Wise plc today provided a trading update for the first quarter of fiscal year 2024, with revenues staging a 29% year-over-year growth to £240 million.
The company reported 33% year-on-year growth in quarterly active customers to 6.7 million, driven by strong customer retention and customer acquisition primarily through word of mouth.
Volumes increased 16% year-on-year to £28.2 billion, driven by the continued growth in active customers.
Income grew 66% from the year-ago quarter to £311 million as a result of growth in active customers and higher interest income.
Wise account balances grew to £11.5 billion by the end of the quarter. On these balances the company earned a gross interest income yield of 3.4% in Q1 FY24 (Q4 FY23: 2.8%) and the amount it was able to return to Wise account customers increased to 0.9% (Q4 FY23: 0.6%).
The outlook for FY24 remains unchanged: Income growth of 28-33%, and adjusted EBITDA margin remaining elevated (vs. medium term guidance of at or above 20%) as a result of higher levels of interest income net of customer benefits.
Kristo Kaarmann, Wise’s CEO and Co-Founder, commented:
“This quarter we continued building our infrastructure and rolling out the account features that our customers need to live, work or manage their businesses across borders. We made our payments faster in Brazil, Australia and across a number of routes in Asia. Now 57% of payments on Wise are delivered in under 20 seconds. Our Assets ‘Interest’ feature is now available to customers in 11 countries, after launching in Germany, Sweden and Norway this quarter. We improved our offer in some existing markets too – customers in Europe now get more ‘Cashback’ on their balance, UK customers can get a 4.22% return on GBP held in Assets, and US customers can get a 4.12% return on their USD balances when they opt-in to earn interest.
“As our customer proposition continues to improve, more people and businesses are choosing Wise, and it is this growth in customer adoption that will underpin our long-term success. This quarter, we served 6.7 million active customers, an increase of 33% YoY, leading to 66% YoY growth in income.”
