Online money transfer platform Remitly (NASDAQ:RELY) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Remitly beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $351.9 million, up 32.9% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 7.78 million active customers, up 31.6% year on year.
Is Remitly a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Remitly’s revenue to grow 29.1% year on year to $347.5 million, slowing from the 32% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Remitly has missed Wall Street’s revenue estimates three times over the last two years.
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. Robinhood delivered year-on-year revenue growth of 50%, beating analysts’ expectations by 1.2%, and EverQuote reported revenues up 83%, topping estimates by 5.2%. Robinhood traded down 5.2% following the results.
Read our full analysis of Robinhood’s results here and EverQuote’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 18% on average over the last month. Remitly is up 11.7% during the same time and is heading into earnings with an average analyst price target of $27.29 (compared to the current share price of $21.02).
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