Wise Shares Drop Amid Weaker Revenue Growth Forecast

Shares of British money transfer company Wise fell sharply on Thursday after the company forecasted weaker annual revenue growth for the current fiscal year.

By 1:30 p.m. London time, Wise’s stock was down 9.8%, having dropped nearly 21% earlier in the session. The company, which facilitates international money transfers at lower rates, projected underlying year-over-year income growth of 15-20% for the fiscal year ending March 2025. This is a decline from the 31% underlying income growth to £1.2 billion ($1.53 billion) reported for the fiscal year ending March 31.

The underlying income figures exclude benefits paid on customer balances or net interest income above the first 1% gross interest yield. Wise’s underlying pre-tax profit, accounting for costs and reinvestment, reached £242 million for the year, marking a 226% increase year-over-year, with a pre-tax profit margin of 21%.

The revised income growth projection follows price reductions implemented by Wise at the start of the current financial year. Analysts at Jefferies described the guidance as “disappointing at first glance” due to these price cuts. Wise’s income growth forecast of 15-20% is 2% below consensus estimates at the mid-point, though Jefferies noted that the price reductions might bolster confidence in medium-term growth.

Wise reported a 29% increase in active customers, ending the financial year with 12.8 million users. The company processed £118.5 billion in cross-border transactions, a 13% increase year-over-year. Additionally, Wise now holds £16 billion in customer deposits across cash and its investment account, Assets.