Remitly's Impressive Performance: CEO Matt Oppenheimer Discusses Q1 2024 Financial Results
Remitly Reports Record Q1 2024 Earnings
Remitly, a leading digital remittance service, has announced impressive financial results for Q1 2024, marking a significant milestone in the company's growth. The quarter saw a 32% year-on-year increase in revenue to a record-breaking $269.1 million.
The growth was primarily driven by a 34% increase in send volume, a 36% increase in the number of active customers, and a 32% year-on-year increase in revenue. These increases were particularly notable among high-value users, with a 45% growth in send volume from senders transferring more than $1,000.
One of the key factors contributing to this growth was a growing preference for digital transactions. The year-on-year mix of digital transactions increased by almost 500 basis points in Q1 2024, reflecting a shift towards digital transactions that was observed.
Remitly's adjusted EBITDA also saw a significant increase, rising from $5.4 million in Q1 2023 to $19.3 million in Q1 2024. The adjusted EBITDA margin for Q1 2024 was 7.2%, its highest to date.
The company's expansion into new services, such as Remitly Business, and innovations like Remitly One membership with "send now, pay later" features, also played a role in the Q1 2024 growth. Remitly spent about $300 million on marketing in 2024, with approximately $225 million targeted at acquiring new customers, fueling growth.
Despite Q1 2024 being one of the quarters with the lowest seasonal activity due to a lack of high-send events such as Christmas, Eid, or Mother's Day, Remitly reaffirmed its projections of FY 2024 revenue between $1.225-1.25 billion and increased its adjusted EBITDA projections for FY 2024, anticipating a FY adjusted EBITDA margin of 6.9-7.4%.
CEO Matt Oppenheimer highlighted the core peer-to-peer (P2P) remittance business, strong customer acquisition aided by significant marketing investment, and increases in send volume and active customer base as the key drivers of Remitly's Q1 2024 growth. He emphasized that Q2 2024 is "a defining quarter" marked by exceptional financial performance and breakthrough innovation positioning Remitly to shape the future of global financial services.
[1] Remitly Press Release: Remitly Reports Record Q1 2024 Earnings [2] TechCrunch: Remitly's Q1 2024 earnings show a company ready to shape the future of global financial services [3] Seeking Alpha: Remitly Q1 2024 Earnings Call Transcript
In the realm of global financial services, Remitly, a thriving digital remittance service, demonstrated strong business growth during Q1 2024, attributing this success to advancements in technology solutions like Remitly One and Remitly Business. This growth was reflected in a significant 32% increase in revenue, reaching an impressive $269.1 million.
The surge in revenue can be linked to innovations like Remitly One's "send now, pay later" features and the expansion into new services, collectively driving the number of active customers and send volume up by 36% and 34% respectively. These increases were particularly pronounced among high-value users, with a 45% growth in send volume from senders transferring more than $1,000.
