Wise PLC Quarterly Revenue Miss
Wise PLC witnessed a significant decline in its stock value, following the company’s release of quarterly revenue figures that failed to meet analyst expectations. At the time of this report, Wise PLC’s stock (symbol: WPLCF) stood at 10.16, reflecting a change of -1.3950005 (-12.0727%) with a trading volume of 488197 shares. The average analyst rating is 0.723, while the book value remains undisclosed.
Wise PLC Quarterly Revenue Figures
For the fiscal fourth quarter, Wise PLC reported a revenue increase of 24% to £277.2 million. However, this fell short of analyst consensus estimates, contributing to investor disappointment. The full-year revenue of £1.05 billion was also slightly below expectations, trailing by 1%.
Transaction Volume and Customer Count
Despite a 14% rise in transaction volume during the quarter, reaching £30.6 billion, it still fell below the anticipated £32.12 billion. Additionally, the customer count slightly missed expectations, totaling 7.91 million compared to the forecast of 7.92 million.
Income Growth
Income for fiscal 2024 witnessed a substantial surge of 46%, surpassing the company’s guidance of 42% to 44% annual growth. In the fourth quarter alone, income rose by 36% year-over-year to £381.2 million, slightly exceeding consensus estimates.
Analyst Commentary
Analysts from Morgan Stanley noted that the company’s performance was already well captured by consensus, anticipating limited upgrades based on the latest release. They also expressed expectations of slight underperformance in the market following weaker volume trends in Q4.
Adjusted EBITDA Margins
Wise reported that its adjusted EBITDA margins remained robust, exceeding its medium-term guidance of at least 20%. This positive metric underscores the company’s financial stability despite the revenue miss.
Wise PLC Revenue Outlook and Analyst Projections
Despite the mixed performance in the fourth quarter, analysts from Jefferies highlighted healthy customer growth, boosting confidence in future customer growth projections. They also emphasized increased neo-banking activities, which align with Wise’s strategic focus on expanding its service offerings.
The stock of Wise PLC experienced a notable decline as its quarterly revenue failed to meet analyst expectations. While income growth remained strong and adjusted EBITDA margins remained high, concerns over transaction volume and customer count dampened investor sentiment. Looking ahead, the company aims to leverage growing income and reduced transaction costs to elevate its gross profit margin in the upcoming quarters.
