Seattle-based remittance company Remitly Global Inc. (Nasdaq: RELY) isn't revealing many details about plans for new products after shuttering Passbook, its digital bank account aimed at immigrants.
Remitly stopped services on Passbook on Monday. During the company's first quarter 2023 earnings call on Wednesday, co-founder and CEO Matt Oppenheimer was asked about additional services Remitly is looking to add following the shuttering of Passbook.
"We believe that we have a significant long-term opportunity in both offering our network and infrastructure to other businesses and in developing complementary new products for our remittance customers," Oppenheimer said on the call. "So, while I didn't share a lot of additional details on that today, you can expect additional details in the future and we're really excited about what's to come there."
Remitly announced its plans to shutter Passbook in February, three years after launching the product. Although Remitly provided the app, the back-end banking services were provided by St. Paul, Minnesota-based Sunrise Banks.
On a call with investors in February, Oppenheimer said Passbook was gaining traction and growing, but it fell outside Remitly's core customer segment, and the company wanted to focus on "higher-returning investments targeted at our core remittance customer." Remitly plans to move the Passbook team to other areas of its business.
Remitly, founded in 2011, went public in 2021. Remitly customers can send money internationally through a bank deposit, cash pickup or mobile wallet. The company's services are available in over 170 countries and territories.
Remitly reported Wednesday that it generated $203.9 million in revenue during the first quarter, up 50% year over year. The company had 4.6 million active customers during the first quarter, up from 3 million during the first quarter of 2022.
"We are significantly outpacing the overall growth in the remittance market," Oppenheimer said on the call. "We continue to benefit from record new customer acquisition while at the same time increasing returns on our marketing spending with customer acquisition costs lowering by 31% on a year-over-year basis."
At midday Thursday, the stock was trading near its 52-week high, at over $18 per share, and was up over 60% for the year.
