Today's surge in Remitly's global stock could be attributed to various reasons.
Shares of Remitly Globe (RELY -2.90%), the international remittance expert and rival to Western Union and Moneygram, saw a surge following the company's publication of superior-to-predicted results in its third-quarter financial reports.
Consequently, the stock was skyrocketing by 15.3% as of 11:46 a.m. ET.
Remitly Records Another Period of Robust Growth
Remitly continues to dominate the gigantic remittance market and augment its clientele as the number of active customers escalated from 5.4 million to 7.3 million, and the volume of money transferred across borders escalated by 42% to $14.5 billion.
Revenue spiked by 39% to reach $336.5 million, surpassing forecasts of $320.7 million. This growth also contributed to enhancements on the profit margin as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew exponentially from $10.5 million to $46.7 million.
It announced general accepted accounting principles (GAAP) net income of $1.9 million, transitioning from a loss of $35.7 million in the preceding quarter. On a per-share basis, it outperformed analyst estimates with a loss of $0.07 per share, reporting a profit of $0.01 per share.
CEO Matt Oppenheimer labeled the results as "exceptional," and expressed enthusiasm about growth prospects in 2025 and beyond as the company pursues its goal of revolutionizing lives through reliable financial services that defy geographical boundaries.
Remitly's Future Plans
Remitly upgraded its revenue estimates for the year from $1.23 billion-$1.25 billion to $1.25 billion-$1.254 billion, indicating a 32%-33% expansion rate. It also boosted its EBITDA forecasts from $90 million-$100 million to $108 million-$112 million.
Remitly has a history of outperforming its own predictions, and its GAAP profitability in the quarter serves as a positive indication for the stock's future.
With these impressive financial results, investors are likely to show interest in further financing Remitly's growth, as the company's earnings demonstrate its potential for strong returns on investing in its financial future. The surging revenue and EBITDA provide a compelling case for investors to divert their money into Remitly's innovative financial solutions.
