Payments startup Wise (LON: WISE) closed the second quarter of the fiscal year 2024 with an annual increase of 22 percent in its revenue, elevating the amount to £258.7 million. It was achieved with a push of 8 percent in its volume to £29.2 billion and a growth of 32 percent in active customers to 7.2 million.

In the recent filing, the company highlighted "high levels of word-of-mouth referrals and increasing adoption of the Wise Account" behind the growth in its active customers.

Strong Performance Parameters

The latest performance parameters also came in close to the figures of the previous quarter; in fact, they improved. In the first quarter of the ongoing fiscal, the payments platform reported a revenue of £240 million with volume of £28.2 billion. The number of its active customers also jumped 33 percent that quarter, reaching 6.7 million.

Returning to the latest figures, the company's quarterly income increased 51 percent to £345 million. Its account balances increased 33 percent to £12.3 billion. The gross yield on the balance also jumped to 3.8 percent from the previous quarter's 3.4 percent.

"This quarter, we launched a new service in China, enabling expatriates to send their salaries back home," said Harsh Sinha, the Chief Technology Officer and Interim Chief Executive Officer at Wise. "For business customers, we re-commenced onboarding new customers in 13 European countries where we had previously paused new customer onboarding whilst we upgraded our servicing and operational capacity."

"We also launched Correspondent Services in collaboration with Swift, a completely new solution that allows banks and other financial institutions to simply route their Swift messages to Wise and send payments through our fast and low-cost payments network."

Strong Outlook

With the latest figures, Wise has increased its income growth guidance for the ongoing fiscal between 33 percent and 38 percent. Previously, this guidance was between 28 percent and 33 percent.

Wise is also expecting a higher profit margin than expected of around 74 percent, due to the lower FX volatility costs and operational losses. It will result in a higher profitability of the company.

"Our business performance, progress against our mission, and the investments we're making give us great confidence, and we're pleased to signal this with our upgraded financial guidance for FY24," Sinha added.