The WiseTech Global Ltd (ASX: WTC) share price is rebounding on Wednesday.
In morning trade, the logistics solutions company's shares are up 8% to $102.50.
This follows the release of its half year results this morning.
WiseTech share price jumps on results day
- Total revenue up 17% to US$381 million
- EBITDA up 28% to US$192.3 million
- Underlying net profit after tax up 34% to US$112.1 million
- Operating cash flow up 24% to US$202.7 million
- Interim dividend up 31% to 6.7 US cents per share
What happened during the half?
For the six months ended 31 December, WiseTech reported a 17% increase in total revenue to US$381 million. This was driven largely by a 21% increase in CargoWise revenue to US$331.7 million.
Management notes that organically, CargoWise recurring revenue grew by 20%, primarily driven by LGFF rollouts, growth from existing and new customers, price increases to offset inflation and generate returns on product investment, and new product releases from prior years.
WiseTech's EBITDA margin expanded by 5 percentage points to 50% during the half, which helped drive a 28% increase in EBITDA to US$192.3 million. Management advised that this reflects the benefit of price increases, operating leverage and ongoing financial discipline, offset by increased investment in product development.
On the bottom line, the company revealed a 34% jump in underlying net profit after tax to US$112.1 million.
This allowed the WiseTech board to boost its interim dividend by 31% to 6.7 US cents per share.
Management commentary
WiseTech's interim CEO, Andrew Cartledge, was pleased with the half. He said,
I'm pleased to announce a strong first half financial performance, with revenue and EBITDA in line with expectations. This was driven by our global teams' ongoing focused execution of our 3P strategy as CargoWise's strong momentum continued with a Top 25 LGFF win in Nippon Express as well as strong growth from existing customers.
Our next generation platform, CargoWise Next, has launched with a systematic phased rollout expected to start in 2H25. ComplianceWise is being used by customers with product development continuing to drive uptake into the future, and development of our third breakthrough product Container Transport Optimization continues and we now expect an initial launch in the second half of FY25 in Australia. We continue to make strategic tuck-in acquisitions with BSM completed and ImpexDocs signed, both of which add to our capabilities in digital documentation, one of our six key development areas.
Outlook
As per its update earlier this week, WiseTech advised that it expects revenue to be at the bottom end of its guidance range (US$792 million to US$858 million) and its EBITDA margin to be at the top end of its 50% to 51% range. This is due to further delays to the rollout of the three announced Breakthrough Products.
This will mean FY 2025 revenue in the region of US$792 million and EBITDA of US$404 million (approximately). Both are still up strongly year on year.
Commenting on its outlook, Cartledge said:
We have a consistent and strong track record of revenue, EBITDA, and cash flow growth since our listing. Our global team continues to drive business momentum with a new Top 25 Large Global Freight Forwarder win in LOGISTEED secured early in the second half as well as growth from existing customers, the continued expansion of our global capabilities through our strategic acquisitions, and the rollout of our breakthrough products.
The opportunity for future growth is substantial and underpinned by our strategic investments in technology, our breakthrough products and our global teams relentless focus on adding long-term value for our global supply chain customers.
