Wise plc, a publicly listed international payments company, has presented preliminary results for the financial year ending 31 March 2023. According to the company's filing today (Tuesday), it saw substantial growth in all key financial metrics, including revenue, profit, EBITDA, and the number of active customers.

Wise's Revenue Increased 51% and Profit Upped 234%

For the fiscal year 2023 (FY23), Wise's revenue was £846.1 million, compared to £559.9 million reported in the same period last year. This signifies a growth of 51% for the payment company. Income grew year-over-year (YoY) even more robustly by 73%, to £964.2 million. Gross profit was at £638.2 million, and pre-tax profit increased 234% YoY from £43.9 million to £146.5 million.

Adjusted EBITDA also recorded strong growth, almost doubling from £121.4 million to the current reported figure of £238.6 million.

"Our strong growth and continued profitability are a direct result of our focus on our mission and our customers," Kristo Käärmann, the Co-Founder and Chief Executive Officer of Wise, commented.

Käärmann further stated that Wise's goal is to create 'money without borders' for faster, cheaper, and safer forms of money transfer. Compared to the fiscal year 2020, the company has served three times more individual customers and companies.

These promising numbers confirm the results published in the second half of April. Wise then reported a YoY increase of 45% in revenue for Q4 FY23.

Wise's Customer Base Increased 34%

Regarding the number of customers, Wise served 10 million active clients in FY23, which is 34% more than the figure of 7.4 million reported a year earlier. The base of individual customers grew 35% YoY to 9.4 million, and business customers increased 27% YoY to 0.52 million.

"This year approximately 10 million people and businesses chose Wise to move and manage their money internationally, an increase of 34% YoY. And in total, we helped these customers move about £105 billion across borders, up 37% YoY. This growth drove a 51% increase in revenue and a 73% increase in income for FY2023," added Käärmann.

The total volume of Wise transfers amounted to £104.5 billion, which is up from £76.4 billion reported a year earlier.

Positive Forecasts for the Future

Matt Briers, the Chief Financial Officer of Wise, forecasted that the company would continue to invest in the development teams and marketing . The company aims to reinvest about 80% of the interest income back into the Wise Account proposition by paying interest or offering other incentives to open an account.

"We'll also continue to sustainably disrupt the cross-border transfers market by dropping prices where we can to delight and build trust in our customers, while maintaining a ~20% margin on cross-border volume, and in effect extend the competitive moat we are building around our product, in a profitable way," Briers added.

As for the upcoming quarters, Wise expects that the growth in the number of active customers will be the main driver of revenue growth in the fiscal year 2024, which is forecasted to be between 28 and 33%.

"As we pass through FY2024, it will be important to keep in view that we will be lapping some unusual trends from FY2023. This includes an exceptional level of volume growth in the first half of FY2023 and strong interest income growth in the second half," stated Briers. The current CFO will step down from his role in March 2024.

In the medium-term perspective, Wise still expects revenue growth of over 20% (CAGR) and an adjusted EBITDA margin at or above 20%.

Wise is a payment processor collaborating with many companies in the FX/CFD industry. Finance Magnates reported that the Interactive Brokers platform has offered access to the 'Pay with Wise' service since April.