‘It’s fun’: WiseTech soars, defying tech downturn

WiseTech Global shares surged more than 12 per cent after the logistics software company defied ongoing logistics woes, lifting annual profit by 72 per cent.

Richard White founded logistics software business WiseTech Global, which is performing strongly despite the tech rout. Picture: Jonathan Ng

WiseTech Global shares surged more than 12 per cent after the logistics software company defied ongoing logistics woes, raising its dividend and lifting annual profit by 72 per cent after a series of new customer wins and price rises.

The Sydney-based group on Wednesday reported a 72 per cent jump in annual net profit to $181.8m – higher than expected – up from $105.8m a year earlier.

Revenue climbed 25 per cent higher to $632.2m, with the company announcing the addition of 10 new global customers to its CargoWise platform, including United Parcel Service.

Its earnings before interest, tax, depreciation and amortisation jumped 54 per cent to $319m, with the company comfortably meeting its guidance, which it had upgraded twice. The board declared a final dividend of 6.4c, up from 3.85c a year earlier.

Its shares closed up $12.8 per cent, or $6.77 each, at $59.77.

WiseTech founder and chief executive Richard White saw the value of his shareholding grow by close to $900m on the back of Wednesday’s uplift.

Mr White, a former AC/DC guitar tech, said that his company was proving somewhat immune to both the broader tech downturn, and ongoing issues plaguing supply chain logistics.

“I think companies that were high growth or had an idea without a clear path to profit have had much more difficulty,” he said.

“Strong companies like WiseTech that are high growth, but that also have an ability to generate profit and pay their own way, that’s where employees want to work. They don’t want to work for a company and then in six months they get laid off because the funding runs out.”

WiseTech boss Richard White said the group was proving somewhat immune to both the broader tech downturn, and ongoing issues plaguing supply chain logistics. Picture: Jonathan Ng

Citi analyst Siraj Ahmed said the numbers were positive on a number of fronts.

“A number of positives from the result including the stronger than expected growth outlook for CargoWise, the signing of UPS and the licence agreement for landside logistics,” Mr Ahmed said. “We see potential for the stock to outperform today.”

WiseTech forecast EBITDA would rise between 21-30 per cent to $385m-$415m in the 2023 financial year, 4 per cent above market expectations.

“Our … guidance speaks for itself,” Mr White said. “We are building new markets and pushing in to existing adjacent markets, and creating entirely new ways of running systems that either don’t exist.”