Remitly Shares Surge 19% on Strong Q3 Results and Upbeat Q4 Guidance

Remitly Global Inc (RELY) shares surged 19% after the company reported strong Q3 2024 results and provided upbeat guidance for Q4. The company's revenue of $320.74 million beat expectations by 1.45%, while earnings of -$0.06 per share surpassed estimates by 36.17%. The company's active customers and send volume grew by 41% and 38% year-over-year, respectively, driven by a reliable and fast cross-border payments experience.

For Q4, Remitly expects total revenue in the range of $1,225 million to $1,250 million, representing a growth rate of 30% to 32% year-over-year. Despite recent concerns about Medicare Advantage star ratings, Remitly's strong financial performance and growth prospects position it as a top value pick with significant upside potential.


Remitly's Q3 results and Q4 guidance underscore the company's strong growth trajectory and solid fundamentals. The 19% share price increase reflects investor confidence in the company's ability to deliver on its long-term growth prospects. With active customers up 41% YoY and send volume up 38% YoY in Q4 2023, Remitly's customer base continues to expand, driving revenue growth of 39% YoY. The company's Q4 guidance, targeting total revenue of $1,225 million to $1,250 million, represents a growth rate of 30% to 32% YoY, further cementing Remitly's position as a high-growth financial services provider.


Despite a net loss in Q4 2023, Remitly's Adjusted EBITDA of $8.2 million indicates progress towards sustainable profitability. As Remitly continues to invest in its platform and expand its customer base, its long-term growth prospects remain promising, supporting an investment thesis focused on the company's strong fundamentals and growth potential.

In conclusion, Remitly's Q3 results and Q4 guidance demonstrate the company's ability to execute on its growth strategy and deliver strong financial performance. With a growing customer base, increasing send volume, and a positive outlook for future growth, Remitly represents an attractive investment opportunity for those seeking exposure to the high-growth financial services sector.