Remitly exec says business 'strong as it's ever been' despite stock woes

Share prices of Seattle-based Remitly Global Inc. (Nasdaq: RELY) have struggled since the remittance company began trading on the Nasdaq in September.

After jumping to a $53.65 trading high when it debuted, the company's share price has since slid 76% to $12.75 at close Tuesday. Despite the rocky start, Remitly co-founder and Chief Operating Officer Josh Hug said the company is staying focused on serving its customers.

"The business is as strong as it's ever been," Hug said. "We look at it to say that if we continue to deliver value for our customers in the short term, the long term will take care of itself."

In its third quarter 2021 earnings results, released in November, Remitly posted revenue of $121.2 million, up 69% from $71.8 million during the third quarter of 2020. Net losses, however, hit $13 million for the quarter, up from $2.4 million during the third quarter of 2020. According to Remitly, much of the net losses were tied to its Pledge 1% commitment, a philanthropic initiative aimed at getting early stage companies to give back to nonprofits.

At the time of Remitly's initial public offering in September, the company had over 1,600 total employees. Although Hug didn't have a current employee count, he said Remitly is hiring aggressively around the world and in Seattle. He added that the company is specifically looking to grow its product and engineering teams.

Remitly was founded in 2011. The company allows customers to send money abroad through a bank deposit, cash pickup, mobile money and home delivery. Remitly also offers a banking service designed for immigrants called Passbook, which doesn't require a Social Security number.

Remitly currently has two floors of office space downtown at 1111 Third Ave. Hug said that although the company likely will eventually need more office space in the Seattle area, it is currently taking a wait-and-see approach.

"We're encouraging people that want to come into the office to come into the office," Hug said. "People are getting more and more comfortable, not just in Seattle but also in our global offices, to start to return a little more to normal, but we're still figuring out what normal is going to be."