REG - Wise PLC - WISE PLC Q4FY24 TRADING UPDATE
16/04/2024 07:00
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RNS Number : 7080K Wise PLC 16 April 2024
Q4 FY24 Trading Update
16 April 2024
Customer growth remains strong with income exceeding expectations
Customers love the Wise proposition, resulting in more people and businesses
joining us and using multiple features…
● Active customers grew 29% YoY to 7.9 million in Q4 FY24, with the
number of personal customers increasing 30% YoY to 7.5 million, and business
customers increasing 16% YoY to 395k.
● An increasing number of customers are using multiple features with
48% of personal customers and 60% of businesses using Wise for more than just
sending money across borders - including spending abroad with their Wise card,
earning a return with Assets or using local account details.
With more customers using Wise to move and manage their money, and with the
benefit of higher interest rates, income grew 36% YoY to £381.2m in Q4 FY24
● Revenue grew by 24% YoY to £277.2m in Q4 FY24.
○ Cross-border revenue: We moved £30.6bn of cross-border volume
for our customers in the quarter, 14% more than the same period last year.
Continuing strong growth in the smaller (<£10k) personal volume per
customer (VPC) segment led to a reduction of 5% QoQ in the overall VPC,
reflecting the popularity of the Wise account and smaller transaction sizes on
the Wise card. The cross-border take rate was maintained at 67 bps.
○ Other revenue: The proportion of revenue from other services
grew to 26% in Q4 FY24 (25% in Q3 FY24) as customers used more features,
especially the Wise card which represents the majority of this 'other
revenue'.
● Interest income net of customer benefits grew by 86% YoY to £104m
in Q4 FY24.
○ Customers are holding more of their money with Wise, with Wise
account balances increasing 24% YoY to £13.3bn. The gross yield received
while safeguarding these balances was 4.4% in Q4 FY24 (vs 2.8% in Q4 FY23).
○ Interest income net of customer benefits continues to be
inflated.
FY24 income growth ahead of expectations and contributing to an exceptional
level of profitability
● For FY24, the growth in customers using Wise combined with the
higher rate environment drove income growth of 46%, higher than our
expectation of 42-44%
● With an elevated level of interest income being retained, and
lower levels of transactional costs, our gross profit margin is expected to be
higher in H2 FY24 than the 74% in H1 FY24. As a consequence, Adjusted EBITDA
margins also remain exceptionally elevated relative to our medium-term
guidance of at or above 20%.
I am pleased that we have ended the financial year with another solid quarter.
Active customer growth remained strong at 29% as personal and business
customers find our growing set of features and products increasingly useful in
helping to move and manage their money.
This quarter, we resumed business customer onboarding across the vast majority
of Europe, and we continued to invest in our infrastructure and broaden our
offering across the world. In Asia alone, we became one of the first
international financial services companies to be granted a Type 1 Funds
Provider licence in Japan, while adding Standard Chartered's Mox as a new Wise
Platform banking partner in Hong Kong, and expanding our partnership with
Tiger Brokers in Singapore by facilitating card issuance.
Our continued customer growth laps strong results and tells us that the
investments that we're making are meeting real needs, giving me confidence
that we're progressing well on our mission.
-Kristo Käärmann, Co-founder and Chief Executive Officer
Q4 FY24 Q4 FY23 YoY Movement
Volume (£ billion) 30.6 26.7 14%
Revenue (£ million) 277.2 223.5 24%
Income (£ million) 381.2 279.5 36%
Average customer price 0.67% 0.65% +2 bps
Instant transfers 62% 55% +7 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
Martin Adams / Lawrence Nates - Investor Relations
owners@wise.com (mailto:owners@wise.com)
Sana Rahman - 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
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 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 QoQ Q YoY QoQ Q YoY
Movement Movement Movement Movement
Constant Constant
CCY CCY
Customers (thousand) 4,588 4,997 5,484 5,793 6,125 6,670 7,232 7,512 7,911 5% 29% - -
Personal (thousand) 4,319 4,711 5,182 5,475 5,784 6,307 6,847 7,120 7,517 6% 30% - -
Business (thousand) 269 286 302 319 340 363 385 392 395 1% 16% - -
Volume per customer (£ thousand) 4.7 4.9 4.9 4.6 4.4 4.2 4.0 4.1 3.9 (5%) (11%) - -
Personal (£ thousand) 3.7 3.8 3.9 3.5 3.4 3.3 3.2 3.1 3.0 (4%) (11%) - -
Business (£ thousand) 20.8 22.2 22.9 23.2 21.4 20.4 19.8 21.1 20.3 (4%) (5%) - -
Volume (£ billion)¹ 21.4 24.4 27.0 26.4 26.7 28.2 29.2 30.6 30.6 0% 14% 1% 18%
Personal (£ billion) 15.9 18.0 20.1 19.0 19.5 20.8 21.6 22.3 22.6 1% 16% 2% 19%
Business (£ billion) 5.6 6.3 6.9 7.4 7.3 7.4 7.6 8.3 8.0 (3%) 10% (2%) 13%
Customer balances (£ billion) 6.8 7.7 9.2 10.1 10.7 11.5 12.3 12.9 13.3 3% 24% - -
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 Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 Q1 FY2024 Q2 FY2024 Q3 FY2024 Q4 FY2024 QoQ Q YoY QoQ Q YoY
Movement Movement Movement Movement
Constant Constant
CCY CCY
Revenue (£ million) 153.8 185.9 211.5 225.2 223.5 239.5 258.7 276.6 277.2 0% 24% 1% 28%
Personal (£ million) 118.4 144.4 164.8 173.7 173.4 186.4 200.8 213.1 215.0 1% 24% 2% 28%
Business (£ million) 35.4 41.5 46.7 51.5 50.1 53.1 57.9 63.5 62.2 (2%) 24% (1%) 28%
Interest income on customer balances (£ million) 1.4 3.9 18.4 46.4 71.5 95.7 115.4 132.2 141.9 7% 98% - -
Personal (£ million) 0.7 2.0 9.6 24.9 38.7 53.1 65.6 76.0 83.3 10% 115% - -
Business (£ million) 0.7 1.9 8.8 21.5 32.8 42.6 49.8 56.2 58.6 4% 79% - -
Interest income net of customer benefits (£ million)¹ (0.8) 1.2 17.5 43.5 56.0 71.4 86.4 98.5 104.0 6% 86% - -
Personal (£ million) (0.4) 0.6 9.1 23.2 29.7 39.0 48.7 56.9 60.7 7% 105% - -
Business (£ million) (0.4) 0.6 8.4 20.3 26.3 32.4 37.7 41.6 43.3 4% 64% - -
Income (£ million)² 153.0 187.1 229.0 268.7 279.5 310.9 345.1 375.1 381.2 2% 36% - -
Personal (£ million) 118.0 145.0 173.9 196.9 203.1 225.4 249.5 270.0 275.7 2% 36% - -
Business (£ million) 35.0 42.1 55.1 71.8 76.4 85.5 95.6 105.1 105.5 0% 38% - -
Revenue Take rate (%)³ 0.72% 0.76% 0.78% 0.85% 0.84% 0.85% 0.89% 0.90% 0.91% +1 bps +7 bps - -
Cross-border (%) 0.61% 0.61% 0.63% 0.69% 0.67% 0.67% 0.67% 0.67% 0.67% +0 bps +0 bps - -
Other (%) 0.11% 0.15% 0.15% 0.16% 0.17% 0.18% 0.22% 0.23% 0.24% +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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