Shares of Remitly Global (RELY +7.73%) were moving higher on Thursday after the remittance specialist posted better-than-expected results in its second-quarter earnings report.
The stock closed up 7.7% on the news.
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Remitly shines
Remitly said that send volume, or the amount of money remitted, rose 27% in the quarter to $23.5 billion, driving revenue up 20% to $495.2 million, which was ahead of the consensus at $486 million.
Active customers jumped 20% to 10.2 million, showing the company still has a lot of runway in customer growth.
Even more impressive was its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 79% to $114.7 million, showing the business is scaling and it's benefiting from network effects.
On the bottom line, earnings per share after adjusting for a one-time tax benefit jumped form $0.03 to $0.30, which was just below the consensus at $0.31.
CEO Sebastian Gunningham said, "Our results reflect the compounding advantages of a trusted global network, a strategy that resonates with customers, and rigorous cost discipline."
NASDAQ: RELY
Key Data Points
What's next for Remitly
For the full year, the company raised its guidance from $1.96 billion-$1.98 billion to $1.98 billion-$1.99 billion, or 21% growth at the midpoint.
On the bottom line, it called for year-over-year growth in net income and adjusted EBITDA of $410 million-$415 million.
Remitly still has a large addressable market to penetrate, especially with its new Remitly Business B2B platform for cross-border payments, and a premium subscription product, Remitly One.
The latest report shows the company establishing itself as the premier remittance specialist in the digital era. It's not surprising to see the stock moving higher on the news.
