Online money transfer platform Remitly (NASDAQ: RELY) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Remitly beat analysts’ revenue expectations last quarter, reporting revenues of $442.2 million, up 25.7% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. It reported 9.3 million active customers, up 19.2% year on year.
Is Remitly a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Remitly’s revenue to grow 21.4% year on year, slowing from the 34.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Remitly rarely misses Wall Street’s revenue estimates.
Looking at Remitly’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. LendingTree delivered year-on-year revenue growth of 36.5%, beating analysts’ expectations by 1.9%, and Robinhood reported revenues up 15.1%, falling short of estimates by 5.3%. LendingTree traded down 21.7% following the results while Robinhood was also down 13.2%.
Read our full analysis of LendingTree’s results here and Robinhood’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 11.1% on average over the last month. Remitly is up 46.7% during the same time and is heading into earnings with an average analyst price target of $22.56 (compared to the current share price of $23.78).
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