Global Fintech Wise Shares Trading Update, Company Reports Solid Start to the Year with Steady Business Growth

Global Fintech Wise plc (LSE:WISE) has shared its latest Q1 FY24 trading update, noting that the firm is now off to a good start to the year “with continued strong customer growth.”

As noted in a release, Wise reports the following key results:

  • 33% YoY growth in quarterly active customers to 6.7m, driven by strong customer retention and customer acquisition primarily through word of mouth.
  • Volumes increased 16% YoY to £28.2bn, driven by the continued growth in active customers.
  • Revenue increased 29% YoY to £240m.
  • Income grew 66% YoY to £311m as a result of growth in active customers and higher interest income.
  • Wise account balances grew to £11.5bn by the end of the quarter.
  • On these balances, they earned a gross interest income yield of 3.4% in Q1 FY24 (Q4 FY23: 2.8%) and the amount they were able to return to Wise account customers increased to 0.9% (Q4 FY23: 0.6%).
  • Outlook for FY24 unchanged: Income growth of 28-33%, and adjusted EBITDA margin
    remaining elevated (vs. our medium-term guidance of at or above 20%) as a result of higher levels of interest income net of customer benefits.

As mentioned in the announcement:

“This quarter we continued building our infrastructure and rolling out the account features that our customers need to live, work or manage their businesses across borders. We made our payments faster in Brazil, Australia and across a number of routes in Asia. Now 57% of payments on Wise are delivered in under 20 seconds. Our Assets ‘Interest’ feature is now available to customers in 11 countries, after launching in Germany, Sweden and Norway this quarter. We improved our offer in some existing markets too – customers in Europe now get more ‘Cashback’ on their balance, UK customers can get a 4.22% return on GBP held in Assets, and US customers can get a 4.12% return on their USD balances when they opt-in to earn interest.”

Kristo Kaarmann, CEO and Co-Founder, added:

“As our customer proposition continues to improve, more people and businesses are choosing Wise, and it is this growth in customer adoption that will underpin our long-term success. This quarter, we served 6.7 million active customers, an increase of 33% YoY, leading to 66% YoY growth in income.”

As covered, Wise is “a global technology company, building the best way to move and manage the world’s money.”

With Wise Account and Wise Business, people and businesses can “hold over 40 currencies, move money between countries and spend money abroad.”

Large companies and banks “use Wise technology too; an entirely new network for the
world’s money.”

Co-founded by Kristo Käärmann and Taavet Hinrikus, Wise launched “in 2011 under its original name TransferWise.”

It is one of the world’s fastest growing tech companies and is “listed on the London Stock Exchange under the ticker WISE.”

Over 16 million people and businesses use Wise.

In fiscal year 2023, Wise processed “approximately £105 billion in cross-border transactions, saving customers over £1.5 billion.”


Register Now
Sponsored Links by DQ Promote

 

 

Send this to a friend