British Fintech Wise has bounced back from last week’s woes with shares up 5.35 per cent after it shared impressive third quarter results.
The tech Unicorn, which specialises in cross-border money transfers, saw revenue for the latest quarter jump by 34 per cent year-on-year to stand at £149.8m after transfer volumes grew to £20bn.
It comes after Wise’s share price last week plummeted by seven per cent on the back of a trading note from Citi bank which questioned the company’s revenue forecasts and prompted a sell off.
“I’m delighted that for the first time we’ve supported more than 4m customers to complete cross-border transfers in a single quarter. We moved over £20bn; 38 per cent growth on last year and 15 per cent growth on the prior quarter,” said Kristo Käärmann, Wise’s co-founder and chief executive.
“We dropped prices, sped up payments, and expanded access to Wise’s products and features in more countries and through more partners,” continued Käärmann, noting that the company launched Wise card in Canada, Brazil, and Malaysia during the quarter.
“People used to use their banks now they’re using Wise,” said a spokesperson for the company on an investor call this morning. Wise put its impressive growth figures down to customers’ frustration with Banks which are “not really innovating on what they are offering.”
“We’re leading on price,” the spokesperson continued noting that transfer fees have fallen from 0.69 per cent a year ago to 0.60 per cent.
Despite the competitive offering Wise shares have lost almost a quarter of their value over the past six months.
Last week, Citi brokers batted away Wise’s forecasts for revenue, saying the stock priced in “excessive long-term growth expectations.” The analysts warned Wise’s share price had baked in around 20 per cent of annual compound revenue growth over the next eight years. The rate of growth was much higher than the estimated 14 per cent for the wider London stock market.