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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 021-344104
Remitly Global, Inc.
(Exact name of registrant as specified in its charter)
Delaware737283-2301143
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
1111 Third Avenue,Suite 2100Seattle,WA98101
(Address of Principal Executive Offices)(Zip Code)
(888) 736-4859
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 par valueRELYThe Nasdaq Global Select Market
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of August 5, 2022, the registrant had 168,039,750 shares of common stock, $0.0001 par value per share, outstanding.


Table of Contents
TABLE OF CONTENTSPage(s)
Part IFinancial Information
Item 1.
Item 2.
Item 3.
Item 4
Part IIOther Information
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.


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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and the plans and objectives of management, are forward-looking statements. In some cases you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. These forward-looking statements include, but are not limited to, statements concerning the following:
•    our expectations regarding our revenue, expenses, and other operating results;
•    our ability to acquire new customers and successfully retain existing customers;
•    our ability to develop new products and services and bring them to market in a timely manner;
•    our ability to achieve or sustain our profitability;
•    our ability to maintain and expand our strategic relationships with third parties;
•    our business plan and our ability to effectively manage our growth;
•    our market opportunity, including our total addressable market;
•    anticipated trends, growth rates, and challenges in our business and in the markets in which we operate;
•    our ability to attract and retain qualified employees;
•    the COVID-19 pandemic, and its impact on our employees, customers, strategic partners, vendors, results of operations, liquidity, and financial condition;
•    uncertainties regarding the impact of general economic and market conditions, including as a result of regional and global conflicts or related government sanctions;
•    our ability to maintain the security and availability of our solutions;
•    our ability to maintain our money transmission licenses and other regulatory approvals;
•    our ability to maintain and expand internationally; and
•    our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions.
You should not place undue reliance on our forward-looking statements and you should not rely on forward-looking statements as predictions of future events. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q speak only as of the date of this report. We undertake no obligation to update any forward-looking statements made in this report to reflect events or circumstances after the date of this report or to reflect new information or the occurrence of unanticipated events, except as required by law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” in this Quarterly Report on Form 10-Q. New risks emerge from time to time. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.
Unless the context otherwise requires, the terms “Remitly Global,” “Remitly,” “the Company,” “we,” “us,” and “our” in this Quarterly Report on Form 10-Q refer to Remitly Global, Inc. and our consolidated subsidiaries, taken as a whole.

ii

Table of Contents
Part 1. Financial Information
Item 1. Financial Statements (Unaudited)
REMITLY GLOBAL, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
June 30,December 31,
20222021
Assets
Current assets
Cash and cash equivalents$429,709 $403,262 
Disbursement prefunding159,500 119,627 
Customer funds receivable, net95,209 67,215 
Prepaid expenses and other current assets19,680 17,448 
Total current assets704,098 607,552 
Restricted cash51 51 
Property and equipment, net10,237 9,249 
Operating lease right-of-use assets10,146 5,302 
Other noncurrent assets, net3,578 3,510 
Total assets$728,110 $625,664 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$5,459 $1,210 
Customer liabilities129,694 70,483 
Accrued expenses and other current liabilities113,998 66,683 
Operating lease liabilities2,726 3,240 
Total current liabilities251,877 141,616 
Operating lease liabilities, noncurrent7,933 2,907 
Other noncurrent liabilities1,075 813 
Total liabilities$260,885 $145,336 
Commitments and Contingencies (Note 14)
Stockholders' equity
Common stock, $0.0001 par value; 725,000,000 shares authorized as of June 30, 2022 and December 31, 2021 both; 167,789,651 and 164,239,555 shares issued and outstanding, as of June 30, 2022 and December 31, 2021, respectively
17 16 
Additional paid-in capital789,221 739,503 
Accumulated other comprehensive (loss) income(1,014)253 
Accumulated deficit(320,999)(259,444)
Total stockholders' equity467,225 480,328 
Total liabilities and stockholders' equity$728,110 $625,664 

The accompanying notes are an integral part of these condensed consolidated financial statements.
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Table of Contents
REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Revenue$157,255 $111,050 $293,269 $202,106 
Costs and expenses
Transaction expenses(1)
60,826 46,505 117,089 87,615 
Customer support and operations(1)
16,855 11,799 30,725 20,430 
Marketing(1)
43,849 26,158 84,470 52,274 
Technology and development(1)
36,083 15,198 59,658 26,842 
General and administrative(1)
37,509 12,008 60,851 22,890 
Depreciation and amortization1,510 1,326 3,027 2,571 
Total costs and expenses196,632 112,994 355,820 212,622 
Loss from operations(39,377)(1,944)(62,551)(10,516)
Interest income439 5 475 10 
Interest expense(332)(277)(645)(536)
Other income, net1,687 1,222 2,356 2,648 
Loss before provision for income taxes(37,583)(994)(60,365)(8,394)
Provision for income taxes662 454 1,190 824 
Net loss attributable to common stockholders$(38,245)$(1,448)$(61,555)$(9,218)
Net loss per share attributable to common stockholders:
Basic and diluted$(0.23)$(0.06)$(0.37)$(0.40)
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted166,498,333 23,717,827 165,450,862 23,216,865 
__________________
(1) Exclusive of depreciation and amortization, shown separately, above.

The accompanying notes are an integral part of these condensed consolidated financial statements.


2

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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net loss$(38,245)$(1,448)$(61,555)$(9,218)
Other comprehensive income (loss):
Foreign currency translation adjustments(1,271)16 (1,267)(16)
Comprehensive loss$(39,516)$(1,432)$(62,822)$(9,234)

The accompanying notes are an integral part of these condensed consolidated financial statements.
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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
For the Three Months Ended June 30, 2022 and 2021
(in thousands, except share data)
(unaudited)
Three Months Ended June 30, 2022
Redeemable Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders' Equity
SharesAmountSharesAmount
Balances as of April 1, 2022 $ 166,138,369 $17 $753,983 $257 $(282,754)$471,503 
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting of restricted stock units— — 1,653,909 — 2,154 — — 2,154 
Taxes paid related to net share settlement of equity awards— — (2,627)— (30)— — (30)
Stock-based compensation expense— — — — 33,114 — — 33,114 
Other comprehensive loss— — — — — (1,271)— (1,271)
Net loss— — — — — — (38,245)(38,245)
Balance as of June 30, 2022 $ 167,789,651 $17 $789,221 $(1,014)$(320,999)$467,225 
Three Months Ended June 30, 2021
Redeemable Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders'
Deficit
SharesAmountSharesAmount
Balances as of April 1, 2021127,410,631 $390,707 24,996,854 $2 $11,392 $559 $(228,458)$(216,505)
Issuance costs incurred for the issuance of Series F redeemable convertible preferred stock— (20)— — — — — — 
Issuance of common stock— — 25,759 — 169 — — 169 
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting restricted stock units— — 1,363,030 1 2,929 — — 2,930 
Stock-based compensation expense— — — — 2,703 — — 2,703 
Other comprehensive income— — — — — 16 — 16 
Net loss— — — — — — (1,448)(1,448)
Balance as of June 30, 2021127,410,631 $390,687 26,385,643 $3 $17,193 $575 $(229,906)$(212,135)
The accompanying notes are an integral part of these condensed consolidated financial statements.

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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
For the Six Months Ended June 30, 2022 and 2021
(In thousands, except share data)
(unaudited)
Six Months Ended June 30, 2022
Redeemable Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders' Equity
SharesAmountSharesAmount
Balance as of January 1, 2022 $ 164,239,555 $16 $739,503 $253 $(259,444)$480,328 
Issuance of common stock in connection with ESPP— — 202,213 — 1,882 — — 1,882 
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting restricted stock units— — 3,350,510 1 4,831 — — 4,832 
Taxes paid related to net shares settlement of equity awards— — (2,627)— (30)— — (30)
Stock-based compensation expense— — — — 43,035 — — 43,035 
Other comprehensive loss— — — — — (1,267)— (1,267)
Net loss— — — — — — (61,555)(61,555)
Balance as of June 30, 2022 $ 167,789,651 $17 $789,221 $(1,014)$(320,999)$467,225 
Six Months Ended June 30, 2021
Redeemable Convertible
Preferred Stock
Common StockAdditional
Paid-in
Capital
Accumulated
Other
Comprehensive
Income
Accumulated
Deficit
Total
Stockholders'
Deficit
SharesAmountSharesAmount
Balance as of January 1, 2021127,082,605 $387,707 24,289,906 $2 $8,766 $591 $(220,688)$(211,329)
Issuance of Series F redeemable convertible preferred stock, net of issuance costs328,026 2,980 — — — — — — 
Issuance of common stock— — 25,759 — 169 — — 169 
Issuance of common stock upon exercise of stock options, including early exercised options, and vesting restricted stock units— — 2,069,978 1 4,033 — — 4,034 
Stock-based compensation expense— — — — 4,225 — — 4,225 
Other comprehensive loss— — — — — (16)— (16)
Net loss— — — — — — (9,218)(9,218)
Balance as of June 30, 2021127,410,631 $390,687 26,385,643 $3 $17,193 $575 $(229,906)$(212,135)
The accompanying notes are an integral part of these condensed consolidated financial statements.

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REMITLY GLOBAL, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended June 30,
20222021
Cash flows from operating activities
Net loss$(61,555)$(9,218)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization3,027 2,571 
Stock-based compensation expense, net42,135 4,225 
Other179 (38)
Changes in operating assets and liabilities:
Disbursement prefunding(39,873)50,310 
Customer funds receivable(29,868)(8,863)
Prepaid expenses and other assets(2,687)(5,527)
Operating lease right-of-use assets1,743 1,336 
Accounts payable4,317 1,845 
Customer liabilities60,279 17,376 
Accrued expenses and other liabilities50,395 7,937 
Operating lease liabilities(2,062)(1,678)
Net cash provided by operating activities26,030 60,276 
Cash flows from investing activities
Purchases of property and equipment(1,492)(671)
Capitalized internal-use software costs(1,688)(1,581)
Net cash used in investing activities(3,180)(2,252)
Cash flows from financing activities
Proceeds from issuance of Series F convertible preferred stock, net of issuance costs 2,980 
Proceeds from exercise of stock options4,467 4,374 
Taxes paid related to net share settlement of equity awards(30) 
Repayments of revolving credit facility borrowings, net (80,000)
Net cash provided by (used in) financing activities4,437 (72,646)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash(840)181 
Net increase (decrease) in cash, cash equivalents and restricted cash26,447 (14,441)
Cash, cash equivalents, and restricted cash at beginning of period403,313 188,075 
Cash, cash equivalents, and restricted cash at end of period$429,760 $173,634 
Supplemental disclosure of cash flow information
Cash paid for interest$465 $497 
Cash paid for income taxes829 93 
Supplemental disclosure of noncash investing and financing activities
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$6,932 $251 
Vesting of early exercised options393 101 
Noncash issuance shares through Employee Stock Purchase Plan1,882  
Stock compensation capitalized to internal-use software900  
IPO costs incurred but not yet paid 1,231 
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents$429,709 $173,363 
Restricted cash51 271 
Total cash, cash equivalents and restricted cash$429,760 $173,634 
The accompanying notes are an integral part of these condensed consolidated financial statements.

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REMITLY GLOBAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1.    Organization and Description of Business
Description of Business
Remitly Global, Inc. (the “Company” or “Remitly”) was incorporated in the State of Delaware in October 2018 and is headquartered in Seattle, Washington, with various other global office locations.
Remitly is a leading digital financial services provider for immigrants and their families in over 170 countries, helping customers send money internationally in a quick, reliable, and more cost-effective manner, by leveraging digital channels and supporting cross-border transmissions across the globe.
Unless otherwise expressly stated or the context otherwise requires, the terms “Remitly” and the “Company” in these notes to the condensed consolidated financial statements refer to Remitly Global, Inc. and its wholly owned subsidiaries.

Initial Public Offering and Private Placement
In September 2021, the Company completed its initial public offering (the “IPO”), in which the Company issued and sold 7,000,000 shares of its common stock at $43.00 per share. Concurrently, 5,162,777 shares were sold by certain of the Company’s existing stockholders. In addition, the Company issued 581,395 shares of common stock to an existing stockholder in a private placement at the same offering price as the IPO. The Company received net proceeds of $305.2 million for the IPO and private placement, after deducting underwriting discounts and other fees of $20.8 million. In connection with the IPO, 127,410,631 shares of outstanding redeemable convertible preferred stock automatically converted into an equivalent number of shares of common stock on a one-to-one basis.
2.    Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP and therefore the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the historical audited annual consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2021.
The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company’s consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. The interim results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or for any other future annual or interim period.
Principles of Consolidation
The condensed consolidated financial statements include the accounts of Remitly Global, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Use of Estimates
The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition including the treatment of sales incentive programs, reserves for transaction losses, stock-based compensation expense including the estimated fair value per share of common stock, the carrying value of operating lease right-of-use assets, the recoverability of deferred tax assets, and capitalization of software development costs. The Company bases its estimates on historical experience and on assumptions that management considers reasonable. Actual results could differ from these estimates and assumptions, and these differences could be material to the condensed consolidated financial statements.
Concentration of Credit Risk
Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, disbursement prefunding, restricted cash, and customer funds receivable. The Company maintains cash and cash equivalents and restricted cash balances that may exceed the insured limits by the Federal Deposit Insurance Corporation. In addition, the Company funds its international operations using accounts with institutions in the major countries where its subsidiaries operate. The Company also prefunds amounts which are held by its disbursement partners, which are typically located in India, Philippines and Mexico. The Company has not experienced any significant losses

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on its deposits of cash and cash equivalents, disbursement prefunding, restricted cash or customer funds receivable in the three and six months ended June 30, 2022 and 2021.
For the three and six months ended June 30, 2022 and 2021, no individual customer represented 10% or more of the Company’s total revenue or customer funds receivable.
Trade Settlement Liabilities
Our trade settlement liability represents the total of book overdrafts and disbursement postfunding liabilities owed to our disbursement partners. Book overdrafts are created when the sum of outstanding checks related to a specific bank account are in excess of funds on deposit for the respective bank account. Disbursement postfunding liabilities are created when the sum of customer transactions related to a specific account held with a disbursement partner are in excess of funds on deposit for the respective account. Book overdrafts and disbursement postfunding liabilities totaled $63.8 million and $18.9 million as of June 30, 2022 and December 31, 2021, respectively, and were classified as ‘Accrued expenses and other current liabilities’ in the Condensed Consolidated Balance Sheets. The Company’s policy is to report the change in book overdrafts and prefunding liabilities as an operating activity in the Consolidated Statements of Cash Flows based on the underlying nature of the transactions.
Deferred Offering Costs
Prior to the IPO, deferred offering costs, which consist of direct incremental legal, accounting, and consulting fees relating to the IPO, were capitalized and included in ‘Other noncurrent assets’ on the Condensed Consolidated Balance Sheets. Upon completion of the IPO in September 2021, the Company reclassified $4.3 million of deferred offering costs to additional-paid-in capital offsetting the IPO proceeds.
Advertising
Advertising expenses are charged to operations as incurred and are included as a component of Marketing Expenses within the Condensed Consolidated Statements of Operations. Advertising expenses are used primarily to attract new customers. Advertising expenses totaled $36.0 million and $22.0 million during the three months ended June 30, 2022 and 2021, respectively. Advertising expenses totaled $70.6 million and $44.5 million during the six months ended June 30, 2022 and 2021, respectively.
Out-of-Period Adjustment
The condensed consolidated financial statements for the three months ended June 30, 2022 include an adjustment of $6.3 million to stock-based compensation expense and additional paid-in capital, to correct for an error identified by management during the preparation of the financial statements for the three months ended June 30, 2022. This adjustment is to reflect the straight-lining of expense over the full service period for graded-vested stock-based compensation awards under ASC 718, of which $1.9 million relates to the three months ended March 31, 2022, and the remaining $4.4 million amount relates to prior annual fiscal periods. Management has determined that this error was not material to the historical financial statements in any individual period or in the aggregate and did not result in the previously issued financial statements being materially misstated. Additionally, although the impact to the three months ended June 30, 2022 is material, the impact to full year 2022 expected results is not material. As such, management recorded the correction as an out-of-period adjustment in the three months ended June 30, 2022. Substantially all of the cumulative adjustment was related to stock-based compensation for personnel who support our general and administrative functions and was recorded to general and administrative expenses in the three months ended June 30, 2022.
Summary of Significant Accounting Policies
The Company’s significant accounting policies are discussed in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies” in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes to these policies during the three months ended June 30, 2022, except as noted below.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements (“ASU”)
In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other Internal-Use Software (Subtopic 350-40),Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. Under existing U.S. GAAP, there is diversity in practice in accounting for the costs of implementing cloud computing arrangements (“CCA”) that are service contracts. The standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard also requires the presentation of the amortization of the capitalized implementation costs in the same line item in the consolidated statements of comprehensive loss as the fees associated with the hosting arrangement. The new standard is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021 with early adoption permitted. This ASU was adopted on a prospective basis for the fiscal year ended December 31, 2021. The Company assessed the impact of the guidance to its consolidated financial statements for the three and six months ended June 30, 2021 and concluded that the standard did not have a material impact on its financial statements. See Note 4. for further disclosure of the ongoing impact of ASU 2018-15 to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2022.

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Accounting Pronouncements Not Yet Adopted
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments- Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU replaces the existing incurred loss impairment methodology that recognizes credit losses when a probable loss has been incurred with new methodology pursuant to which loss estimates are based upon lifetime expected credit losses. The amendments in this ASU require a financial asset that is measured at amortized cost to be presented at the net amount expected to be collected. The consolidated statements of operations would then reflect the measurement of credit losses for newly recognized financial assets as well as changes to the expected credit losses that have taken place during the reporting period. The change in allowance recognized as a result of adoption will occur through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the ASU is adopted. The new standard is effective for fiscal years beginning after December 15, 2022, and interim periods within that fiscal year with early adoption permitted. The Company is currently assessing the impact of the guidance on its consolidated financial statements.
There are new accounting pronouncements issued by the FASB that we have adopted or will adopt, as applicable. We do not believe any of these accounting pronouncements have had, or will have, a material impact on our consolidated financial statements or disclosures.
3.    Revenue    
The Company’s primary source of revenue is generated from its remittance business. Revenue is earned from transaction fees charged to customers who are sending remittances and the foreign exchange spreads earned between the foreign exchange rate offered to customers and the foreign exchange rate on the Company’s currency purchases. Revenue is recognized when control of these services is transferred to the Company’s customers, which is the time the funds have been delivered to the intended recipient in an amount that reflects the consideration the Company expects to be entitled to in exchange for services provided. The Company accounts for revenue in accordance with Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (Topic 606), which includes the following steps:
(1)identification of the contract with a customer;
(2)identification of the performance obligations in the contract;
(3)determination of the transaction price;
(4)allocation of the transaction price to the performance obligations in the contract; and
(5)recognition of revenue when, or as, the Company satisfies a performance obligation.
Customers engage the Company to perform one integrated service — collect the customer’s money and deliver funds to the intended recipient in the currency requested. Payment is generally due from the customer upfront upon initiation of a transaction, when the customer simultaneously agrees to the Company’s terms and conditions.
Revenue is derived from each transaction and varies based on the funding method chosen by the customer, the size of the transaction, the currency to be ultimately disbursed, the rate at which the currency was purchased, and the countries to which the funds are transferred. The Company’s contract with customers can be terminated by the customer without a termination penalty up until the time the funds have been delivered to the intended recipient. Therefore, the Company’s contracts are defined at the transaction level and do not extend beyond the service already provided.
The Company’s service comprises a single performance obligation to complete transactions for the Company’s customers. Using compliance and risk assessment tools, the Company performs a transaction risk assessment on individual transactions to determine whether a transaction should be accepted. When the Company accepts a transaction and processes the designated payment method of the customer, the Company becomes obligated to its customer to complete the payment transaction, at which time a receivable is recorded, along with a corresponding customer liability. None of the Company’s contracts contain a significant financing component.
The Company recognizes transaction revenue on a gross basis as it is the principal for fulfilling payment transactions. As the principal to the transaction, the Company controls the service of completing payments on its payment platform. The Company bears primary responsibility for the fulfillment of the payment service, is the merchant of record, contracts directly with its customers, controls the product specifications, and defines the value proposition of its services. The Company is also responsible for providing customer support. Further, the Company has full discretion over determining the fee charged to its customers, which is independent of the cost it incurs in instances where it may utilize payment processors or other financial institutions to perform services on its behalf. These fees paid to payment processors and other financial institutions are recognized as transaction expenses in the condensed consolidated statements of operations. The Company does not have any capitalized contract acquisition costs.

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Deferred Revenue
The deferred revenue balances from contracts with customers were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2022202120222021
Deferred revenue, beginning of the period$1,068 $1,111 $1,212 $1,105 
Deferred revenue, end of the period1,084 1,126 1,084 1,126 
Change in deferred revenue during the period16 15 (128)21 
Revenue recognized during the three month periods ended June 30, 2022 and 2021 from amounts included in deferred revenue at the beginning of the period were $0.4 million and $0.3 million, respectively.
Revenue recognized during the six month periods ended June 30, 2022 and 2021 from amounts included in deferred revenue at the beginning of the period were $0.5 million and $0.3 million, respectively.
Deferred revenue represents amounts received from customers for which the performance obligations are not yet fulfilled. Deferred revenue is primarily included within ‘Accrued expenses and other current liabilities’ on the Condensed Consolidated Balance Sheets, as the performance obligations are expected to be fulfilled within the next year.
Sales Incentives
The Company provides sales incentives to customers in a variety of forms. Cash incentives given to customers are accounted for as reductions to revenue, up to the point where net historical cumulative revenue, at the customer level, is reduced to zero. Those additional incentive costs that would have caused the customer level revenue to be negative are classified as advertising expenses and are included as a component of ‘Marketing expenses’ within the Condensed Consolidated Statement of Operations. In addition, referral credits given to a referrer are classified as marketing expenses.
During the three months ended June 30, 2022 and 2021, payments made to customers resulted in reductions to revenue of $5.9 million and $4.7 million, respectively, and charges to sales and marketing expense of $4.9 million and $2.9 million, respectively.
During the six months ended June 30, 2022 and 2021, payments made to customers resulted in reductions to revenue of $10.8 million and $9.0 million, respectively, and charges to sales and marketing expense of $8.6 million and $5.8 million, respectively.
4.    Property and Equipment
Property and equipment, net consisted of the following:
June 30,December 31,
(in thousands)20222021
Capitalized internal-use software$11,609 $9,022 
Computer and office equipment5,220 4,700 
Furniture and fixtures1,944 1,445 
Leasehold improvements6,640 6,655 
Projects in Process163 533 
25,576 22,355 
Less: Accumulated depreciation and amortization(15,339)(13,106)
Property and equipment, net$10,237 $9,249 
Depreciation and amortization expense related to property and equipment was $1.5 million and $3.0 million for the three and six months ended June 30, 2022, respectively, and $1.4 million and $2.6 million for the three and six months ended June 30, 2021, respectively.
Capitalized Internal-Use Software Costs
There has been no impairment of previously capitalized costs during the three and six months ended June 30, 2022 and 2021.
Three months ended June 30, 2022 and 2021
The Company capitalized $1.5 million and $0.6 million for internal-use software costs for three month periods ended June 30, 2022 and 2021, respectively. The Company capitalized $0.6 million of stock-based compensation costs to internal-use software during the three month period ended June 30, 2022. The Company capitalized inconsequential amounts of stock-based compensation costs to internal-use software during the three

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months ended June 30, 2021. The Company recorded amortization expense of $0.7 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively.
Six months ended June 30, 2022 and 2021
The Company capitalized $2.6 million and $1.5 million for internal-use software costs during the six months ended June 30, 2022 and 2021, respectively. The Company capitalized $0.9 million of stock-based compensation costs to internal-use software during the six months ended June 30, 2022. The Company capitalized inconsequential amounts of stock-based compensation costs to internal-use software during the six months ended June 30, 2021. The Company recorded amortization expense of $1.4 million and $1.2 million for the six months ended June 30, 2022 and 2021, respectively.
Capitalized Cloud Computing Arrangements

The Company capitalized $0.3 million and $0.7 million related to the implementation of cloud computing arrangements and recorded amortization expense of $0.1 million and $0.3 million during the three and six months ended June 30, 2022. As of June 30, 2022, capitalized costs, net of accumulated amortization, were approximately $1.3 million, of which $0.3 million was recorded within ‘Prepaid expenses and other current assets’ and $1.0 million was recorded within ‘Other noncurrent assets, net’ on the Company’s Condensed Consolidated Balance Sheets.
Amortization expense related to cloud computing arrangements for the three and six months ended June 30, 2022 was as follows:
Three Months Ended
Six Months Ended
(in thousands)
June 30, 2022
Technology and development
$137 $247 
General and administrative
6 15 
Total amortization
$143 $262 
The Company assessed the impact of the guidance to its consolidated financial statements for the three and six months ended and as of June 30, 2021 and concluded that the standard did not have a material impact on its financial statements.

5.    Fair Value Measurements
The following table presents information about the Company’s financial assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used as of June 30, 2022:
As of June 30, 2022
(in thousands)Level 1Level 2Level 3Total
Assets
Cash and cash equivalents
Term deposits$ $50,000 $ $50,000 
Total assets$ $50,000 $ $50,000 
Term deposits as of June 30, 2022 were classified as cash equivalents on the Company’s condensed consolidated balance sheet, as such amounts were considered highly liquid and have an original maturity of three months or less at the time of purchase. The carrying value of term deposits approximated their respective fair value due to the short maturity of the amounts. For further information on the Company’s Cash and Cash Equivalents and Fair Value of Financial Instruments policies, see Note 2, “Basis of Presentation and Summary of Significant Accounting Policies”, in the notes to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
The carrying values of certain financial instruments, including disbursement prefunding, customer funds receivable, accounts payable, accrued expenses and other current liabilities, customer liabilities, and borrowings approximate their respective fair values due to their relative short maturities and are excluded from the fair value table above. If these financial instruments were measured at fair value in the financial statements, they would be classified as Level 2. There are no other financial assets and liabilities that are measured at fair value as of June 30, 2022.
There were no financial assets and liabilities that are measured at fair value as of December 31, 2021.
There were no transfers between Level 1 and Level 2 during the three and six months ended June 30, 2022 and 2021, other than the investment of our cash and cash equivalents into a term deposit during 2022.

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6.    Debt
Secured Revolving Credit Facility
New Revolving Credit Facility
On September 13, 2021, Remitly Global, Inc. and Remitly, Inc., a wholly owned subsidiary of Remitly Global, Inc., as co-borrowers, entered into a credit agreement (the “New Revolving Credit Facility”) with certain lenders and JPMorgan Chase Bank, N.A. acting as administrative agent and collateral agent, that provides for revolving commitments of $250.0 million (including a $60.0 million letter of credit sub-facility) and terminated its then-existing 2020 Credit Agreement (as defined below). Proceeds under the New Revolving Credit Facility are available for working capital and general corporate purposes. As part of the refinancing, the Company performed a debt modification analysis, utilizing the borrowing capacity test within ASC 470-50, Debt — Modification and Extinguishment, on a lender-by-lender basis, resulting in the capitalization of $1.4 million of new debt issuance costs incurred in connection with the New Revolving Credit Facility during the third quarter of 2021. Such amounts were capitalized and recorded within ‘Other noncurrent assets, net’ on the Condensed Consolidated Balance Sheet, and will be amortized to interest expense over the term of the New Revolving Credit Facility. The Company previously had $0.5 million of unamortized debt issuance costs associated with its existing Revolving Credit Facility. As a result of the debt modification analysis, the Company continues to amortize $0.4 million of unamortized debt issuance costs over the term of the New Revolving Credit Facility. The remaining $0.1 million was expensed as a debt extinguishment cost within interest expense in the condensed consolidated statements of operations during the third quarter of 2021.

The New Revolving Credit Facility was used to refinance its existing 2020 Credit Agreement. The New Revolving Credit Facility has a maturity date of September 13, 2026. Borrowings under the New Revolving Credit Facility accrue interest at a floating rate per annum equal to, at the Company’s option, (1) the Alternate Base Rate (defined in the New Revolving Credit Facility as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect for such day plus 0.50% and (c) the Adjusted LIBO Rate plus 1.00%, subject to a floor of 1.00% plus 0.50% or (2) the Adjusted LIBO Rate (subject to a floor of 0.00%) plus 1.50%. Such interest is payable (a) with respect to Alternate Base Rate loans, the last day of each March, June, September and December and (b) with respect to Adjusted LIBO Rate loans, at the end of each applicable interest period, but in no event less frequently than every three months. In addition, an unused commitment fee, which accrues at a rate per annum equal to 0.25% of the unused portion of the revolving commitments, is payable on the last day of each March, June, September and December.

The New Revolving Credit Facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the ability to dispose of assets, merge with other entities, incur indebtedness, grant liens, pay dividends or make other distributions to holders of its capital stock, make investments, enter into restrictive agreements or engage in transactions with affiliates. As of June 30, 2022, financial covenants in the New Revolving Credit Facility include (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which is tested quarterly and (2) a requirement to maintain a minimum Liquidity of $100.0 million, which is tested quarterly. The Company was in compliance with all financial covenants under the New Revolving Credit Facility as of June 30, 2022 and December 31, 2021.

The obligations under the New Revolving Credit Facility are guaranteed by the material domestic subsidiaries of Remitly Global, Inc., subject to customary exceptions, and are secured by substantially all of the assets of the borrowers and guarantors thereunder, subject to customary exceptions. Amounts of borrowings under the New Revolving Credit Facility may fluctuate depending upon transaction volumes and seasonality.

As of June 30, 2022 and December 31, 2021, the Company had no outstanding borrowings under the New Revolving Credit Facility. As of June 30, 2022 and December 31, 2021, the Company had $19.6 million and $18.9 million, respectively, in issued, but undrawn, standby letters of credit. As of June 30, 2022 and December 31, 2021, the Company had unused borrowing capacity of $230.4 million and $231.1 million, respectively, under the New Revolving Credit Facility.

2020 Credit Agreement
Since 2013, the Company had access to a variable rate credit facility. In November 2020, Remitly Global, Inc. and Remitly, Inc., a wholly owned subsidiary of Remitly Global, Inc., as borrower, further modified its then-existing credit agreement (the “2020 Credit Agreement”). Following such modification, the 2020 Credit Agreement provided Remitly, Inc. with access up to $150.0 million in revolving credit facility borrowings (including a $30.0 million letter of credit sub-facility) with a maturity date of November 16, 2023. As noted above, in September 2021, the New Revolving Credit Facility was used to refinance the 2020 Credit Agreement. As a result of the refinancing, the 2020 Credit Agreement was terminated and all amounts outstanding, including any accrued interest, were repaid in full.
Borrowings under the 2020 Credit Agreement were subject to mandatory repayment within 20 business days in an amount necessary to reduce the borrowings, in the aggregate, to an amount less than the Company’s customer funds account maintained with the lender. Interest on borrowings under the 2020 Credit Agreement accrued at a floating rate per annum equal to (i) ABR (defined in the 2020 Credit Agreement as the rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) 3.25% and (c) the Federal Funds Effective Rate in effect for such day plus 0.50% plus (ii) 1.0%. In addition, an unused revolving line facility fee accrued at a floating rate per annum equal to 0.40% of the unused portion of the line, payable monthly.

The 2020 Credit Agreement contained customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability to dispose of assets, merge with or acquire other entities, incur indebtedness, pay dividends, incur encumbrances, make distributions to holders of its capital stock, make investments or engage in transactions with affiliates. Defined events of default included the

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occurrence of a Material Adverse Effect (as defined in the 2020 Credit Agreement) on the business or financial condition of the Company. Financial covenants included (1) a requirement to maintain a minimum Adjusted Quick Ratio of 1.50:1.00, which was tested monthly and (2) a requirement to maintain minimum trailing twelve month Consolidated Adjusted EBITDA (as defined in the 2020 Credit Agreement), which was tested quarterly.

The obligations under the 2020 Credit Agreement were guaranteed by the material subsidiaries of Remitly Global, Inc., subject to customary exceptions, and were secured by substantially all of the assets of the borrowers and guarantors thereunder, other than intellectual property.

7.    Net Loss Per Common Share
The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders for the periods indicated. As the Company reported a net loss, diluted net loss per share was the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive for all periods presented.
Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except share and per share amounts)2022202120222021
Numerator:
Net loss$(38,245)$(1,448)$(61,555)$(9,218)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders:
Basic and diluted166,498,33323,717,827 165,450,862 23,216,865 
Net loss per share attributable to common stockholders:
Basic and diluted$(0.23)$(0.06)$(0.37)$(0.40)
The following potentially dilutive securities were excluded from the computation of diluted net loss per share calculations for the periods presented because the impact of including them would have been antidilutive:
As of June 30,
20222021
Redeemable convertible preferred stock 127,410,631 
Common stock warrants 256,250 
Stock options outstanding20,158,090 25,355,906
RSUs outstanding(1)
17,245,351 617,696 
ESPP1,693,831 
Shares subject to repurchase278,1551,979,669
Total39,375,427155,620,152
(1) A portion of these RSUs were subject to a performance-based vesting condition until September 22, 2021. See Note 10 for details on these awards.
8.    Common Stock
As of June 30, 2022, the Company has authorized 725,000,000 shares of common stock with a par value of $0.0001 per share. Each holder of a share of common stock is entitled to one vote for each share held at all meetings of stockholders and is entitled to receive dividends whenever funds are legally available and when declared by the Company’s board of directors. Through June 30, 2022 and June 30, 2021, no dividends have been declared or paid by the Company.
9.    Redeemable Convertible Preferred Stock
In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share with right and preferences, including voting rights, designated from time to time by the Company’s board of directors.
As of June 30, 2022 and December 31, 2021, there were no
shares of redeemable convertible preferred stock issued and outstanding.
10.    Stock-Based Compensation
In 2011, the Company adopted the Equity Incentive Plan (the “2011 Plan”), as amended, which provided for the issuance of up to 43,899,677 incentive stock options, nonqualified stock options, restricted common stock, RSUs and stock appreciation rights to employees, directors, officers, and consultants of the Company.
In September 2021, the Company adopted the Remitly Global, Inc. 2021 Equity Incentive Plan (the “2021 Plan”, and together with the 2011 Plan, the “Plan”) as a successor to the 2011 Plan. The 2021 Plan authorizes the issuance of incentive stock options, nonqualified stock options,

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restricted common stock, stock appreciation rights, RSUs, and performance and stock bonus awards. Pursuant to the 2021 Plan, incentive stock options may be granted only to Company employees. The Company may grant all other types of awards to its employees, directors, and consultants. The 2021 Plan is administered by the Company’s board of directors, which determines the terms of the grants, including exercise price, number of equity awards granted, and vesting schedule. The 2021 Plan provided for the initial issuance of up to 25,000,000 shares of common stock, plus any reserved shares not issued or subject to outstanding grants under the 2011 Plan, which was 552,736 on the effective date of the 2021 Plan, for a total of 25,552,736 shares initially reserved for issuance under the 2021 Plan. Beginning in January 2022, the number of shares reserved for issuance under the 2021 Plan will increase automatically on January 1 of each year through 2031 by the number of shares equal to 5% of the aggregate number of outstanding shares of all classes of common stock as of the immediately preceding December 31, or a lesser number as may be determined by the Company’s talent and compensation committee, or by the Company’s board of directors acting in place of the talent and compensation committee. In January 2022, there was an increase in the shares reserved for issuance under the 2021 Plan, in accordance with the automatic increase provision.
In addition, in September 2021, the Company adopted the Remitly Global, Inc. 2021 ESPP (the “ESPP”) to enable eligible employees to purchase shares of common stock with accumulated payroll deductions at a discount. The ESPP provided for the initial issuance of up to 3,500,000 shares of common stock. Beginning in January 2022, the number of shares reserved for issuance and sale under the ESPP will increase automatically on January 1 of each year through 2031 by the number of shares equal to 1% of the aggregate number of outstanding shares of all classes of common stock as of the immediately preceding December 31, or a lesser number as may be determined by the Company’s talent and compensation committee, or by the Company’s board of directors acting in place of the talent and compensation committee. Subject to stock splits, recapitalizations, or similar events, no more than 35,000,000 shares of common stock may be issued over the term of the ESPP. The ESPP is intended to qualify under Section 423 of the Code, provided that the administrator may adopt sub-plans under the ESPP designed to be outside of the scope of Section 423 for participants who are non-U.S. residents. In January 2022, there was an increase in the shares reserved for issuance under the 2021 ESPP Plan, in accordance with the automatic increase provision.

As of June 30, 2022, 17,943,086 equity incentive awards remain available for issuance under the 2021 Plan and 4,940,182 shares of common stock remain available for issuance under the ESPP.
Stock Options
Stock options granted under the Plan generally vest over a period from two years to four years from the vesting commencement date on a monthly basis with or without a one-year cliff or, for nonemployees, ratably on a monthly basis over a shorter period, depending upon anticipated duration of services. Other vesting terms are determined by the Company’s board of directors. All options granted under the Plan are exercisable for up to ten years from the grant date, subject to vesting. In the event of termination of service, options will generally remain exercisable, to the extent vested, for three months following the termination of service.
The following is a summary of the Company’s stock option activity during the six months ended June 30, 2022:
Stock Options
(in thousands, except share and per share amounts)Number of Options OutstandingWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value (1)
Balances as of January 1, 2022
23,386,942 $3.70 7.66$395,676 
Granted  
Exercised(2,420,413)1.84 19,282 
Forfeited(808,439)4.48 
Balances as of June 30, 2022
20,158,090 3.91 7.2981,886 
Vested and exercisable as of June 30, 2022
10,856,326 2.33 6.4058,377 
Vested and expected to vest as of June 30, 2022
20,391,245 $3.90 7.29$82,955 
_________________
(1)The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock options and the estimated fair value of the Company’s common stock.

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The fair value of each employee stock option granted during the three and six months ended June 30, 2021 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:
Three Months Ended June 30,Six Months Ended June 30,
20212021
Risk-free interest rates
0.83% to 1.19%
0.32% to 1.19%
Expected term
5.0 to 6.8 years
3.5 to 6.8 years
Volatility
37.8% to 38.3%
37.8% to 41.4%
Dividend rate%%
Fair value of underlying common stock
Prior to the completion of the IPO, the Company’s board of directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock at each meeting in which awards were approved. The factors considered included, but were not limited to: (i) the results of contemporaneous independent third-party valuations of the Company’s common stock; (ii) the prices, rights, preferences, and privileges of the Company’s redeemable convertible preferred stock relative to those of its common stock; (iii) the lack of marketability of the Company’s common stock; (iv) actual operating and financial results; (v) current business conditions and projections; (vi) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the Company, given prevailing market conditions; and (vii) precedent transactions involving the Company’s shares. After the completion of the IPO, the fair value of the Company’s common stock is determined by the closing price, on the date of grant, of its common stock, which is traded on the NASDAQ.
No stock options were granted during the three and six months ended June 30, 2022. The weighted-average grant date fair value of options granted during the three and six months ended June 30, 2021 was $3.84 and $3.76, respectively.
The aggregate grant-date fair value of options vested for the three and six months ended June 30, 2022 was $4.3 million and $7.1 million, respectively, and for the three and six months ended June 30, 2021 was $1.9 million and $3.3 million, respectively.
Restricted Stock Units
Prior to the IPO, the Company granted performance-based RSUs (“PRSUs”) to employees and directors that contained both service-based and performance-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff-vesting period of one year and continued vesting quarterly thereafter. The performance-based vesting condition is satisfied on the earlier of (i) the effective date of a registration statement of the Company filed under the Securities Act for the sale of the Company’s common stock or (ii) immediately prior to the closing of a change in control of the Company. Both events were not deemed probable until consummated, and therefore, stock-based compensation expense related to these PRSUs remained unrecognized prior to the effectiveness of the IPO. Upon the effectiveness of the IPO the performance-based vesting condition was satisfied, and therefore, the Company recognized cumulative stock-based compensation expense of $1.1 million, using the accelerated attribution method for the portion of the awards for which the service-based vesting condition has been fully or partially satisfied. The remaining grant-date fair value of these PRSUs is being recognized over the remaining requisite service period.
Beginning in August 2021, the Company began granting RSUs to employees and directors with service-based vesting conditions. The service-based vesting condition for these awards is typically satisfied over four years with a cliff vesting period of one year and continued vesting quarterly thereafter. The grant-date fair value of these RSUs will be recognized over the requisite service period.
Restricted stock unit activity, including PRSUs, during the six months ended June 30, 2022 was as follows:
Number of SharesWeighted-Average Grant-Date Fair Value Per Share
Unvested at January 1, 2022
3,372,585 $24.83 
Granted15,354,755 10.68 
Vested(812,858)10.15 
Cancelled/forfeited(675,918)16.55 
Unvested at June 30, 2022
17,238,564 13.24 
In addition, during the three months ended March 31, 2022, as a result of the expiration of the lock-up agreement related to its IPO, the Company issued 124,026 shares of common stock subject to RSUs that were vested as of December 31, 2021, but not yet settled.
The weighted-average grant date fair value of RSUs, including PRSUs, granted during the six months ended June 30, 2022 and 2021 was $10.68 and $4.95, respectively. The aggregate grant-date fair value of RSUs, including PRSUs, vested for the six months ended June 30, 2022 was $8.2 million. No RSUs or PRSUs vested during the three and six months ended June 30, 2021.

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Employee Stock Purchase Plan
The ESPP provides for consecutive offering periods during which eligible employees can participate in the ESPP and be granted the right to purchase shares. Except for the first offering period, which commenced on September 22, 2021, offering periods shall commence on each subsequent March 1 and September 1, with each offering period consisting of four six-month purchase periods, for a total of a 24-month offering period. No offering periods may last longer than 27 months. The offering period that commenced on September 22, 2021, ended on February 28, 2022, due to a decline in the Company’s stock price at the end of the purchase period, triggering a new offering period, as required by the ESPP plan documents. A new 24-month offering period commenced on March 1, 2022. This event was accounted for as a modification under US GAAP in the first quarter of 2022, resulting in incremental stock-based compensation expense of $3.6 million, which will be recognized over the requisite service period, which is deemed to be the new offering period.
Eligible employees can contribute up to 15% of their eligible compensation, subject to limitation as provided for in the ESPP, and purchase the common stock at a purchase price per share equal to 85% of the lesser of the fair market value of the common stock on (i) the offering date, which is defined as the first business day of the offering period, or (ii) the purchase date, which is the final business day of the purchase period.
The fair value of the ESPP offering was estimated using the Black-Scholes option-pricing model as of the offering date of March 1, 2022, using the following assumptions:
Six Months Ended June 30,
2022
Risk-free interest rates
0.60% to 1.31%
Expected term
0.5 to 2.0 years
Volatility
61.0% to 73.0%
Dividend rate %
Stock-Based Compensation Expense
Stock-based compensation expense for stock options, RSUs, PRSUs, and the ESPP, included in the condensed consolidated statements of operations, net of amounts capitalized to internal-use software, as described in Note 4, was as follows: