The WiseTech Global Ltd (ASX: WTC) share price is down 9% after a disappointing FY25 guidance at its AGM.
WiseTech is a global software provider for many of the largest logistics businesses around the world.
FY25 guidance update
The company said that since the interim CEO’s appointment on 24 October 2024, the interim CEO Andrew Cartledge and the rest of the leadership team have reviewed the progress of software products CargoWise Next, Container Transport Optimisation and ComplianceWise.
While ComplianceWise and CargoWise Next have proceeded to plan, the distractions due to recent media attention and organisational changes have delayed the commercial launch of Container Transport Optimisation, resulting in a delay to anticipated revenue.
However, WiseTech is still confident in the long-term value of these products for customers.
The ASX tech share said it’s seeking to mitigate the revenue delay through other significant initiatives which are also expected to have “long-term benefits” for WiseTech and its customers.
WiseTech is now guiding FY25 revenue will be between $1.2 billion to $1.3 billion, representing growth of between 15% to 25% year on year. EBITDA is projected to be between $600 million to $660 million, which would be growth of between 21% to 33%, year on year. The full-year EBITDA margin is projected to be between 50% to 51%.
Richard White allegations
WiseTech also gave an update on its review of the situation regarding Richard White. Last month it appointed Herbert Smith Freehills and Seyfarth Shaw to support and advise the board. McGrathNicol was also engaged to provide forensic accounting services. You can read the full update, and I’ll provide a short summary of the findings of each allegation.
On the romantic relationships, WiseTech said there was no evidence that any required matters have not been disclosed to the board.
On the allegation of purchasing electronic products where White had a close personal relationship with an individual, the ASX tech share said that no inappropriate transactions have occurred and were in the range of market prices for the products purchased and therefore considered “at arm’s length”.
On misusing company funds relating to plastic surgery and New York accommodation, the allegation is “not supported by evidence”, and that these expenses were incurred and paid for by White for the plastic surgery, and that all accommodation expenses were related to business.
On allegations of workplace behaviour, Seyfarth Shaw concluded that had not been repeated unreasonable behaviour that could be called bullying or intimidatory, or unlawful. It did find that White was involved in “robust and challenging discussions”, which managers could fund “uncomfortable and confronting, particularly in group settings”.
Final thoughts on the WiseTech share price
It’s good to see the board is being open with its investigation, though the guidance decline is disappointing.
I do think the WiseTech valuation had gone too high, so this lower price is more realistic and appealing, but it’s still priced for a lot of success. It is of the most compelling businesses, but the valuation is still high. There are other ASX growth shares that could be better, in my opinion.