Friday, 1 November 2024
by BD Banks
Shares of Remitly Global (NASDAQ: RELY), the global remittance specialist and competitor to Western Union and Moneygram, were climbing after the company posted better-than-expected results in its third-quarter earnings report.
As a result, the stock was up was up 15.3% as of 11:46 a.m. ET.
Image source: Getty Images.
Remitly continues to gain market share and grow its customer base in the large remittance industry as active customers rose 5.4 million to 7.3 million, and send volume, or the amount of money sent across borders, jumped 42% to $14.5 billion.
Revenue finished up 39% to $336.5 million, well ahead of estimates at $320.7 million. That growth also translated into gains on the bottom line as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped from $10.5 million to $46.7 million.
It reported generally accepted accounting principles (GAAP) net income of $1.9 million, up from a loss of $35.7 million in the quarter a year ago, and on a per-share basis of $0.01, it beat the analyst consensus at a loss of $0.07 per share.
CEO Matt Oppenheimer called the results “exceptional,” adding, “We are excited about growth opportunities in 2025 and beyond as we execute on our vision of transforming lives with trusted financial services that transcend borders.”
Remitly raised its revenue guidance for the year from $1.23 billion-$1.25 billion to $1.25 billion-$1.254 billion, reflecting a 32%-33% growth rate. It also upped its EBITDA guidance from $90 million-$100 million to $108 million-$112 million.
Remitly has a history of beating its own guidance, and that pattern and its GAAP profitability in the quarter bodes well for the stock.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.