Remitly Global (RELY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 39% year-over-year to $336.5 million, driven by a 35% increase in active customers to 7.3 million and strong retention.

• Net income was $1.9 million, reversing a $35.7 million net loss in Q3 2023, and Adjusted EBITDA reached $46.7 million, with margin expanding to nearly 14%.

• Send volume rose 42% year-over-year to $14.5 billion, outpacing customer growth due to higher transaction frequency.

• The business model benefits from digital scale, data-driven insights, and a focus on customer trust and experience.

• Majority of revenue is generated from customers acquired in prior periods, reflecting durable customer behavior.

Financial highlights

• Gross take rate was 2.32%, consistent with expectations, and transaction expenses improved to 34.3% of revenue.

• Marketing spend per active customer declined 8.5% year-over-year to $9.61, reflecting improved efficiency.

• Stock-based compensation was $39.3 million, 11.7% of revenue, declining for the fourth consecutive quarter.

• EPS for Q3 2024 was $0.01 basic and diluted, compared to $(0.20) in Q3 2023.

• Cash and cash equivalents were $324.4 million as of September 30, 2024.

Outlook and guidance

• FY 2024 revenue guidance raised to $1.25–$1.254 billion, with Adjusted EBITDA expected between $108–$112 million.

• Q4 2024 revenue projected at $338–$342 million, with Adjusted EBITDA of $17–$21 million.

• Company expects to remain in a GAAP net loss position for Q4 and full year 2024.

• Early 2025 outlook projects low- to mid-20s percent revenue growth, with no FX tailwinds assumed.

• Sufficient liquidity and cash resources are expected to meet working capital needs for at least the next twelve months.