Darrin Peller: All right. Thanks Matt. I guess maybe just one quick follow-up would be on the corridor ad potential. It just looks roughly flat if I’m reading it right. And curious to hear what the opportunity in the pipeline is there? And then just, I guess also a quick follow-up on Circle. I didn’t hear anything around timing expectations more than just — obviously, it is a big opportunity. Just any more color you can give us on potential cadence or timing around it? Thanks again.
Matt Oppenheimer: Yes. Yes. On the first question, we are now at over 5,000 corridors and there is no shortage of opportunity for us to grow in both the corridors that we’re in as well as new corridors that we can add. And so I mentioned Sub-Saharan Africa as one region, and I’ve mentioned a few others in the past. But it’s not like we need to launch new corridors to drive even short or medium term growth. We will still launch new corridors because we’re in this for the long-term, and that is how we have had the compounding growth over the last decade plus. But the point on corridors is there is no shortage of room to grow in corridors that we’re in, including corridors we’ve been in for the last 10-plus years. And so lots of opportunity to grow in new and existing corridors.
And on Circle, I broaden it to complementary products, and it’s a fair question around timing. We’ll talk more about it once it gets to the material point that we think it makes sense to talk about it. But I would view that as a complementary product and a way that we’re deepening relationships with our existing customers and excited about the early results we’re seeing there and more to come in the future.
Darrin Peller: Okay. Thanks guys.
Operator: Thanks. One moment for our next question, please. And it comes from the line of Alex Markgraff with KeyBanc Capital Markets. Please proceed.
Alex Markgraff: Hey guys. Thanks for taking my questions. Just a couple for me. First, Matt, on the accelerated ACH offering that you mentioned going live later this year, any sort of considerations around the economics of that payment method versus what exists today for Remitly?
Matt Oppenheimer: Yes. Yes, we’re excited about launching Fast ACH later this year. And the economics are favorable in the sense that we can offer a faster product without having to pay some of the card processing fees. And so that’s something we’re excited to be able to offer to our customers later this year.
Alex Markgraff: Okay, great. And then sorry to belabor the point on net adds or if that’s not the right metric, just quarterly actives. But I guess I’m trying to sort of square some of the comments on seasonal opportunity to add customers with the comments around record new customers. And then what I think a lot of folks do look at externally the net adds. So, just I guess I’m struggling to sort of piece that all together and if quarterly net adds is not the right metric to look at? Just any sort of guidance on how to better think about that and capture how you all are thinking about it internally, it would be helpful?
Hemanth Munipalli: Yes. Yes. Thanks for the question, Alex. I think yes, I think we — obviously, with the metrics we share, we understand the math that’s being done there. But we just wanted to make sure there’s clarity in the sense that there are customers who are active in different periods of time and the seasonality there plays into effect. And in terms of record, so when you think about Q1 in particular, maybe this is the simplest way to answer, January and February are generally much lighter months than most months in the year. And March is where activity starts picking up. And so when we looked at that and saw a significant portion of new customer acquisition would come in later part of — came in the later part of Q1.
So, I think this is around — you have to look at almost monthly active users to look at what’s going on in terms of the rates there. So, that’s probably one of the better metrics, and we track that internally and pretty excited about how our marketing and other efforts are helping us acquire new customers.
Alex Markgraff: Okay. Thank you, Hemanth.
Operator: Thank you. One moment for our next question, please. And it’s from Andrew Bauch with Wells Fargo. Please proceed.
Andrew Bauch: Hey guys. Sorry to ask duplicative questions at the back end here. But I guess looking at the yield trajectory that you’re seeing in the business now, I know it’s — we’ve been talking about the digital piece of the business and the like. But is there any way to get comfortable on how we should be modeling this gross yield trajectory through the remainder of the year? And what — is it mix that you kind of anticipate shifting back into higher yield corridors? Or is it — are we all looking at this kind of on the wrong way? Because I think that’s the key piece that people are trying to focus in on.
Hemanth Munipalli: Yes, I don’t think there’s a necessarily the easy way here, Alex, to model that out because there are quite a few mix effects when you look at the take rate, if you will, effectively but largely depends on the average transaction price, and that sort of changes corridor, it changes based on obviously the digital trend that we talked about or other options that customers might choose to prefer. So, we do look at it on an aggregate average basis, which just tends to operate in a range. And I think the best way to model that going forward is to keep it within the range.
Matt Oppenheimer: Yes. And the only thing I’d add is I don’t — while we’ve talked about some digital trends, when you’re saying yield, I think you’re referring to take rate. And I think that there hasn’t really been trends in terms of take rate as much as there is a mix shift a bit quarter-to-quarter, but it’s not hugely material when you look at that amount of mix. And what we’re focused on is things like ARPU and specifically average revenue per transaction and profit per transaction and fewer trends there as much as how we think about modeling the business. So, no big trends on the take rate side, outside of mix shift.
Andrew Bauch: Got it. Understood. And then, look, it’s been two, three quarters now where we’ve had this higher levels of marketing spend. And I’m trying to understand on when you do ramp-up investments in marketing. What are those LTV curves look like? Should we be anticipating some more returns in the way of customers, be it on a gross or a net basis in 2024? Just trying to wrap my head around that comment around new customers added in 2024 relative to 2023 is still something we should be relying on?
Hemanth Munipalli: Yes. Nothing fundamentally has really changed in terms of our marketing return profile remains very strong and consistent. We’ve previously shared ratios of LTV to CAC and they tend to be in the is sort of range and with payback period less than 12 months. So, there’s a lot of consistency in that, and so there’s really no change in that. Now, when we think about sort of sequential growth Q1 to Q2 in terms of quarterly active users, given the trends that we’ve seen in April that Matt talked about very much in line with our expectation. We do expect an increase in terms of sort of seasonal growth and other growth with even the new customer acquisitions we’re doing for Q2 versus what we had in Q1.
Andrew Bauch: Got it. Thanks for the questions.
Operator: Thank you so much. One moment for our last question, please. And it comes from Matthew O’Neill with FT Partners. Please proceed.
Matthew O’Neill: Hi guys. Thanks for squeezing me in here. I think most of the questions have been asked and answered, and I’ll follow-up real quick on Darrin’s corridor question. Just curious, philosophically, around 5,000 I think some competitors are a few multiples of that. Is that something that you guys collectively think about internally is a number that is a target to achieve on a quarterly basis or more of an outcome that just kind of happens over time, recognizing that all corridors are not created equal? Thanks.
Matt Oppenheimer: Yes. Yes. Thanks Matt. I view us getting into that many corridors in the future. But it’s in our DNA, given how corridor-specific this business is and how unit economic focus this business is to do it in a really intentional way. And so if you go back to the early days of Remitly, we spent a couple of years just focused on the U.S. to Philippines, and we got that right and then we scaled in the right way. And the good thing is about where we’re at now is we have a portfolio of 5,000 corridors to be able to grow in, all of which there’s growth opportunity. And we also have corridors that we can continue to launch over the coming quarters and years. So, no shortage of growth opportunities, as I mentioned, lots of new corridors to be able to grow in currently and a playbook to launch new corridors in a really intentional way.
So, we launched them in the right time with the right efficiency, with the right playbook as we’ve always done to be able to fuel long-term growth.
Matthew O’Neill: Thanks Matt. And if I could just squeeze in one more follow-up to fully belabor the marketing questions. Would you say you’re still operating in a bit of a heightened kind of marketing spend paradigm, like you have communicated over the last couple of quarters? And if so, is it may be more of a structural shift that as you’re seeing scale come through in the business and transaction and other costs are coming down structurally that on a more permanent basis, you’ll want to sort of put more money towards the marketing going forward?
Matt Oppenheimer: Yes. Thanks Matt. And not belaboring at all. I think marketing in the data-driven way that we do is one of our competitive advantages and I’m happy to talk about it all day. I wouldn’t say that there’s a heightened marketing competitive environment right now. I think that it’s — I think that there’s continuation in terms of stability on that front. I think our marketing team is continuing to execute very well across multiple channels and multiple geographies. And we’re excited about the payback. We’re excited about the record number of new customers. And given the kind of cohort way that our business works with the seasonality, we’re excited about what that means for QAUs and revenue and, ultimately, profit growth in the quarters to come.
Matthew O’Neill: Great. Thanks so much.
Operator: Thank you. And that was the final question. I will now turn the call back to Matt Oppenheimer for closing remarks.
Matt Oppenheimer: Great. Thanks again everyone for the really thoughtful questions. As we always do at Remitly, I’d like to end the call by highlighting another one of our amazing customers, Rameel. And Rameel sends money from the United Kingdom to his family in the Philippines. He was one of the many customers who shared their feedback with us last year, and Rameel commented trustworthy, reliable, fast, and most of all, I feel safe. We want to thank Rameel for placing his trust, which is ultimately what our product is all about in Remitly and for his recognition of the safety, reliability, and speed of our service. And we want to thank all of you for joining us, and we appreciate your continued support. We are excited about the opportunities ahead and we look forward to sharing our progress as we continue to execute on our vision of transforming lives with trusted financial services that transcend borders.
Operator: Thank you all for participating and you may now disconnect.
