Remitly Earnings: What To Look For From RELY

StockStory
02-18
Remitly Earnings: What To Look For From RELY

Online money transfer platform Remitly (NASDAQ:RELY) will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Remitly beat analysts’ revenue expectations by 4.9% last quarter, reporting revenues of $336.5 million, up 39.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 7.31 million active customers, up 35.1% year on year.

Is Remitly a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Remitly’s revenue to grow 29.8% year on year to $343.7 million, slowing from the 38.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Remitly has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Remitly’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coinbase delivered year-on-year revenue growth of 138%, beating analysts’ expectations by 22%, and Robinhood reported revenues up 115%, topping estimates by 7.7%. Coinbase traded down 8% following the results while Robinhood was up 14%.

Read our full analysis of Coinbase’s results here and Robinhood’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 9.5% on average over the last month. Remitly is up 13.1% during the same time and is heading into earnings with an average analyst price target of $26.33 (compared to the current share price of $27.31).

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