Remitly Global, Inc.

Good day, ladies and gentlemen. Thank you for joining Remitly's third quarter fiscal 2021 earnings conference call. I will now turn the call over to Stephan Schulstein, Vice President of Investor Relations, to begin.

Good afternoon, and thank you for joining us for Remitly's third quarter 2021 earnings call. Joining me on the call today are Matt Oppenheimer, co-founder and chief executive officer of Remitly, and Susanna Morgan, our chief financial officer. Our results and additional management commentary are available in our earnings release, which can be found on the investor relations section of the website at ir.remitly.com. Please note that this call will be simultaneously webcast on the investor relations section of the company's website. Before we start, I would like to remind you that we will be making forward-looking statements within the meanings of federal securities laws, including but not limited to statements regarding Remitly's future financial results and management's expectations and plans for the business. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially from those presented here. You should not place undue reliance on any forward-looking statements. Please refer to our earnings release and SEC filings for more information regarding the risk factors that may affect our results. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today. and remitly assumes no obligations to update or revise them, whether as a result of new developments or otherwise, except as required by law. The following presentation contains non-GAAP financial measures. For reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our earnings press release, which is available on the IR section of our website. Now I will turn the call over to Matt to begin.

Thank you, Stephan, and thank you all for joining us today for our first earnings call as a public company. It's been a pleasure to meet many of you throughout the IPO process, and we look forward to building relationships with those of you who we've not yet met. I'd also like to recognize our customers and our employees who are central to our vision and success and have been instrumental in our transition to becoming a public company. We're proud of our results this quarter and excited about the outlook for the future. Q3 revenue grew 69% year-over-year and key metrics were strong across the board. Quarterly active customers increased by more than 50% year-over-year with strong average revenue per active customer. This demonstrates the value our customers find in our platform as they send more frequently with us with send volume up 61% year-over-year. The third quarter was a strong start to our new chapter as a public company, and as we often say, we're just getting started. Before Susanna dives into the numbers, I'd like to give a brief overview of Remitly for those of you who are less familiar with our story. Remitly's vision is to transform the lives of immigrants and their families by providing the most trusted financial services on the planet. Achieving that vision begins with solving the key pain point our customers face within financial services, which is the need for fast, convenient, transparent, and affordable cross-border remittances. In Q3, 2.6 million customers trusted Remitly to safely deliver their hard-earned money home to their loved ones. We are grateful to serve those customers, and as we look towards the future, we want to continue to transform remittances and broader financial services to serve millions more customers in the years ahead. Today, there are over 280 million immigrants worldwide who may be excluded from fair access to everyday financial services that can be used to support their loved ones, build wealth, and achieve financial security. The inspiration behind Remitly came when I was living and working in Kenya and saw how difficult and painful it was to send and receive money overseas. And I learned just how far those funds go in the communities where they are received. I also learned just how complex cross-border remittances really are, much more complex than most people realize due to a myriad of hurdles including regulatory compliance, payment collection, payment disbursement, fraud prevention, and core infrastructure challenges inherent in the industry. Additionally, challenges all have to be solved at a local level across thousands of corridors. Remitly was founded to answer these challenges and to transform the industry by creating fair and inclusive financial services products for immigrants around the world. Remitly has a differentiated approach based on four pillars. First, we're mobile-centric. Second, we have a vast global network of funding and disbursement partnerships. Third, we are localized at scale. And fourth, we're highly data-driven, leveraging a sophisticated and proprietary technology stack. These pillars guide our strategy, and I will be highlighting the first two on today's call. I look forward to updating you on our other pillars in future earnings calls. Let me begin with our first pillar, our integrated mobile-first platform, which is the foundation upon which the company was built. It is incredibly challenging to create a mobile interface that is easy to use, fast, secure, and tailored to exactly what each customer needs. Knowing this, we built our digitally native platform from the ground up to ensure it could answer the demands of our customers who are clearly migrating to the convenience and security of our mobile platform. Remitly's platform executes each transaction individually, factoring in the customer's risk profile, transaction size, speed, and geography, among many other considerations. We do all of this within a seamless and easy-to-navigate user interface. For our customers, this means onboarding and repeat logins are quick, are easy, and are secure. We leverage multiple security layers to keep customer data safe, and with our machine learning, we can assign a risk score to each customer to designate the amount of information we need from them based on their risk profile. We also have machine learning-based electronic KYC, or Know Your Customer, fraud scoring, and payment authentication processes, which take place in real time to give our customers immediate feedback and peace of mind. With this digital mobile mindset, we are uniquely able to solve some of the biggest problems our customers face, including inconvenient and limited store hours, long wait times, and manual forms, not to mention exorbitant fees that mean fewer funds in the hands of their loved ones back home. We are incredibly proud of the methodological work we have put into localizing the Remitly journey for our customers to make sure each transaction is flawless, no matter the geography, whether you are sending the money in Mexico or Kenya or any of the more than 120 received countries. Of course, to deliver this unique mobile experience at scale, it was also critical to build out a network capable of supporting it, which is where our second pillar comes in, our vast global network. Our global disbursement network conveniently puts money in the hands of our customers' families wherever they are via our leading global network of payment collection and disbursement partners. This enables our customers to send over 3.6 billion bank accounts, over 660 million mobile wallets, and approximately 380,000 cash pickup locations. All of this results in a powerful flywheel in which improved customer experience drives more transactions, which gives us more scale to invest in our network, which improves the per transaction unit economics, driving even more transactions. The velocity of these integrations is ever increasing and our network mode is growing, all thanks to the quality of the disbursement network that we've built. And while the breadth of this network is remarkable, the depth and quality are equally important. Our extensive compliance and risk management capabilities, as well as our focus on extending our partnerships, have been and will continue to be key to capturing more of our large total addressable market, which we estimate to be $1.5 trillion. Remitly has now completed more than 100 direct integrations with financial institutions in Asia, Africa, Europe, and Latin America. And we have executed these integrations in the right way, leveraging our custom-built API to ensure transactions with these partners are state-of-the-art and create a best-in-class customer experience. These direct integrations result in more peace of mind for our customers by making transactions easier, compliance checks more streamlined, partner outages more transparent, and transactions faster. Given the scale, complexity, expertise, and years required to build out a network like ours, we recognized the opportunity to offer other businesses the ability to integrate cross-border payments in order to provide locally relevant payout options to their customers with a simple and custom-built API. To that end, we are proud to have launched our B2B product offering, Remitly for Developers, or RFD. We're seeing businesses value RFD because of our locally relevant payment methods, fast delivery speeds, and superior customer experience. Last month, we announced that Remitly supports Novi's pilot of next-generation digital wallets using RFD. This partnership enables Novi customers in Guatemala to off-ramp funds from their Novi wallet to convenient cash pickup locations powered by Remitly's robust distribution network. Due to the quality of our network and our unique capabilities, we expect to enter into additional partnerships of a similar nature in the future. The projected unit economics of the RFD product will drive high returns and more transactions flowing through our distribution network, which enables us to invest more into it, creating an even better customer experience, more defensibility, and lower costs for Remitly. We view this as an opportunity to increase our penetration in our serviceable addressable market, since the use cases for these products are often, if not always, fundamentally different than our core customer use case. Additionally, In a market that is rapidly shifting digital and where Remitly's share is growing quickly but is still nascent, we believe we can gain share of the overall market. RFD, as well as Passbook, our digital banking service uniquely designed for immigrants in partnership with Sunrise Banks, reflect Remitly's long-term vision to transform the lives of immigrants and their families. Focusing on the long-term also means laying a foundation for a strong ESG strategy. As part of our commitment to ESG, we joined the Pledge 1% campaign while still a private company and plan to donate 1% of the company's equity over 10 years to philanthropic efforts that work towards increasing financial inclusion for immigrants. We made our first contribution of approximately 182,000 shares at the IPO. And while our philanthropic and ESG strategies are still evolving, they are core to our culture and to our mission. To close, I'd like to share that building a mission-driven business as operationally complex as Remitly takes a team of highly engaged people who are united in a singular vision with a clear and unique culture. As a global organization now spanning five continents, we invest in hiring and developing a workforce that is diverse in lived experiences and identities, including ethnicity and gender. Additionally, we have a set of values that define our culture, and our culture is how we interact and how we get things done at Remitly. We take these cultural values very seriously, and central to our values is customer centricity. You can trust that the entire Remitly team will continue to stay laser focused on adding long-term value to the lives of our customers as well as our shareholders. This has been the key to Remitly's success over the last 10 years, and we believe is what will make us successful for many years to come. With that, I'll turn the call to Susanna.