Remitly entered 2025 with notable momentum, as the company’s first quarter results were well received by the market. Management attributed the strong performance to a combination of expanding customer engagement, targeted product enhancements for high-value senders, and efficiency gains in marketing spend. CEO Matt Oppenheimer highlighted the company’s ability to deliver “frictionless experiences” and tailor send limits, which supported a significant increase in send volume per user. Additionally, improvements in direct partner integrations helped speed up transactions and lower costs, reinforcing Remitly’s position in the digital remittance market.
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Remitly (RELY) Q1 CY2025 Highlights:
- Revenue: $361.6 million vs analyst estimates of $347.5 million (34.4% year-on-year growth, 4.1% beat)
- Adjusted EPS: $0.19 vs analyst estimates of $0.17 (11.9% beat)
- Adjusted EBITDA: $58.43 million vs analyst estimates of $39.15 million (16.2% margin, 49.2% beat)
- The company slightly lifted its revenue guidance for the full year to $1.58 billion at the midpoint from $1.57 billion
- EBITDA guidance for the full year is $202.5 million at the midpoint, above analyst estimates of $197.2 million
- Operating Margin: 3.4%, up from -7.4% in the same quarter last year
- Active Customers: 8.04 million, up 1.83 million year on year
- Market Capitalization: $3.74 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Remitly’s Q1 Earnings Call
- Tien-Tsin Huang (JPMorgan) asked about the drivers behind the increase in send volume per active user. CFO Vikas Mehta pointed to higher engagement, growth in high-amount senders, and tailored product experiences for larger transactions.
- Andrew Schmidt (Citi) inquired whether improvements in volume per user were driven by internal initiatives or environmental factors. Mehta replied that the growth was mainly self-driven, with cohort retention and product improvements providing high visibility and confidence.
- Chris Kennedy (William Blair) sought more detail on direct partner integrations and their benefits. CEO Matt Oppenheimer highlighted faster, lower-cost, and more reliable transactions, emphasizing the impact on customer experience and retention.
- Ramsey El-Assal (Barclays) asked about strategies to attract high-dollar and micro business customers. Oppenheimer described tailored marketing and product changes, including improved KYC (Know Your Customer) processes for specific segments.
- David Scharf (Citizens Capital Markets) questioned the sustainability of margin gains and potential one-time expense benefits. Mehta explained that Q1 benefited from efficient marketing, but investments would increase in Q2 and beyond to support long-term growth.
Catalysts in Upcoming Quarters
Over the coming quarters, the StockStory team will monitor (1) the pace of adoption and transaction growth from high-amount senders and micro business customers, (2) the success of new market and product launches such as WhatsApp Send, and (3) the sustainability of operational efficiency gains as marketing and technology investments increase. Trends in customer retention and competitive dynamics in key corridors will also serve as important indicators of Remitly’s execution.
Remitly currently trades at $18.34, down from $21.09 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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