International money transfer giant Wise has updated its profit guidance for 2023, boosting its share price by around 3%.
The company released a trading update today (12 October) in which it revealed a 32% year-on-year (YoY) increase in users alongside a 51% YoY revenue increase. The higher revenue increase was largely driven by rising UK interest rates, allowing it to bump up its interest from lending account balances.
This is perhaps a repudiation of those who have chosen to maintain a tight focus on money transfers alone, as Wise notes that global macroeconomic conditions have meant a slowdown in growth among high-value customers. By providing a current account function, Wise has been able to leverage the rising interest rates seen across Western nations in the last year into a stable source of growth.
CTO and interim CEO Harsh Sinha also drew attention to the company’s other new offerings, including an expatriate remittance service in China, an expanded business transfer offering in Europe and its new partnership with Swift.
Wise has had a good year generally but particularly in its stock price. The company has seen a 33.6% YoY increase, rating its stocks at £741.40 ($911.81) at the time of writing. Its market cap is currently estimated to be around $9bn by GlobalData.
Despite the company’s increased revenue, hirings have remained fairly consistent over 2023, with around 150-200 active job postings from February to October. Most of these are focused in Wise’s two core locations of Tallinn, Estonia and London, UK.
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