Expanding Remitly's Reach: CEO Matt Oppenheimer Discusses FY 2023 Financial Performance
Remitly Reports Strong Growth in FY and Q4 2023
Remitly, a leading digital remittance company, has reported impressive growth in its financial year 2024 (FY 2023) and Q4 2023. The main drivers of this growth were strong revenue growth from cross-border remittances through its mobile app and website, as well as improved financial performance marked by narrowing losses.
In the full fiscal year 2024, Remitly's revenue increased by 33.85% to $1.26 billion. This growth was primarily driven by expanded digital financial services in the U.S., Canada, and internationally. The revenue growth indicates sustained high transaction volumes and customer adoption of Remitly’s remittance platform.
In Q4 2024, quarterly revenue rose by 34.4% year-over-year to $351.9 million, surpassing analyst estimates. This strong demand and scale in Remitly's core remittance business were key growth contributors.
Financially, Remitly reduced its net loss significantly, with the loss narrowing by 68.62% to -$36.98 million in 2024 compared to 2023. This reflects operational improvements and possibly better cost efficiencies in FY 2023 and Q4 2023.
Analysts forecast substantial future earnings and revenue growth, indicating that the drivers active in FY 2023, including technology-driven remittance solutions and international expansion, are expected to continue boosting growth at an annual revenue growth rate around 18.8% and earnings growth of 65.9%.
Remitly is leveraging efficiencies of scale to drive its growth. The company is using AI and machine learning to drive efficiency, improve its operations, and broaden its relationship with existing customers through further related products offered by its technology platform.
Remitly's send volume for FY 2023 increased by 38% year-over-year to $39.5 billion. The number of Remitly's active customers increased by 41% year-over-year to 5.9 million in Q4 2023.
Remitly is projecting FY 2024 revenue to pass $1 billion for the first time, with a target range of $1.23 billion to $1.25 billion. The company is also projecting adjusted EBITDA of $75 million to $90 million for FY 2024, giving it a projected EBITDA margin of 6-7%.
Remitly's CEO, Matt Oppenheimer, discussed the company's current and future growth following a successful year. The company is focusing on deepening its relationships with existing customers through additional related products offered by its technology platform.
In summary, Remitly's FY and Q4 2023 growth was driven by robust growth in digital cross-border remittances, expanding customer base on its mobile and web platforms, international market penetration, and enhanced operational efficiency leading to reduced losses. The company's use of AI and machine learning, efficiencies of scale, and focus on deepening relationships with existing customers are key strategies for continued growth.
[1] Remitly Reports Fourth Quarter and Full Year 2023 Results, Remitly Blog, https://about.remitly.com/news/remitly-reports-fourth-quarter-and-full-year-2023-results
[2] Remitly Reports Fourth Quarter and Full Year 2023 Results, Yahoo Finance, https://finance.yahoo.com/news/remitly-reports-fourth-quarter-full-230000516.html
[3] Remitly Stock Jumps on Q4 Earnings Beat, Seeking Alpha, https://seekingalpha.com/news/3800226-remitly-stock-jumps-on-q4-earnings-beat
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