Remitly (NASDAQ:RELY) Delivers Impressive Q1, Shows User Growth

Radek Strnad /
2023/05/03 4:21 pm EDT

Online money transfer platform Remitly (NASDAQ:RELY) announced better-than-expected results in the Q1 FY2023 quarter, with revenue up 49.9% year on year to $203.9 million. Guidance for the full year was also close to analyst expectations with revenues guided to $885 million at the midpoint. Remitly made a GAAP loss of $28.3 million, down on its loss of $23.3 million, in the same quarter last year.

Is now the time to buy Remitly? Access our full analysis of the earnings results here, it's free.

Remitly (RELY) Q1 FY2023 Highlights:

  • Revenue: $203.9 million vs analyst estimates of $196.8 million (3.6% beat)
  • EPS: -$0.16 vs analyst estimates of -$0.18 (11.1% beat)
  • Free cash flow was negative $1.73 million, compared to negative free cash flow of $78.8 million in previous quarter
  • Gross Margin (GAAP): 53.9%, up from 48.4% same quarter last year
  • Active Customers: 4.6 million, up 1.6 million year on year

“We are pleased to have achieved another strong quarter as we remain focused on delivering a superior and trusted experience for our customers,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly.

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

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Sales Growth

Remitly's revenue growth over the last three years has been incredible, averaging 60.6% annually. This quarter, Remitly beat analyst estimates and reported a very impressive 49.9% year on year revenue growth.

Remitly Total Revenue

Ahead of the earnings results the analysts covering the company were estimating sales to grow 29.5% over the next twelve months.

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Usage Growth

Over the last two years the number of Remitly's active buyers, a key usage metric for the company, grew 49.7% annually to 4.6 million. This is among the fastest growth of any consumer internet company, indicating that users are excited about the offering.

Remitly Active Customers

In Q1 the company added 1.6 million active buyers, translating to a 53.3% growth year on year.

Key Takeaways from Remitly's Q1 Results

Since it has still been burning cash over the last twelve months it is worth keeping an eye on Remitly’s balance sheet, but we note that with a market capitalization of $3.01 billion and more than $244.2 million in cash, the company has the capacity to continue to prioritise growth over profitability.

We were very impressed by Remitly’s strong user growth this quarter. And we were also excited to see the really strong revenue growth. Zooming out, we think this was a strong quarter. The company is up 4.52% on the results and currently trades at $18.05 per share.

Remitly may have had a good quarter, so should you invest right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

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The author has no position in any of the stocks mentioned.