Remitly Global, Inc. (RELY): A Bull Case Theory

A lawsuit receiving a mobile wealth transportation notification connected their phone.

Remitly is simply a starring planetary payments supplier specializing successful cross-border remittances, enabling customers to nonstop wealth from 30 countries to implicit 170 destinations. With much than 5,100 unsocial pay-in/pay-out corridors, the institution facilitates transfers done slope deposits, credit/debit cards, and currency pickups. It boasts a robust disbursement network, reaching implicit 5 cardinal slope accounts and mobile wallets, on with 470,000 currency pickup locations worldwide. A cardinal differentiator is its customer-centric approach—over 90% of transactions are processed wrong an hour, and its mobile app holds an awesome 4.9/5 standing crossed 1.8 cardinal reviews. This committedness to reliability and ratio has fueled important idiosyncratic growth, with progressive customers expanding 32% year-over-year to 7.8 cardinal successful Q4 2024. The concern is scaling rapidly, with gross increasing 33% and Adjusted EBITDA reaching 13% successful the 2nd fractional of 2024. Notably, Remitly besides turned a astonishment GAAP nett successful Q3 2024, reinforcing the spot of its fiscal trajectory. Management’s 2025 guidance projects 24-25% gross maturation and $180-$200 cardinal successful Adjusted EBITDA, with country for outperformance fixed the company's demonstrated quality to thrust operating leverage.

The planetary remittance marketplace is simply a monolithic $1.8 trillion industry, supported by trends specified arsenic expanding globalization, rising migrant incomes, and a displacement towards integer payments. Banks stay the astir costly enactment for remittances, charging an mean interest of 12.1%, whereas mobile operators connection importantly little costs astatine 4.1%. Over the past 15 years, instrumentality rates person been steadily declining arsenic consumers displacement to low-cost integer alternatives similar Remitly, which maintains an mean instrumentality complaint of 2.32%. The remittance abstraction remains highly fragmented, with Western Union starring astatine ~5.8% marketplace share, followed by competitors similar Wise, MoneyGram, and PayPal’s Xoom. While respective players absorption connected cross-border transactions, Remitly’s unsocial currency pickup offering alongside integer disbursements gives it a competitory edge. The institution has besides importantly outpaced bequest players, achieving a 40% compound yearly maturation complaint successful nonstop measurement implicit the past 3 years, portion Western Union has grown astatine conscionable 4%.