TIDMWISE
RNS Number : 8837Y
Wise PLC
19 January 2022
Wise plc
19 January 2022
Q3 FY2022 Trading Update
"I'm delighted that for the first time we've supported more than
4 million customers to complete cross-border transfers in a single
quarter. We moved over GBP20bn; 38% growth on last year and 15%
growth on the prior quarter.
We did this while continuing to make good progress on our
mission to make moving and managing money across borders faster,
easier, cheaper and more transparent for everyone, everywhere. We
dropped prices, sped up payments, and expanded access to Wise's
products and features in more countries and through more
partners.
Most notably, 45% of transfers were instant this quarter, and we
launched the Wise card in Canada, Brazil, and Malaysia, with the
Wise account also going live in Malaysia."
Kristo Käärmann, Co-Founder & CEO
Mission highlights for Q3 FY2022
Q3 FY2022 Q3 FY2021 YoY Q2 FY2022 QoQ
Movement Movement
Customer price(1) 0.60% 0.69% -9 bps 0.62% -2 bps
--------- --------- --------- --------- ---------
Instant transfers 45% 34% +11 pps 40% +5 pps
--------- --------- --------- --------- ---------
In line with our mission, growing volumes and reducing costs
allows us to sustainably reduce prices for our customers whilst
generating gross profits for reinvestment. Over the last year we
dropped prices across 50 currencies, including 5 currencies in the
most recent quarter. Our customer price is now 0.60% on average,
9bps lower than a year ago and 2bps lower than the previous
quarter.
Wise customers are also benefiting from faster payments with 45%
of all transfers delivered instantly this quarter, up from 40% in
Q2. This was in part thanks to a constant focus on improving how we
operate, in particular by speeding up security checks and resolving
technical issues that were causing delays on payments sent to
India.
In Q3, we launched the Wise Account and Card in Malaysia, and
the Wise Card in Canada and Brazil. Business customers are now able
to make payments to China from 8 currencies while Alipay users will
now be able to send money to China from any supported Wise currency
to an Alipay recipient.
Convenience is about providing access to Wise wherever it best
suits our customers and we have made further progress in serving
more customers through platform partners in the quarter. New
partners include music royalty manager Eddy, armed forces credit
union Andrews Federal, and invoice platforms Bilingo and Libeo.
1. Customer price is based on a fixed basket of representative
currencies which reduces the effect from route mix and other
factors, making it a more accurate representation of our progress
in reducing the cost of international transfers over time.
Growth and Financial highlights
Q3 FY2022 Q3 FY2021 YoY Q2 FY2022 QoQ
Movement Movement
Volume (GBP
billion)(1) 20.6 15.0 38% 18.0 15%
--------- --------- --------- --------- ---------
Revenue (GBP
million) 149.8 111.9 34% 132.8 13%
--------- --------- --------- --------- ---------
Take rate
(%)(2) 0.73% 0.75% -2 bps 0.74% -1 bps
--------- --------- --------- --------- ---------
1. Cross-border volume only
2. Revenue as a % of Volume
Q3 FY2022 was a strong quarter with over 4 million customers
transacting on Wise. The number of active personal customers grew
by 26% YoY to 4.1 million while the number of active business
customers grew by 39% to 250k compared to the prior year.
Volume grew by 38% YoY and 15% QoQ to GBP20.6 billion, driven by
growth in the number of active personal and business customers and
a higher average volume per customer (VPC). Our business customers'
VPCs are seasonally strong in Q3 but have nonetheless grown 13%
YoY. This reflects that as our customers grow, so do their VPCs, as
well as reflecting the increased adoption of the Wise Account and
card.
Revenue grew by 34% YoY and 13% QoQ to GBP149.8 million, broadly
in line with the rate of growth in volume. Our continuing efforts
to engineer and optimise away costs to support sustainably lower
prices for customers resulted in a lower take rate as expected,
reducing to 0.73%, down 2bps YoY and 1bp QoQ. This reflects the
price drops which are partially offset by incremental revenue from
other sources beyond cross-border transactions.
Looking ahead, we continue to expect the take rate to be
slightly lower in the second half of FY2022 compared to the first
half as a result of price reductions. This is expected to be more
than offset by higher volumes as we now anticipate revenue growth
of c.30% for FY2022 over FY2021. We continue to expect gross margin
for FY2022 to be c.65-67%, subject to foreign exchange related
costs continuing to remain broadly stable.
Please see the appendix for further historical financial
information. Wise will release FY2022 results on 28 June 2022.
Analyst & Investor call
A call hosted by Matthew Briers (CFO) will be available for
analysts and investors at 9am GMT this morning. Pre-registration
and joining details can be found here:
http://emea.directeventreg.com/registration/8767708
Enquiries
Martin Adams - Head of Owner Relations
martin.adams@wise.com
Sana Rahman - Public Relations Lead
press@wise.com
Brunswick Group
Charles Pretzlik / Sarah West / Samantha Chiene
Wise@brunswickgroup.com
+44 (0) 20 7404 5959
About Wise
Wise is a global technology company, building the best way to
move money around the world. With the Wise account people and
businesses can hold over 50 currencies, move money between
countries and spend money abroad. Large companies and banks use
Wise technology too; an entirely new cross-border payments network
that will one day power money without borders for everyone,
everywhere. However you use the platform, Wise is on a mission to
make your life easier and save you money.
Co-founded by Kristo Käärmann and Taavet Hinrikus, Wise launched
in 2011 under its original name TransferWise. It is one of the
world's fastest growing profitable tech companies and is listed on
the London Stock Exchange under the ticker, WISE.
11 million people and businesses use Wise, which processes over
GBP6 billion in cross-border transactions every month, saving
customers over GBP1 billion a year.
FORWARD LOOKING DISCLOSURE DISCLAIMER
This report may include forward-looking statements, which are
based on current expectations and projections about future events.
These statements may include, without limitation, any statements
preceded by, followed by or including words such as "target",
"believe", "expect", "aim", "intend", "may", "anticipate",
"estimate", "plan", "project", "will", "can have", "likely",
"should", "would", "could" and any other words and terms of similar
meaning or the negative thereof. These forward-looking statements
are subject to risks, uncertainties and assumptions about Wise and
its subsidiaries. In light of these risks, uncertainties and
assumptions, the events in the forward-looking statements may not
occur. Past performance cannot be relied upon as a guide to future
performance and should not be taken as a representation that trends
or activities underlying past performance will continue in the
future. No representation or warranty is made or will be made that
any forward-looking statement will come to pass. The
forward-looking statements in this report speak only as at the date
of this report.
Wise expressly disclaims any obligation or undertaking to
update, review or revise any forward-looking statements contained
in this report and disclaims any obligation to update its view of
any risks or uncertainties described herein or to publicly announce
the results of any revisions to the forward-looking statements made
in this report, whether as a result of new information, future
developments or otherwise, except as required by law.
Appendix - Historical Financials
Quarterly Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 QoQ YoY
FY2020 FY2020 FY2020 FY2020 FY2021 FY2021 FY2021 FY2021 FY2022 FY2022 FY2022 Movement Movement
% %
Customers
(million) 2.1 2.4 2.6 2.8 2.8 3.2 3.4 3.5 3.7 3.9 4.3 11% 27%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Personal
(million) 2.0 2.3 2.5 2.6 2.7 3.0 3.2 3.3 3.4 3.7 4.1 11% 26%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Business
(million) 0.09 0.10 0.12 0.13 0.14 0.16 0.18 0.20 0.22 0.23 0.25 10% 39%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Volume
Per Customer
(GBPk) 4.1 4.3 4.1 4.4 3.8 4.2 4.4 4.4 4.5 4.6 4.7 3% 8%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Personal
(GBP thousand) 3.4 3.6 3.4 3.7 3.0 3.4 3.5 3.6 3.6 3.7 3.7 1% 4%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Business
(GBP thousand) 18.4 19.3 19.2 18.6 17.5 17.7 19.1 18.1 18.6 19.4 21.6 12% 13%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Volume
(GBP billion)(1) 8.6 10.2 10.7 12.2 10.7 13.2 15.0 15.6 16.4 18.0 20.6 15% 38%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Personal
(GBP billion) 6.9 8.2 8.5 9.9 8.2 10.4 11.5 12.0 12.4 13.5 15.1 12% 32%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Business
(GBP billion) 1.7 2.0 2.2 2.4 2.4 2.8 3.5 3.6 4.0 4.5 5.5 23% 58%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Revenue
(GBP million) 57.3 74.5 79.6 91.2 86.3 105.9 111.9 116.9 123.5 132.8 149.8 13% 34%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Personal
(GBP million) 48.0 62.1 65.5 76.1 70.8 87.0 89.8 93.7 96.9 103.4 114.7 11% 28%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Business
(GBP million) 9.3 12.4 14.1 15.1 15.5 18.9 22.1 23.2 26.6 29.4 35.1 19% 59%
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
Take rate
(%)(2) 0.66% 0.73% 0.75% 0.75% 0.81% 0.80% 0.75% 0.75% 0.75% 0.74% 0.73% -1 bps -2 bps
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------- --------
1. Cross-border volume only
2. Revenue as a % of Volume
Note: Differences between 'total' rows and the sum of the
constituent components of personal and business are due to
rounding.
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END
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January 19, 2022 02:00 ET (07:00 GMT)
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