Wise reaches 8 million active users
In FY24Q4, Wise surged its active customer base to 7.9 million, up 29 per cent from the same period last year.
Strong Performance of Wise in FY24Q4
Wise exhibited robust financial performance in FY24Q4, with a year-on-year revenue growth of 36%, reaching £381.2 million. During the quarter, it processed £30.6 billion in cross-border transactions, marking a 14% increase year-on-year, while maintaining a cross-border fee rate based at 67%.
Despite the strong performance in the previous quarter, the latest results have surpassed previous achievements. Revenue increased by approximately £6 million from the £375.1 million reported in mid-January.
The company's growth can be attributed to the increasing adoption of its cross-border remittances, Wise card for international spending, Assets feature for earning returns, and the growing usage of local account details. Now, many of Wise's individual and business clients are using the platform for various purposes beyond cross-border transactions.
Kristo Käärmann, co-founder and CEO of Wise, commented, "The continued growth in our customer base is a testament to our strong performance and indicates that we are investing in meeting real needs, which gives me confidence that we are making good progress in fulfilling our mission."
Other revenue sources for the company, primarily the Wise card, accounted for 26% of total revenue. Additionally, Wise account balances increased by 24% year-on-year, reaching £13.3 billion, demonstrating growing trust among customers in the platform.
Wise expects its financial performance to remain strong throughout the entire FY24 period, with revenue growth expected to exceed the initial expectations of 42-44%. The company's gross profit margin and adjusted EBITDA margin are also expected to benefit from higher interest income and lower transaction costs.
Executive Appointments and Collaborations
A month ago, Wise underwent significant changes in its senior management, with Emmanuel Thomassin appointed as the new Chief Financial Officer and Director, effective October 1, 2024. Thomassin will succeed Matthew Briar, who resigned from the position in May last year after serving for about eight years. Prior to Thomassin's appointment, the current Senior Group Finance Director, Kingsley Kemish, will serve as the interim CFO.
Furthermore, just a week ago, the company announced a strategic partnership with the renowned Brazilian financial institution Nubank. This alliance enhances Nubank's services by introducing global accounts and international debit cards.
In addition, Wise has made progress in its global expansion efforts, resuming business customer registrations in most parts of Europe, obtaining a Type 1 Fund Provider license in Japan, and expanding partnerships with Mox under Standard Chartered Bank in Hong Kong and Tiger Brokers in Singapore.
"This quarter, we have resumed business customer registrations in most parts of Europe and continue to invest in our infrastructure and expand our business globally," added Käärmann.
With Wise continuing to invest in its infrastructure and expanding its business globally, the company seems to be in a strong position to maintain its growth momentum and consolidate its position in the global financial services industry.
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