WiseTech annual result weathers Covid pandemic

The software maker’s shares jumped 29pc after it beat earnings expectations, and flagged a global trend towards logistics digitisation.

WiseTech Global founder and CEO Richard White. Picture: Hollie Adams/The Australian

Shares in logistics software maker WiseTech have soared 29 per cent, as it beat annual earnings expectations and flagged tailwinds in a long-term global trend towards logistics digitisation.

The group weathered the COVID-19 pandemic with its full-year revenue up 23 per cent and earnings up 17 per cent, in line with guidance and ahead of analyst consensus forecasts.

Underlying net profit was flat on the prior year, at $52.6m.

Shares in the group spiked more than 29 per cent on the result, and were trading up 27.7 per cent at $26.56 each in lunchtime trade.

Chief executive Richard White said the company was buoyed by strong performance from its CargoWise platform, which posted revenue of $263m, up 20 per cent, with a number of new clients recently signing up.

“COVID-19 market disruptions have provided a long-term tailwind for growing our market share as the need for digitisation across the global logistics execution market accelerates and significantly increases the value and demand for CargoWise,” Mr White said.

WiseTech, which is a member of the so-called “WAAAX” tech stocks along with Altium, Appen, Afterpay and Xero, posted total revenue of $429.4m for the financial year, with earnings before interest, tax, depreciation and amortisation up 17 per cent to $126.7m.

However, the company cut its final dividend by 18 per cent, to 1.6c per share, from 1.95c in the prior year.

Underlying earnings per share fell 4 per cent to 16.4c per share, from 17.2c per share a year earlier.

“Notwithstanding the unprecedented challenges of COVID-19, our business has remained resilient, delivering solid revenue and EBITDA growth in the 2020 financial year, in line with our guidance,” Mr White, who owns about 46.9 of the company, said in a statement.

Shares in WiseTech were in initially smashed at the beginning of the pandemic, falling as low as $9.97 per share in March, but the company bounced back and now sits at $20.81.

Short-seller J Capital Research has savaged its core software, CargoWiseOne, in reports that claimed WiseTech had been making acquisitions to inflate its growth. WiseTech denies those claims.