rely-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-40822

Remitly Global, Inc.

(Exact name of registrant as specified in its charter)

Delaware

7372

83-2301143

(State or other jurisdiction of

incorporation or organization)

(Primary Standard Industrial

Classification Code Number)

(I.R.S. Employer

Identification Number)

1111 Third Avenue,

Suite 2100

Seattle,

98101

(Address of Principal Executive Offices)

(Zip Code)

(888) 736-4859

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 par value

RELY

The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of August 1, 2023, the registrant had 181,198,646 shares of common stock, $0.0001 par value per share, outstanding.

Table of Contents


TABLE OF CONTENTS		Page(s)
Special Note Regarding Forward-Looking Statements		ii

Part I	Financial Information
Item 1.	Financial Statements	1
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	1
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022	2
	Condensed Consolidated Statements of Comprehensive Loss for the thre e and six months ended June 30, 2023 and 2022	3
	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022	4
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosure s About Market Risk	33
Item 4.	Controls and Procedures	34

Part II	Other Information	35
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibit s	36

Signatures		37

Table of Con t ents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and the plans and objectives of management, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. These forward-looking statements include, but are not limited to, statements concerning the following:

• our expectations regarding our revenue, expenses, and other operating results;

• our ability to acquire new customers and successfully retain existing customers;

• our ability to develop new products and services and bring them to market in a timely manner;

• our ability to achieve or sustain our profitability;

• our ability to maintain and expand our strategic relationships with third parties;

• our business plan and our ability to effectively manage our growth;

• our market opportunity, including our total addressable market;

• anticipated trends, growth rates, and challenges in our business and in the markets in which we operate;

• our ability to attract and retain qualified employees;

• uncertainties regarding the impact of general economic and market conditions, including as a result of currency fluctuations, inflation, or regional and global conflicts or related government sanctions;

• our ability to maintain the security and availability of our solutions;

• our ability to maintain our money transmission licenses and other regulatory approvals;

• our ability to maintain and expand internationally; and

• our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions.

You should not place undue reliance on our forward-looking statements and you should not rely on forward-looking statements as predictions of future events. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q speak only as of the date of this report. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” in this Quarterly Report on Form 10-Q. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

Unless the context otherwise requires, the terms “Remitly Global,” “Remitly,” “the Company,” “we,” “us,” and “our” in this Quarterly Report on Form 10-Q refer to Remitly Global, Inc. and our consolidated subsidiaries, taken as a whole.

Table of Contents

Part 1. Financial Information

Item 1. Financial Statements (Unaudited)

REMITLY GLOBAL, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share data)

(unaudited)


	June 30,		December 31,
	2023		2022
Assets
Current assets
Cash and cash equivalents	$	227,507	$	300,635
Disbursement prefunding	281,940		158,055
Customer funds receivable, net	138,870		191,402

Prepaid expenses and other current assets	30,848		19,327
Total current assets	679,165		669,419

Property and equipment, net	13,380		11,546
Operating lease right-of-use assets	11,718		8,675
Goodwill	54,940		—
Intangible assets, net	19,071		—
Other noncurrent assets, net	6,253		6,313
Total assets	$	784,527	$	695,953
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	17,608	$	6,794

Customer liabilities	102,262		111,075
Short-term debt	2,432		—
Accrued expenses and other current liabilities	98,717		87,752
Operating lease liabilities	5,637		3,521
Total current liabilities	226,656		209,142
Operating lease liabilities, noncurrent	7,239		5,674

Long-term debt	34,000		—
Other noncurrent liabilities	895		1,050
Total liabilities	$	268,790	$	215,866
Commitments and Contingencies (Note 14)

Stockholders’ equity
Common stock, $0.0001 par value; 725,000,000 shares authorized as of June 30, 2023 and December 31, 2022 both; 181,161,726 and 173,250,865 shares issued and outstanding, as of June 30, 2023 and December 31, 2022, respectively	18		17
Additional paid-in capital	936,496		854,276
Accumulated other comprehensive loss	(150)		(743)
Accumulated deficit	(420,627)		(373,463)
Total stockholders’ equity	515,737		480,087
Total liabilities and stockholders’ equity	$	784,527	$	695,953

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

REMITLY GLOBAL, INC.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue	$	234,033	$	157,255	$	437,898	$	293,269
Costs and expenses
Transaction expenses(1)	80,187		60,826		154,253		117,089
Customer support and operations(1)	21,483		16,855		41,414		30,725
Marketing(1)	53,600		43,849		97,723		84,470
Technology and development(1)	54,309		36,083		103,685		59,658
General and administrative(1)	39,490		37,509		80,898		60,851
Depreciation and amortization	3,187		1,510		6,216		3,027
Total costs and expenses	252,256		196,632		484,189		355,820
Loss from operations	(18,223)		(39,377)		(46,291)		(62,551)
Interest income	1,368		439		3,392		475
Interest expense	(592)		(332)		(981)		(645)
Other (expense) income, net	(1,546)		1,687		(3,057)		2,356
Loss before provision for income taxes	(18,993)		(37,583)		(46,937)		(60,365)
(Benefit) provision for income taxes	(143)		662		227		1,190


Net loss attributable to common stockholders	$	(18,850)	$	(38,245)	$	(47,164)	$	(61,555)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.11)	$	(0.23)	$	(0.27)	$	(0.37)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted	179,076,496		166,498,333		177,105,720		165,450,862

__________________

(1) Exclusive of depreciation and amortization, shown separately, above

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

REMITLY GLOBAL, INC.

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net loss	$	(18,850)	$	(38,245)	$	(47,164)	$	(61,555)
Other comprehensive income (loss):
Foreign currency translation adjustments	245		(1,271)		593		(1,267)
Comprehensive loss	$	(18,605)	$	(39,516)	$	(46,571)	$	(62,822)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

REMITLY GLOBAL, INC.

Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2023

(In thousands, except share data)

(unaudited)



	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount

















Balance as of January 1, 2023	173,250,865	$	17	$	854,276	$	(743)	$	(373,463)	$	480,087



Issuance of common stock in connection with ESPP	297,095	—		2,729		—		—		2,729
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units	3,589,965	1		4,992		—		—		4,993


Issuance of common stock for acquisition consideration	590,838	—		6,635		—		—		6,635
Issuance of common stock, subject to service-based vesting conditions, in connection with acquisition	104,080	—		581		—		—		581
Taxes paid related to net shares settlement of equity awards	(99,550)	—		(1,413)		—		—		(1,413)
Stock-based compensation expense	—	—		29,775		—		—		29,775
Other comprehensive income	—	—		—		348		—		348
Net loss	—	—		—		—		(28,314)		(28,314)
Balance as of March 31, 2023	177,733,293	$	18	$	897,575	$	(395)	$	(401,777)	$	495,421

SEC Form 10-Q filed by Remitly Global Inc.