Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Add shares to your
quickpicks to
display them here!

Wise touts solid quarter but shares down as revenue misses consensus

16th Apr 2024 10:47

(Alliance News) - Wise PLC on Tuesday celebrated a "solid quarter", with income and revenue both up, despite seeing shares slip on a "slight miss" on consensus for the latter.

For the three months ended December 31, the London-based money transfer services provider reported income of GBP381.2 million, up 36% from GBP279.5 million a year prior.

Revenue came to GBP277.2 million, up 24% from GBP223.5 million. Wise attributed this to a rise in cross-border volumes, which increased 14% to GBP30.6 billion from GBP26.7 billion, and to a higher proportion of revenue from other services.

"I am pleased that we have ended the financial year with another solid quarter. Active customer growth remained strong at 29% as personal and business customers find our growing set of features and products increasingly useful in helping to move and manage their money," said Chief Executive Officer Kriso Kaarmann.

The firm's shares dropped, however, as full-year revenue of GBP1.05 billion came in 1% below consensus. In January, Wise had upgraded its growth guidance to between 42% and 44% from previous guidance of 33% to 38%.

Shares in Wise were 7.5% lower at 845.00 pence each in London on Tuesday morning, largely meeting some analyst predictions.

"Given the strong run Wise has had in recent months, we believe the slight miss on revenues today is likely to weigh on the share price," Gautam Pillai and Barun Singh of Peel Hunt said on Tuesday.

Looking ahead, the same analysts forecast 24% revenue growth to GBP1.06 billion for financial 2025, and adjusted earnings before interest, tax, depreciation and amortisation of around GBP540 million.

"Our continued customer growth laps strong results and tells us that the investments that we're making are meeting real needs, giving me confidence that we're progressing well on our mission," added CEO Kaarmann.

By Holly Beveridge, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

FTSE 100 Latest