Analysts have their eyes on Wise PLC (LSE:WISE)’s total payment volume (TPV) guidance in the lead up to the fintech disruptor’s full-year 2023 earnings call on Tuesday.
The London-listed cross-border payment provider already disclosed 2023 TPV numbers during its fourth-quarter call in May, which showed 25% growth year over year to £26.7bn, or around 5% below consensus.
The company is also expected to disclose a 27% yearly customer growth and a 73% organic revenue growth, the latter largely driven but a surge in net interest income (NII).
Barring any substantial change to these numbers, the focus for investors will be on forward guidance.
Any comments on TPV outlook will be of particular interest following three straight quarters of slowing TPV growth.
The NII party is likely to come to a close during the 2024 financial year as the Bank of England’s fiscal tightening cycle cools down.
Jefferies expects Wise to announce a 2024 total income growth range of 26-30%, with an EBITDA margin target of at least 23%.
Hiring numbers will also be of interest, given that Wise bucked the trend by increasing its workforce by 49% in the first half of 2023 due to an expansion of its engineering an commercial teams.
Though a fragmented market bears “huge growth opportunities”, Jefferies warns of increased competition from incumbent financial institutions and tech juggernauts including Amazon and Apple.
Jefferies maintains a hold rating with a target share price of 610p against a publication price of 622p.