Wise reports 59% Y/Y revenue growth for Q2 FY23
Wise plc (LON:WISE) has just posted its financial report for the second quarter of fiscal year 2023.
Wise saw 5.5 million customers transact on its platform in Q2 FY23, an increase of 40% year on year and 10% quarter on quarter, comprising 5.2 million personal and 300,000 business customers. This increase in active customers was mostly driven by greater adoption of the Wise Account and Wise Business products, where customers tend to transact more frequently and use more features.
Total cross-border volumes for Q2 FY23 were £27.0 billion, 50% higher from a year earlier and 11% higher than in the preceding quarter. Personal volumes increased 49% in annual terms to £20.1 billion and Business volumes increased 55% from the year-ago quarter to £6.9 billion.
Revenue for Q2 FY23 was £211.5 million, growing 59% year on year and 14% quarter on quarter. Revenue for the first half of FY23 was £397.4 million, 55% higher than the first six months of FY22.
Total income (revenue plus net interest income on customer balances) for Q2 FY23 was £229.0 million, a 73% increase on last year. This included £17.5 million of net interest income, and Wise expects this to increase in the second half of the year given the interest rate outlook.
Total income for H1 FY23 was £416.1 million, 63% higher than the same period last year.
As a result of the continued strong momentum, Wise’s financial guidance for the year has been upgraded. The revised expectations are as follows:
- Total income growth between 55-60% in FY23 and greater than 20% (CAGR) over the medium-term;
- Adjusted EBITDA margin over the medium term at or above 20% of total income.