Remitly Global, Inc. Reports Strong Q1 2025 Earnings

Remitly Global, Inc. ((RELY)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for Remitly Global, Inc. was marked by a predominantly positive sentiment. The company showcased strong revenue and adjusted EBITDA growth, alongside successful diversification and operational efficiency. However, the call also highlighted concerns regarding macroeconomic uncertainties and the anticipated increase in marketing spend, which could potentially impact future margins.

Strong Revenue Growth

Remitly reported impressive revenue growth for Q1 2025, reaching $361.6 million, which marks a 34% increase year-over-year. This growth surpassed expectations and was primarily driven by strong customer retention and new customer acquisition efforts.

Adjusted EBITDA Surpasses Expectations

The company achieved an adjusted EBITDA of $58.4 million for Q1 2025, surpassing a 16% margin and achieving a Rule of 50 quarter. This performance underscores Remitly’s robust profitability and operational success.

Geographic and Product Diversification

Remitly expanded its global footprint by launching services in new regions such as Nigeria, Burkina Faso, and Mali. Additionally, the company introduced integrations with local payment partners, contributing to a 45% growth rate in revenue from regions outside the top three receiving countries—India, the Philippines, and Mexico.

High-Dollar Sender Growth

The company saw significant growth in high-dollar transactions, with send volume for transactions over $1,000 increasing by more than 45% year-over-year. The mix of these transactions also rose by approximately 200 basis points.

Operational Efficiency

Remitly demonstrated operational efficiency with 93% of transactions processed in less than an hour and 95% proceeding without the need for customer support contact, highlighting the company’s streamlined processes.

Macro Uncertainty

Despite the positive results, the macroeconomic and geopolitical environment remains uncertain. The company has not made any assumptions of material changes in its guidance, reflecting a cautious approach.

Stock-Based Compensation

Stock-based compensation for the quarter was $35.8 million, which was approximately 280 basis points lower than the previous year, indicating a reduction in this expense category.

Seasonal Marketing Spend Increase Expected

Remitly anticipates an increase in marketing investments in Q2 and the latter half of 2025 to drive growth. While this is expected to support expansion, it may also impact the company’s margins.

Forward-Looking Guidance

Remitly is raising its full-year revenue and adjusted EBITDA outlook due to the strong results achieved in the first quarter of 2025. The company reported a 9% increase in send volume per active customer and a significant rise in high-dollar transaction volumes. With over 8 million quarterly active customers, Remitly continues to expand its market presence and improve its financial metrics.

In summary, Remitly’s earnings call reflected a positive outlook with strong financial performance and strategic growth initiatives. While macroeconomic uncertainties and increased marketing spend pose challenges, the company’s robust revenue growth, operational efficiency, and diversification efforts position it well for future success.