WiseTech Global Ltd (ASX: WTC) shareholders might be feeling a bit shell-shocked after its shares fell 21% to $11.57, following the public release of its half year financial report.
Of course, given that WiseTech shares are up 124% over 12 months, the pain might not be quite so acute:
During the half WiseTech grew its revenue 21% to $93.4 million, and operating profit, or EBITDA (what the heck is EBITDA?) grew 26% to $22.5 million. Net profit after tax grew 8% to $15.6 million. WiseTech reported earnings per share of 5.3 cents, and announced 1.05 cents per share in dividends.
Management stated that customers remain quite loyal, with annual ‘attrition’ (customers that leave) running at below 1%.
WiseTech continues to invest heavily in software development, with 37% of revenue being reinvested, the company said. Between 2014 and the end of 2018, WiseTech will have invested over $200 million in research & development (R&D).
CEO Richard White stated: “We will continue to drive our ‘5 levers of growth’ across the business: relentless innovation and product development, growing revenue from existing customers, acquiring new customers, stimulating network effects and accelerating organic growth through targeted acquisitions in new geographics and logistics adjacencies.”
WiseTech forecast revenue growth of between 35% and 41% for the full year, delivering revenue of between $207 million and $217 million. EBITDA growth of 32% to 39% is forecast, resulting in EBITDA of between $71 million and $75 million.
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