Increase in guidance provided for income following customer surge in Q3 of 2024 by Wise
In a recent article by Joe Baker, Wise, the money transfer company, showcased impressive financial results in Q3 2024. The company reported a net profit margin of 26.9% and a return on invested capital (ROIC) of 29.2%, both figures significantly higher than the industry average of below 20%.
The strong performance is indicative of high profitability and efficient capital use compared to industry peers. Analysts forecast continued growth, with net sales expected to increase by approximately 33%, although EBITDA values show some variability with an expected figure around -121.4 million.
The solid margins position Wise well to capitalise on expanding global money transfer demand. In Q3 2024, the company experienced a 40% increase in income to £375.1m, and the number of active customers rose by 30% to 7.5 million.
Wise anticipates high profits this year due to higher interest income. The company expects its adjusted EBITDA margin to remain high compared to its medium-term guidance of at or above 20%. However, no specific adjusted EBITDA margin figure for the year was projected by Wise.
Despite not providing new information about Wise's growth rate expectations for the year, the optimistic market expectations for sales growth signify positive future prospects for the company's financial performance.
Access to this article, which offers free access to extensive research and analysis on cross-border payments globally, is available with a free account. The article also includes an industry-leading newsletter. Joe Baker, the author of the article, has a LinkedIn profile.
This growth in Wise's financial performance is significant in the money transfer space and underscores the company's strong position in the industry.
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