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Remitly Global (RELY)
NASDAQ:RELY
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Remitly Global
(NASDAQ:RELY)
Rating:66Neutral
Price Target:
$26.00
▲( 16.44% Upside)
Positive Factors
Financial performance
RELY's first quarter results showed a broad-based beat, increasing confidence in its position as a long-term winner in the digital remittance market.
Market expansion
RELY is leveraging its global scale by expanding into new verticals such as seafarers, high-value transactors, and micro businesses.
Revenue growth
Revenue and EBITDA grew significantly year-over-year, with impressive marketing efficiency contributing to these gains.
Negative Factors
Market risks
Current U.S. immigration policies and growing consumer uncertainty are seen as headline risks that may have pressured RELY's valuation.
Pricing pressure
A short report suggests RELY may face meaningful pricing pressure, with a potential decline in average transaction size since 2020.
Product development
RELY's limited cross-selling opportunity and execution on new products are highlighted as significant concerns in the short report.
Remitly Global (RELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.55B
Dividend YieldN/A
Average Volume (3M)2.67M
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth34.37%
EPS Growth95.80%
CountryUS
Employees2,800
SectorTechnology
Sector Strength78
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.21
Shares Outstanding203,858,600
10 Day Avg. Volume3,076,797
30 Day Avg. Volume2,671,677
Financial Highlights & Ratios
PEG Ratio-11.17
Price to Book (P/B)6.23
Price to Sales (P/S)0.00
P/FCF Ratio11.98
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit6.79
Enterprise Value/Ebitda-35.75
Forecast
1Y Price Target
$28.43Price Target Upside27.32% 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 shows strong revenue growth and improving cash flow metrics, indicating positive future performance prospects. Despite a solid balance sheet with low leverage, the company is still working towards achieving profitability as profitability metrics remain negative but are improving.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.36B | 1.26B | 944.28M | 653.56M | 458.61M | 256.96M | Gross Profit |
| 600.75M | 748.44M | 532.65M | 326.63M | 221.47M | 121.11M | EBIT |
| -6.90M | -39.09M | -114.19M | -121.04M | -39.72M | -29.18M | EBITDA |
| 21.16M | -15.44M | -96.47M | -104.95M | -31.20M | -25.12M | Net Income Common Stockholders |
| -4.55M | -36.98M | -117.84M | -114.02M | -38.76M | -32.56M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 24.50M | 368.10M | 323.71M | 300.63M | 403.26M | 186.69M | Total Assets |
| 663.60M | 1.01B | 1.04B | 695.95M | 625.66M | 362.99M | Total Debt |
| 380.20M | 16.29M | 142.99M | 9.20M | 6.15M | 86.97M | Net Debt |
| 361.70M | -351.81M | -180.72M | -291.44M | -397.12M | -99.73M | Total Liabilities |
| 641.50M | 347.40M | 506.97M | 215.87M | 145.34M | 186.61M | Stockholders Equity |
| 22.10M | 665.47M | 529.34M | 480.09M | 480.33M | 176.38M |
| Cash Flow | Free Cash Flow | ||||
| 380.10M | 188.49M | -62.69M | -112.20M | -22.93M | -118.58M | Operating Cash Flow |
| 384.20M | 194.49M | -53.59M | -105.14M | -18.39M | -114.21M | Investing Cash Flow |
| -30.30M | -17.70M | -50.04M | -7.31M | -4.53M | -4.37M | Financing Cash Flow |
| -146.49M | -127.44M | 126.65M | 11.07M | 238.20M | 122.22M |
Remitly Global Technical Analysis
Positive
22.33
Price Trends
20.95
Positive
22.22
Positive
19.41
Positive
Market Momentum
0.53
Positive
53.20
Neutral
10.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELY, the sentiment is Positive. The current price of 22.33 is above the 20-day moving average (MA) of 22.16, above the 50-day MA of 20.95, and above the 200-day MA of 19.41, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 10.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks
1.
The development and use of quantitative models in our business may present risks and challenges that could adversely impact us. Q4, 2024
2.
Our use and provision of AI-powered solutions could lead to operational or reputational damage, legal and regulatory risk, and additional costs. Q4, 2024
3.
Our failure to manage our customer funds properly could materially harm our business. Q4, 2024
Remitly Global Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $3.21B | 24.93 | 26.10% | ― | 33.84% | 0.29% | |
75 Outperform | $4.55B | 15.53 | 25.00% | ― | 7.73% | 19.76% | |
73 Outperform | $4.65B | 93.81 | 10.80% | ― | 47.78% | 74.61% | |
71 Outperform | $2.46B | 22.78 | 15.97% | ― | 14.86% | -0.94% | |
71 Outperform | $2.37B | 50.55 | 5.01% | ― | -8.44% | ― | |
66 Neutral | $4.55B | ― | -0.71% | ― | 34.37% | 95.80% | |
61 Neutral | $11.28B | 10.16 | -6.88% | 2.97% | 7.41% | -8.93% |
* Technology Sector Average
Performance Comparison
RELY
Remitly Global
22.33
8.85
65.65%
EEFT
Euronet Worldwide
105.13
-7.42
-6.59%
PAYO
Payoneer
6.81
0.77
12.75%
PAY
Paymentus Holdings
37.16
18.05
94.45%
MQ
Marqeta
5.07
-0.47
-8.48%
DLO
DLocal
11.26
1.83
19.41%
Remitly Global Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.88%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with strong revenue and adjusted EBITDA growth, as well as successful diversification and operational efficiency. However, there are concerns about macroeconomic uncertainties and the expected increase in marketing spend, which could impact future margins.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q1 2025 was $361.6 million, up 34% year-over-year. This growth exceeded expectations and was driven by strong retention and new customer acquisition.
Adjusted EBITDA Surpasses Expectations
Adjusted EBITDA for Q1 2025 was $58.4 million, surpassing 16% in adjusted EBITDA margins and achieving a Rule of 50 quarter.
Geographic and Product Diversification
The company expanded its footprint by launching services in new regions like Nigeria, Burkina Faso, and Mali, and introduced integrations with local payment partners. The top three receiving countries (India, the Philippines, and Mexico) saw revenue diversification with a 45% growth rate in other regions.
High-Dollar Sender Growth
Send volume related to transactions of more than $1,000 grew by more than 45% year-over-year, and the mix increased by approximately 200 basis points.
Operational Efficiency
93% of transactions were processed in less than an hour, and 95% proceeded without customer support contact.
Negative Updates
Macro Uncertainty
The macroeconomic and geopolitical environment remains uncertain, with no assumptions of material changes reflected in the guidance.
Stock-Based Compensation
Stock-based compensation was $35.8 million, though it was approximately 280 basis points lower than the prior year.
Seasonal Marketing Spend Increase Expected
Marketing investments are expected to increase in Q2 and the second half of 2025 to drive growth, which may affect margins.
Company Guidance
In the first quarter of 2025, Remitly reported a revenue growth of 34% year-over-year, reaching $361.6 million, with an adjusted EBITDA margin surpassing 16%. The company exceeded the Rule of 50, indicating strong growth and profitability. Remitly saw a 9% increase in send volume per active customer, and send volume for transactions over $1,000 grew by more than 45% year-over-year. The company managed nearly $60 billion in send volume over the last 12 months and achieved a gross take rate of 2.24%. Remitly's quarterly active customers increased by 29% to over 8 million. Marketing spend as a percentage of revenue improved by 473 basis points year-over-year, while customer support and operations expenses improved by 89 basis points. The company also launched remittance services to new regions, including Nigeria, Burkina Faso, and Mali, and expanded disbursement options. Remitly is raising its full-year revenue and adjusted EBITDA outlook due to the strong results.Remitly Global Corporate Events
Business Operations and StrategyFinancial Disclosures
Remitly Global Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025
On May 7, 2025, Remitly Global reported its first quarter 2025 financial results, showcasing a significant increase in send volume and revenue, with net income reaching $11.4 million. The company exceeded its expectations for the quarter, leading to an upward revision of its full-year 2025 outlook for both revenue and Adjusted EBITDA. This performance underscores the growing trust of its customers and the company’s ability to scale efficiently, which has positive implications for its market positioning and stakeholder confidence.
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.