Wise (WISE) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 growth with 12.8 million active customers, GBP 118.5 billion cross-border volume, and GBP 16 billion held in accounts at year-end, driven by product innovation and customer-led expansion.

• Added 5.4 million new customers, with two-thirds joining via recommendations, highlighting product-led and customer-led growth.

• Wise continues to expand its global network, enhance infrastructure, and launch new features, reinforcing its competitive advantage.

• Ongoing investment in customer experience, technology, marketing, and product development to sustain long-term growth.

Financial highlights

• Underlying income reached GBP 1,173 million in FY24, up 46% year-over-year, with a 3-year CAGR of 41%.

• Reported profit before tax (PBT) was GBP 482 million, up 127% year-over-year, with underlying PBT at GBP 242 million, up 226%.

• Gross profit margin increased by 10 percentage points to 73%, with underlying gross profit up 51%.

• Free cash flow was GBP 486.6 million, with a 101% conversion rate from PBT.

• Card and other revenue grew 54% year-over-year, with underlying interest income up 143%.

Outlook and guidance

• FY25 underlying income growth expected at 15%-20%, or 20%-25% adjusting for timing of price drops, with medium-term CAGR guidance of 15%-20%.

• Profit margin target set at 13%-16% PBT, equivalent to 20%-23% adjusted EBITDA margin.

• Reported PBT expected to remain above underlying, subject to central bank rates and regulatory constraints.

• Continued investment in price reductions, marketing, product, and infrastructure to drive long-term growth.