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WiseTech Global outperforms with robust half-year financial results
Thu, 22nd Feb 2024

WiseTech Global, an esteemed global logistics software organisation based in Australia, recently revealed its impressive financial half-year results for the six months ending 31 Dec 2023. The company delivered robust financial performance, exceeding expectations and presenting a positive outlook.

The company's total revenue stood at AUD $500.4 million, marking a notable leap of 32%. This positive revenue growth was driven by a combination of strong growth from the CargoWise platform, which added a 40% surge to its revenue, recent M&As, and a favourable FX tailwind.

Looking towards recurring revenue, the company saw an organic increase of 16%, primarily powered by Large Global Freight Forwarder (LGFF) rollouts, new customers, and price hikes that offset inflation and offered good returns on product investments and new product releases.

WiseTech Global also reported a robust EBITDA margin of 46%, which was ahead of expectations. "The Company's highly cash-generative business model and strong liquidity continue to provide a solid platform to fund long-term sustainable growth," said CEO Richard White. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) experienced an organic growth of 16%, to AUD $230.6 million.

Focusing on investment in product development, WiseTech has successfully poured over AUD $1 billion over the past five years. This investment yielded over 5,500 new product enhancements, strengthening the stability of revenue growth. Their notable recent acquisition, MatchBox Exchange, further expanded CargoWise's Landside Logistics capability.

White added, "Our acquisition of MatchBox Exchange in October added another key component to the CargoWise Landside Logistics capability and will deliver significant efficiency and productivity benefits for our customers. The integrations of our recent acquisitions are also progressing well." White's comments underline the critical importance of innovation as a key driver of their growth.

The financial report also included an impressive mention of strategic execution centred around the '3P' strategy (Product, Penetration, and Profitability), geared towards sustainable growth and better market reach. Reflecting its positive business outcome and outlook, the company declared a fully franked interim dividend of 7.70cps, which is an increase of 17% on FY23 interim dividends, displaying a strong payout ratio of 20% of Underlying NPAT.

WiseTech Global hence maintains its long-term vision, focusing on enriching CargoWise and making it the preferred platform for large logistics service providers.

White expressed excitement about the future, highlighting the positive momentum of their business, global team, and customer base. He emphasised their strong performance in the first half of 2024, driven by the execution of their strategic plan. White concluded, "This is an exciting time for our business, our global team, and our customers. We have delivered a strong 1H24 performance as we continue to execute on our 3P strategy. We remain steadfast in our long-term vision, continuing to relentlessly invest in enhancing CargoWise, making it the platform of choice for large logistics service providers."