Remitly Global Inc (RELY) Q3 2024 Earnings Call Highlights: Record Revenue Growth and Strategic ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $336.5 million, up 39% year over year.

  • Adjusted EBITDA: $46.7 million, with an adjusted EBITDA margin of nearly 14%.

  • Net Income: $1.9 million, compared to a net loss of $35.7 million in Q3 2023.

  • Active Customers: Increased 35% year over year to 7.3 million.

  • Send Volume: $14.5 billion, up 42% year over year.

  • Gross Take Rate: 2.32%.

  • Transaction Expenses: $115.6 million, 34.3% of revenue, improved by over 110 basis points year over year.

  • Marketing Spend: $70.3 million, 20.9% of revenue, improved by more than 260 basis points year over year.

  • Customer Support and Operations Expense: $21.5 million, 6.4% of revenue, improved by more than 190 basis points year over year.

  • Technology and Development Expense: $46.6 million, improved by more than 130 basis points as a percentage of revenue year over year.

  • General and Administrative Expense: $35.7 million, improved by more than 250 basis points year over year.

  • Stock-Based Compensation: $39.3 million, 11.7% of revenue, approximately 50 basis points lower than the most recent quarter.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Remitly Global Inc (NASDAQ:RELY) achieved a record number of new customer acquisitions, with a 39% year-over-year revenue growth.

  • The company reported a record adjusted EBITDA of $46.7 million, with an adjusted EBITDA margin expanding to nearly 14%.

  • Remitly Global Inc (NASDAQ:RELY) continues to gain market share, with send volume growing over 40% in the third quarter, significantly outpacing the market growth rate.

  • The company has a large addressable market opportunity in consumer cross-border payments, estimated at nearly $2 trillion, with only 3% market penetration.

  • Remitly Global Inc (NASDAQ:RELY) benefits from structural advantages as a digital business, including data-driven insights and a robust technology platform that enhances customer experience and operational efficiency.

Negative Points

  • The company faces challenges in strategically prioritizing investments across near, medium, and long-term growth opportunities.

  • There is a potential risk of FX tailwinds not continuing into the fourth quarter, which could impact revenue growth.

  • Remitly Global Inc (NASDAQ:RELY) anticipates a sequential decline in gross take rate due to mix changes.

  • The company acknowledges the complexity of cross-border payments, which involves regulatory compliance and risk management challenges.

  • Marketing expenses are expected to increase in the fourth quarter due to seasonal customer acquisition efforts, which could impact profitability.

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