All right. Hello, everybody. Thank you for joining us. My name is Andrew Jeffrey. I cover FinTech here at William Blair. Chime is among our favorite names. In fact, it was our top pick formally at the beginning of the year. Still got six months to make it, to generate the alpha. We're very confident in the story. We were very bullish on Chime, and it's a pleasure to have Chris Barrett, the founder and CEO, with us today, as well as the IR team. As far as obligatory disclosures, you can find a full set of disclosures of potential conflicts on WilliamBlair.com. And Chris, I invite you to come up and take us through the story.
Thank you so much. Thank you, Andrew. My attorneys have asked me to say a few words to kick this off, so if you don't mind. My remarks today include forward-looking statements, including about our business and financial outlook. Such statements are subject to known and unknown risks and uncertainties, and actual results may differ materially. Forward-looking statements represent our belief and assumptions. Only as of the date such statements are made, we disclaim any obligation to update them except as required by law. Please refer to the Safe Harbor Agreement in our presentation and in our SEC filings. for additional information regarding risks and uncertainties. Definitions and reconciliations between our GAP and non-GAP results can also be found in our presentation. So with that, thank you all for coming. It's so great to be here. Thank you, Andrew, for hosting and the team at William Blair. This is an awesome conference, and it's really exciting for us to be able to make new connections and share our story with more people. This is that disclosure if you want to take another read. So let's start with why I created this company 14 years ago. It's for a very simple but powerful reason, which is to help everyday consumers make financial progress in their lives. We feel like we are still at the very early stages of an enormous opportunity that is right at our fingertips, which is to create a truly member-aligned financial services company that helps people make progress across all aspects of their financial life. When I started this company, I realized that there was a fundamental disconnect between the needs of mainstream everyday consumers and the services that they got from the incumbent institutions that too often relied heavily on fees and gave consumers a feeling that the bank didn't really have their best interests in mind. At Chime, we have a primary goal around developing primary everyday account relationships, and we're doing it, we believe, better than anyone. And when our members save money and avoid fees, build credit, manage their cash flow more effectively, we know that we're doing our job and helping them gain greater confidence in their financial life. And at the same time, we're building a more attractive business. We're doing it at scale, and I'm excited to share a little bit more about the results on my next few slides. So let me start with where we are today. In the United States, the past few quarters, more consumers are choosing to open up new accounts at Chime than at any other institution. I'm talking about for the checking account business. And importantly, we're seeing we continue to see great success in terms of the people that are switching their primary direct deposit relationship to Chime. If you look on the left side of the page here, we're showing that among people that have made a switch of their primary bank account relationship, where are they switching to? And look, we aren't just competing, even though we are a fintech, we aren't just competing with fintechs. This includes the biggest banking franchises in America, and we continue to lead in this area quarter after quarter. And look, when you get that direct deposit relationship, it's the clearest indicator to deep long-term financial relationships and really what we optimize for. People don't just casually move their primary direct deposit relationship. It's a trust that is earned, And once you earn it, it gives you great leverage to do more to help them make financial progress. We also made great progress just on the size of our active member base. We're now up to, at Q1, we announced an addition of 700,000 net new ads and got to 10.2 million active members. And disproportionately, these are members that are using QIIME as the primary way that they manage all of their finances. We think that these relationships that we have that are based on primary direct deposit relationships are incredibly durable, long lasting, and we're going to share a little bit more about that in the slides to come. So I think one thing that really differentiates QIIME relative to other fintechs is this level of engagement that we have. Our average customer at QIIME and our average member is doing over 50 transactions per month. this is radically different than even the other sort of top fintechs in the United States and around the world. And I think this really proves the unique type of relationship that we have with our members. The result of those deep relationships is people, as they do more transaction activity with Chime, of course, our average revenue per active member continues to grow over time. And that's what this chart on the right is showing, that as the cohorts age, we continue to see increase in the amounts of revenue that we earn from our members. The average customer is doing something like, in our last quarter, we announced $263 per average revenue per active member. But you see, as these cohorts age and people engage with more products, they naturally increase the size of the revenue opportunity. We recently launched an incredibly exciting new product called Chime Prime, which we think just fills one more necessary feature of what we believe to be the most rewarding banking experience for everyday consumers. People often ask, what is the thing that differentiates Chime relative to other companies? And it isn't a single thing. It's really the combination of benefits that come together that are incredibly compelling. We give you 5% cash back in the category of your choice, restaurants, fuel, bills, grocery, like you name it. We have a high yield savings account that pays 3.75%, which is almost 10x what you'd get at an incumbent bank. We have a range of short-term liquidity products. We believe we are, we have the leading offering in the area of earned wage access, basically giving consumers access to their paychecks on demand. We have a free option. You can get up to $500 of your paycheck for free at any point in time over the pay cycle. And if you want it instantly, you can get access to that for an industry leading price point. We are starting to push a little bit more into other types of lending and credit with our instant loan product, which is a longer duration product of three to 12 months that allows for slightly larger loans than you'd get from our overdraft product and our MyPay product. We have an overdraft product called SpotMe, which has been an incredible innovation since we launched that product. overdraft fees in America have been cut in half. I'm not going to take full credit for that, but I think we've had a little something to do with creating more competition in this area. We've got an enormous fee-free ATM network that's bigger than all the big banks out there. We've got a bunch of tools to help you get into a healthy rhythm of savings. And importantly, we don't rely on minimum balance fees or overdraft fees or all the ticky-tack things that frustrate so many consumers. And I think it's important to think about how we go to market. We don't look at these as a bunch of sort of individual products with different P&Ls and so forth. We look at holistic relationships. And all of these, we have this range of products really contribute to this deep relationship that we're able to cultivate with so many millions of Americans. So who do we serve? We serve mainstream America. It's a great mix of urban and suburban consumers. They work in the industries that so many Americans work in, healthcare, retail, restaurants, you name it, on our roadshow. I remember meeting people at the first roadshow event we went to when we were checking in. The person at the front desk saw that I was from Chime and he couldn't believe it because people don't like Chime. They love Chime. He almost jumped out of his seat and told us how much he loved our product and how he'd referred all his friends. So it was a pretty cool way to kick off the process. But, you know, these are mainstream consumers. They are disproportionately coming to Chime. Over 90% are coming to us from a broken relationship with an incumbent big bank. And they really appreciate this combination of services that we have, but probably more importantly, just how it's all wrapped into an authentic brand mission of wanting to help people make progress in their financial lives. Chicago is actually a really big market for us. We skew slightly female and a little bit below the average age of the country. We started out definitely on the younger side, but as we become more mainstream, we've gotten closer to the sort of average age of Americans. Okay, so what is the formula for growth that we have here. It's actually pretty simple, but it's incredibly powerful. First and foremost, it's about cultivating a large active member base, which, as I said, grew almost 20% in the last quarter year over year to about 10.2 million actives. As these members become more engaged over time, we drive more revenue per active member. We're currently at $263. And third, as we continue to improve the transaction margin through technology and scale and increasingly sophisticated underwriting capabilities, we've been able to drive the transaction margin on the business, which is up to 41% growth year over year for the quarter. So, you know, these are all kind of key inputs and key dials into this formula for growth. And I think each of these individual areas sort of complement each other and sort of reinforce each other and have a compounding effect. We feel really good about this 70% plus transaction margin that we've been able to get. And I think what you'll see is the combination of services really have a factors actually have a compounding effect over time. So on the right side of this page, it's a point that we try to emphasize with investors is that if you look at the transaction profit of cohorts that we cultivate over time, they have expanding characteristics. So on a transaction margin basis, we're able to get over 100% transaction margin, net dollar profit retention year after year. And that's net of term. So even for the people that no longer are with us anymore, the overall portfolio base continues to expand its transaction margin business over time. I think it just really shows the durability of these cohorts that just get stacked year after year and show a very resilient long-term business model. Okay, next I want to talk a little bit about the revenue and margin expansion that we've been able to see, and along with the gap profitability that we were able to achieve in Q1 and our expectation to achieve for full year 2026. Since 2022, we've been able to grow our revenue at a 28% CAGR, and we forecast approximately $2.7 billion of top-line revenue this year. We have a payments-centric business model. About two-thirds of our model comes from the transaction economics we earn when people use our card for their everyday transactions. When we do do credit, which comes as part of our platform revenue line, We do so in a way that is incredibly low risk and I would argue very differentiated from a traditional lender in that we extend these small lines of credit to people based on a recurring direct deposit relationship. So we're able to underwrite based on that cash flow that we see coming into the account. And you should think of the paybacks on that. You know, we're always able to get paid back first because we are the location that our members direct deposit go to. So all of this combined has resulted in transaction margins that are now in excess of 70 percent. And our adjusted EBITDA margin you see on the right has continued to improve pretty dramatically. But what's exciting about this EBITDA margin expansion is that it hasn't come at the expense of reducing investments into things like product development and technology and AI and growth. And so, you know, there is sort of embedded operating leverage in this business model that we have, and which is why we've were able to post gap profitability in Q1. And we continue to believe that this is a business that has long term adjusted EBITDA margins of 35% or more. That's what we stated in our roadshow. And if anything, the past year has only given us greater confidence that that can be even higher than that. So let's talk about the opportunity that is here at our fingertips. Today, we serve 10.2 million actives, about $260 of RPIM. So we've got a $2.5 billion revenue opportunity just with this member base and sort of the average numbers that we have. But, you know, there are almost 200 million Americans that adults that make up to $100,000 a year. That is kind of our, has been our sweet spot historically. And if we look at our members that engage the most with us, use six or more products, which is about 15% of our member base, we monetize those relationships closer to $500, $550. So just with our current target segment and our current product suite, there's $100 billion revenue opportunity. Of course, we're not going to stop there. We're going to expand beyond the 100K population segment that we serve. In fact, we've announced the past few quarters that our fastest growing segment is in the 75K plus category. And as we launch new products like investment services, like joint accounts, like unsecured credit and other natural products that a primary bank account can offer, we think there's an enormous opportunity to grow the RPAM as well and get the revenue opportunity closer to, you know, $400 billion plus. So people ask, what are the key things that differentiate you? What are your competitive advantages? And we like to boil it down to really four key things that have been built up for many, many years and are actually pretty difficult to replicate. The first and foremost is a radical cost to serve advantage, which is three to five X less of what an incumbent cost to just the cost to serve a checking account in America. Secondly, is our track record of continuing to innovate new products that really resonate with mainstream America. The third is the success we've had in cultivating these primary direct deposit relationships with which lead to the high engagement that we've mentioned. And finally, we have a brand that's loved and is a huge driver of growth because our number one driver of growth is organic and referrals from our existing member base. Let's just set the stage a little bit about who we're competing with. We're primarily getting new. I mentioned we're getting checking accounts and primary relationships from the incumbent banks. If you look at the cost to serve an incumbent bank in America, it's incredibly high based on legacy platform systems that they use, maybe cobbled together from a number of acquisitions, and a very heavy reliance, even to this day, on the physical distribution of products. At the same time, there's a very heavy reliance on NIM. And what's required for NIM? You need people with high deposits and you need people that you want to lend to. But increasingly, the traditional banks are tightening their credit box and maybe only want to extend credit to people like us in the room today. So the result is that it's very hard to operate the core checking account, the core basic banking service for people that make under $100K. In fact, if you read Jamie Dimon's 2024 shareholder letter, he says out loud what all the other bank CEOs already know, that it's incredibly difficult to serve this population segment profitably. In fact, he said that for consumers that make up to about $100K, that the cost to serve them is greater than the revenue that they earn. That was a perfect, you know, capsulation of the opportunity that we have. Because banks have a cost structure that doesn't allow them to serve this population well, they have to rely very heavily on fees, something, you know, to the tune of about $20 billion a year. So we've kind of flipped the script in terms of the model. We have an incredibly low cost structure. We're digitally native. We operate our full tech stack top to bottom. We monetize primarily from payments-driven revenue. And we have a product that people actually love and care about and tell their friends. And I think we've been able to prove that there is a way to serve this huge segment of the population profitably in a way that actually helps deliver great value to them. In our case, we have a 70% transaction margin and are among the most loved banking brands in America. In fact, I'll talk more about brand in a second, but I think product velocity is another area that I've been incredibly excited about. We spent a few years building out our own core transaction processing and ledgering stack, and by doing that, we've been able to unlock a number of product innovations that I'm really excited about. Just, you know, in the last year or so, we've launched products like MyPay, Chime Card, Instant Loans, Chime Plus, our new enterprise channel. And now in 2026, year to date and going into the rest of the year, we launched Chime Prime. We're going to launch Chime Investment Accounts. We're launching a robo-advisory platform. We're going to give you the ability to buy individual stocks. We're very strong supporters of Trump accounts. and the opportunity to give young Americans the ability to grow and enjoy the benefits of this incredible growth engine that is America. We're launching Jade, our AI co-pilot, that will help our members not just get reactive information about how they've spent in the past, but actually help them take advantage of and take action on their behalf to shut down bill pays that maybe they don't need anymore or move money on their behalf into places that are going to help them make progress, whether that be an investment account, a high-yield savings, or paying off high-interest debt. We think there's an incredible opportunity for the trusted bank account relationship to play a role in that area. And like I mentioned, we're also going to launch joint accounts, which we know there's a subset of the population that just isn't going to bank with a bank that doesn't have a joint account so they can share expenses with their spouse and partner. So this might be the most important slide of my presentation for investors, and that is that these primary account relationships that we have are truly unique and drive durable cohorts that last for many, many years. We feel really good. In fact, over the past year, we've brought down our acquisition costs and have been able to drive acquisitions that pay back in about five or six quarters. We generally use that as kind of the basic guardrail for how we go to market and how we invest in marketing and customer acquisition. And the reason that we feel comfortable doing that is that over time, the payback that we get on the customer relationship increases substantially over time. something like an eight to one LTV to CAC, and cohorts that continue to deliver transaction profit that expands year after year after year. So it's a very sort of durable, long-term business model that I think is probably the most differentiating relative to other financial technology companies that are out there. As it relates to some of the products that we're able to offer. I think credit and lending is one that I want to highlight just for a second is something that's really unique based on this deep primary recurring direct deposit relationship that we have. We offer the lowest cost products in the category. We're able to do this in a way that is aligned with our members and helps them with sort of get through the paycheck to paycheck cycle that so many of us struggle with, especially when we're younger and early in our careers. We've got our SpotMe product, which has been a huge winner for us for a few years now. MyPay is an incredible product that allows people to get access to their paycheck on We've only had this product in market for about 18 months or so. It's already a $400 million revenue run rate business with 60% transaction margins. and a 1% loss rate. When we went public, that loss rate was closer to 1.7, and we're down to one now, and we're really excited about the opportunity to just have another tool in our arsenal of services to support our members' needs. And we're also starting to do more in longer-term installment loans as well. We won't have the same sort of penetration that we have for MyPay, but there's clearly a subset of our member base that we can reliably, you know, offer longer term loans to in a disciplined way with positive unit economics. You know, brand is an incredibly important part of the calculation here. If you, and the progress we've had on this front is incredible. If you ask consumers unaided, what brands come to mind when you think of online banking in the 70% that make up to $100K. Chime today only trails Chase and Bank of America. Times said that Chime is the number one banking brand in America. We have the highest net promoter score among fintechs in the area of checking accounts and core sort of transaction processing accounts. And we continue to gain share in terms of switching and growth from our existing members is what's driving the outpaced growth that we've been able to achieve here. We're really excited about this new channel for us called Chime Workplace. We have an enterprise team that now sells Chime services directly to employers. And it's still relatively early days, but think about an employer being able to offer an employee, if you sign up for a Chime account, you can get 100% of your pay every day on demand for free. We announced an exciting new partner this past quarter, First Student, which is the largest, apparently, I didn't know this, but this is a big, this is all the yellow buses you see all over the country. This is the leading provider in that area with 65,000 employees, and we're rolling that out now, and we expect, we look at these opportunities as opportunities to sort of like plant seeds in lots of new channels. We've obviously historically been more of a direct-to-consumer business, but we're really excited about the opportunity to push harder into the enterprise channel. Because a lot of these channels end up just being ongoing sort of evergreen channels. As people turn over in the job, the next person comes in. And I can assure you, if you have the option to get paid to a Chime account every day, or wait a couple weeks to get paid to your traditional bank account, a lot of these folks are going to select Chime. We think AI is going to be an incredible accelerant to our business. Obviously, there's so much focus and for very good reason on the frontier model companies and all the incredible services that we're all benefiting from today. But in terms of our business, it's already having an impact. We're able to answer over 70% of customer inquiries through our AI-driven chat and voice channels today. Not only is that a significant cost save, but the net promoter score that we get on those interactions is actually higher than we have with humans. Not that it was low before, it just got better. We're using AI to assist our code development. It's now over 80% of our code is assisted by AI tools. And what we're really excited about is an initiative called Archimedes, which is Chime's proprietary software factory, where more and more of our teams are now able to go to this centralized tool to create code and create services without having to rely as much on traditional coding techniques. This is going to have great impact both inside of the company for operations, but also the ability to launch new consumer features faster than ever. And one of the most exciting consumer features that we'll be rolling out even more broadly this year is Jade, which that is our financial co-pilot, and it's powered by this deep relationship and data set that Chime has. And like I said, because of these primary relationships that we have, we think we can really move from this reactive reporting on the past to being more of a proactive tool to help people move their finances into a better place. And we think that the bank account is uniquely positioned to be the entity that helps people spend smarter, save more, make sure they don't ever miss a bill, and get into a healthy rhythm of planning for their long-term future. And AI just strengthens our structural advantage because we have our own platform. We have all the data in-house. This is not some far-flung roll-up bank that has disparate processing systems and platforms all over the place. And we also operate in a highly regulated category. So this isn't a category that, you know, two folks in a garage that can just launch it overnight. We've got deep integration with banks and compliance platforms and have proven to deliver an experience that has led to a brand that is trusted and loved. we still see this as very early days for the company but incredibly promising starting point from today from which to grow we are just to recap the number one destination for people who are switching their primary bank account we're opening up more bank accounts every month than anyone in the category we're a product and service that's loved and really thought of in a different way than a lot of what I would argue to be more like wedge products over time. And these relationships that we build are incredibly deep, last for years, almost perform like annuities that will only grow as we offer more products and we drive more lock-in and ultimately more monetization. And this platform that we've built, I think, really differentiates us from others in the category with exciting new products on the horizon this year, an incredibly large opportunity. And you're going to continue to see great operating leverage in this business. We finished last quarter with an 18% adjusted EBITDA margin. We increased our top line and adjusted EBITDA goals for the year in terms of our guidance. And we're incredibly excited for what the future holds for us. So excited to be here today. Thank you again, Andrew, and look forward to meeting with more of you after this.