Remitly Global, Inc. (NASDAQ:RELY) Could Be Less Than A Year Away From Profitability

Remitly Global, Inc. (NASDAQ:RELY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Remitly Global, Inc. engages in the provision of digital financial services in the United States, Canada, and internationally. With the latest financial year loss of US$37m and a trailing-twelve-month loss of US$4.5m, the US$3.8b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Remitly Global's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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According to the 8 industry analysts covering Remitly Global, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$14m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Remitly Global's upcoming projects, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

See our latest analysis for Remitly Global

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Remitly Global to cover in one brief article, but the key fundamentals for the company can all be found in one place – Remitly Global's company page on Simply Wall St. We've also compiled a list of important factors you should look at:

1. Historical Track Record: What has Remitly Global's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Remitly Global's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.