Wise registers 34% Y/Y revenue growth in Q3 FY2022
Wise plc (LON:WISE) today provided a trading update for the third quarter of fiscal year 2022 (Q3 FY2022), with the company marking a strong quarter with over 4 million customers transacting on Wise.
The number of active personal customers grew by 26% from the year-ago quarter to 4.1 million while the number of active business customers grew by 39% to 250,000 compared to the prior year.
Volume grew by 38% from the year-ago quarter and 15% from the second quarter of FY2022 to £20.6 billion, driven by growth in the number of active personal and business customers and a higher average volume per customer (VPC).
Wise notes that its business customers’ VPCs are seasonally strong in Q3 but have nonetheless grown 13% year on year. This reflects that as its customers grow, so do their VPCs, as well as reflecting the increased adoption of the Wise Account and card.
Revenue grew by 34% year on year and 13% quarter on quarter to £149.8 million, broadly in line with the rate of growth in volume.
Wise says its efforts to engineer and optimise away costs to support sustainably lower prices for customers resulted in a lower take rate as expected, reducing to 0.73%, down 2bps YoY and 1bp QoQ. This reflects the price drops which are partially offset by incremental revenue from other sources beyond cross-border transactions.
Looking ahead, Wise continues to expect the take rate to be slightly lower in the second half of FY2022 compared to the first half as a result of price reductions. This is expected to be more than offset by higher volumes as the company now anticipates revenue growth of c.30% for FY2022 over FY2021.
Wise forecasts gross margin for FY2022 to be c.65-67%, subject to foreign exchange related costs continuing to remain broadly stable.
Kristo Käärmann, Co-Founder & CEO, commented:
“I’m delighted that for the first time we’ve supported more than 4 million customers to complete cross-border transfers in a single quarter. We moved over £20bn; 38% growth on last year and 15% growth on the prior quarter.
We did this while continuing to make good progress on our mission to make moving and managing money across borders faster, easier, cheaper and more transparent for everyone, everywhere. We dropped prices, sped up payments, and expanded access to Wise’s products and features in more countries and through more partners.
Most notably, 45% of transfers were instant this quarter, and we launched the Wise card in Canada, Brazil, and Malaysia, with the Wise account also going live in Malaysia.”