Remitly (RELY) Shares Skyrocket, What You Need To Know
What Happened:
Shares of online money transfer platform Remitly (NASDAQ:RELY) jumped 24.5% in the pre-market session after the company reported fourth-quarter results that exceeded Wall Street's revenue and EPS expectations. The company also recorded strong user growth as active customer count grew 41% year on year, and came in ahead of analysts' expectations. Gross margin also improved significantly during the quarter. Looking ahead, revenue guidance for the full year came in ahead of consensus. Zooming out, this was an impressive quarter that should delight shareholders.
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What is the market telling us:
Remitly's shares are not very volatile than the market average and over the last year have had only 14 moves greater than 5%. Moves this big are very rare for Remitly and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 7 months ago, when the stock gained 20.2% on the news that the company reported an impressive "beat and raise" quarter. Second quarter results beat Wall Street's revenue, active users, adjusted EBITDA and earnings per share expectations. Revenue and adjusted EBITDA guidance for the next quarter and full year beat Consensus. Similarly, the company lifted the full-year guidance for both. Overall, it was a stronger quarter for the company with impressive guidance.
Remitly is up 7.7% since the beginning of the year, but at $20.51 per share it is still trading 25.7% below its 52-week high of $27.59 from October 2023. Investors who bought $1,000 worth of Remitly's shares at the IPO in September 2021 would now be looking at an investment worth $422.50.
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