AN INCREASE in both revenue and net profit failed to impress investors in WiseTech Global this week, the share price taking a tumble soon after the 2019 half year results were released.
In results released to the ASX, half yearly revenue was up 68% to $156.7m compared with the first half year of 2018, while net profit attributable to equity holders was up 48% to $23.1m.
WiseTech shares finished Tuesday at $23 a share but by mid-Wednesday morning were under $20.
Nonetheless, chief executive Richard White remained bullish when dissecting the statistics.
“We continued to deliver high quality growth in 1H19 with revenues up 68% to $156.7m and EBITDA up 52% to $48.5m, a reflection of our strategy to accelerate WiseTech’s global growth and industry penetration,” Mr White said.
Mr White noted their strategy was one driven by geographic expansion, relentless innovation and deepening product capability, all of which saw increased usage by large logistics providers.
“The strength of our CargoWise One global platform is reflected in its 100% recurring revenue and annual customer attrition rate of <1% and our EBITDA margin is 49% (excluding acquisitions)— all delivered while enlarging our reach across key trade regions and significantly expanding our pipeline of innovation,” he said.
“CargoWise One continues to be a unique powerhouse technology changing global logistics for the better.”
According to WiseTech, growth was generated by:
A large customer base increasing their use of the CargoWise One platform;
- Increasing usage by many of the world’s largest freight forwarding groups;
Continued transition of customer licensing (excluding acquisitions);
- Growth in revenue from larger multi-region customers; and
- All top 20 customers showing revenue growth year on year.
Revenue from customers on acquired platforms increased by $32.8m, up over 150% period on period, including $30.6m from 26 acquisitions completed in FY18 and 1H19.