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 £375.1m

?     Cross-border volume was £30.6bn, an increase of 16% YoY (18% on a constant currency basis).

?     Volume growth remains strong among customers sending <£10k per month, continuing to grow significantly faster than customers sending >£10k per month; as a result personal VPC for Q3 was 1% lower QoQ.

?     Revenue increased 23% to £276.6m, supported by a 7bps increase in the 'other take rate' as a result of increased card spend.

?     Wise Account balances increased 28% YoY to £12.9bn; 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 £33.7m, 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

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 £105 billion in cross-border transactions, and saving customers over £1.5 billion.

FORWARD LOOKING DISCLOSURE DISCLAIMER

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