Wise Group (WISE) Q4 2023 earnings summary

Executive summary

• Q4 revenue fell 21% YoY to SEK 195.9m; reported EBITDA was -SEK 5.7m and operating result -SEK 12.0m, including SEK 12.8m in one-time personnel and new IT costs.

• FY 2023 revenue declined 12% to SEK 803.1m; reported EBITDA was SEK 7.6m and operating result -SEK 18.8m, with SEK 26.1m of one-time personnel and new IT costs.

• Weak customer demand and caution persisted through Q4, while early 2024 showed signs of demand stabilizing from a low level.

Financial highlights

• Q4 adjusted EBITDA was SEK 7.0m, margin 3.6%; adjusted operating result was SEK 0.8m, margin 0.4%, excluding SEK 10.8m in one-time personnel costs and SEK 1.9m in new IT costs.

• FY adjusted EBITDA was SEK 33.7m, margin 4.2%; adjusted operating result was SEK 7.3m, margin 0.9%, excluding SEK 17.4m in one-time personnel costs and SEK 8.7m in new IT costs.

• FY net loss was SEK 16.2m versus net income of SEK 19.1m; EPS was -SEK 2.19 versus SEK 2.59 in 2022.

• Operating cash flow was SEK 6.8m in Q4 and SEK 0.9m for FY, down from SEK 28.1m and SEK 57.7m, respectively, in 2022.

Outlook and guidance

• Early 2024 indicated demand stabilization from a low base; recruitment inquiries and completed deals increased slightly, with Q1 expected to signal the strength of any recovery.

• Remaining initiatives include adapting the market offering, further digitization, more effective use of systems, cost reduction, and process efficiency.

• Long-term financial targets are 8–10% average annual organic growth over a cycle and a 6–8% operating margin.