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Wise ups expectations for FY 22

Despite having released its Q2 22 results (Q3 2021 in calendar quarters) in October, Wise has put out its half-yearly numbers, which provide some increased clarity on the company’s plans, as well as an improved FY 22 projection. Investor response was mixed – the share price initially jumped before falling back and still sits at around 35% down on its peak for the year.

Wise boosts FY 22 projections

Wise now projects revenue growth for its FY 22 (ending March 31 2022) in the mid to high 20s, an improvement on the low to mid 20s it projected when it published its quarterly numbers just over a month ago. It also anticipates a gross margin of around 65-67%, assuming foreign exchange costs remain generally stable. 

The company also projects its take rate to be slightly lower in H2 22 than in H1 as a result of an ongoing strategy to reduce costs and then lower prices. Take rate in H1 22 was 0.65%, a 9 basis point decrease on H1 21. 

Wise also provided some ongoing guidance on pricing and speed, with average customer prices seeing a 7 basis points reduction in the most recent quarter. The company also reports speed improvements, with 40% of transfers being instant and 86% arriving in less than 24 hours. 

How does Wise’s market positioning compare to its peers?

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