Remitly reports $458 million in revenue in 2021, up 78%, as money transfer company suspends service in Russia

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Remitly went public last year. (Remitly Photo)

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

The remittance company, which went public in September, reported fourth-quarter revenue of $135.3 million, up 69% from a year earlier, with a net loss of $16.6 million, down from $9 million.

Full-year 2021 revenue was $458.6 million, up 78%. Remitly forecasts revenue between $605 million and $615 million for fiscal 2022.

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

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

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

Last week, the company, along with competitor Wise, suspended service to Russia amid the country’s invasion of Ukraine and resulting sanctions, Reuters reported. A growing number of Western companies are cutting or withdrawing their ties with Russia.

The United States, EU and other allies this week cut off Russian banks from Swift, an international payment communication system that facilitates transactions.

Last month, Remitly partnered with Coinbase to allow Mexican customers to cash out digital currencies.

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

Earlier this week, Remitly hired former Google and Microsoft executive Ankur Sinha as chief technology officer.

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

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