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Logistics software group WiseTech has broken through the $1 billion revenue barrier for the first time, achieving a near tenfold increase in the size of its business over the past eight years on the back of sustained double-digit growth.
WiseTech, founded and led by Richard White, has forecast the momentum to continue in the current year with revenue of more than $1.3 billion in its sights which is backed by a solid base of recurring revenue.
The software-as-a-service provider today posted a 24 per cent increase in net profit to $262.8 million for FY24 after delivering full-year revenue of $1.04 billion – up 28 per cent.
The underlying EBITDA result of $495.6 million, which is just under half of its revenue, is also up 28 per cent.
The latest full-year revenue compares with $103.3 million in FY16 and $348.3 million in FY19 and has been achieved on sustained double-digit growth since listing on the ASX in 2016.
WiseTech has also increased its recurring revenue base from 96 per cent of revenue to 97 per cent in the latest financial year.
The performance boosted shares in WiseTech above $100 this morning, to a record high of $114.99 in early trading. The shares were 19 per cent higher at $112.28 at 10.15am (AEST).
WiseTech, which targets companies on the Top 25 Global Freight Forwarders list, secured list member Sinotrans during the year, while also securing contracts with Large Global Freight Forwarders (LGFF) Yamato Transport, APL Logistics, TIBA Tech and Grupo TLA Logistics.
White says the solid FY24 result was driven by a “focused execution” of the group’s strategy globally, which is supported by the group's staff base of more than 3,500 people.
“EBITDA came in above our guidance range and EBITDA margin was 50 per cent in the fourth quarter, over a full year ahead of expectations,” says White.
"CargoWise’s strong momentum continued throughout the year with the addition of TIBA Tech and Grupo TLA Logistics, as new LGFF rollouts.”
In the first quarter of FY25, WiseTech also signed up Nippon Express, a Top 10 global freight forwarder and Japan’s largest, taking the group to 52 large global rollouts, and more than 50 per cent of the Top 25.
White also sees the “opportunity pipeline across the world’s major economies strengthening’.
“Importantly, our three breakthrough product releases CargoWise Next, Container Transport Optimization and ComplianceWise, will present a step change in our product capabilities, growth and value to customers,” he says.
“Building on our capabilities across our key development areas, the productivity advantages we expect to deliver for our customers are significant and have the potential to change the commercial models of the industry and make the adoption of our software mission critical to remain competitive.”
WiseTech’s growth was buoyed by a 33 per cent lift in revenue from its CargoWise platform, which included $83.8 million growth from acquisitions in FY23 and FY24, along with a $21.3 million foreign exchange benefit.
The group also managed to grow revenue organically by $119.7 million, up 15 per cent.
With a target of between $1.3 billion and $1.35 billion in revenue in FY25 – or growth of between 25 and 30 per cent - WiseTech is also aiming to deliver EBITDA of between $660 million and $700 million – or growth of 33 to 41 per cent.
WiseTech is paying a final dividend of 9.2c per share, up 10 per cent on last year.
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