Remitly revenue rose by 69% in Q3 but growth is slowing

Remitly, the fast-growing money transfer company, delivered relatively mixed third-quarter financial results. These were the first results since the company went public two months ago.

Remitly quarterly results

Digital money transfer companies were among the leading beneficiaries of the Covid-19 pandemic. Companies like PayPal, Wise, and WorldRemit reported a significant jump in their user numbers. This happened as more people used their digital platforms to send money.

Remitly benefited substantially during the pandemic. On Wednesday, the company reported relatively strong quarterly results. 

The company’s revenue rose by 69% from the same quarter in 2020. Its revenue was about $121.2 million compared with $71.8 million in the same period last year. Its volume rose to $5.2 billion while the number of active customers rose to 2.6 million. This was a 51% year-on-year increase. 

The company made a $13 million loss in the quarter. The loss, which was bigger than the $2.4 million it lost last year, was because of a large donation the company made. 

Remitly expects that its revenue will be between $445 million and $450 million this year. This will be a growth rate of about 73% year on year. In a statement, the company’s CEO said:

“Remitly’s vision is to transform the lives of immigrants and their families by providing the most trusted financial services on the planet. Our strong results in the quarter are a direct reflection of our customers’ commitment to their families and trust in Remitly.”

Growth slowing

While Remitly is seeing strong revenue growth, the reality is that its growth is slowing down. This is happening because of the rising competition in the industry. Also, more people have started going to work, meaning that they no longer need their services,

Indeed, results from companies like PayPal, Wise, Square, Western Union, and MoneyGram have shown that theis growth is slowing.

This trend can also be seen in Remitly’s share performance. The stock has tumbled by more than 15% since its initial public offering (IPO).