The WiseTech Global Ltd (ASX: WTC) share price is having a tough time on Wednesday.
At the time of writing, the logistics solutions company's shares are down 5% to $54.88.
This compares unfavourably to the S&P/ASX 200 Index (ASX: XJO), which is up 0.8% this afternoon.
Why is the WiseTech share price falling?
The weakness in the WiseTech share price today appears to have been driven by the company's annual general meeting update.
Over the last few years, WiseTech has gained a reputation for under-promising and over-delivering. This has seen the company upgrade its guidance countless times when giving updates.
And given that the company's CEO has been selling shares periodically over the last few months, the market was pretty certain WiseTech was at least on track to achieve its guidance in FY 2023. After all, it wouldn't be a good look if a CEO sells a large number of shares just before a guidance downgrade.
However, investors betting on a guidance upgrade at today's event have been left disappointed, with management reiterating its previous FY 2023 outlook.
What is expected in FY 2023?
WiseTech's CEO, Richard White, revealed that the trading has been in line with expectations during the first half. He said:
The business is tracking in line with expectations, and I am happy to reconfirm our FY23 guidance. We expect to deliver 20 to 23% FY23 total revenue growth to between $755 million and $780 million, with CargoWise revenue expected to grow by approximately 30 to 35%, excluding FX. In terms of FY23 EBITDA we expect to deliver 21 to 30% growth equating to $385 million to $415 million, based on no material change in market conditions.
This represents a further expansion of our EBITDA margin by between 1 and 3 percentage points, demonstrating the continued operating leverage we're able to generate as we scale. We're delighted with the continued momentum we're seeing across the business and confident in our longer-term outlook.
