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RELY Nasdaq· Remitly Global Inc
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RELY Nasdaq· Remitly Global Inc
Earnings report Q3 2023

Significant Revenue Growth Driven by Active Customer Increase and Digital Disbursements

Segments of Revenue

The revenue for the company was primarily driven by an increase in active customers and a shift towards digital disbursements. Geographically, the United States contributed the most with $160.73 million, followed by Canada with $29.5 million, and the rest of the world contributing $51.4 million.

Strengths

The company saw a substantial increase in revenue, with a rise of $72.4 million or 43% for the three months ended September 30, 2023, compared to the same period in 2022. For the nine months ended September 30, 2023, the revenue increased by $217 million or 47% compared to the same period in 2022. This growth was primarily driven by an increase in active customers and a shift towards digital disbursements.

Challenges

Despite the impressive revenue growth, the company's costs and expenses also increased. Transaction expenses, customer support and operations, marketing, technology and development, and general and administrative costs all saw a rise. This resulted in a loss from operations of $36.9 million for the three months ended September 30, 2023.

Noteworthy

The company's technology and development expenses as a percentage of revenue increased to 24% for both the three and nine months ended September 30, 2023, from 21% for the same periods in 2022. This was driven by an increase in headcount and stock-based compensation expense due to hiring additional personnel and contractors.

Summary

The company experienced significant revenue growth in the latest quarter, primarily driven by an increase in active customers and a shift towards digital disbursements. However, increased costs and expenses resulted in a loss from operations. The company also invested more in technology and development, indicating a focus on enhancing its platform and products.

Source documents

Form 10-Q  filed on Nov 01, 2023
43 pages scanned

Reference data

Company financials Q3 revenue 242M
Analyst estimates Q3 EPS missed by -0.84%
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