WiseTech Global beats FY24 expectations with 28% jump in EBITDA

Logistics software developer WiseTech Global (ASX: WTC) has delivered a financial performance ahead of expectations for the 12 months ending June 2024, with total revenue growth of 28% and an EBITDA margin of 48%.

Reported EBITDA grew 28% on the previous financial year to $495.6 million, reflecting the benefit of price increases, operating leverage and WiseTech’s ongoing financial discipline, offset by increased investment in product development.

Underlying net profit after tax (NPAT) was $283.5m, representing an increase of 15% on the previous period, while statutory NPAT was $262.8m (up 24%).

Unique participant

Founder and chief executive officer Richard White said the strong results stemmed from WiseTech being a unique participant in the logistics industry.

“We have a capability and capacity that no one else in this industry has, and we are achieving outcomes that have a real impact for our customers and the industry we serve,” he said.

“We are revolutionising major parts of the global logistics ecosystem as we expand our capabilities with breakthrough product releases.”

“Our strategy is to be the operating system for global logistics and we are accelerating our pace to achieve this vision.”

Product development

WiseTech continued to accelerate its innovation and product development efforts during the period, increasing its research and development investment by 41% to $368.2m, equating to 35% of total revenue.

This investment delivered 1,135 new product enhancements to the CargoWise application suite, taking the total number of enhancements over the last five years to more than 5,600 from a total investment of over $1.1b.

Revenue for the year reached $1.04b, with revenue from logistics operation CargoWise contributing $880.3m to the total, driven by customer growth and new large global freight forwarder rollouts with companies including Sinotrans, Yamato Transport, TIBA Tech and Grupo TLA Logistics.

New acquisitions

WiseTech’s organic growth was supplemented by targeted acquisitions to accelerate CargoWise product development.

Targets included MatchBox Exchange – which is delivering container transport optimisation capabilities to CargoWise – and Sistemas Casa and Aktiv Data, which are creating customs footholds in Mexico and Finland respectively.

As a result, WiseTech’s global customs platform now covers more than 75% of global manufactured trade flows, including countries in production and development.