(Sharecast News) - Money transfer specialist Wise reported revenue of £846.1m in its preliminary results on Tuesday, representing a 51% surge compared to the prior financial year.
The London-listed financial technology company put the significant growth down to its ability to attract a larger customer base and expand its market presence.
Its income for the 12 months ended 31 March reached £964.2m, marking an impressive 73% increase.
Wise reported a gross profit of £638.2 million, up 73% rise, while its gross profit margin also saw a slight improvement, increasing 0.2 percentage points to reach 66.2%.
Profit before tax rocketed 234% to reach £146.5m, while adjusted EBITDA was ahead 97% at £238.6m.
The adjusted EBITDA margin expanded by 2.9 percentage points, reaching 24.7%.
Wise recorded free cash flow of £213.3m for the year, showcasing an 88% increase.
However, its free cash flow conversion saw a slight decline, standing at 89.4%, down 3.9 percentage points.
Looking ahead, Wise said it was anticipating continued growth in the upcoming fiscal year.
The company said it was planning to invest in product development and marketing efforts, leveraging interest income to provide additional incentives, including interest payments, to drive further growth.
Wise said it expected income to grow by 28% to 33% in the 2024 financial year, as it projected income to achieve a compound annual growth rate of over 20% in the medium term.
The board said it remained confident in maintaining an adjusted EBITDA margin at or above 20% in the medium term, with 2024 expected to exceed that due to a higher proportion of interest income contributing to adjusted EBITDA.
"At Wise we are laser-focussed on our mission of money without borders and building the products that our customers need," said co-founder and chief executive officer Kristo Käärmann.
"Over the past year, we continued to invest in our infrastructure and launched new features, such as assets, to make moving and managing money faster, cheaper, easier, and more transparent for more people and businesses around the world.
"Today, 55% of our payments reach their recipient in less than 20 seconds and we save our customers an estimated £1.5bn in fees annually."
Käärmann said Wise's strong growth and continued profitability were a direct result of its focus on its mission and customers.
"This year, approximately 10 million people and businesses chose Wise to move and manage their money internationally, an increase of 34% year-on-year.
"And in total, we helped these customers move c.£105bn across borders, up 37% year-on-year.
"This growth drove a 51% increase in revenue and a 73% increase in income for the 2023 financial year."
At 0941 BST, shares in Wise were up 18.73% at 623.8p.
Reporting by Josh White for Sharecast.com.
Wise Plc (WISE)