Remitly Global, Inc. (NASDAQ: RELY) saw its stock price plummet 12.96% in after-hours trading on Wednesday, despite reporting better-than-expected third-quarter results. The sharp decline suggests investors may be focusing on other factors beyond the immediate earnings figures.
The digital financial services provider for immigrants and their families reported impressive Q3 results, with earnings per share of $0.04, beating analyst estimates of $0.03 by 60%. Revenue for the quarter came in at $419.494 million, surpassing the consensus estimate of $413.632 million and representing a 24.65% increase year-over-year. Additionally, the company's adjusted EBITDA reached $61.2 million, significantly higher than the expected $54.2 million.
However, the stock's sharp decline in after-hours trading suggests that investors may be concerned about the company's future outlook. Remitly provided guidance for the fourth quarter, projecting total revenue between $426 million and $428 million. For the full year, the company expects revenue in the range of $1,610 million to $1,620 million. It's possible that these projections fell short of market expectations, leading to the sell-off despite the strong Q3 performance. Investors may also be reacting to other factors not immediately apparent in the earnings release, such as concerns about the competitive landscape or potential headwinds in the global remittance market.
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