Proactive Investors - Wise PLC (LON:WISEa) shares fell almost 8% in early trading after the foreign exchange company reported full-year revenue below analysts’ expectations.
Revenue for the fourth quarter came in 24% higher at £277.2 million, taking the full-year figure to £1.05 billion, which was 1% below consensus estimates, Peel Hunt (LON:PEEL) analysts said.
This was as volume growth, of 14% to £30.6 billion in the fourth quarter, was slower than expected, according to analysts.
“Given the strong run Wise has had in recent months,” Peel Hunt said the “slight miss on revenues” was likely to weigh on the share price.
Jefferies analysts noted final quarter income of £381.2 million also fell short of expectations, despite being up 36% year over year.
The “mixed print” of the results was likely to push shares lower, Jefferies echoed, but these “should regain on customer growth and expected pre-tax earnings upgrades”.
Wise also reported a 30% increase in personal customers to 7.5 million over the quarter, adding margins remained “exceptionally elevated” due to high interest rates.
“Our continued customer growth laps strong results and tells us that the investments that we're making are meeting real needs, giving me confidence that we're progressing well on our mission,” chief executive Kristo Käärmann commented.
Shares fell 7.8% to 841.50p.