Wise, a global transfers, payments and stealth bank, has reported its Q1 2022 performance. According to the company, it facilitated over £24 billion in transactions during the quarter increasing 49% versus Q1 year prior. In comparison to Q4 2021, Wise delivered a 14% increase (£21.4 billion).
Q1 top line revenue was reported at £185.9 million versus £123.5 million in Q1 2021 and an increase from £153.8 million in Q4 of last year.
Wise CEO and co-founder Kristo Käärmann, commented on the company’s performance:
“In the three months to 30 June 2022, we helped 5 million active customers move more than £24 billion across borders, a 49% increase on last year. We also reached a key milestone in our mission, more than 50% of all cross-border transfers are now completed instantly.
Our Wise Account and Wise Business products got even better as we launched 2-step payment approvals and employee spending controls on mobile for our business customers. The average price that our customers paid for cross-border transactions reduced from 0.67% to 0.61% in Q1 FY23 compared with the same period last year and was unchanged compared with Q4 FY22.”
Wise said they will continue to invest heavily in its products, driving down the cost of cross-border transfers while maintaining a profitable business model.
Wise reports that over 13 million people and businesses use Wise, processing on average over £8 billion in cross-border transactions every month.
Guidance for fiscal year 2023 and the medium-term remains unchanged from the fiscal year full year results update. This includes:
- Revenue growth of between 30-35% in FY23 and greater than 20% (CAGR) over the medium-term
- Adjusted EBITDA margin at or above 20% over the medium-term.
Wise explains that it has “four pillars” that drive their mission: price, speed, convenience, and transparency.
Currently, 90% of all transfers are completed within 24 hours, up from 88% last quarter.
Wise’s shares have risen following the report, during a market rebound. As of today, Wise is valued at almost $6 billion. Since the beginning of the year, Wise shares have lost over 30% of their value.