WiseTech shares tumble as FY25 misses estimates
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More news: WiseTech shares slumped in morning trade as the logistics software group missed consensus estimates for full-year revenue and profit growth.
Shares were down 10.4% to $103.69 at 11:10am AEST. The stock is down 12.5% over the last 12 months.
WiseTech profit jumps 17% to pass US$200m for new CEO's inaugural earnings
The news: WiseTech's revenue rose 14% in the year ending 30 June, hitting USD778 million ($1.19 billion). Profit was up higher, jumping 17% to clear USD200 million.
Thanks in part to its acquisition of e2open, WiseTech said it expects revenue to boom in the current financial year to between USD1.39 billion and USD1.44 billion. That would be growth of circa 80%.
The earnings are the first handed down after Zubin Appoo became CEO of WiseTech at the end of July. After leaving the company in 2018, Appoo returned in April as chief of staff before being promoted to the top job three months later.
The numbers: CargoWise continued to rake in the majority of WiseTech's cash, generating $682.2 million. That's up 18% due to increased used by existing customers, the company said.
Operating cash flow was up 25% to USD436 million, with free cash flow zooming 31% to USD287 million.
WiseTech will issue a dividend of 7.7 cents per share. It signed two of the top 25 global freight forwarders, which it said added three times the expected new users.
The company's "general and administration" costs skyrocketed nearly 50%, from USD97 million to USD142 million. R&D spend was up 9% to USD263.8 million, representing 34% of revenue. Sales and marketing costs decreased 15% to USD51 million.
A company-wide cost cutting campaign has hit USD40 million in annual run rate savings, which the company said were above its target of USD33 million.
What they said: Appoo said that the results "reflect a solid financial foundation and demonstrate the resilience and scalability of our business model and commitment to sustainable value creation — positioning us strongly for the opportunities ahead".
"Our margin performance highlights the underlying operating strength of the business and continued momentum we’re seeing with our new and existing Large Global Freight Forwarder customers, as they continue to consolidate and expand their use of the CargoWise application suite."
The source: ASX
