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  "documentTitle": "Remitly Global, Inc. (RELY)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2025-03-11 00:00:00",
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  "notes": "Uses a comparison table structure to juxtapose management quotes against industry data.",
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      "text": "Remitly Claims No Pricing Pressures, But Industry Prices Are Under Pressure",
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      "text": "Exposing contradiction between management narrative and market reality",
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      "text": "At its IPO, Remitly disclosed 31 million remittance transactions but has subsequently failed to update this figure. Moreover, management claims that it manages the business on a per transaction basis. Furthermore, management claims it saw no pricing pressures in 2024. However, its major competitor Wise lowered prices during the year, consistent with industry trends.(1)",
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      "text": "\"While we are just getting started, we are proud of the scale we have achieved to date. In 2020 our customers completed approximately 31 million remittance transactions using Remitly.\" — Remitly IPO Prospectus. \"We manage more to revenue per transaction, profit per transaction, LTV. And when you look at it from that lens, it's business as usual in Q2. No major shift in competitive pricing. It wasn't due to any sort of pricing pressure.\" — Remitly CEO Q2'24. \"And what we're focused on is things like ARPU and specifically average revenue per transaction, the profit per transaction and fewer trends there as much as how we think about modeling the business.\" — Remitly CFO Q1'24. \"For them (Remitly), the biggest challenges are I think players like Wise. Then on the pricing side, something like Atlantic Money, I don't know whether you've heard of them, that's a fairly new player with even lower pricing...\" — Former Remitly Regional Head, Tegus: Nov 11, 2024. \"Our discipline and focus in reducing unit costs allowed us to lower prices in the first half of FY25, which was the main driver of the cross border take rate reducing by 11bps YoY to 56bps in Q3.\" — Wise Plc Trading Update Jan 16, 2025. \"Across all providers/corridors/payment methods we examined, pricing was down on average to 3.25% (vs. 3.46% last Q).\" — J.P. Morgan Research Feb 3, 2025.",
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      "kind": "title",
      "text": "Remitly Claims To Manage Its Business On Transaction Data, But Won't Disclose Transactions",
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