The WiseTech Global Ltd (ASX: WTC) share price is under the spotlight after the HY25 result and Richard White’s appointment as Chair.
WiseTech provides logistics software called CargoWise used by numerous logistics customers globally.
WiseTech HY25 result
Here are some of the main financial figures (in US dollars) from the six months to 31 December 2024:
- Total revenue grew 17% to $381 million
- EBITDA grew 28% to $192.3 million
- Underlying net profit after tax (NPAT) rose 34% to $112.1 million
- Statutory net profit increased 38% to $106.4 million
- Free cash flow grew 22% to $124.1 milion
- Interim dividend hiked by 31% to $0.067 per share
The business has a very impressive level of recurring revenue, which grew to 98% of total revenue, up from 97% in the first half of FY24.
WiseTech said its CargoWise revenue of $331.7 million increased 221% year over year, or 20% organic growth, compared to HY24. This was driven by customer growth including large global freight forwarder (LGFF) rollouts.
It won two new top-25 LGFF customers after the end of the reporting period, being Nippon Express and LOGISTEED. It now has 14 of the top 25 global freight forwarders.
The company said it’s progressing with breakthrough products. ComplianceWise and CargoWise Next have been launched, while the Container Transport Optimisation is now expected to launch initially in Australia in the second half of FY25.
Another highlight was the acquisition of Singeste, creating a customs foothold in Portugal. As a result, WiseTech’s global customers platform now covers approximately 80% of global manufactured trade flows, including countries in production and development.
After the end of the reporting period, it completed the acquisition of BSM Global and signed ImpexDocs, which will expand CargoWise’s digital documentation capabilities.
Board changes
The company announced that founder Richard White has been appointed as the Executive Chair of the business.
White, along with the nomination committee, will oversee “succession planning” and a search process for a permanent CEO.
The Executive Chair’s role will be to lead the company’s product development and growth strategy.
Mike Gregg has now joined the board and has been appointed as the lead independent director. He will “have carriage” of governance-related matters and the board renewal process. He will also lead the board (excluding Chair White) in overseeing the completion of the board review announced on 24 October 2024.
Gregg will request an update on the scope and status of the Seyfarth Shaw review in the coming days and will “seek to ensure all relevant parties are interviewed and that a thorough approach with due process is followed”. A market update about this report is expected in mid to late March.
WiseTech intends to appoint additional independent directors as soon as “practicable”, including at least one appointment in the next four weeks.
Outlook for the WiseTech share price
This has been a volatile period for shareholders. The company’s financials still seem on a good path, but all of this disruption can’t be great for morale or investor confidence.
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%. WiseTech said its EBITDA margin is expected to be “towards the top” of its announced guidance range of between 50% to 51%.
This could be an opportunistic time to look at the company, considering its earnings growth continues and is not affected by the board disruption. But, there are other ASX growth shares that have less negative headlines right now.
