 Wise’s customer base went up by 32% YoY to 7.2mn of active customers in 6M ended 30 September 2023 (1H24), with over 67% of new customers joining through word-of-mouth. The revenue growth reached 25% YoY and adj EBITDA was up 163% YoY for the period. Wise reports £57.4bn in volumes, up 12% YoY in 1H24. Over the last 6M, Wise launched new products in Europe; launched a service for expats in China to send money home; removed charges for holding balances in Australia (Wise is the only non-banking institution included in the Australian New Payments Platform now); and launched a service to send up to $10k money to businesses in Brazil. Wise benefits from a direct connection into 5 payment systems, partnerships with over 70 banking partners, and recently with Swift. Wise operates with 69 licences across 45 countries. The marketing spending of the company increased by 5% YoY to £19.3mn in 1H24, which resulted in more active customer acquisition in Asia and Brazil. The Cross Border revenue reached £34.4mn, up 20% YoY, and other revenue was £113.8mn, up 48% YoY. The Cross Border take rate was 0.67% compared to 0.62% a year ago, while the Other take rate was 0.2% in 1H24. Customer balances grew from £9.2mn as of the end of 1H23 to £12.3bn as of the end of 1H24 (30 September 2023), up 33% YoY. Interest income on customer balances was £157.8mn (net) in 1H24, up from £18.7mn a year ago. The total Income was reported at £656mn in 1H24 compared to £416mn or up 58% YoY. The Income take rate reached 1.14% in 1H24 vs. 0.81% in 1H23. Wise gross profit increased by 86% YoY to £488.9mn with a gross margin of 75% driven by the higher interest rate earned on the growing customer balances. The company’s cost of sales and net credit losses on financial assets increased by 9% YoY, driven by a 12% increase in cross-border volumes. Adj EBITDA reached £241mn in 1H24 compared to £91.6mn a year ago with Adj EBITDA margin improving to 37% from 22%. Wise reports higher administrative expenses at £396.5mn, up 38% YoY and 46% YoY growth in employee costs in 1H24, mostly due to higher headcount. Wise essentially improved its infrastructure and enforced its operations to support its business development for the cross-border payments market.  Sustainable market and one-off gains were both beneficial for Wise. The market for cross-border payments stays strong on the back of geopolitical conflicts and post-COVID workforce movements. Wise has a 5% personal market share and 20% Adj EBITDA margin.  We review our estimates for Wise. The high interest rates environment provided the company with additional earnings to invest in technology and people. We assume a gradual decline of the interest rates and a flat volume per customer, pushing down Wise’s Adj EBITDA margin. Meanwhile, Wise’s ability to support a profitable growth model will likely result in Adj EBITDA margin stabilizing above 25%. Wise’s infrastructure is growing rapidly and is already hard to replicate. We increased our DCF-based 12-month target price to GBp878 from GBp744. We maintain a Buy rating.