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Executive Summary
Remitly Global Inc (NASDAQ:RELY) delivered strong first-quarter 2025 results on May 7, showcasing robust growth across all key metrics while achieving significant profitability milestones. The digital remittance provider reported revenue of $362 million, up 34% year-over-year, alongside its first GAAP net income of $11.4 million and adjusted EBITDA of $58.4 million.
The company’s stock responded positively to the results, rising 6.21% in after-hours trading to $22.40, reflecting investor confidence in Remitly’s growth trajectory and improving profitability.
CEO Matt Oppenheimer highlighted the company’s achievement of the "Rule of 50" – where revenue growth percentage plus adjusted EBITDA margin exceeds 50 – demonstrating Remitly’s ability to balance rapid expansion with improving profitability.
Quarterly Performance Highlights
Remitly’s Q1 2025 performance showed acceleration across key operational and financial metrics. The company processed $16.2 billion in send volume, representing 41% growth compared to Q1 2024, while expanding its quarterly active customer base to 8 million, a 29% year-over-year increase.
As shown in the following comprehensive performance overview:
The company’s revenue growth has been consistent over the past five quarters, showing steady progression from $269 million in Q1 2024 to $362 million in Q1 2025. More impressively, Remitly has transformed its bottom line, moving from a negative adjusted EBITDA of $21 million in Q1 2024 to a positive $58.4 million in Q1 2025, representing a 16.2% adjusted EBITDA margin.
This financial progression is clearly illustrated in the following quarterly trend analysis:
Strategic Initiatives
Remitly’s presentation emphasized three strategic pillars driving its sustainable growth: resilience, diversification, and trust.
The resilience strategy highlights Remitly’s strong position in a $2 trillion personal cross-border transaction market where it currently holds just 3% market share, suggesting significant growth runway. The company noted that remittances tend to be non-discretionary, which helps maintain performance during periods of economic uncertainty.
In terms of diversification, Remitly has expanded its corridor network to over 5,200 routes globally and is developing new use cases including microbusiness solutions and WhatsApp integration. The company reported 45% year-over-year growth in send volume from transactions exceeding $1,000, indicating success in expanding beyond smaller transfers.
The company’s network expansion strategy is enhancing customer experience while reducing costs:
On the trust front, Remitly emphasized its operational reliability with over 93% of transactions disbursed in less than one hour, more than 95% of transactions completed without customer support contact, and 99.99% platform uptime. These metrics underscore the company’s focus on building customer confidence through consistent service delivery.
Operational Efficiencies
A key highlight of the presentation was Remitly’s significant improvement in operational efficiency across all expense categories. The company achieved substantial year-over-year reductions in operating expenses as a percentage of revenue:
The most dramatic improvement came in marketing expenses, which decreased by 473 basis points year-over-year, driven by improved customer acquisition efficiency and higher retention rates. Technology and development expenses also declined by 144 basis points, while customer support and general administrative expenses showed more modest improvements of 89 and 79 basis points, respectively.
These efficiency gains have directly contributed to Remitly’s profitability improvement, allowing the company to invest in growth while expanding margins.
Forward-Looking Statements
CFO Vikas Mehta provided an optimistic outlook for both Q2 and full-year 2025. For the second quarter, Remitly expects revenue between $383-385 million, representing 25-26% year-over-year growth, and adjusted EBITDA of $45-47 million.
For the full year 2025, the company projects:
The annual revenue guidance of $1.574-1.587 billion implies 25-26% growth compared to 2024, while the adjusted EBITDA projection of $195-210 million represents significant margin expansion.
Competitive Industry Position
Remitly continues to strengthen its position in the global remittance market through its digital-first approach. The company emphasized that its digital-only send model reduces risks and compliance costs compared to traditional competitors with physical locations.
With quarterly active customers exceeding 8 million and a transaction volume of $16.2 billion, Remitly has established itself as a significant player in the digital remittance space. However, with only 3% market share in a $2 trillion market, the company has substantial room for expansion.
The presentation highlighted Remitly’s focus on building a trusted brand in cross-border financial services, as captured in its vision statement: "Transform lives with trusted financial services that transcend borders."
Conclusion
Remitly’s Q1 2025 results demonstrate the company’s successful execution of its growth strategy while achieving meaningful profitability improvements. The combination of 34% revenue growth and 16.2% adjusted EBITDA margin positions the company well within the financial technology sector.
With continued customer growth, operational efficiencies, and network expansion, Remitly appears well-positioned to maintain its growth trajectory through 2025. Investors responded positively to both the quarterly results and forward guidance, as reflected in the after-hours stock price increase.
As the company continues to expand its market share in the global remittance market, its focus on resilience, diversification, and trust provides a solid foundation for sustainable long-term growth.
Full presentation:
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