What happened
Shares of Remitly Global (NASDAQ: RELY) were surging today after the remittance specialist posted another strong quarterly earnings report, topping estimates on the top and bottom lines, and it raised its full-year guidance.
As of 9:48 a.m. ET on Thursday, the stock was up 28%.
So what
Remitly, which specializes in digital remittance payments, helping immigrants send money back to their home countries, said that revenue was up 49% to $234 million, topping estimates at $215.8 million.
Active customers grew 47% to 5 million, and "send" volume jumped 38% to $9.6 billion, showing that the platform is catching and displacing traditional money-transfer tools like Western Union and MoneyGram.
On the bottom line, Remitly continued to make progress toward profitability, posting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $20.4 million, compared to a loss of $5.3 million. On a generally accepted accounting principles (GAAP) basis, its loss per share narrowed from $0.23 to $0.11, which beat estimates for a loss of $0.16 per share.
Now what
Looking ahead, Remitly now expects full-year revenue of $915 million to $925 million, up 40% to 42% from the prior year, and an increase from its previous guidance of $875 million to $895 million.
The company is still forecasting a GAAP net loss for the year, but raised its adjusted EBITDA guidance from a range of $5 million to $15 million to a range of $33 million to $40 million.
Remitly is tackling a large addressable market, continues to see robust growth, and is ramping up profitability. Given all this and the strong results, it's not a surprise the stock is soaring today.
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