Online money transfer platform Remitly (NASDAQ: RELY) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Remitly beat analysts’ revenue expectations last quarter, reporting revenues of $452.8 million, up 25.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
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 18.1% year on year, slowing from the 34.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Remitly has a history of exceeding Wall Street’s expectations.
Looking at Remitly’s peers in the financial technology segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Robinhood delivered year-on-year revenue growth of 32.3%, beating analysts’ expectations by 1.8%, and LendingTree reported revenues up 25.3%, falling short of estimates by 0.7%. Robinhood traded down 3.6% following the results while LendingTree was also down 19.6%.
Read our full analysis of Robinhood’s results here and LendingTree’s results here.
Investors in the financial technology segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. Remitly is down 1.2% during the same time and is heading into earnings with an average analyst price target of $29.33 (compared to the current share price of $23.95).
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