(Reuters) - Wise Plc shares tumbled 10% on Tuesday after volumes at the UK-based money-transfer firm missed market expectations as customers who move larger payments cut back on discretionary purchases amid challenging macroeconomic conditions.
Finance chief Matt Briers said he was not surprised that customers who move larger payments, mostly for buying or selling properties and investments, were cutting back, given the challenging economic outlook such high borrowing costs and inflation.
Shares in Wise fell as much 10% to 525 pence, as of 0819 GMT. Wise, which was valued at $11 billion in a record London direct listing two years ago, has lost about a third of its value since its market debut.
The company said its average volume per customer (VPC) decreased by 7% year-on-year and 4% quarter-on-quarter on a slower pace of growth by customers who move volumes of more than 10,000 pounds ($12,422.00).
Wise reported a 25% rise in total quarterly volume to 26.7 billion pounds, but missed expectations of analysts at Credit Suisse (SIX:CSGN) and Peel Hunt.
"The second consecutive quarter of declines in personal volumes per customer is likely to be viewed negatively by the market, and we believe VPC is likely to remain subdued given the current macro environment," analysts at Peel Hunt said.
($1 = 0.8050 pounds)