TIDMWISE
RNS Number : 7627Z
Wise PLC
16 January 2024
Wise plc
Q3 FY24 Trading Update
16 January 2024
Customer momentum continues to power growth; FY24 income
guidance upgraded
Customers love the Wise Account features, and this is driving
active customer growth
-- Active customers grew 30% YoY to 7.5 million, driven by
increased adoption of the Wise Account and multi-feature usage.
-- Active personal customers increased 30% YoY to 7.1 million,
and active business customers increased 23% YoY to 392k.
-- 46% of Personal customers and 60% of Business customers now
use multiple features (e.g., using their Wise card as well as
sending money across borders).
-- And this is important, because we know that customers that
use multiple features transact more often and have higher retention
levels.
This growth in multi-feature customers is driving the
fundamentals of our financial performance, leading to a 40%
increase in Income to GBP375.1m
-- Cross-border volume was GBP30.6bn, an increase of 16% YoY
(18% on a constant currency basis).
-- Volume growth remains strong among customers sending
<GBP10k per month, continuing to grow significantly faster than
customers sending >GBP10k per month; as a result personal VPC
for Q3 was 1% lower QoQ.
-- Revenue increased 23% to GBP276.6m, supported by a 7bps
increase in the 'other take rate' as a result of increased card
spend.
-- Wise Account balances increased 28% YoY to GBP12.9bn; gross
yield on balances was 4.2% in Q3 FY24 (vs 3.8% in Q2 FY24), of
which 1.1% (vs. 1.0% in Q2 FY23) of balances, or GBP33.7m, was
returned to customers.
FY24 Income growth guidance upgraded to c.42-44% from previous
guidance of 33-38%
-- Reflects the continued strong growth in active multi-feature
customers, and higher levels of interest income.
-- We continue to expect our adj. EBITDA margin in FY24 to
remain elevated relative to our medium-term guidance of at or above
20% given the high net yield on customer balances.
"I am pleased to report another quarter of progress as we work
towards our mission of building the best way to move and manage the
world's money. We've sped up global USD payments by optimising
payouts with one of our banking partners and expanded our Wise
Interest Asset offering in seven European markets including France
and Spain. Customers in these markets holding USD with Wise can now
opt in to earn a return on these balances too. We also progressed
with more platform partners, adding UK business bank; Allica Bank,
leading digital travel platform; Agoda, and global spend management
solution Payhawk among others. This progress speaks to the strength
of our fundamentals, leading to continued strong financial
performance. We saw our customer base grow by 30% supporting a 23%
growth in revenue, and a 40% increase in Income.
These results are also testament to the depth of expertise of
both leadership and the teams at Wise. I want to thank Harsh for
leading the business while I took a sabbatical from September to
December to spend time with my growing family. I'm excited to be
back and to continue progressing on our mission."
-Kristo Käärmann, Co-founder and Chief Executive Officer
Q3 FY24 Q3 FY23 YoY Movement
Volume (GBP billion) 30.6 26.4 16%
------- ------- ------------
Revenue (GBP million) 276.6 225.2 23%
------- ------- ------------
Income (GBP million) 375.1 268.7 40%
------- ------- ------------
Average customer price 0.67% 0.66% +1 bps
------- ------- ------------
Instant transfers 61% 52% +9 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
Crystal Obuck - Senior Manager, Investor Relations
crystal.obuck@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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 QoQ Q YoY QoQ Q YoY
FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 Movement Movement Movement Movement
Constant Constant
CCY CCY
Customers
(thousand) 4,348 4,588 4,997 5,484 5,793 6,125 6,670 7,232 7,512 4% 30% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal
(thousand) 4,095 4,319 4,711 5,182 5,475 5,784 6,307 6,847 7,120 4% 30% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business
(thousand) 253 269 286 302 319 340 363 385 392 2% 23% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Volume per
customer
(GBP thousand) 4.7 4.7 4.9 4.9 4.6 4.4 4.2 4.0 4.1 1% (11%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
thousand) 3.7 3.7 3.8 3.9 3.5 3.4 3.3 3.2 3.1 (1%) (10%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
thousand) 21.6 20.8 22.2 22.9 23.2 21.4 20.4 19.8 21.1 7% (9%) - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Volume (GBP
billion)(1) 20.6 21.4 24.4 27.0 26.4 26.7 28.2 29.2 30.6 5% 16% 4% 18%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
billion) 15.1 15.9 18.0 20.1 19.0 19.5 20.8 21.6 22.3 3% 17% 3% 20%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
billion) 5.5 5.6 6.3 6.9 7.4 7.3 7.4 7.6 8.3 9% 12% 8% 15%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Customer balances
(GBP billion) 5.8 6.8 7.7 9.2 10.1 10.7 11.5 12.3 12.9 5% 28% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
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 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 QoQ Q YoY QoQ Q YoY
FY2022 FY2022 FY2023 FY2023 FY2023 FY2023 FY2024 FY2024 FY2024 Movement Movement Movement Movement
Constant Constant
CCY CCY
Revenue (GBP
million) 149.8 153.8 185.9 211.5 225.2 223.5 239.5 258.7 276.6 7% 23% 6% 26%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 114.7 118.4 144.4 164.8 173.7 173.4 186.4 200.8 213.1 6% 23% 5% 25%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 35.1 35.4 41.5 46.7 51.5 50.1 53.1 57.9 63.5 10% 23% 9% 26%
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Interest income
on customer
balances
(GBP million) 1.0 1.4 3.9 18.4 46.4 71.5 95.7 115.4 132.2 14% 185% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 0.5 0.7 2.0 9.6 24.9 38.7 53.1 65.6 76.0 16% 205% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 0.5 0.7 1.9 8.8 21.5 32.8 42.6 49.8 56.2 13% 161% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Interest income
net of customer
benefits (GBP
million)(1) (0.8) (0.8) 1.2 17.5 43.5 56.0 71.4 86.4 98.5 14% 126% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) (0.4) (0.4) 0.6 9.1 23.2 29.7 39.0 48.7 56.9 17% 145% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) (0.4) (0.4) 0.6 8.4 20.3 26.3 32.4 37.7 41.6 10% 105% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Income (GBP
million)(2) 149.0 153.0 187.1 229.0 268.7 279.5 310.9 345.1 375.1 9% 40% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Personal (GBP
million) 114.3 118.0 145.0 173.9 196.9 203.1 225.4 249.5 270.0 8% 37% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Business (GBP
million) 34.7 35.0 42.1 55.1 71.8 76.4 85.5 95.6 105.1 10% 46% - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Revenue Take rate
(%)(3) 0.73% 0.72% 0.76% 0.78% 0.85% 0.84% 0.85% 0.89% 0.90% +1 bps +5 bps - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Cross-Currency
(%) 0.62% 0.61% 0.61% 0.63% 0.69% 0.67% 0.67% 0.67% 0.67% +0 bps -2 bps - -
------ ------ ------ ------ ------ ------ ------ ------ ------ -------- -------- -------- --------
Other (%) 0.11% 0.11% 0.15% 0.15% 0.16% 0.17% 0.18% 0.22% 0.23% +1 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.
Note: Differences between 'total' rows and the sum of the
constituent components of personal and business are due to
rounding
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