(Alliance News) - Wise PLC on Wednesday lifted annual guidance as it reported a third quarter revenue hike, helped by rising volumes as the fintech firm's customer numbers grew.
Wise is a London-based company offering international money transfers. It recently rebranded from TransferWise and listed on the London Stock Exchange in July.
Wise shares were 3.1% higher at 693.00 pence each in London on Wednesday morning. It has a market capitalisation of GBP7.10 billion.
For the third quarter ended December, revenue surged 34% annually to GBP149.8 million from GBP111.9 million. Quarter-on-quarter, the revenue increase was 13% from GBP132.8 million.
Transaction volumes rose 38% yearly to GBP20.6 billion, up 15% on a quarterly basis. Wise's take rate, which it has previously cautioned on, was two basis points lower year-on-year at 0.73%, however.
Take rate is a fee charged by the platform where a transaction is performed. In October, the fintech cautioned on a lower take rate due to price reductions.
"We dropped prices, sped up payments, and expanded access to Wise's products and features in more countries and through more partners," Chief Executive Officer Kristo Kaarmann said on Wednesday.
Active personal customers rose by 26% annually to 4.1 million during the quarter. Active business customers rose by 39% to 250,000.
Wise boosted revenue guidance again.
Looking ahead, Wise expects its lower take rate to be "more than offset" by stronger volumes. It now expects annual revenue growth of 30%.
In October, it tipped a revenue hike in the low-to-mid 20s percentage range. In November, it lifted the revenue forecast to the mid-to-high 20s range.
By Eric Cunha; ericcunha@alliancenews.com
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Wise Plc (WISE)