TIDMWISE
RNS Number : 9119P
Wise PLC
12 October 2023
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 (GBP29.2bn) and revenue (GBP258.7m) 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 GBP345m; including higher interest income on Account balances
-- Wise Account balances increased 33% YoY to GBP12.3bn.
-- 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
Q2 FY2024 Q2 FY2023 YoY Movement
Volume (GBP billion) 29.2 27.0 8%
--------- --------- ------------
Revenue (GBP million) 258.7 211.5 22%
--------- --------- ------------
Income (GBP million) 345.1 229.0 51%
--------- --------- ------------
Average customer price 0.67% 0.64% +3 bps
--------- --------- ------------
Instant transfers 60% 50% +10 pps
--------- --------- ------------
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
martyn.adlam@wise.com
Sana Rahman - Global Head of Communications
press@wise.com
Brunswick Group
Charles Pretzlik / Sarah West / Nick Beswick / Daniel
Holgersson
Wise@brunswickgroup.com
+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 GBP105 billion in cross-border
transactions, and saving customers over GBP1.5 billion.
FORWARD LOOKING DISCLOSURE DISCLAIMER
This report may include forward-looking statements, which are
based on current expectations and projections about future events.
These statements may include, without limitation, any statements
preceded by, followed by or including words such as "forward
looking", "guidance", "target", "believe", "expect", "intend",
"may", "anticipate", "estimate", "forecast," , "project", "will",
"can have", "likely", "should", "would", "could" and any other
words and terms of similar meaning or the negative thereof. These
forward-looking statements are subject to risks, uncertainties and
assumptions about Wise and its subsidiaries. In light of these
risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur.
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.
Wise expressly disclaims any obligation or undertaking to
update, review or revise any forward-looking statements contained
in this report and disclaims any obligation to update its view of
any risks or uncertainties described herein or to publicly announce
the results of any revisions to the forward-looking statements made
in this report, whether as a result of new information, future
developments or otherwise, except as required by law.
Appendix - Historical Financials
Quarterly Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 QoQ Q YoY QoQ Q YoY
FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 Movement Movement Movement Movement
Constant Constant
CCY CCY
Customers
(thousand) 3,921 4,348 4,588 4,997 5,484 5,793 6,125 6,670 7,232 8% 32% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal
(thousand) 3,690 4,095 4,319 4,711 5,182 5,475 5,784 6,307 6,847 9% 32% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business
(thousand) 230 253 269 286 302 319 340 363 385 6% 28% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Volume per
customer
(GBP thousand) 4.6 4.7 4.7 4.9 4.9 4.6 4.4 4.2 4.0 (4%) (18%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
thousand) 3.7 3.7 3.7 3.8 3.9 3.5 3.4 3.3 3.2 (4%) (19%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
thousand) 19.4 21.6 20.8 22.2 22.9 23.2 21.4 20.4 19.8 (3%) (14%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Volume (GBP
billion)(1) 18.0 20.6 21.4 24.4 27.0 26.4 26.7 28.2 29.2 4% 8% 5% 12%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
billion) 13.5 15.1 15.9 18.0 20.1 19.0 19.5 20.8 21.6 4% 8% 5% 11%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
billion) 4.5 5.5 5.6 6.3 6.9 7.4 7.3 7.4 7.6 3% 10% 4% 14%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Customer balances
(GBP billion) 4.9 5.8 6.8 7.7 9.2 10.1 10.7 11.5 12.3 7% 33% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
1. Cross-border volume only.
Note: Differences between 'total' rows and the sum of the
constituent components of personal and business are due to
rounding.
Appendix - Historical Financials (continued)
Quarterly Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 QoQ Q YoY QoQ Q YoY
FY2022 FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 Movement Movement Movement Movement
Constant Constant
CCY CCY
Revenue (GBP
million) 132.8 149.8 153.8 185.9 211.5 225.2 223.5 239.5 258.7 8% 22% 9% 26%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 103.4 114.7 118.4 144.4 164.8 173.7 173.4 186.4 200.8 8% 22% 9% 25%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 29.4 35.1 35.4 41.5 46.7 51.5 50.1 53.1 57.9 9% 24% 10% 28%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Interest income
on customer
balances
(GBP million) 0.8 1.0 1.4 3.9 18.4 46.4 71.5 95.7 115.4 21% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 0.4 0.5 0.7 2.0 9.6 24.9 38.7 53.1 65.6 24% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 0.4 0.5 0.7 1.9 8.8 21.5 32.8 42.6 49.8 17% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Interest income
net of customer
benefits
(GBP million)(1) (0.6) (0.8) (0.8) 1.2 17.5 43.5 56.0 71.4 86.4 21% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) (0.3) (0.4) (0.4) 0.6 9.1 23.2 29.7 39.0 48.7 25% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) (0.3) (0.4) (0.4) 0.6 8.4 20.3 26.3 32.4 37.7 16% nm - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Income (GBP
million)(2) 132.2 149.0 153.0 187.1 229.0 268.7 279.5 310.9 345.1 11% 51% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 103.1 114.3 118.0 145.0 173.9 196.9 203.1 225.4 249.5 11% 43% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 29.1 34.7 35.0 42.1 55.1 71.8 76.4 85.5 95.6 12% 74% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Revenue Take rate
(%)(3) 0.74% 0.73% 0.72% 0.76% 0.78% 0.85% 0.84% 0.85% 0.89% +4 bps +11 bps - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Cross-Currency
(%) 0.64% 0.62% 0.61% 0.61% 0.63% 0.69% 0.67% 0.67% 0.67% +0 bps +4 bps - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Other (%) 0.10% 0.11% 0.11% 0.15% 0.15% 0.16% 0.17% 0.18% 0.22% +4 bps +7 bps - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
1. Comprises interest income on customer balances, interest
expense on customer balances and benefits paid relating to customer
balances.
2. Comprises revenue and interest income net of customer benefits.
3. Revenue as a % of Volume.
4. "nm" indicates not measurable.
Note: Differences between 'total' rows and the sum of the
constituent components of personal and business are due to
rounding
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(END) Dow Jones Newswires
October 12, 2023 02:09 ET (06:09 GMT)
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