Wise plc

Q2 FY24 Trading Update

12 October 2023

Customer growth continues to drive volume and income growth;
FY24 income guidance upgraded

●     Active customer growth remains strong and continues to drive volume and revenue growth

○     Active customers grew 32% YoY to 7.2 million, driven by our high levels of word-of-mouth referrals and increasing adoption of the Wise Account.

○     Volume (£29.2bn) and revenue (£258.7m) increased by 8% and 22% YoY, respectively; on a constant currency basis this was 12% and 26%, respectively.

○     Macroeconomic conditions remain uncertain and we continue to see slower volume growth amongst high value customers, whilst increasing Wise Account adoption has supported revenues and an increase in the take rate.

●     Income grew 51% YoY to £345m; including higher interest income on Account balances

○     Wise Account balances increased 33% YoY to £12.3bn.

○     Gross yield on balances was 3.8% in Q2 FY24 (Q1 FY24: 3.4%); amounts returned to customers increased by 0.1% to 1.0% (Q1 FY24: 0.9%).

●     FY24 Income growth guidance upgraded to 33-38% reflecting the strong start to the year, and higher interest income expectations; Income growth guidance previously 28-33%

●     FY24 profitability further supported by higher gross profit margin

○     As previously stated, our adj. EBITDA margin will be elevated in FY24 given the high net yield on customer balances.

○     Our H1 FY24 gross profit margin was higher than expected, at c.74%, largely due to lower FX volatility costs and operational losses, further supporting FY24 profitability.

"This quarter we launched a new service in China, enabling expatriates to send their salaries back home. For business customers we re-commenced onboarding new customers in 13 European countries where we had previously paused new customer onboarding whilst we upgraded our servicing and operational capacity. We also launched Correspondent Services in collaboration with Swift, a completely new solution that allows banks and other financial institutions to simply route their Swift messages to Wise and send payments through our fast and low-cost payments network.

Our business performance, progress against our mission and the investments we're making give us great confidence, and we're pleased to signal this with our upgraded financial guidance for FY24."

-Harsh Sinha, Chief Technology Officer and Interim Chief Executive Officer

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 Investor 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.

In fiscal year 2023, Wise supported around 10 million people and businesses, processing approximately £105 billion in cross-border transactions, and saving customers over £1.5 billion.

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