September 28, 2022

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Remitly reports $458M in 2021 revenue, up 78%, as remittance company suspends service in Russia

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Remitly co-founders co-founders Shivaas Gulati, Matt Oppenheimer, and Josh Hug. (Remitly Photo)

Shares of Remitly rose 9% in after-hours trading Wednesday following the release of the company’s fourth quarter earnings report.

The remittance company, which went public in September, reported Q4 revenue of $ 135.3 million, up 69% in the year-ago period, with a net loss of $ 16.6 million, up from $ 9 million.

Full-year revenue for 2021 came in at $ 458.6 million, up 78%. Remitly expects revenue between $ 605 and $ 615 million for fiscal year 2022.

The Seattle-based company offers a mobile platform for sending money internationally, used heavily by immigrants and their families. The service eliminates forms, codes, and agents typically associated with the international money transfer process.

“There is an enormous opportunity ahead of us to expand within our existing corridors,” Remitly CEO Matt Oppenheimer told GeekWire earlier this week via email. “We’ve made huge progress but still represent only ~ 1% of the global cross-border remittance market, and we’re just scratching the surface of broader financial services.”

Remitly generates revenue from transaction fees based on currencies used, funding methods, and the amount of a customer’s principal. The company also makes money on foreign exchange spreads, or the difference between an exchange rate offered to customers and the exchange rate on the company’s currency purchases.

Last week the company, along with competitor Wise, suspended its service in Russia amid the country’s invasion of Ukraine and resulting sanctions, Reuters reported. An increasing number of Western companies are cutting or pulling back ties with Russia.

The US, EU, and other allies this week cut Russian banks off from Swift, an international payment communication system that helps facilitate transactions.

A spokesperson for Remitly said the company is still operating its service to Ukraine.

Last month, Remitly partnered with Coinbase to let customers in Mexico cash out digital currencies.

“We seek out partnerships with the most innovative companies, as well as many established ones, across a host of different industries as part of our broader long-term strategy to expand the use cases and leverage the investments we’ve made in our global disbursement network, ”said Oppenheimer, who co-founded Remitly in 2011.

Remitly earlier this week hired former Google and Microsoft leader Ankur Sinha as its chief technology officer.

Remitly was among seven Washington state companies to go public via IPO last year. Its stock has fallen nearly 80% since the IPO.





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