Remitly Q2 revenue up 34%, beats analyst expectations

Overview

• Remitly Q2 revenue up 34% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EBITDA for Q2 beats consensus, rising 144% yr/yr, per LSEG data

• Co announces $200 mln share repurchase program

Outlook

• Remitly expects FY 2025 revenue between $1.61 bln and $1.62 bln

• Company projects FY 2025 Adjusted EBITDA of $225 mln to $230 mln

• Remitly forecasts Q3 2025 revenue between $411 mln and $413 mln

• Company anticipates positive GAAP net income for FY 2025

Result Drivers

• SEND VOLUME GROWTH - Send volume increased by 40% year-over-year to $18.5 bln, driving revenue growth

• CUSTOMER BASE EXPANSION - Active customers rose 24% to 8.5 mln, contributing to increased revenue

• PROFITABILITY TURNAROUND - Achieved net income of $6.5 mln, compared to a net loss in the previous year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for Remitly Global Inc is $27.07, about 39.7% above its August 5 closing price of $16.33

• The stock recently traded at 90 times the next 12-month earnings vs. a P/E of 174 three months ago

Press Release: ID:nGNX8zgzB9