Billion-dollar software company WiseTech Global (ASX: WTC) has reaffirmed its FY 2020 revenue guidance, which is expected to range between $420 million and $450 million, as COVID-19 creates greater need for its digital and globally integrated logistics technology.
For the three months ending March 2020, WiseTech noted its business had traded in range with its guidance for the financial year ending June 2020.
The company said this reflected continued revenue growth, higher cash generation from operations and further onboarding of additional users – despite deferred roll-out of new products and a slow down in new business growth.
Anticipated revenue between $420-450 million is up to 29% higher than the previous corresponding period.
Meanwhile, forecast earnings before interest tax depreciation and amortisation of $114-132 million is up to a 22% increase on the previous financial year.
WiseTech pointed out its integrated logistics technology continued to be in demand globally with freight-forwarding roll-outs underway.
Additionally, one of the world’s largest logistics providers Hellman Worldwide Logistics has committed to it own implementation of the technology from next year.
While WiseTech anticipates COVID-19 will continue to impact economies and global supply chain movements, it expects demand for its cloud-based software as a service technology such as its CargoWise will accelerate.
“We take seriously our responsibility in enabling the world’s supply chains with our critical logistics execution technology,” WiseTech chief executive officer Richard White said.
“We are proud of the dedication of our employees and our customers in their important efforts to keep global supply chains moving across the world and within communities during this time.”
Mr White said during this time, the company would focus on critical technology development, boost cost efficiencies while safeguarding the company’s balance sheet and growing its customer-base.
“Our technology continues to drive and enable customers to more efficiently digitise and rewire supply chains to respond faster to change.”
“Today, every country, every company, every citizen is now alert to the importance of supply chains and logistics execution – and there has never been a greater need for the digitisation and globally integrated logistics technology that we provide through CargoWise,” Mr White added.
At the end of March, WiseTech had $230 million in cash at hand – in line with December 2019’s balance of $233 million.
The company also has an undrawn debt facility of $190 million and a $200 million accordion facility in place.
“We remain optimistic that the long-term opportunity available to us is vast,” Mr White said.