International money transfer firm Wise has posted a small revenue bump for the fourth quarter of the fiscal year, but saw shares slip by 8% after missing analyst consensus estimates.
In its Q4 trading update, the London-listed firm reported revenue of £277.2m, a marginal increase from the previous quarter’s £276.6m and a 24% increase from the same period in 2023. However, this was 1% below consensus estimates, according to Peel Hunt analysts.
The company credited a 29% boost in active customers year-on-year, and more customers using multiple Wise features, as the driving factor behind the revenue bump.
In an analyst note, investment bank Jefferies described Wise’s trading update as a “mixed bag” but added it expects that “healthy customer growth will boost confidence” in customer growth for the rest of the current financial year.
“I am pleased that we have ended the financial year with another solid quarter,” said CEO Kristo Käärmann.
The Wise co-founder said that “continued customer growth laps strong results and tells us that the investments that we’re making are meeting real needs, giving me confidence that we’re progressing well on our mission”.
Käärmann added that the resuming of customer onboarding across the majority of Europe last quarter, along with regulatory boosts in Asia, helped deliver the results.
Wise provides global remittance and international money management services. The London-based company currently operates its service in 160 countries.
In the previous quarter, Wise posted a 40% year-on-year income increase from the third quarter of 2023. The recent interest rate surge, which kicked off in 2022, has contributed to Wise achieving record profits.
Wise became a public company in 2021 through a direct listing on the London Stock Exchange. It is currently trading 13% below its public listing price.
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