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- Wise reported a strong first quarter as its income surged by 66%.
- Growth of its active customers and high interest rates have been key drivers of the upbeat figures.
Wise, a London-based money transfer company, has reported a strong Q1’23. The growth of its active customers, coupled with high-interest rates, have been the major drivers.
Wise’s strong first quarter
At the same time, the firm’s quarterly active customers rose by a third to 6.7 million. The company links this growth to its effective word-of-mouth approach that has improved its customer acquisition and retention.
Its income in Q1’23 also surged by 66% to £311 million while its revenue was up by 29% YoY to £239.5 million. The recorded growth in active customers also saw its volumes in the quarter increase by 16% to £28.2 billion on a year-on-year basis.
The company’s CEO, Kristo Kaarmann noted that new offerings and an improved infrastructure have been beneficial in expanding its customer base. He stated, “We made our payments faster in Brazil, Australia, and across a number of routes in Asia. Now 57% of payments on Wise are delivered in under 20 seconds. Our Assets ‘Interest’ feature is now available to customers in 11 countries, after launching in Germany, Sweden, and Norway this quarter”.
About a month ago, Wise reported that its pre-tax profits for the financial year ending on 31st March rose by 234% from £43.9 million in the previous year. Its underlying earnings also surged by 97% to £238.6 million. At the same time, its active customers rose by 4.5 million individuals (34%) to 10 million.
With the upbeat figures, Wise has kept its full-year outlook unchanged. In particular, it forecasts growth of its income by between 28% and 33%. At the same time, it expects high interest rates to boost its adjusted EBITDA margin. In the previous year, its adjusted EBITDA margin was 24.7%.
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