A Motley Fool contributor argues Remitly Global is worth buying despite paying no dividend and diluting shareholders, citing 20% growth in active customers to 10.2 million last quarter. Revenue reached $495 million, while operating margin stood at 13.5%.
The article puts Remitly at 24 times its $187 million in trailing earnings before interest and taxes. Its valuation case also uses a hypothetical: the contributor says $3 billion in revenue at a 20% profit margin would mean $600 million in annual earnings, compared with a $4.37 billion market capitalization.
Nu Holdings has launched a U.S. bank account that can send remittances; the contributor doubts it can match Remitly's prices sustainably without comparable worldwide financial connections. AI agents could steer users to cheaper transfers, but the contributor sees them as a possible tailwind if widely adopted, given Remitly's low prices. The company is also adding savings accounts and international spending cards.
