Wise (NASDAQ: WSE; LSE: WISE), the international money transfer and account provider, reported second-quarter net revenue up 21% to $739.1m and raised its full-year growth outlook. Shares are up about 0.9% in post-market trading today after the results.
In the regular session today the stock rose 0.7% to $12.10. The company’s earnings call is at 4:30pm Eastern today.
For the second quarter, active customers reached 12.503m, up 20% from 10.440m a year earlier, of which 633k were business customers. Cross-border volume rose 22% to $71.7bn, and customer holdings climbed 28% to $43.5bn.
Net revenue of $739.1m compares with $610.5m a year earlier and $714.0m in the first quarter, a 4% sequential rise. Transaction revenue was $561.3m, up 22%.
Card and other revenue grew fastest, up 34% to $206.1m, while cross-border revenue rose 16% to $355.2m. Interest income was $238.2m, up 18%, against interest expense of $60.4m, up 20%. Card spend volumes reached $14.3bn.
Prices came down. The cross-border take rate, the share of transfer value Wise keeps as revenue, slipped to 0.49% from 0.52%, a 3 basis point drop. Wise says it is deliberately investing part of its operating leverage in lower prices. Instant transfers rose to 78% from 74%.
Wise now expects FY27 net revenue growth in the upper half of its 15% to 20% medium-term range, which is 17.5% to 20% on a constant currency basis. That includes recent central bank rate increases and assumes no material change in the share of interest paid to customers.
The company still expects its income before tax margin near the top of its 20% to 25% range for the year. For the first half it is about 23%, including one-offs worth about 2 percentage points, among them roughly $15m tied to its dual listing.
We are building the network for the world’s money – making Wise easier, cheaper and faster to use as we scale.
Kristo Käärmann, Wise chief executive
Operationally, Wise went live in Malaysia, its ninth direct integration, launched its Account and Card in Thailand and Wise Assets in New Zealand, and agreed a partnership with OakNorth. Detail on the margin will come with the first-half results.