Wise (LON: WISE), a company known for facilitating cross-border payments and offering multi-currency accounts, closed the financial year 2024, which ended on 31 March, with a 24 percent revenue jump to over £1.05 billion. Further, it generated a net profit of £354.6 million, 212 percent higher.
Personal customers remained the revenue driver of the company as they generated £815.3 million of the total revenue, while the rest came from business customers.
In terms of geographies, Europe was Wise’s largest market, bringing in £323.9 million in revenue, followed by the UK at £202.5 million, North America at £214.5 million, and Asia-Pacific at £216.2 million. The remaining £94.9 million was generated by the rest of the world.
Profits Are Soaring
Although the company's revenue significantly increased, its sales cost remained relatively similar at £307.4 million, compared to £308.2 million in the previous year. The company's pre-tax profits jumped by 229 percent to £481.4 million.
Although net interest from corporate investments jumped by 604 percent, an absolute figure of £19.7 billion only contributed a fraction to the annual operating profit of £241.8 million. However, the company generated £364.5 million, an increase of 302 percent, from interest income above the first 1 percent yield but paid £124.9 million back to the customers.
The London-headquartered company’s quarterly performances were also robust: it generated £381.1 million in income in Q4, following £375.1 million in the previous quarter.
“2024 was another strong year of growth for Wise,” said Kristo Käärmann, Co-founder and Chief Executive Officer. Indeed, the company's solid performance can also be seen in non-financial metrics.
Active Customers Take Another Leap
The platform's active customers jumped by 29 percent to 12.8 million, pushing the volume of cross-border transfers to £118.5 billion, 13 percent higher yearly. Additionally, the holdings through different platform features like cash and assets jumped by 44 percent to £16 billion as 48 percent of personal and 60 percent of business customers are opting for such services.
Meanwhile, the company enhanced its infrastructure connecting to the Australian domestic payment system, achieved a licence in Japan that removed the ¥1 million transfer limit, and collaborated with Swift.
“We are investing in infrastructure and customer experiences to serve as much of this huge, underserved cross-border payments market as possible, including starting FY25 by reducing fees further for our customers,” Käärmann added.
