The money-transfer group now expects to land at the top end of its growth and margin targets after another quarter of rapid customer and volume growth.
Wise (LSE: WISE) has upgraded its full-year revenue growth guidance after a second quarter in which active customers climbed 20% to 12.5 million and cross-border volumes rose 22% to $71.7bn, with net revenue up 21% to $739.1m in the three months to 30 September.
The fintech now expects full-year net revenue growth to land in the upper half of its 15% to 20% target range, with margins expected near the top of its target band despite roughly $15m of one-off costs tied to its recent dual listing.
Wise continued to cut prices even as volumes accelerated, lowering its average cross-border 'take rate' to 0.49% as it invests to attract and retain customers. Customer holdings grew 28% to $43.5bn, while card spending also increased, reflecting broader use of Wise's products beyond simple money transfers.
Chief executive Kristo Käärmann said more than 12 million customers used Wise in the quarter to move over $70bn, with 78% of transfers completed instantly, while customers spent $14bn on Wise cards. He pointed to continued network expansion, including a ninth direct integration in Malaysia, the launch of the Wise Account and Wise Card in Thailand, the introduction of Wise Assets in New Zealand, and a new platform partnership with OakNorth to power international payments for its UK business customers.
The upgraded guidance underlines Wise's ability to keep growing volumes while trimming fees, a combination management argues deepens customer loyalty and market share. Investors will watch whether the one-off dual-listing costs and continued price cuts pressure margins in coming quarters, even as the company guides towards the top of its target range.
This report is based on Wise plc’s announcement and coverage by UK Investor Magazine. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full markets calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: CardMapr.nl on Unsplash.
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