Remitly's Impressive Q1 2024 Performance: Insights from CEO Matt Oppenheimer
In a significant development for the digital remittance industry, Remitly has announced impressive growth in Q1 2024. The company's preference for digital transactions has seen a surge, with the year-on-year mix of digital-received transactions increasing by nearly 500 basis points.
This growth was driven by various factors, including increased revenue, send volume, and active customers. Remitly reported record Q1 2024 earnings, with a 32% year-over-year increase in revenue to $269.1 million. The send volume for Remitly climbed 34% YoY to $11.5 billion.
The impact of seasonality in Q1 2024 was minimal due to a lack of high-send events such as Christmas, Eid, or Mother's Day. Despite this, Q1 2024 is one of the quarters with the lowest seasonal activity for Remitly.
CEO Matt Oppenheimer highlighted several key drivers of this growth. These include a 12% increase in send volume per active customer, a 24% increase in quarterly active customers, significant growth in high amount senders, geographic diversification, and strong retention and new customer acquisition.
These factors collectively drove a 40% year-over-year growth in total send volume to $18.5 billion, fueling revenue growth by 34% year-over-year, reaching $411.9 million in the reported quarter.
Remitly's focus on digital transactions and customer acquisition through digital channels is expected to continue in the future. The company's adjusted EBITDA increased from $5.4 million in Q1 2023 to $19.3 million in Q1 2024. Remitly has also reaffirmed its projections of FY 2024 revenue between $1.225-1.25 billion.
The company's cash-to-digital customer mix for Q1 2024 has shifted towards digital transactions. Remitly is also leveraging artificial intelligence to improve its services and enhance the customer experience, although specific details on the use of AI in Q1 2024 were not provided.
The number of active customers for Remitly grew 36% to 6.2 million in Q1 2024, with a significant portion of new customers acquired through digital channels. Remitly has also increased its adjusted EBITDA projections for FY 2024, meaning it now anticipates a FY adjusted EBITDA margin of 6.9-7.4%.
In conclusion, Remitly's Q1 2024 performance demonstrates a strong commitment to digital transactions and customer acquisition, resulting in impressive growth across various metrics. As the company continues to expand its reach and improve its services, it is well-positioned to capitalise on the growing preference for digital remittance services.
[1] Adjusted EBITDA margin is a financial metric that excludes certain expenses, providing a measure of a company's operating profitability.
- Remitly's focus on digital transactions and digital customer acquisition, combined with technological advancements such as artificial intelligence, positioned the company to capitalize on the growing preference for digital remittance services.
- The impressive growth in Remitly's Q1 2024 earnings, driven by factors like increased revenue, send volume, and active customers, was underpinned by a shift in the company's cash-to-digital customer mix towards digital transactions.
