The WiseTech Global Ltd (ASX: WTC) share price has plunged more than 20% after multiple directors exited the business and it updated guidance.
WiseTech is one of the largest technology companies on the ASX. It provides logistics software to many of the largest logistics companies in the world.
WiseTech share price plunges
The company told the market that four non-executive directors that are currently serving on the WiseTech board have decided it’s in the best in the company to “stand aside” and resign.
Those four departing directors are Lisa Brock, Richard Dammery, Michael Malone and Fiona Pak-Poy.
This followed “intractable differences” in the board and differing views around the ongoing role of Richard White, who was the founder of the business.
Their resignation will occur after the signing of the FY25 half-year result and the release of the report on 26 February 2025.
The presentation of the HY25 result will be given by interim CEO Andrew Cartledge, interim chief financial officer (CFO) Caroline Pham and Richarc White.
Former director Mike Gregg will commence as a director again starting from 26 February 2025 after the result has been released, assuming he passes customary director background checks. He was WiseTech director between 2006 to 2022.
Additional directors will be appointed to the board in “due course”.
Guidance update
WiseTech has reviewed its guidance for FY25 that was given at the company’s AGM.
It now expects revenue to be at the bottom of its guidance range for revenue, which was $1.2 billion to $1.3 billion, representing annual growth of between 15% to 25%. This is due to further delays in the rollout of three ‘breakthrough products’.
The FY25 EBITDA guidance given at the AGM was for between $600 million to $660 million, representing growth of between 21% to 33%. The EBITDA margin is expected to be between 50% to 51%.
WiseTech said today its EBITDA margin is expected to be “towards the top” of its announced guidance range, thanks to “stronger results” from a company-wide efficiency program.
Final thoughts on the WiseTech share price
Today’s decline is a big drop. I don’t think it’s worth billions of dollars less than it was last week, but its valuation may have gotten ahead of itself, for now at least.
There are still some issues to work through related to White and the relationship to the board. How will that look going into the future? Time will tell.
It could be a rebound opportunity at this lower price, but four directors resigning is not a good look.
It’s not the first investment I’d make today, but it’s a lot more attractive than it was and it still has a very strong market position.
