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    Remitly Global (RELY)

    RELY Q3 2024: Record Customer Growth, 14% EBITDA; Q4 Excludes FX

    Reported on Jun 23, 2025 (After Market Close)
    Pre-Earnings Price$15.26Last close (Oct 30, 2024)
    Post-Earnings Price$18.99Open (Oct 31, 2024)
    Price Change
    $3.73(+24.44%)
    • Robust Revenue and Customer Growth: Executives highlighted record customer acquisition and strong transactional growth in Q3, bolstering the case for sustained top-line expansion.
    • Enhanced Marketing Efficiency and Organic Growth: The Q&A emphasized improved marketing spend per active customer and effective word-of-mouth referrals, which help drive lower customer acquisition costs and higher retention.
    • Disciplined Capital Allocation with Margin Expansion Potential: Discussions on rising adjusted EBITDA, improved transaction expense management, and scalable digital capabilities support a pathway to durable profitability and long-term margin expansion.
    • FX Volatility and Uncertainty: Management noted that Q3 performance benefited from FX tailwinds, but they are not assuming these in Q4 guidance, implying revenue growth is vulnerable if currency trends reverse.
    • Margin Pressure Risks: The expected sequential decline in gross take rate and inherent variability in transaction losses suggest that profitability margins could contract, potentially eroding Q3 gains.
    • Reliance on Increased Marketing Spend: Significant Q4 investments in marketing to capture seasonal growth carry risks; if efficiencies do not materialize as planned, this could pressure near-term profitability.
    1. EBITDA Margin
      Q: Long-term EBITDA margin expectations?
      A: Management stressed that margins benefited from scale and cost efficiencies—14% EBITDA in Q3—as they invest in sustaining growth, though no specific FY '25 margin target was shared.

    2. 2025 Guidance
      Q: Key drivers for 2025 growth?
      A: They pointed to steady active customer growth and increased send volume from strong retention, excluding FX tailwinds, to support an early view of low to mid-20% revenue growth for 2025.

    3. RLTE Margin Trends
      Q: Long run RLTE margin outlook?
      A: The team expects RLTE margins to remain stable to modestly grow over time through further digitization and lower transaction costs while balancing pricing decisions.

    4. Operating Efficiency
      Q: How is operating leverage improving?
      A: Enhanced marketing efficiency and tighter cost control across operations are driving better operating leverage, benefiting from scale and improved customer engagement.

    5. Q3 Performance Drivers
      Q: Any non-currency factors in Q3 strength?
      A: Beyond FX, record customer additions, higher send volumes, and product improvements were key to setting robust performance benchmarks in Q3.

    6. Capital Allocation
      Q: How allocate capital among markets?
      A: The focus remains on expanding in established markets while selectively investing in emerging regions and new segments to capture broader opportunities.

    7. Marketing Metric Validity
      Q: Why focus on marketing per active customer?
      A: This metric captures both new acquisition and retention efficiency, with data-driven insights proving it a meaningful composite measure of marketing performance.

    8. FX Impact
      Q: Quantify year-to-date FX impact?
      A: Management noted that currency effects, though beneficial at times, are difficult to isolate and are not factored into forward guidance due to their variability.

    9. Q4 Outlook Details
      Q: How will Q4 differ from past patterns?
      A: Q4 is expected to show modest increases in active customers and steady send volumes, with a sequential softening in gross take rate driven by mix changes amid typical seasonal trends.

    10. Marketing Cadence
      Q: Is there a new marketing spend level for Q4?
      A: While Q4 spending will sequentially rise to leverage the holiday season, overall marketing efficiency is set to improve, reflecting a focus on high ROI.

    11. New Corridor Efficiency
      Q: How perform marketing in non-core geographies?
      A: A uniform marketing playbook is being applied to diverse corridors, yielding strong organic growth and improved RLTE in markets beyond the traditional core.

    Research analysts covering Remitly Global.