Wise registers 22% Y/Y increase in revenue in Q2 FY24
Wise plc today posted its financial report for the second quarter of fiscal year 2024, with customer growth continuing to drive volume and income growth.
Active customers grew 32% from the corresponding period a year earlier to 7.2 million, driven by high levels of word-of-mouth referrals and increasing adoption of the Wise Account.
Volume (£29.2bn) and revenue (£258.7m) increased by 8% and 22% year on year, respectively; on a constant currency basis this was 12% and 26%, respectively.
Income grew 51% from the year-ago quarter to £345 million; including higher interest income on Account balances. Wise Account balances increased 33% year on year to £12.3 billion.
FY24 Income growth guidance was upgraded to 33-38% reflecting the strong start to the year, and higher interest income expectations; Income growth guidance was previously 28-33%.
The company notes that its 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.
Harsh Sinha, Chief Technology Officer and Interim Chief Executive Officer, commented:
“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.”