Remitly Global, Inc. (RELY): history, ownership, mission, how it works & makes money

A Brief History of Remitly Global, Inc.

Remitly Global, Inc. (NASDAQ: RELY), a leading digital remittance platform, has experienced significant growth since its inception in 2011. The company aims to provide a reliable and affordable way for immigrants to send money back home. As of September 30, 2024, Remitly has established a robust presence in the global remittance market.

Financial Performance Overview

As of the third quarter of 2024, Remitly reported the following financial results:

The revenue increase of 39% in the third quarter of 2024 was driven primarily by a 35% increase in active customers and a substantial rise in transaction volumes. The company's focus on enhancing its mobile platform and customer experience has significantly contributed to its growth.

Key Financial Metrics

For the nine months ended September 30, 2024, Remitly's key financial metrics were as follows:

Acquisition Activity

In 2023, Remitly acquired Rewire, a digital payments platform, to bolster its capabilities in the international remittance space. The acquisition was valued at approximately $77.9 million. This strategic move is expected to enhance Remitly's technology and customer base significantly.

Liquidity Position

As of September 30, 2024, Remitly's liquidity position remains strong, with cash and cash equivalents totaling $324.4 million. The company also has access to a $325 million revolving credit facility, which was recently amended to increase its commitments.

Stock Performance

Remitly's stock performance has shown resilience, with a market capitalization of approximately $3.96 billion as of late September 2024. The company has maintained compliance with its financial covenants and has demonstrated a commitment to improving shareholder value through strategic growth initiatives.

Overall, Remitly has positioned itself as a key player in the digital remittance market, leveraging technology to enhance customer experiences and drive significant growth.

A Who Owns Remitly Global, Inc. (RELY)

Major Shareholders

As of 2024, the ownership structure of Remitly Global, Inc. includes various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:

Stock Performance

Remitly Global, Inc. (RELY) is listed on NASDAQ. As of the end of September 2024, the stock price was approximately $20.00 per share. The stock has seen fluctuations over the year, with the following key data:

Financial Overview

As of September 30, 2024, Remitly reported the following financial metrics:

Recent Developments

In 2024, Remitly has focused on expanding its global footprint, which has contributed to a significant increase in active customers and send volume. The company reported a 39% increase in revenue year-over-year for the three months ended September 30, 2024.

Debt and Financing

As of September 30, 2024, Remitly had a total debt of $130 million associated with its 2021 Revolving Credit Facility, which has a maturity date of September 13, 2026. The company also reported cash and cash equivalents of $324.4 million.

Conclusion

The ownership structure of Remitly Global, Inc. reflects a mix of institutional investors and insider holdings, with significant growth in both customer base and financial performance in 2024.

Remitly Global, Inc. (RELY) Mission Statement

Overview of Mission Statement

Remitly Global, Inc. aims to provide a reliable and secure platform for international money transfers. The company focuses on delivering a superior customer experience, emphasizing speed, affordability, and accessibility in remittance services.

Financial Performance Indicators

As of September 30, 2024, Remitly reported the following financial metrics:

Customer Engagement and Retention

Active customers have increased significantly, reaching approximately 7.31 million, demonstrating a strong retention rate and customer engagement strategy.

Transaction Expenses and Revenue Growth

Transaction expenses have also seen an increase, reflecting the growth in transaction volume:

Market Strategy and Customer Acquisition

Remitly’s strategy includes expanding its global disbursement network and leveraging digital marketing to attract new customers. The focus remains on non-discretionary remittances to enhance customer loyalty.

Liquidity and Capital Resources

As of September 30, 2024, Remitly’s principal sources of liquidity included:

Conclusion

Remitly's mission is centered around providing a seamless and trustworthy platform for remittances, supported by robust financial growth and customer engagement metrics.

How Remitly Global, Inc. (RELY) Works

Business Model

Remitly Global, Inc. operates as a digital remittance service, facilitating international money transfers primarily for customers sending money from the United States, Canada, and the United Kingdom to recipients in over 170 countries. The company's revenue is primarily generated from transaction fees and foreign exchange spreads.

Financial Performance

For the three months ended September 30, 2024, Remitly reported revenue of $336.5 million, a 39% increase from $241.6 million in the same period in 2023. For the nine months ended September 30, 2024, revenue reached $912.1 million, up 34% from $679.5 million year-over-year.

Active Customers

As of September 30, 2024, Remitly had approximately 7.3 million active customers, representing a 35% increase compared to 5.4 million active customers in the same quarter of 2023.

Send Volume

The total send volume for the three months ended September 30, 2024, was $14.5 billion, a 42% increase from $10.2 billion in the same quarter of the prior year. The nine-month send volume reached $39.2 billion, up 38% from $28.4 billion year-over-year.

Expenses

Transaction expenses for the three months ended September 30, 2024, were $115.6 million, up 35% from $85.7 million in Q3 2023. For the nine months, transaction expenses reached $313.2 million, a 31% increase from $240 million in the same period in 2023.

Net Income

For the three months ended September 30, 2024, Remitly reported a net income of $1.9 million compared to a net loss of $35.7 million in the same quarter in 2023. For the nine months, the net loss was $31.3 million, improving from a loss of $82.8 million year-over-year.

Cash Flow

Net cash provided by operating activities for the nine months ended September 30, 2024, was $138.9 million, compared to a net cash used of $25.2 million in the same period of 2023.

Debt and Liquidity

As of September 30, 2024, Remitly had cash and cash equivalents totaling $324.4 million. The company entered into a $325 million revolving credit facility, which was amended in December 2023 to increase its commitments from $250 million. As of September 30, 2024, Remitly had unused borrowing capacity of $276.3 million under this facility.

Key Metrics Overview

Future Outlook

Remitly's growth is projected to continue, driven by expanding customer acquisition strategies and the introduction of new services. The company remains committed to investing in technology and marketing to enhance customer experience and operational efficiency.

How Remitly Global, Inc. (RELY) Makes Money

Revenue Generation

Remitly Global, Inc. primarily generates revenue through transaction fees and foreign exchange spreads. For the three months ended September 30, 2024, the company reported total revenue of $336.5 million, reflecting a 39% increase from $241.6 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $912.1 million, a 34% increase from $679.5 million year-over-year.

Transaction Fees

Transaction fees vary based on several factors including the currency corridor, funding method (e.g., ACH, credit card), and disbursement method (e.g., bank deposit, cash pickup). The company recognizes these fees at the time funds are delivered to the recipient. For Q3 2024, the company reported an increase in send volume to $14.5 billion, up 42% from $10.2 billion in Q3 2023.

Foreign Exchange Spreads

Remitly also earns revenue through foreign exchange spreads, which represent the difference between the rates offered to customers and the rates at which the company purchases currency. These spreads are influenced by proprietary pricing models designed to provide competitive rates while ensuring profitability.

Active Customer Growth

The company reported a significant increase in active customers, reaching approximately 7.3 million in Q3 2024, a 35% increase from 5.4 million in Q3 2023. This growth is attributed to enhanced customer experience, efficient marketing strategies, and expansion into new markets.

Transaction Expenses

Transaction expenses for Q3 2024 amounted to $115.6 million, a 35% increase from $85.7 million in Q3 2023. For the nine months ended September 30, 2024, transaction expenses were $313.2 million, up 31% from $240.0 million in the same period of 2023. These expenses include fees paid to payment processors and disbursement partners, as well as provisions for transaction losses.

Marketing and Customer Acquisition

Marketing expenses for Q3 2024 were $74.8 million, a 22% increase from $61.4 million in Q3 2023. For the nine-month period, marketing expenses totaled $219.9 million, up 38% from $159.1 million in the previous year. This investment is critical for acquiring new customers and retaining existing ones, as the majority of customers utilize the service for recurring remittance needs.

Net Income/Loss

For Q3 2024, Remitly reported a net income of $1.9 million, a significant improvement from a net loss of $35.7 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $31.3 million, compared to a loss of $82.8 million in the same period of 2023.

Conclusion

Remitly's growth is driven by its ability to increase active customers, improve transaction volume, and manage transaction expenses effectively while investing in marketing and technology to enhance customer experience.

Article updated on 8 Nov 2024

Resources:

• Remitly Global, Inc. (RELY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Remitly Global, Inc. (RELY)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Remitly Global, Inc. (RELY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.