Wise PLC (LSE:WISE) has increased its full-year guidance for 2024 after the global payments challenger continued to enjoyed strong volume and income growth in the second quarter.
Active customers increased 32% year on year, according to today’s second-quarter trading update, “driven by our high levels of word-of-mouth referrals and increasing adoption of the Wise Account”.
Wise posted total transfer volumes of £29.2 billion in the second quarter and £258.7 million in revenues, representing an 8% and 22% increase respectively (or 12% and 26% on a constant-currency basis).
Skyrocketing interest income on account balances saw Wise rake in £345 million in total income for the quarter, more than a 50% year-on-year increase.
First-half gross profit margins were higher than expected at 74% on the back of lower forex volatility costs and lower operational losses.
Following these bumper second-quarter results, Wise has upgraded its full-year income growth guidance to between 33% and 38%.
Adjusted EBITDA margins are also expected to be higher than previously anticipated.
Harsh Sinha, chief technology officer and interim chief executive, partially attributed the results to a new service in China that enables expatriates to send their salaries back home.
“We also launched Correspondent Services in collaboration with Swift, a completely new solution that allows banks and other financial institutions to simply route their Swift messages to Wise and send payments through our fast and low-cost payments network,” said Sinha.
“Our business performance, progress against our mission and the investments we’re making give us great confidence, and we’re pleased to signal this with our upgraded financial guidance for full-year 2024."