Wise stock jumps 20% on bumper fiscal 2023 results

Wise PLC (LON: WISE) gained as much as 20% this morning after reporting strong results for its fiscal 2023.

Wise FY 2023 financial highlights

The fintech firm concluded the financial year with income of £964.2 million ($1.23 billion) – a whopping 73% annualised growth.

Revenue also climbed a healthy 51% year-on-year to £846.1 million. Kristo Kaarmann – the Co-founder and Chief Executive of Wise PLC said today in the earnings press release:

This year approximately 10 million people/businesses chose Wise to move and manage money internationally, an increase of 34% YoY. We helped them move c.£105bn across borders, up 37%.

Her Majesty’s Revenue and Customs is currently investigating CEO Kaarmann on failing to comply with tax obligations. Wise stock is still down about 3.0% versus its YTD high.

Wise sees a growth slowdown ahead

The digital payments company attributed the strong full-year performance partly to higher interest income. It did note, though, that growth was likely to slow down moving forward.

For fiscal 2024, the London-listed firm now forecasts a 33 % increase in income at the top end of the range. According to Matt Briers – the Chief Financial Officer of Wise PLC.

As we pass through FY 2024, keep in view that we’ll be lapping some unusual trends. This includes an exceptional level of volume growth in H1 and strong interest income growth in H2.

For the medium-term, he expects a compound annual growth rate of 20%. Wall Street currently has a consensus “overweight” rating on the Wise stock.