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Remitly Global (RELY)
NASDAQ:RELY
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Remitly Global
(NASDAQ:RELY)
71Outperform
Positive Factors
Cost Efficiency
The amount of customers coming to Remitly organically is growing and the cost to go out and acquire a customer is much, much cheaper than last year.
Financial Performance
Remitly delivered strong beats on topline/EBITDA and provided front quarter/C25 guidance comfortably ahead of consensus on revenue/EBITDA.
Market Share Growth
RELY is seeking to increase market share in its current 30 Send markets, with meaningful growth potential still remaining.
Revenue and EBITDA Guidance
The company raised its revenue outlook and introduced EBITDA guidance that was higher than prior estimates, pointing to full-year GAAP profitability.
Negative Factors
Pricing Pressure
The short report suggests that RELY may have & likely will experience meaningful pricing pressure, highlighting a potential large decline in average transaction size since 2020.
Product Execution
RELY's limited cross-selling opportunity/execution on new products is the most pertinent component of the short report.
Remitly Global (RELY) vs. S&P 500 (SPY)
Market Cap
$4.08B
Dividend YieldN/A
Average Volume (3M)2.87M
Price to Earnings (P/E)―
Beta (1Y)0.13
Revenue Growth33.85%
EPS Growth70.39%
CountryUS
Employees2,800
SectorTechnology
Sector Strength51
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.19
Shares Outstanding200,607,380
10 Day Avg. Volume3,201,611
30 Day Avg. Volume2,869,680
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.23
Price to Cash Flow (P/CF)18.30
P/FCF Ratio20.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$30.50Price Target Upside50.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Remitly Global Business Overview & Revenue Model
Company DescriptionRemitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 150 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
How the Company Makes MoneyRemitly Global generates revenue primarily through transaction fees and foreign exchange spreads. Customers are charged a fee for each money transfer, which varies based on the amount sent, the destination country, and the speed of delivery chosen by the sender. In addition to these fees, Remitly earns revenue from the foreign exchange conversion process by applying a margin to the exchange rate. This allows the company to capture a portion of the currency conversion value. Remitly's partnerships with local banks and financial institutions in recipient countries facilitate these transactions and enhance its service offerings. Furthermore, the company invests in marketing and technology to expand its customer base and improve its platform, which are critical factors contributing to its earnings.
Remitly Global Financial Statement Overview
Summary
Remitly Global demonstrates strong revenue growth and improving cash flow metrics, which are positive indicators for future performance. The company maintains a solid balance sheet with low leverage, though continued efforts are needed to achieve profitability. While profitability metrics are still in the negative, the trend suggests potential for future improvement.Income Statement
Remitly Global has shown strong revenue growth with a notable increase from $653.56M in 2022 to $1.26B in 2024, marking a positive trend. The Gross Profit Margin remained high at 100% for 2024, indicating excellent cost management. However, the company is still operating at a net loss with a negative Net Profit Margin, though the losses have been narrowing over time, which is encouraging.72
Positive
Balance Sheet
The company has a low Debt-to-Equity Ratio, reflecting prudent leverage management. The Equity Ratio stands at 65.7%, indicating a strong equity position relative to assets. However, the Return on Equity remains negative due to ongoing net losses, which is a concern that balances out the strong equity position.65
Positive
Cash Flow
Remitly Global's cash flow position has significantly improved, with Free Cash Flow turning positive in 2024 and strong Operating Cash Flow coverage of net losses. The Free Cash Flow Growth Rate is robust, signaling effective cash generation. These improvements highlight enhanced financial flexibility, positioning the company well for future growth.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.26B | 944.28M | 653.56M | 458.61M | 256.96M | Gross Profit |
| 748.44M | 532.65M | 326.63M | 221.47M | 121.11M | EBIT |
| -39.09M | -114.19M | -121.04M | -39.72M | -29.18M | EBITDA |
| -15.44M | -96.47M | -104.95M | -31.20M | -25.12M | Net Income Common Stockholders |
| -36.98M | -117.84M | -114.02M | -38.76M | -32.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 562.06M | 323.71M | 300.63M | 403.26M | 186.69M | Total Assets |
| 1.01B | 1.04B | 695.95M | 625.66M | 362.99M | Total Debt |
| 16.29M | 142.99M | 9.20M | 6.15M | 86.97M | Net Debt |
| -351.81M | -180.72M | -291.44M | -397.12M | -99.73M | Total Liabilities |
| 347.40M | 506.97M | 215.87M | 145.34M | 186.61M | Stockholders Equity |
| 665.47M | 529.34M | 480.09M | 480.33M | 176.38M |
| Cash Flow | Free Cash Flow | |||
| 188.49M | -62.69M | -112.20M | -22.93M | -118.58M | Operating Cash Flow |
| 194.49M | -53.59M | -105.14M | -18.39M | -114.21M | Investing Cash Flow |
| -17.70M | -50.04M | -7.31M | -4.53M | -4.37M | Financing Cash Flow |
| -127.44M | 126.65M | 11.07M | 238.20M | 122.22M |
Remitly Global Technical Analysis
Neutral
20.33
Price Trends
23.11
Negative
21.88
Negative
17.65
Positive
Market Momentum
-0.97
Negative
43.66
Neutral
86.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELY, the sentiment is Neutral. The current price of 20.33 is below the 20-day moving average (MA) of 21.39, below the 50-day MA of 23.11, and above the 200-day MA of 17.65, indicating a neutral trend. The MACD of -0.97 indicates Negative momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 86.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RELY.
Remitly Global Risk Analysis
Remitly Global disclosed 65 risk factors in its most recent earnings report. Remitly Global reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Remitly Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $69.43B | 17.75 | 20.00% | ― | 7.10% | 4.45% | |
73 Outperform | $4.72B | 16.70 | 24.69% | ― | 8.18% | 17.94% | |
73 Outperform | $37.86B | 13.43 | 14.50% | ― | 10.06% | 38060.98% | |
71 Outperform | $4.08B | ― | -6.19% | ― | 33.85% | 70.39% | |
69 Neutral | $3.54B | 3.88 | 129.04% | 8.83% | -3.38% | 63.33% | |
58 Neutral | $22.11B | 10.47 | -17.86% | 2.40% | 4.75% | -24.81% |
* Technology Sector Average
Performance Comparison
RELY
Remitly Global
20.96
0.25
1.21%
EEFT
Euronet Worldwide
108.60
-0.19
-0.17%
WU
Western Union
10.49
-2.09
-16.61%
PYPL
PayPal Holdings
70.97
4.97
7.53%
XYZ
Block
62.58
-20.04
-24.26%
Remitly Global Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -21.54% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Remitly ended 2024 with strong financial results, driven by significant revenue growth, customer acquisition, and operational efficiencies. The company demonstrated improved marketing ROI and global expansion success. Despite expectations for moderating revenue growth and some pressure on gross margins, the outlook for 2025 remains positive with anticipated profitability milestones.Highlights
Record Revenue and Adjusted EBITDA
Q4 2024 revenue was $351.9 million, up 33% year-over-year, and adjusted EBITDA was $43.7 million with an adjusted EBITDA margin of over 12%. Full-year 2024 revenue was $1.26 billion, up 34% with adjusted EBITDA of $135 million.
Strong Customer Growth
Active customers increased 32% year-over-year to 7.8 million in Q4 2024. This was driven by continued retention and a record number of new customers acquired.
Improved Marketing Efficiency
Marketing expense per quarterly active customer decreased nearly 16% year-over-year, showing improved ROI, while adding a record number of new customers.
Global Expansion Achievements
Remitly expanded its geographical reach, contributing to an 80% revenue CAGR since 2020 outside the U.S. and Canada. Over 60% of new customers in Q4 sent money to countries outside Mexico, the Philippines, and India.
Positive Outlook for 2025
Remitly expects 2025 to be its first year of GAAP net income profitability and projects its first $1 billion RLTE year.
Lowlights
Moderating Revenue Growth
While revenue is projected to grow, the growth rate is expected to moderate each quarter sequentially in 2025, ending the year with approximately 24.4% growth.
Pressure on Gross Margins
The company expects RLTE as a percentage of revenue to remain in line with revenue growth due to tough comps from previous partnerships, potentially limiting margin expansion.
Company Guidance
During Remitly's fourth quarter 2024 earnings call, the company reported record revenue of $351.9 million, reflecting a 33% year-over-year increase, and an adjusted EBITDA of $43.7 million, achieving an over 12% adjusted EBITDA margin. The call highlighted a 32% rise in active customers to 7.8 million and a 5.5% increase in send volume per active customer, reaching $15.4 billion. The gross take rate was 2.28%, and marketing expenses per quarterly active customer decreased by nearly 16% year-over-year. Remitly also emphasized its strong customer loyalty, with over 3 million iOS and nearly 1 million Google Play reviews, achieving ratings of 4.9 and 4.8 stars respectively. Looking ahead, the company aims for its first $1 billion RLTE year and positive GAAP net income profitability in 2025, driven by strategic investments in product improvements and geographic expansion.Remitly Global Corporate Events
Financial Disclosures
Remitly Global Reports Strong 2024 Financial Results
Positive
Feb 19, 2025
Remitly Global reported strong financial results for the fourth quarter and full year of 2024, with significant growth in active customers and send volume. The company exceeded its financial outlook, achieving a 33% increase in fourth-quarter revenue and reducing its net loss significantly. Looking ahead to 2025, Remitly projects continued revenue growth and improved profitability, with expectations for positive GAAP net income and increased Adjusted EBITDA.
Executive/Board Changes
Remitly Global Appoints New Chief Accounting Officer
Neutral
Jan 24, 2025
On January 21, 2025, Gail Miller, the Chief Accounting Officer of Remitly Global, Inc., announced her resignation from the position, effective February 28, 2025, with no disagreements regarding company policies. Consequently, the Board appointed Luke Tavis as the new Chief Accounting Officer, effective the same date. Mr. Tavis, who has been with the company since December 2023 as Vice President, Controller, brings extensive experience from previous roles at Amazon.com, Inc. and Trilogy International Partners, Inc. His appointment includes eligibility for an equity award of 36,773 restricted stock units, with vesting schedules extending to 2029.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.