Remitly Global, Inc. ((RELY)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Remitly Global, Inc. has ended 2024 on a high note, showcasing strong financial results that were fueled by significant revenue growth, increased customer acquisition, and operational efficiencies. The company improved its marketing return on investment and successfully expanded globally. While expectations for 2025 indicate a moderation in revenue growth and some pressure on gross margins, the outlook remains optimistic with anticipated profitability milestones.
Record Revenue and Adjusted EBITDA
Remitly reported impressive financial figures for Q4 2024, with revenue hitting $351.9 million, marking a 33% increase year-over-year. The adjusted EBITDA stood at $43.7 million, achieving a margin of over 12%. For the full year, revenue reached $1.26 billion, up 34%, with an adjusted EBITDA of $135 million, underscoring the company’s robust financial health.
Strong Customer Growth
The company experienced a substantial increase in active customers, rising 32% year-over-year to 7.8 million in Q4 2024. This growth was driven by continued customer retention and a record number of new customers joining the platform, highlighting Remitly’s strong customer acquisition strategies.
Improved Marketing Efficiency
Remitly achieved improved marketing efficiencies, with marketing expenses per quarterly active customer decreasing nearly 16% year-over-year. This reduction reflects a better return on investment while successfully acquiring a record number of new customers, further strengthening the company’s market position.
Global Expansion Achievements
The company’s global expansion efforts have paid off, contributing to an 80% revenue compound annual growth rate since 2020 outside the U.S. and Canada. Over 60% of new customers in Q4 sent money to countries beyond Mexico, the Philippines, and India, illustrating Remitly’s successful international growth strategy.
Moderating Revenue Growth and Gross Margin Pressure
While Remitly is projected to continue growing its revenue, the growth rate is expected to moderate each quarter in 2025, ending the year with approximately 24.4% growth. Additionally, the company anticipates pressure on gross margins due to challenging comparisons from previous partnerships, potentially limiting margin expansion.
Positive Outlook for 2025
Looking forward, Remitly is optimistic about 2025, expecting it to be the first year of GAAP net income profitability. The company also projects its first $1 billion RLTE year, driven by strategic investments in product improvements and geographic expansion.
In conclusion, Remitly’s earnings call revealed a positive sentiment about the company’s performance and future prospects. With strong revenue growth, increased customer acquisition, and improved marketing efficiency, the company is well-positioned for continued success. While there are expectations of moderating growth and margin pressures, the outlook for 2025 remains promising with anticipated profitability milestones.
