What Happened?

Shares of online money transfer platform Remitly (NASDAQ:RELY) jumped 24.1% in the after-market session after the company reported a "beat and raise" quarter. Third-quarter results blew past analysts' EBITDA expectations. Customer growth stayed strong, up 35% year on year, and was supported by robust volume growth, which grew even faster (up 42% y/y). Moving on, its full-year EBITDA guidance exceeded Wall Street's estimates. Overall, this was a strong quarter.

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What The Market Is Telling Us

Remitly’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Remitly and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 8 months ago when the stock gained 24.5% on the news that the company reported fourth-quarter results that exceeded Wall Street's revenue and EPS expectations. The company also recorded strong user growth as active customer count grew 41% year on year, and came in ahead of analysts' expectations. Gross margin also improved significantly during the quarter. Looking ahead, revenue guidance for the full year came in ahead of consensus. Zooming out, this was an impressive quarter that should delight shareholders.

Remitly is down 9.6% since the beginning of the year, and at $17.18 per share, it is trading 37.7% below its 52-week high of $27.59 from October 2023. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $354.39.

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