Wise plc (formerly Transferwise) reported an 80% increase in total income for three months, between October and December 2022, as the figure touched £268.7 million compared to £149 million year-over-year (YoY). Wise's services were used by 5.8 million people in Q3 FY23, which is a record high for the company to date, according to the latest trading update.

Wise Shows Higher Revenue and Income

The company's latest figures show growth in all relevant financial indicators. Volume increased 28% YoY to £26.4 billion, and revenue grew 50% to £225.2 million compared to the same period a year earlier.

The revenue value rose quarter-over-quarter (QoQ) and is up 6% from £211.5 million. Meanwhile, the total income grew 17% QoQ, rebounding from £229 million.

The number of users using Wise's services totalled nearly 6 million, which translated into a 33% YoY and 6% QoQ increase. Business customers accounted for 320,000 and residential customers for 5.5 million.

"As interest rates increase, our customers expect a return on the balances they hold with us, and we intend to share much of the benefit of higher rates with customers. This quarter we launched 'Interest' within our Assets product in the UK; a whole new way for our customers to hold their money and earn a return. I'm also pleased that for the third consecutive quarter, more than 50% of cross-border payments Cross-Border Payments Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, bank Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, bank Read this Term were completed instantly," Kristo Käärmann, the CEO and Co-Founder of Wise, commented.

Total cross-border volumes grew 28% to £26.4 billion compared to the same period a year earlier. Business customer volumes reached £7.4 billion, which is up 35% YoY, and individual customer volumes were £19 billion, which is also up 26% YoY.

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Improved Guidance for FY23

As a result of continued growth in revenues, profits and user numbers, Wise is raising its total income growth guidance for FY23 (ending March 2023) to 68-72% YoY from a previously forecasted 55-60% YoY growth.

"The investments we've made to deliver a superior infrastructure and products are resonating, and in this quarter, more customers than ever used Wise. This underpins our conviction in the outlook for 2023 and beyond," Käärmann added.

In addition, the adjusted EBITDA margin for the second half of FY23 is forecasted to be 22% higher than in the first half of the FY.

Despite better financial results than last year, Wise's stock price on the London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term has been dropping heavily on Tuesday. The shares are down more than 7% to under £600, rebounding from monthly highs.

Wise New License and Service

In October, the financial technology and payment firm informed that it had received an Estonian Financial Supervision and a Resolution Authority (Finantsinspektsioon) investment license. The move will allow Wise to introduce its trading service dubbed Assets to Estonia and other European Union countries in the future.

The Assets feature allows customers to choose how their savings are held and earn a potential return in 50 currencies. Unlike a typical investment app, users have direct access to their funds and can withdraw them anytime.

As part of expanding its services, Wise launched International Receive in September, a solution designed to enable neobanks not connected to the SWIFT network to offer cross-border payment remittance service to their customers.