Shares of Remitly Global (NASDAQ: RELY), the leading digital remittance platform, surged over 21% on Tuesday after the company reported extremely impressive third-quarter results that smashed Wall Street expectations. The stellar performance was driven by robust revenue growth, expanding margins, and promising forward guidance.
For the quarter ended September 30, 2024, Remitly posted revenue of $336.53 million, up a staggering 39.3% year-over-year and handily beating analysts' estimates of $320.74 million. The revenue beat was fueled by the company's rapidly growing active customer base, which increased by 35% year-over-year to 7.3 million. Gross margins also improved significantly to 59.2%, up nearly 4 percentage points from the prior year.
More impressively, Remitly reported a surprise profit of $0.01 per share, defying analysts' expectations of a $0.07 loss per share. The company's adjusted EBITDA of $46.7 million nearly doubled Wall Street's projection of $27.7 million, reflecting its disciplined cost management and operating leverage as it scales.
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