WiseTech shares leap on strong results
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More news: WiseTech's stock jumped over 19% at the start of trading, hitting a new all-time high of $112. The company has touted new and upcoming product features as reasons for sustained double-digit growth.
RBC Capital Markets analyst Garry Sherriff called WiseTech's results "very strong," calling out the free cashflow of $333 million, up 14%, the "standout".
E&P analyst Paul Mason wrote that he's "not sure the stock should be up strong double digits," but that new products being introduced, like Container Transport Optimisation, are "overall incrementally bullish."
What they said: “Importantly, our three breakthrough product releases CargoWise Next, Container Transport Optimisation and ComplianceWise, will present a step change in our product capabilities, growth and value to customers," WiseTech CEO Richard White said on the results.
"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.”
Responding to questions from analysts on Wednesday morning's earnings call, White said that the company's cost-cutting drive has been achieved by automation and elimination duplicated systems rather than cutting high-salaried software engineering staff.
"You have to look at duplication, you have to look at efficiency, you have to look at job performance," he said. "Over time we're looking at getting rid of some of those costs...talent is not part of that cost efficiency... but if you've got duplicated things, if you've got wasteful things, that's where the cost efficiency is coming from."
WiseTech breaks $1 billion in revenue
The news: WiseTech, the biggest tech stock on the ASX, reported significant revenue and profit growth for FY24 as it reported yearly revenue of over $1 billion.
The numbers: The logistics tech company's revenue increased about $225 million compared to the previous financial year — a jump of 28%. Of the $1.04 billion in cash it generated, WiseTech reported a net profit after tax of $262 million.
That strong profit margin is partially a result of an efficiency program that the company said saved a net $14 million this financial year.
WiseTech also boosted its spending on research and developement, spending $368 million this financial year compared to $261 million during the previous one.
The source: ASX announcement
