Wise Shares Jump as Progress Continues ‘at Pace’

Shares in Wise Plc (LON: WISE) surged in early Tuesday trading following the release of the company's second-quarter trading update.

Wise shares are trading more than 5% above Monday's close, around the 717p per share mark at the time of writing. The company's shares are down around 15% so far this year.

The international money transfer service provider reported strong growth in active customers, cross-border volume, and revenue, buoying investor confidence.

Wise announced that the number of active customers using its platform increased by 23% year-over-year (YoY) to 8.9 million in Q2. This growth was primarily driven by existing customers recommending the service to friends and family.

In addition, the company saw a 20% YoY increase in cross-border volume to £35.2 billion.

The company's underlying income grew by 17% YoY to £337.0 million in Q2, bringing growth in the first half of FY25 to 19%. Wise reaffirmed its guidance for underlying income growth of 15-20% for the full year.

For FY25, the company continues to expect underlying income growth of 15 to 20%. Wise acknowledged that its underlying gross profit margin remains elevated at around 76% for H1 FY25.

“Investments in pricing through H1 are expected to move us closer to achieving our medium-term target underlying PBT margin range of 13-16% in H2,” the company stated. “We therefore do not currently anticipate making further material investments in reduced pricing in the second half of FY25.”

Kristo Käärmann, Co-founder and Chief Executive Officer of Wise, said: “We remain focused on our mission of building the best way to move and manage the world's money. This will take time to fully achieve but we are pleased with the progress made during the quarter.”

The company also highlighted recent regulatory approvals in key markets, including India, Australia, and Brazil, which will enhance its infrastructure and drive further growth.

Following the update, analysts at New Street Research upgraded Wiseshares to Buy from Neutral with a 900p price target, telling investors it sees a good entry point for the company's platform opportunity.