Wise doubles down on growth outlook after boom in customers

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Wise outlined plans to shift its primary listing to the US in June.
Wise said the decision would not affect its existing US business

Payments fintech firm Wise has doubled down on its guidance for the year today after a jump in customers using its platform over the summer.

In a trading update on its second quarter, the London-listed fintech reported a 23 per cent rise in users compared to the same period last year, bringing its total active customers to 8.9m, broadly in line with analysts’ predictions.

The surge in users was “driven primarily by existing customers recommending Wise”, as well as expanding further into India, Australia and Brazil, the company said.

Underlying income grew by 17 per cent over the last year to £337m, below the £339.5m expected by analysts and bringing total growth in the first half of the year to 19 per cent.

“We remain focused on our mission of building the best way to move and manage the world’s money,” said co-founder and CEO of Wise Kristo Kaarmann.

“This will take time to fully achieve but we are pleased with the progress made during the quarter, especially the additional regulatory approvals we have received in key markets that will enhance our infrastructure and coverage, and consequently drive further growth in the years ahead.”

The company added that for the full financial year, it continued to expect underlying income growth to be in the range of between 15 and 20 per cent.

While cross-border revenue came in at £207.9m, a two per cent decline from the quarter before and below estimates of £214.9m, it was still six per cent higher than the previous year.

Meanwhile, card and other revenue jumped by 16 per cent from the last quarter to £92.8m, pushing total revenue to more than £300m.

The group’s underlying gross profit margin also remained elevated, at 76 per cent in the first half of the year.

“This reflects the scaling of costs of goods sold relative to volumes while we also continue investing to support and drive growth,” Wise said.

Shares in the firm have bounced beyond four per cent this morning, with analysts at Jefferies doubling down on their buy recommendation for the stock.