Shares of Remitly Global (RELY 8.07%) shot up over 10% this week, according to data from S&P Global Market Intelligence. The remittance provider hosted an Investor Day that covered its long-term goals and financial guidance, impressing Wall Street. Management is calling for strong revenue growth and margin expansion through 2028.
As of this writing at 12:46 PM EST on Friday, December 12, Remitly Global stock is up 10.4% this week. Here's why.
NASDAQ: RELY
Key Data Points
Expanding product opportunity
Beginning over a decade ago, Remitly built itself up as a remittance provider for individuals looking to send money from the United States to India, Mexico, and the Philippines. From there, it steadily expanded to more and more country corridors for international money transfer services, while simultaneously lowering its costs, speeding up transfer times, and improving product functionality.
This has brought Remitly to the approximately $1.5 billion in revenue it generates today. Through 2028, it believes it can reach upwards of $3 billion in annual revenue through more geographical expansion, selling upmarket to wealthier individuals and small businesses, and pushing new products such as spending and storing money like a bank at Remitly. These are the initiatives management outlined at the 2025 Investor Day earlier this week.
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Is Remitly Global stock a buy?
Financially, Remitly believes that by 2028, it will be generating upwards of $600 million in adjusted earnings. Even if it uses a lot of stock-based compensation that is excluded from this adjusted earnings metric (but should still be counted as an expense), the company will likely generate well into the hundreds of millions in earnings annually within a few years' time.
Compared to a market cap of $3.1 billion, that looks mighty cheap. Revenue is also expected to double from now until 2028, with plenty of room to keep growing thereafter. If you think Remitly's long-term guidance is reasonable, the stock is a buy even after this week's bump.
