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Shares in Wise PLC dropped on Tuesday, despite the company reporting a sharp surge in fourth-quarter income and revenue, as the average volume per customer fell.
The stock was 14% lower at 502.80 pence on Tuesday morning in London.
The money transfer firm reported revenue of £223.5 million in the final quarter of its financial year ended March 31. This was up 45% from £153.8 million in the same quarter the previous year.
Wise’s income totalled £279.5 million in the recent quarter, jumping 83% from £153.0 million a year prior. Full-year income rose by 73% to £964.3 million, beating Wise’s previous guidance of growth of between 68% and 72% for full-year income.
Net interest income on customer balances swung to a profit of £56.0 million in the final quarter from a loss of £800,000 a year prior, as its take rate improved to 0.84% from 0.72%.
Volume climbed 25% to £26.7 billion in the final quarter from £21.4 billion a year before. However, average volume per customer fell by 7% year-on-year, mostly due to Personal VPC, which declined by 8% year-on-year as Wise reported a slower pace of growth in higher-volume customer cohorts.
‘We believe payments amongst these cohorts, such as for property purchases and investments, to be more discretionary in nature and influenced by macroeconomic conditions to a greater extent. For example, as seen at times of FX volatility and USD strength like earlier in FY23 when we saw a pull-forward of volume in these cohorts,’ the London-based company explained.
Wise said it will provide financial 2024 guidance with its financial 2023 results announcement in June.
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