WiseTech down almost 7pc despite no change in guidance
Investors were seemingly let down after chief executive Richard White reiterating – rather than upgrading – his company’s outlook for the 2023 financial year.
Shares in WiseTech Global fell by nearly 7 per cent on Wednesday, with investors seemingly let down by chief executive Richard White reiterating – rather than upgrading – his company’s outlook for the 2023 financial year.
Mr White, a former guitar technician for AC/DC who has sold parcels of WiseTech shares in past months, told investors at the company’s annual meeting that the ASX-listed logistics software maker has been tracking in line with guidance over the first half.
He said WiseTech’s CargoWise offering, used by DHL, FedEx, and UPS, is enabling the group “to drive momentum” in market penetration as new global rollouts and ongoing revenue growth from existing customers added to the strength.
“The business is tracking in line with expectations, and I am happy to reconfirm our FY23 guidance. We expect to deliver 20 to 23 per cent FY23 total revenue growth to between $755 million and $780 million, with CargoWise revenue expected to grow by approximately 30 to 35 per cent, excluding foreign exchange,” Mr White told shareholders on Wednesday. “In terms of FY23 EBITDA [earnings before interest, taxation, depreciation and amortisation] we expect to deliver 21 to 30 per cent growth equating to $385 million to $415 million, based on no material change in market conditions. This represents a further expansion of our EBITDA margin by between 1 and 3 percentage points, demonstrating the continued operating leverage we’re able to generate as we scale.
“We’re delighted with the continued momentum we’re seeing across the business and confident in our longer-term outlook.”
Mr White started WiseTech in 1994 and last month pledged 1 per cent of the company’s annual pre-tax profit to education initiatives developing technology skills.
Shares in WiseTech closed down 6.7 per cent to $5.38. The outfit is worth about $17.6bn.
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