6. Remitly Global Inc. (NASDAQ:RELY)
Number of Hedge Fund Investors: 35
The stock continues to record solid revenue and a positive outlook, making it a fintech firm to keep an eye on. The small-cap software company specializes in innovative digital financial services operations, with a focus on cross-border transactions. Remitly Global, Inc. (NASDAQ:RELY) operates a hyper-targeted business, but that supports a top line expected to reach $1.5 billion this year, following 33% growth in fiscal year 2024 and a predicted 25% revenue growth in 2025. Furthermore, the company appears to have achieved steady profitability. It is undoubtedly a next-generation financial company that Bezos is investing in. Hence, it is included in the Jeff Bezos Stock Portfolio.
Remitly Global, Inc. (NASDAQ:RELY) recently disclosed Q4 of 2024 earnings, resulting in a 10% post-earnings decline. Despite this, the stock has surged by more than 13% in the past year. The primary thesis of the firm is straightforward. It executes incredibly well, lowering expenses at scale while expanding its reach. In Q4, revenue increased 33% year on year, with active customers up 32% and send volume up 39%. The company announced a record 60% gross margin, suggesting that it is not just growing effectively but also improving its profitability.
Remitly Global, Inc. (NASDAQ:RELY), is still a small player in comparison to Western Union, with only 3% of the worldwide remittances market, but its development trajectory means it is approaching a tipping point in adoption. The company’s exceptional product, global reach, and efficient marketing machine generate a powerful flywheel effect, resulting in constant revenue growth, growing margins, and, eventually, significant operating leverage.
Meridian Growth Fund stated the following regarding Remitly Global, Inc. (NASDAQ:RELY) in its Q4 2024 investor letter:
“Remitly Global, Inc. (NASDAQ:RELY) is a digitally native money transfer company that is taking share in the cross-border remittance market from established competitors such as Western Union and MoneyGram. The company has reached a level of scale that we believe can translate into significantly improving profitability going forward. The stock advanced following robust revenue growth that exceeded expectations and an upward revision to its full-year revenue and EBITDA growth outlook. We increased our position during the period based on our favorable outlook for the company.”
