The WiseTech Global Ltd (ASX: WTC) share price has tumbled lower on the day of its annual general meeting.
At the time of writing the shares of the provider of software to the logistics services industry are down 4.5%.
Why are WiseTech Global's shares sinking lower?
I suspect that this decline is largely unrelated to events at its meeting and more to do with a broad tech selloff.
Overnight the Nasdaq slumped 1.7% with declines being seen across most major U.S. tech stocks. Apple was one of the worst performers on the index with a decline of almost 5%.
What happened at the annual general meeting?
As the fast-growing company provided an update just a few weeks ago at its investor day, there were no real surprises at today's meeting.
Chairman Andrew Harrison and founder CEO Richard White spoke positively about WiseTech Global's performance in FY 2018 and its prospects in the future.
Mr Harrison pointed out that FY 2018's 44% jump in revenue to $221.6 million meant it had grown its top line by a CAGR of 41% over the past five years.
This was achieved through "high recurring high quality" revenue and its low customer attrition. The company's CargoWise One platform generated 99% recurring revenue and boasted a <1% annual customer attrition rate in FY 2018.
Looking ahead, management appears confident that its strong performance can continue in FY 2019. It reiterated its recently upgraded guidance for revenue in the range of $320 million and $333 million. This represents growth of 44% to 50% on the prior corresponding period.
The company's EBITDA is also expected to grow strongly. Management has forecast EBITDA of $102 million to $107 million, representing year on year growth of 31% to 37%.
Should you invest?
I think that WiseTech Global is one of the best tech shares on the Australian share market along with Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).
But with its shares changing hands at approximately 77x estimated FY 2019 earnings, I'm going to hold out in hope of a better entry point further down the line.
