/y; vs $1.9M in Q3 (seasonal/expense mix) .
  • Adjusted EBITDA: $43.7M vs $8.2M y/y; vs $46.7M in Q3 (marketing and investment cadence) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Preliminary: “low to mid-20%s” growth (qualitative) $1.565–$1.580B (+24–25% y/y) Formalized range; consistent with prelim
Adjusted EBITDAFY 2025—$180–$200M (12–13% margin) New
GAAP Net IncomeFY 2025—Positive (full year) New
RevenueQ1 2025—$345–$348M (+28–29% y/y) New
Adjusted EBITDAQ1 2025—$36–$40M New
GAAP Net IncomeQ1 2025—GAAP net loss New
Transaction Expenses (% of Revenue)Q1 2025—“In line with FY 2024” New operational color
GAAP Net Income timingFY 2025—Positive GAAP net income starting Q3 2025 New
Adjusted EBITDA DefinitionFY 2025+—Excludes payroll taxes related to SBC beginning Q1 2025; pledge 1% expense quarterly (timing change) Methodology update

Guidance vs. prior quarter’s guidance for Q4 2024 (outcome vs guide):

  • Q4 2024 revenue actual $351.9M vs prior guide $338–$342M; EBITDA actual $43.7M vs prior guide $17–$21M — significant beat vs internal guidance .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
AI/Technology initiativesLaunched AI virtual assistant; 4x faster resolution (2–4 minutes) Highest % transactions <1 hour; virtual assistant expanded; platform uptime 99.93% AI reduced support costs to 6.2% of revenue; improved risk models lowered loss rate to 9 bps Expanding scope and efficiency
Marketing efficiency/ROIElasticity testing; payback <12 months; word-of-mouth improving Marketing spend per QAU $9.61; leverage >260 bps y/y Marketing per QAU $10.2 (−15.6% y/y); leverage >440 bps; organic/referral strength Sustained leverage; stronger organic
FX/macroModest USD tailwinds; prudence on guidance FX tailwinds in H2; not assumed for 2025 Q4 FX tail/headwinds offset; 2025 guide assumes no FX moves Neutral posture, diversified offsets
Customer engagementRecord new customers; support contacts at record low Send per active +5%; record transaction intensity Send per active +5.5%; record transactions per active Improving frequency/intensity
Geographic diversificationExpanding pay-in (Interac) and direct payout integrations (Africa, Bangladesh) ROW revenue growth accel; >50% revenue outside India/Philippines/Mexico US +33%, ROW +41%; >60% of new customers send outside top 3 Increasing diversification
New use cases/productsSeafarers product launching; high-amount senders risk-based limits Seafarers expansion; faster bank-linked payments Deeper partnerships; micro-business opportunity; Remitly Circle progress Broadening TAM and features
RLTE focusTransaction expense volatility normalized; long-term reduction strategy RLTE $221M (+42%); take rate 2.32% RLTE $233.5M; 66.4% of revenue; balance pass-through vs margin RLTE dollar focus, stable %

Management Commentary

  • “With record revenue and adjusted EBITDA exceeding $40 million for the second consecutive quarter, we are surpassing our own high expectations.” — Matt Oppenheimer .
  • “Our AI-based virtual assistant and product improvements have enabled lower agent contact rates while improving customer satisfaction rates.” — Vikas Mehta .
  • “We are looking forward to our first $1 billion RLTE year, our first full year of GAAP net income profitability and we will not be looking back.” — Matt Oppenheimer .
  • “Stock-based compensation as a percentage of revenue decreased from 14.5% in 2023 to 12% in 2024… stock dilution declined from 8.8% to 6.4%.” — Vikas Mehta .
  • “Our marketing investments drive returns for many years beyond our initial investment given repeat behavior and the resilience of remittances.” — Vikas Mehta .
  • Adjusted EBITDA methodology changes: beginning Q1 2025, exclude payroll taxes related to SBC; pledge 1% expense to be recognized quarterly vs Q3 concentration .

Q&A Highlights

  • Marketing efficiency and organic acquisition: per-QAU spend down 16% y/y in Q4 with record new customers; word-of-mouth and brand campaigns (e.g., Philippines/TFC) fueling growth .
  • Engagement metrics: send per active +5.5% (3-year high), record transactions per active; drivers are quality of engagement and product friction reduction .
  • FX: Q4 tailwinds (USD strength) offset by CAD/ROW headwinds; FY 2025 guide prudently excludes FX moves .
  • Margin trajectory: FY 2025 margin guide reflects lapping 2024 processing partnerships and continued tech investments; longer-term margin potential supported by AI and scale .
  • RLTE vs take rate: emphasis on RLTE dollars as a better correlate to LTV; balancing customer pricing vs margin as digitization lowers transaction costs .
  • New customer segments: micro-businesses and seafarers illustrative of platform extensibility with minimal incremental investment .

Estimates Context

  • Wall Street consensus (S&P Global) EPS/Revenue/EBITDA for Q4 2024 and FY 2025 were unavailable at time of writing due to data access limits; therefore, beats/misses vs Street cannot be quantified here. Management reported results “ahead of our expectations” and materially above internal Q4 guidance .
  • If needed, we can refresh S&P Global consensus to benchmark revenue and EPS vs Q4 actuals and FY 2025 guide once access is restored.

Key Takeaways for Investors

  • Strong Q4 execution with clear operating leverage: significant outperformance vs internal guidance and sustained efficiency gains from AI/product improvements .
  • 2025 setup: formal guide implies mid-20s revenue growth, 12–13% EBITDA margin, and full-year GAAP profitability, with positive GAAP net income from Q3 2025 — a key inflection narrative .
  • Engagement flywheel strengthening: rising send frequency per active and record transactions per active signal durable cohort behavior and improving LTVs .
  • Geographic and use-case diversification reduces corridor/macro concentration risk while expanding TAM (ROW growth +41% y/y; seafarers, micro-businesses, high-amount senders) .
  • RLTE dollar focus and transaction cost scale benefits should support margin resilience even as digitization compresses unit costs over time .
  • Near-term trading lens: Q1 seasonality and lapping benefits may temper sequential momentum, but the 2025 profitability milestone and operational beats are likely positive catalysts for multiple/estimate revisions over the medium term .
  • Watch items: comparability shift in Adjusted EBITDA (SBC payroll taxes excluded from Q1 2025), continued SBC levels and dilution management, and FX/macro/regulatory developments given global footprint .

Additional Sources Read

  • Q4 2024 earnings press release with financial statements and reconciliations .
  • Q4 2024 earnings call transcripts (prepared remarks and Q&A) – –.
  • Q3 2024 press release and call (for trend analysis) – –.
  • Q2 2024 call (for trend analysis) –.