Remitly's Send Volume Is Growing Nearly Twice as Fast as Its Customer Count. That Gap Is the Whole Investment Case.
The cross-border payment middleman has finally achieved sufficient scale to easily cover its fixed and variable costs. This is the moment shareholders have been waiting for.
Overview
For nearly all businesses, more scale means wider profit margins and, therefore, profit growth that outpaces revenue growth. Credit the fact that at least some parts of any company's operating costs eventually plateau. And in some cases, even variable costs directly linked to manufacturing a product or providing a service eventually start flattening out.
It's a premise that's increasingly important to current and prospective shareholders of Remitly Global (NASDAQ: RELY). The cross-border payments middleman continues to grow its customer count. But it's growing its total revenue at an even faster pace, resulting in now-explosive growth of its bottom line.
Details
Here's what you need to know.
Source
Originally published at www.fool.com.