Shares of Remitly Global (RELY 15.17%) were moving higher today after the remittance specialist beat estimates in the first-quarter report and raised its revenue forecast for the year.
As of 12:36 p.m. ET, the stock was up 11% on the news.
Remitly keeps growing
Remitly, which provides a platform for cross-border payments, continued to deliver solid growth. Its active customer base rose 29% to 8 million, driving send volume up 41% to $16.2 billion. As a result, revenue rose 34% to $361.6 million, which was well ahead of the consensus at $347.5 million.
Remitly also reported impressive margin expansion, as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 157% to $58.4 million, while net income reached $11.4 million, up from a loss of $21.1 million.
On a per-share basis, the company reported a profit of $0.05 on a generally accepted accounting principles (GAAP) basis.
CEO Matt Oppenheimer said: “We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter. This performance was driven by the deep and growing trust our customers place in us to deliver a fast, reliable, and secure experience.”
What’s next for Remitly?
Looking ahead, Remitly issued strong guidance, calling for revenue growth of 25%-26% to $1.574 billion-$1.587 billion, up from a previous range of $1.565 billion-$1.58 billion. It also said it would have positive net income on a GAAP basis, and sees adjusted EBITDA of $195 million-$200 million, up from an earlier range of $180 million-$200 million.
Remitly continues to grab market share from legacy operators like Western Union and MoneyGram, and the future looks bright. The GAAP profitability is also a promising sign for a stock that has a lot of upsides, with its market cap at less than $5 billion currently.
