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Highlights
- Strong Customer Growth: Over 9 million customers used Wise in Q3, driving a 20% year-on-year (YoY) increase in global money movement and management.
- Robust Financial Performance: Cross-border volumes grew 24% YoY to £37.8 billion, while underlying income increased 13% YoY to £349.5 million.
- Competitive Edge: Wise lowered prices through disciplined cost reduction, driving affordability and wider customer adoption.
Wise PLC (LSE:WISE), a global leader in cross-border money movement, has announced its third-quarter results for FY25, reporting impressive growth across key metrics. The company achieved a 24% year-on-year (YoY) increase in cross-border volumes, reaching £37.8 billion, underpinned by a 20% growth in active customers. Over 9 million individuals and businesses used Wise's platform in Q3 to manage and transfer money globally.
This growth reinforces Wise’s mission of becoming the go-to network for the world’s money. The company also reported that Wise account balances grew by 26% YoY, reaching £16.2 billion. This robust performance demonstrates strong customer trust and adoption of its products and services.
Revenue Growth and Cost Efficiency
Wise’s underlying income rose 13% YoY to £349.5 million for the quarter, with a year-to-date (YTD) growth of 17% on a reported basis. On a constant currency basis, underlying income grew by 20%, highlighting the company’s resilience amid currency fluctuations.
The company’s pricing strategy continues to be a differentiator. By maintaining discipline and reducing unit costs, Wise lowered prices during the first half of FY25. This contributed to an 11 basis points YoY reduction in the cross-border take rate to 56bps in Q3. The lower take rate highlights Wise's commitment to providing cost-effective solutions for its customers, even as transaction volumes and revenues soar.
Card and Revenue Expansion
Wise’s strategic push to expand its account offerings has paid off, with card and other revenue streams witnessing a remarkable 39% YoY growth. This development underscores the increasing adoption of Wise accounts by customers, further diversifying the company’s income sources.
Outlook for FY25
Despite headwinds from foreign exchange rate changes, Wise remains confident in its growth trajectory. On a constant currency basis, the company expects underlying income growth in the range of 15-20% for FY25. However, reported growth is anticipated to align with the lower end of this range due to FX-related impacts.
