Good day, and welcome to the Remitly Fourth Quarter 2023 Earnings Conference Call. At this time, all participants in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Stephen Shulstein, Vice President, Investor Relations. Please go ahead.

Thank you. Good afternoon and thank you for joining us for Remitly's fourth quarter 2023 earnings call. Joining me on the call today are Matt Oppenheimer, Co-Founder and Chief Executive Officer of Remitly, and Hemanth Munipalli, our Chief Financial Officer. Our results and additional management commentary are available in our earnings release and presentation slides, which can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Investor Relations website. Before we start, I would like to remind you that we'll be making forward-looking statements within the meaning of federal securities laws, including but not limited to statements regarding Remitly's future financial results and management's expectations and plans. 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 response to your questions, are based on current expectations as of today and Remitly assumes no obligation 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 a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our earnings press release, and the appendix to our earnings presentation, which are available on the IR section of our website. Now, I will turn the call over to Matt to begin.

Thank you, Stephen, and thank you all for joining us for our fourth-quarter earnings call. As we look back on Remitly's performance in 2023, we have a lot to be proud of as we delivered on our commitments to our customers and shareholders. At the beginning of last year, we laid out our commitment to deliver strong growth at robust unit economics, increase return on our investments, and deliver a fast, reliable and seamless experience for our customers. As you can see on Slide 4, we delivered on these commitments in the fourth quarter and in 2023. These results reflect the progress we have made on our strategic initiatives and our commitment to our customers to deliver peace of mind as they send money across borders. Our revenue increased 39% in the fourth quarter and 44% for the full year. On a fourth-quarter annualized basis, our scale has reached over 1 billion of revenue. We also delivered $8 million of adjusted EBITDA in the fourth quarter and $44 million of adjusted EBITDA for the full year, well ahead of the goals we set for ourselves at the onset of the year. We benefited from strong execution across the business, increasing scale, the nondiscretionary nature of our service, and the resilience of our customers. We've expanded on our vision as you can see on Slide 5. Our vision is to transform lives with trusted financial services that transcend borders. This vision encapsulates a broad view of who our customers are today and who we can serve in the future. It also speaks to the unmet customer needs that we believe we are uniquely positioned to solve by delivering peace of mind to customers around the world with cross-border financial needs. Our four strategic focus areas on Slide 6 are designed to…

Thank you, Matt. I'm pleased with our strong results in the fourth quarter as results came in ahead of our expectations consistent with our strong execution throughout 2023. I will start with a review of our fourth-quarter financial highlights and then provide additional details on our 2024 outlook. I will discuss non-GAAP operating expenses and adjusted EBITDA in my remarks. These metrics exclude items such as stock-based compensation, the donation of the common stock in connection with our pledge 1% commitment, acquisition, integration, restructuring, and related costs, and foreign exchange gain or loss. Reconciliations to GAAP results are included in the earnings release and the appendix to our earnings presentation. With that, let's turn to our fourth quarter results beginning on Slide 13 with our high-level financial performance. Quarterly active customers grew by 41% year-over-year to 5.9 million. Send volume grew 38% year-over-year to approximately $11.1 billion, all resulting in revenue growth of 39% year-over-year to $265 million in Q4. Our GAAP net loss was $35 million in the quarter and included $36 million of stock compensation expense. The strong growth in revenue combined with significantly lower transaction expense as a percentage of revenue led to adjusted EBITDA of 8.2 million in the quarter, which was above our expectations. Our adjusted EBITDA results in the quarter also reflected the targeted and high-return marketing investments that we made as planned. We fully expect to benefit from these investments in 2024 and beyond, as I will discuss later in our 2024 outlook. Now let's turn to Slide 14 for a detailed review of our performance in the fourth quarter. Let's begin with revenue, which was up 39% year-over-year in the fourth quarter on a reported basis and 37% on a constant currency basis. Our strong revenue growth was primarily driven by a…

Thank you. At this time, we'll conduct the question-and-answer session. [Operator Instructions] Our first question comes from Tien-Tsin Huang with JP Morgan. Your line is open.

Hey, good afternoon. Great results here. I did want to hone in on the comment that you're planning to add more users in '24 than you did in '23. I'm curious if you can be a little bit more specific on that. I mean, it looks like you're adding closer to 500,000 per quarter trend line at this stage. If you look at the fourth quarter, is that a good starting point? I'm just curious if there's any thoughts on seasonality or maybe difference in type of customer that might come on at different points in time. Any additional color would be great. Thanks.

Yeah. Thanks, Tien-Tsin for the question. Yeah, first off, really excited about the opportunities we have in 2024. In terms of when we think about customer growth this year, I mean, one, you got to recognize 2023, we've added record customers in 2023 as well, thanks to the resilience of the customers and our marketing machinery to add a whole lot of new customers in '23 as well. And we look at '24, we think that sort of pattern will continue to hold where based on our marketing investments, which we think are highly predictable and durable in terms of return profile on those, we would be expecting to add more new customers in '24 than we did in 2023. So largely speaking, I think we have a huge market opportunity. We're 2% of $1.8 trillion market. So we think that -- going about that in a very methodical fashion and building on sort of the core corridors that we already are in and as well as expanding in rest of the world will get us those growth rates.

Perfect. Then, my follow-up just on the intensity comment, and I think you mentioned has climbed because of higher mix of digital receive. I think about down to 500 bps. So is that secular or intentional on your part of driving that channel, and is that sustainable and is that also tying back to the benefit you're seeing on transaction expense?

Yeah. Thanks, Tien-Tsin and great questions. I think that we are good at both receiving funds the way that customers want to send them to us, as well as dispersing funds across the globe, whether that's bank accounts, mobile wallets, cash pickup, or door-to-door delivery in seamless and diverse ways. And so I would view the increase in digital disbursement as a positive in the sense that we have a great digital disbursement network, whether that's bank deposit or mobile wallet that oftentimes carries a lower variable cost for us, which is helpful. And we're excited about leading the way when it comes to digital disbursement in several markets.

That's great. Thank you so much.

One moment for our next question. Our next question comes from Ramsey El-Assal with Barclays. Your line is open.

Hi. This is Allison on for Ramsey. Thank you, guys, so much for taking our question. So just in the context of marketing spend, maybe could you just provide some color on the latest regarding your pricing strategy? Are you doing any promo pricing at all? Are you still marketing strategically by corridors you've done in the past? Just are there any changes to the marketing strategy beyond what you've outlined so far and anything that you want a highlight on the holiday send environment in terms of marketing spend, what it looked like this quarter versus a year prior?

Yeah. Thanks, Allison. Great question. I think that our marketing strategy has been something that remains consistent, as it has over the last decade of building the business. We tend to be analytical, data-driven marketers, but we also have a structural benefit as our customer base grows and our product continues to deliver, in that there's word-of-mouth and continued just trust within the communities that we serve that helps continue to grow our product. And so wouldn't say any large changes to our marketing strategies, continuing to execute it in a measured, data-driven way. And that's why we're excited about the record number of new customers in Q4, as well as being able to guide the '24 in a way that both continues to grow top line, but also you get the profitability from those customers that we've added in Q4 and throughout 2023 and prior quarters, being able to deliver to the bottom line in 2024 as well.

Yeah. Maybe just adding a little bit to what Matt said too is Q4 for us is a seasonally high quarter in terms of acquiring new customers. We want to make sure that we're leaning into marketing, which we're able to do. And as you can see, we did add record new customers in Q4. So as we look forward, we do think it makes sense for us to continue to invest in marketing and the right sort of guardrails and thresholds on LTV and CAC, but we see it as a high-return sort of investment. And so we think based on these investment thresholds and what we expect for 2024, that we'll be able to add additional new customers in '24, above and beyond what we did in 2023.

Great. Thanks so much. Really appreciate the time.

One moment for our next question. Our next question comes from Andrew Schmidt with Citiglobal Markets. Your line is open.

Hey, Matt, Hemanth, Stephen. Thanks for taking my questions. Good quarter here. I want to dig in on just sort of your core corridors U.S. to India, U.S. to Mexico, U.S. to Philippines, obviously seeing good rest of world growth beyond that, I think that's important part of the story. But in the corridor of where you started, maybe talk a little bit about the growth trends you're seeing, and then what can help sustain that growth as you reach higher levels of penetration? Thanks a lot, guys.

Yeah. Thanks, Andrew. Great to hear from you and appreciate the question. I think that if you look at the overall, you mentioned the three receive markets -- India, Philippines and Mexico. And the punchline is there's still significant growth opportunities and we're continuing to see growth in those three receive markets, both and this is important in markets that we've originated from over many years like the U.S. where we started, but we also now originate across North America, Europe, a variety of countries, Australia, UAE, et cetera. And so I think that there's large opportunities as we expand the addressable market in terms of origination country. And all of this needs to be put in the backdrop that we are 2% of a $1.8 trillion market. And so while we might have slightly higher share in markets that we've been in for a while, we're still seeing healthy growth in those markets, and we still see a lot of opportunity to continue to grow.

Yeah. Maybe just adding a little bit on to what Matt said, Andrew, is that when we look at the digital trend that we're seeing in the business, so increasing shift to digital is another sort of a tailwind as we look at even the core corridors we've been in. So whether you take U.S. to the Philippines and the adoption of mobile wallets as an example is one that certainly we think is benefiting sort of our growth in that corridor. That's just one example.

Got it. Very helpful. Thank you, Matt, Hemanth. And then, maybe to follow up just on sales and marketing, if you just discuss, maybe put a finer point on what's embedded in the outlook for 2024 for marketing spend and then maybe talk about the philosophy about flexing that up and flexing it down. I know this is a longer-term story and it's important to go after the market, because there's attractive unit economics. But just curious to get your thoughts on what could drive marketing up or down as we progress throughout the year? Thanks a lot, guys.

Yeah. Thanks, Andrew. So first off, I think just wanted to make sure that it's recognized that marketing is a lever that we can actually dial up and down and we think that it makes sense to do that within the return threshold. So we set ourselves for here and you can see that we have a pretty long and durable stream of sort of revenues from the customers we acquire from marketing investments, which exceeds five years. So we talk about LTV from a five-year lens, but it's even longer than that. So we think it's the right investment to continue to make. So in terms of projections, we have factored in an increase in marketing expenditures -- investments in 2024 versus 2023 on a broad basis. And that's reflected in our guidance. So we've factored that in, and it obviously impacts our revenue growth for this year. But certainly, we're looking at it beyond this year and looking at '25 and beyond in terms of these investments we're making.

Yeah. The only thing I'd add there, Andrew, is I think that, as you know, and therefore, I appreciate the question in terms of we have the ability to dial up or back the amount that we spend on the marketing front because we do view it, one, really targeted towards new customer acquisition, building that trust top of funnel with a customer base that's historically hard to build trust with. But then once we built that trust, we see nice recurring long-term profit and revenue streams from the customers that we serve. And so if you think about how much we're spending to build that top-of-funnel trust, it is something that we can calibrate depending on the cost of capital, depending on the market environment. And we've certainly taken into account the increased cost of capital. And there's a spirit of just driving efficiencies within the business as we think about 2024. You see that in our adjusted EBITDA guidance, as well as continuing to build an even more profitable and even larger business as we think about 2025 and beyond. So we think we struck the right balance and certainly those efficiencies and the focus on efficiency as well as growth is included in our 2024 guide.

Got it. Appreciate the balance, and congrats on the good quarter, guys.

Thank you.

One moment for our next question. Our next question comes from Will Nance with Goldman Sachs. Your line is open.

Hey, guys. Appreciate you taking the question today. Matt, competition remains a big focus in the market, particularly in the digital remittance space. And I think investors' perception of the levels of churn in the digital remittance space are relatively high. And I think you guys have highlighted several times today the retention that you guys have in terms of revenue less transaction expense from prior cohorts. So maybe if you could just talk a little bit about the stickiness of your customer base, what you think keeps them coming back to Remitly over time in a world where there are lots of options. And then I think you mentioned in some of the prepared remarks, talking about future products that can address additional needs of the customer base. So how are you thinking about the interplay with those additional products with levels of customer retention over time? Thanks.

Yeah. Great question and several things to unpack within that. I think that the first thing to your question of why customers choose a remittance provider and why they stay with us is it really does come down to the things that ladder up to trust. It's a customer base that might be reticent to provide a lot of their personal sensitive information, and then they're trusting us with a big percentage of their hard-earned money to be sent back home, often hundreds of thousands of miles away. And they need that money immediately. It's for things like basic living expenses, emergency medical needs and so that combined with the complexity of delivering a remittance internationally in a fast and reliable way means that trust is at a premium. And so when we talk about things like speed and reliability, that is ultimately what customers care about the most. And having a fair and transparent price, which we can do, given that we're a digital-first provider is a component of building that trust, but it's not about just having the best price. Once you've built that trust and you deliver with a great product, as we've done and as we continue to do, as we get more scale and can invest more into our global payments platform, you see the kind of retention rates that we've shared on Slide 9, where you can see on a cohort basis that customers come back on a very regular basis. And we shared that following the first full year after we acquired new customers, those same customers have on average approximately 95% of revenue less transaction expense for each subsequent year. And so that is something that we really appreciate about our customers, their resilience, the nondiscretionary nature of our service. And something that I've seen over the last now 13 years of building this business is that customers care about trust as a premium, and that is what we're ultimately good at delivering.

I appreciate all that. And then I think you also have some comments in the prepared remarks around turning your attention to operational efficiency, taking the track record you have on things like customer support and fraud, and looking at some of the other OpEx levers that you have maybe around G$A or whatever else that you guys are focused on. Maybe you could just kind of talk about that and wondering if anything has changed in your thought process around kind of optimizing for profitability and kind of cutting out any pieces of G&A and OpEx while still making some of the growth-related investments in sales and marketing that you guys need to grow the business?

Yeah. I'll start and then I'll turn it over to Hemanth to talk about it from a P&L standpoint. But the thing that I would highlight is we're starting, given some of the OpEx investments that we've made, we are really seeing the benefit both from a P&L standpoint. You see the improvements from a CS -- cost standpoint. You see the improvements from a transaction expense standpoint. And those are improvements not only in our costs, but they also represent that customers are contacting us less, our product is more reliable, our product is faster. 95% of customers don't have to contact customer support and we're continuing to improve that every day. And I will tell you having started this business 13 years ago when we were subscale, it was really, really hard to truly differentiate and build a like frictionless and seamless, and reliable product. We're doing that a lot better now, and we're just getting started in that effort. And so we need to invest enough in the G&A side to get both the cost benefits on other aspects of the P&L as well as continuing to differentiate our product and pull away from some of the subscale competitors that really can't build a reliable product. And I think that's what you're seeing, in the P&L in Q4 and what you're seeing in our 2024 guide from a financial standpoint. And Hemanth, anything you'd add from a financial.

Yeah. No, I think that's right. I think just on the point on efficiency as well, I mean we're now a business that Q4 annualized $1 billion plus and as you can see in our guide as well. I think we've reached the point where we have tremendous opportunity to take some of the things we've done, whether you've seen in sort of improving our transaction expense or reducing that, the progress we've made on reducing our customer service costs by focusing on contacts from customers and some of the playbooks, on really driving efficiencies from an operational perspective, but also using technology to drive automation in the business, so we think we can apply that across other aspects of the business, whether it's G&A, other corporate areas as well. So we're looking to do that with more intentionality, given now the size of the business and being much more global in nature that we can get those efficiencies this year. Some of that's reflected now in our forecast around EBITDA, but as we also look forward beyond 2024. So we're excited to go about that with a lot of focus.

Great. Appreciate you guys taking the questions and nice shot today.

One moment for our next question. Our next question comes from Andrew Bauch with Wells Fargo. Your line is open.

Hey, guys. Thanks for taking the question. Following up on the comments that you made that net revenue growth should outpace volume growth in 2024. In your comments, that transaction expense still has further room on the efficiencies. How should we think about the magnitude of efficiencies on transaction expense versus what your expectations are for the top-line yield side in the year ahead?

Yeah. Thanks for the question, Andrew. We think that there will be continued efficiencies here on reducing transaction expense for years to come. And, we see 2024 as another year in that sort of multi-year focus on driving down transaction expense and just to kind of level set in terms of what makes up that expense category, you've got pay-in and payout costs. So these are economics that we have with our pay-in partners as well as disbursement partners, and then fraud, loss management. And on the first two in particular with close to $40 billion of send volume going through our platform, if you will, it's a tremendous opportunity for us to have the right economics with our partners, which is largely driven by the volume, and we think that with our growing scale and volume, that will give us further opportunities for this year and beyond. And on fraud losses and we've talked about this earlier as well as it's really driven around data and the amount of data we're ingesting into our AI and ML models. And we see that with increasing data, we're just getting more and more precise and how we're delineating between what's a good remittance transaction and what could potentially be fraudulent. So we see continued improvements there. Having said that, I think with fraud, we're always watchful, and there's generally some sort of volatility around it in any given quarter. But the broader trend in transaction expense reduction is something that we've factored in in our guidance, but we also think that's mid-to-long-term trajectory that will continue.

And then on the gross yield side?

Yes. So we're really looking to ensure that we're providing value to our customers. And I think, as Matt talked about, I think when you talk about yield, you think about pricing, but it goes beyond that. The trust that we're building with our customers, which is through the speed of the transaction, the reliability of it, there's multiple levers as we look at LTV and maximizing that for our customers. So we expect that we'll continue to focus on that and that'll result in our revenue growth, and you see that in our guidance for this year.

If I could just squeeze in a follow-up. You mentioned discipline around stock-based comp as a focus in 2024. If you could just provide a finer point on what that should look like for our models, would be very helpful for calibrating the model?

Yeah. So on stock-based compensation we've been, one, just to step back here again, stock comp is an incentive comp, obviously, with our employees, and we believe in incentivizing our employees this way. So it remains an important incentive for us to drive our growth and our strategic priorities. We have been moderating the growth on stock-based comp. So pointing you back to Q4 was at a -- the growth year-over-year was in line or a little bit lower than what we saw in Q3 of 2023. So we expect to remain actively focused on not just stock-based comp, but also in terms of shares that we issue, which would impact dilution, especially as we continue to grow our profits and reduce our losses, we do want to think about what that means in terms of EPS.

Great. Thanks for taking the questions.

One moment for our next question. Our next question comes from Darrin Peller with Wolfe Research. Your line is open.

Hey, guys. Matt, I heard you talking earlier a bit about going deeper with the customer base, and I think we saw a website suggesting a new app. I think it was Remitly Circle, appearing to offer just a different range of money management services, alongside money transfer. So if there's anything you can give us a little more. It reminds me of Passbook. I'm not sure if it's similar. Any more on time being or what that actual reach could be and maybe geographies or what the plans really are around that would be great?

Thanks, Darrin. Yeah. Great to hear from you. So, as I mentioned during the opening remarks, one of the things that is really important to understand is the amount of investments we've been making in our technology platform and taking it from a more integrated kind of or more monolith to something that is more modular in terms of APIs that then not only our remittance team can continue to deliver on in terms of greater developer efficiency improvements on the risk side in terms of privacy, security, etc., but it also creates a platform for our new product schemes to be able to test and iterate more effectively and quickly. And so I'm glad that you noticed Circle out there. I would view Circle as one of a few but very important and targeted areas that we think we can solve broader customer pain points when it comes to cross-border financial service’s needs. And we'll talk about them more publicly as they get to the point of scale that it makes sense to. But I'm glad you noticed it because it is indicative of the kind of testing, launching and various products that we're very serious about adding to our customers and think we have the ability to do so.

That's exciting to hear. And just maybe we could revisit quickly the strategy and your stated goals on profitability metrics, if you don't mind, just both with and without stock comp over the next couple of years. I know you obviously have shown very strong success with your LTV, and obviously, customer adds are coming in strong as well, but, I mean, just a reminder of what your intentions are? Thanks, guys.

Yeah. Good question, Darrin. I think one, we haven't yet talked about what it means from a long-term perspective, but what's important to recognize here is one, we're really anchored around continued growth in the business and the opportunity that we have, which is obviously significant just given the size of the market and what we are today. So we'll continue to make sure that we are able to drive that growth. On the topic of profitability, we've been on the path of what I'd say sustainably growing our profits, and we demonstrated that last year with every quarter being profitable, and we ended at $44 million of adjusted EBITDA profitability, so we plan to continue on that trajectory. And what you're kind of seeing in our guidance, it's reflecting and it's significantly increasing EBITDA profitability from last year to this year. And as we continue to focus on being more efficient and also being able to take some of those efficiencies and continue to fund our growth will be on that path for years to come.

Okay. Great. Thanks a lot, guys.

One moment for our next question. Our next question comes from David Scharf with Citizens JMP. Your line is open.

Yeah. Good afternoon, and thanks for taking my questions. Apologize if I heard this incorrectly, swapping in between calls, but did you mention that LTV, as you're projecting it, has been increasing after the profile of the record new customer accounts that you added in the fourth quarter, should we be viewing LTV still on an upward trajectory?

Yeah. So, just thanks, David, for the question. So when we think about LTV, we're talking about revenue less the transaction expenses for a period of five years. And we'll point you to a chart that we shared, which shows that we have that trajectory of revenue less expenses growing. And so that's one thing that, just to kind of point you back. To that, we are increasing LTV from two dimensions. One is we're seeing -- important to recognize that we're seeing higher transaction intensity from our customers. A lot of that is, again, sort of the digital distribution options, which is a good which we think is a good tailwind from being a digital player at scale, but also reducing transaction expenses for all of the types of remittance options that we have out there. So based on that, we see LTV remains strong, is actually improving based on these factors, and which also gives us increased confidence around marketing investments behind it.

Got it. So related to that, does the geographic mix of the business impact that transactional intensity? Just the revenue component of LTV. And the reason I ask, obviously, going back a few years, the company was much more heavily concentrated in the U.S. to India, U.S. to Philippines. And I think those demographic cohorts tend to have higher wages than maybe the industry on average, probably larger send amounts on average. Is there any downward pressure on revenue per active account over time as the geography becomes more diversified or is that just rounding your stuff?

Yeah. Thanks, David. I can take that one. I think that the headline is that we have a pretty diversified portfolio at this point. And so while there are variables depending on the geography, it's not that there's a macro shift that is impacting, especially the LTV side of the equation. You might have, as an example, lower profit per transaction in a specific corridor, but you'd make up for it with active rates in terms of number of transactions that customers send. And we monitor that on a very de-average basis and we continue to see consistency, not a lot of changes over the past, several quarters on that front. And in addition to geography, you look at how funds are collected, how funds are dispersed, what the average transaction size is, that'll also vary within a specific country or corridor, as an example. And we feel very good about the trends that we're seeing, including trends towards things like digital disbursement, which can actually improve the revenue less transaction expense, which is what the ultimate input is into LTV because the costs of dispersing funds are lower. And so overall trends remain stable. Excited about the direction from an LTV standpoint. And while you might see some regional or even within-region variances, we have a good, diversified portfolio at this point, and that continues to have that stability.

Great. Very helpful, Matt. Thanks so much.

One moment for our next question. Our next question comes from Marc Feldman with William Blair. Your line is open.

Hi, guys. Thanks for taking the question. It's great to see the marketing investments resulting in the record number of new customer ads. And I also just appreciate the LTV retention number you gave. But is there a way to frame the ramp-up of LTV from these new customers that you acquired in Q4, I guess in all of 2023; as we look into 2024, I know you gave that 95% retention number for second year, but just the first year of growth, I guess?

Yeah. Thanks, Marc for the question. So we would see, it's generally a fairly -- a relatively quick ramp from that point. I mean, obviously Q4 and when you think about Q4 is really, December is generally the sort of the high activity month given holidays. And we look at Q1, you generally have Jan and Feb being lower in terms of activity just across the board. And it's not just a Remitly thing, but it's an industry-wide remittance phenomenon. And so we'll start seeing pickup of all of that in March. And so we do think that in a relatively short period of time, we should be able to see increased activity from the new customers that were acquired, and that model holds. And so there's some seasonality in terms of when we see more customer activity than others. But generally speaking, as we progress through the year, Q2, Q3, and then Q4 generally is more of a seasonal high quarter from a remittance perspective.

Yeah. And the only quick thing I'd add on that front is, I think that we shared again Slide 9 very intentionally as a new chart to kind of give you a sense of how resilient and durable our customer base is. And you can see that a lot of that from a cohort basis, even as you project out to 2024, is because of the predictability and resilience that we kind of go into '24 with, given how we can kind of model out the existing cohorts. And then it's about -- our growth is then about how we continue to add new cohorts and new customers and build that top funnel of trust, while continuing to deliver a delightful and superb experience with our existing base, and that only continues to get better.

Great. Thanks for that. And then I guess one more, still early, but I guess any update on the efforts in the UAE and when can we start to see material contributions from the market? And then just on that, I guess what's the typical, just remind us of the typical timeline for ramp in the new send market and how's the UAE tracking against that? Thank you.

Yeah. Thanks. Good question. We focus on the UAE because it's a big market. And I would say that we continue to be excited and bullish and that it's largely on track. What is important to recognize, going back to the 2% of a $1.8 trillion TAM and that we've launched, I think it's over 3,000 corridors since our IPO, there's a lot of opportunity to continue to grow in the markets that we're in. And so I would view markets like the UAE as planting the seeds for future quarters and years of compounding growth with no shortage of options in the coming quarters for us to grow not only there, but in a lot of the markets that we've been in for the past several quarters or years. So really excited about the market opportunity and potential out there.

Great. Thanks for taking my questions.

Thank you. That concludes the question-and-answer session. At this time, I would like to turn the call back to Matt Oppenheimer for closing remarks.

Great. Thanks so much and thanks everyone for the thoughtful questions. As we always do at Remitly, I'd like to end the call just by highlighting another one of our customers, Alexandra and before I go into her story, I just have to say that one of the unique aspects of this business is our incredible customers and their resilience, their tenacity, and the reason that they send money home being such a non-discretionary service. And that is something that makes Remitly unique, something that I am incredibly grateful for as CEO to get to serve our customers every day. And I know it's something that motivates the Remitly team every single day. So, Alexandra is one of millions of customers that's using our platform and she sends money from Spain to her family in Colombia. And Alexandra was one of our many new customers we added last year and reflects the increasing diversity of our corridor portfolio. And Alexandra commented, amazing. It worked as it described, it was reliable and quick. I am very happy I tried it. We thank Alexandra for her loyalty to Remitly and her recognition of the reliability and speed of our service. Thanks everybody for joining us. Appreciate your support. We are excited about the opportunities ahead and look forward to sharing more of our progress in 2024.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.