RELY Nasdaq· Remitly Global Inc.
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RELY Nasdaq· Remitly Global Inc.
Earnings report Q4 2023

RELY Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

In the latest quarter, RELY reported a significant increase in revenue. For the year ended December 31, 2022, revenue increased by $195.0 million, or 43%, compared to the previous year. This growth was primarily driven by a 40% increase in send volume, which reached over $28.6 billion. The company attributed this growth to a 48% increase in active customers year over year and continued strength in customer retention.


RELY's strong revenue growth can be attributed to several factors. Firstly, the significant increase in send volume indicates a growing customer base and increased usage of the company's remittance services. The 48% increase in active customers demonstrates the company's ability to attract and retain customers effectively. Additionally, RELY's management highlighted the positive impact of foreign currency movements, particularly the recent strength of the U.S. dollar, which benefited the business by allowing customers to send more local currency to their families and friends. The strength of RELY's primary send currencies relative to receive market currencies also contributed to new customer acquisition.


While RELY's revenue growth is impressive, there are some challenges the company may face. The increasing scale of the business may result in a decline in the growth rate in the future. As the market for remittance services becomes more competitive, maintaining transaction rates, attracting new customers, and pricing services competitively will be crucial for sustaining revenue growth. Additionally, the company's reliance on foreign currency movements introduces a level of volatility and uncertainty, which may impact future financial performance.


It is worth noting that RELY's common stock began trading on the NASDAQ in September 2021. As of February 21, 2024, there were 24 stockholders of record, indicating a relatively small number of direct shareholders. The company has not declared or paid cash dividends on its capital stock and intends to retain all available funds and future earnings for business operations.


RELY delivered a strong performance in the latest quarter, with a significant increase in revenue driven by robust growth in send volume and a growing customer base. The company's ability to attract and retain customers, as well as the positive impact of foreign currency movements, contributed to its revenue growth. However, the increasing scale of the business and the competitive landscape pose challenges for sustaining future growth. Overall, RELY's latest financial results demonstrate its potential for continued success in the remittance industry.

Source documents

Form 10-K  filed on Feb 23, 2024
63 pages scanned

Reference data

Company financials Q4 revenue 265M
Analyst estimates Q4 EPS missed by -83.23%
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