Wise plc

Q1 FY24 Trading Update

18 July 2023

Good start to the year with continued strong customer growth

●     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 we earned a gross interest income yield of 3.4% in Q1 FY24 (Q4 FY23: 2.8%) and the amount we 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.

"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.

"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."

-Kristo Kaarmann, CEO and Co-Founder

You can read more about our progress in our quarterly Mission Updates on wise.com.

Please see the appendix for further historical financial information. 

Enquiries

Martyn Adlam - Head of Owner Relations

[email protected]

Sana Rahman - Global Head of Communications

[email protected]

Brunswick Group

Charles Pretzlik / Sarah West / Nick Beswick / Daniel Holgersson

[email protected]

+44 (0) 20 7404 5959

About Wise

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.

FORWARD LOOKING DISCLOSURE DISCLAIMER

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Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future, and the statements in this report speak only as at the date of this report. No representation or warranty is made or will be made that any forward-looking statement will come to pass ​​and there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.

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