There might be no more dangerous words than, “I think the market has this one wrong.” But that’s exactly what I believe about Remitly. The way I see it, the market is not interested in future profits right now. And Remitly is absolutely a future profits story. You have to believe the CEO knows what he’s doing, and that the unit economics work out as managemnt says they do. But what do you get in the meantime? Well, almost a billion dollars of (pretty much recurring) revenue, growing at 40%+. Alos, 5.4 million customers, growing at 40%+. And a price that frankly says, “We (the market) don’t believe in this business.”
Right now the market cap is below $3.5b. If you don’t believe in the business, that could be an opportunity to throw away $3.5b. But I think this is a real business and I think they are executing on a big opportunity. I’m adding.
Bear