Payments firm Wise backs FY expectations as Q1 revenues jump

Payments firm Wise backed its full-year guidance on Tuesday as it reported a jump in first-quarter revenues.

Revenue rose 51% from the same quarter a year earlier to £185.9m, beating market expectations of £166.6m. On the quarter, revenue was up 21%. Meanwhile, transaction volumes pushed up 49% on the year to £24.4bn. On the quarter, they were ahead 14%.

Wise said volume growth was driven by a higher number of active customers that are increasingly using the Wise Account and Wise Business products, which in turn also leads to a higher average volume per customer.

The company said it still expects revenue growth of between 30% and 35% for FY23 and greater than 20% over the medium term.

At 1045 BST, the shares were up 14.7% at 399.97p.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: "The company has been caught up in the global tech sell-off but has also been languishing under a cloud following the big HMRC fine levied on the boss Kristo Kaarmann, for failing to comply with tax rules. The investigation by the FCA into his conduct and the regulatory obligations and standards he needs to meet may still be casting a shadow over these numbers, but the company’s prowess in attracting a surge in customers sending money across borders has come to the fore.

"As the cost-of-living crisis develops, people are trying to find little savings everywhere and Wise’s competitive strategy on fees is bearing fruit. The challenge will be to maintain its profitability and low fees while it also invests in infrastructure and security features, to increase the ratio of instant payments which are part of its successful formula."