The WiseTech Global Ltd (ASX: WTC) share price is trading lower on the day of its annual general meeting.
At the time of writing the logistics solutions company’s shares are down 1.5% to $28.49.
What happened at the annual general meeting?
Ahead of the event WiseTech Global released its annual general meeting presentation.
That presentation provided investors with a breakdown of its performance in FY 2019, its massive market opportunity, and its expectations for the current financial year.
In FY 2019 WiseTech Global delivered revenue of $348.3million and net profit after tax of $54.1million. This was a 57% and 33% increase, respectively, on FY 2018’s result.
Management advised this strong growth was driven by significant organic growth in revenues across its global business. It was also supported by the development of hundreds of product enhancements and features for its CargoWise One technology platform, and the acquisition of many strategic assets in new geographies and adjacent technologies.
Massive market opportunity.
CEO Richard White spoke positively on the future and noted the company’s massive addressable market.
He said: “With the addressable market in technology for global logistics in the hundreds of billions, and the spend on digital transformation itself hundreds of millions more again, we are moving fast to leverage these components and build out our technology lead.”
The executive also took a pop at short sellers targeting the company.
“We are driving hard on all our levers of growth and at speed. We do this because we can, and because our ambition is significant and the opportunity vast. While there are those who seek to distract, we will not be deterred. We know the work we do is important for the world and it is worth our relentless efforts.”
WiseTech has once again reconfirmed its guidance for FY 2020.
Thanks to strong momentum, the power of the CargoWise One platform, annual customer attrition rate of less than 1%, and its continued relentless investment in innovation, management expects strong sales and profit growth this year.
FY 2020 revenue is expected in the region of $440 million to $460 million, implying revenue growth of 26% to 32%. Whereas EBITDA is expected in the range of $145 million to $153 million. This represents EBITDA growth of 34% to 42%.
Why is WiseTech Global dropping lower?
Unsurprisingly, short seller J Capital decided to target the company on the day of its annual general meeting with a series of tweets.
Whilst none of its tweets add anything new, it is a reminder that the short seller attack is not over. This appears to be weighing on the company’s shares this morning.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.