The WiseTech Global Ltd (ASX: WTC) share price has shot out of the gates this morning following the release of the company's FY 2020 results, which showed strong overall revenue growth.
Solid revenue growth despite strong COVID-19 headwinds
WiseTech reported solid revenue growth, despite the challenges of the coronavirus pandemic.
Total revenue for WiseTech grew to $429.4 million, up by 23% on the prior year. Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 17% to $126.7 million, while EBITDA margin came in at a strong 30%. This reflected continued revenue growth and cost savings during the second half of FY 2020. However, this margin was a slight decline on the 31% achieved during FY 2019.
WiseTech recorded statutory net profit after tax (NPAT) of $160.8 million. This was up 197% on the prior corresponding period, however it does include a non-cash, non-taxed fair value gain amounting to $111.0 million. Excluding adjustments, NPAT was flat on the prior year. However, NPAT was impacted by increased investment into research and development as well as the amortisation of prior acquisitions.
The company was able to further strengthen its balance sheet, with operating cash flow increasing by 16% on the prior year.
Recent acquisitions fuelling further growth
WiseTech reported that revenue from its core platform, CargoWise, was up by 20% to $263 million during FY 2020. This was supported by large recent roll-outs following major contract wins from a range of new clients, including Hellmann Worldwide Logistics and Aramex.
Revenue attributable to newly acquired businesses amounted to $166.4 million, which was up by 29% on the prior year.
Pleasingly, WiseTech reported that the integration of its recent acquisitions is progressing well. The company commented that the coronavirus pandemic actually provided it with the opportunity to restructure earnouts in order to better deliver its CargoWise pipeline of products.
Commenting on the results, WiseTech founder and CEO Richard White said:
Notwithstanding the unprecedented challenges of COVID-19, our business has remained resilient, delivering solid revenue and EBITDA growth in FY20, in line with our guidance. Importantly, our CargoWise platform has continued to deliver strong revenue growth in FY20 through increased usage by existing customers and growth in new customer numbers. Our strategic acquisitions over the past three years have further extended our market reach, enabling us to increase our penetration of the $13 trillion global logistics and supply chain market.
Dividend and market guidance
WiseTech declared a fully franked dividend of 1.60 cents per share. This will be payable on 2 October 2020.
WiseTech Global anticipates FY 2021 revenue growth to be in the range of 9% to 19%. This corresponds to total revenue between $470 million and $510 million. EBITDA growth is expected to fall within the range of 22% to 42%.
At the time of writing, the WiseTech share price is up by 12.16%.
