WISETECH’S total revenue for the six months ending on 31 December 2013 was up 32% to $500.4 million according to its recently released financial results.
CargoWise revenue of $420.7 million was up 40% (up 19% organically) on 1H23, driven by recent M&A and customer growth including new Large Global Freight Forwarder (LGFF) rollouts.
The earnings before interest, tax, depreciation and amortisation (EBITDA) margin was ahead of expectations at 46%.
WiseTech invested more than $1 billion in product development over the past five years, delivering more than 5500 new product enhancements to underpin revenue growth.
There’s been further enhanced CargoWise Landside Logistics capability with acquisition of MatchBox Exchange, extending and strengthening WiseTech’s position in one of its six key development priority areas.
“I am pleased to announce a strong first half financial performance, driven by the focused execution of our 3P strategy by WiseTech’s passionate and dedicated team of more than 3300 people,” WiseTech founder and CEO Richard White said.
“Our highly cash generative business model and strong liquidity continues to provide a solid platform to fund long-term sustainable growth,” he said.
“We continue to focus on enhancing our core CargoWise platform in pursuit of our vision to be the operating system for global logistics. Innovation remains a critical driver of our growth.
“CargoWise’s strong momentum continued in the first half. Adding to our list of Top 25 Global Freight Forwarders, we have secured a CargoWise global rollout with Sinotrans, bringing our penetration of the Top 25 Global Freight Forwarders to 13, which is more than half of the Top 25. We also secured large global freight forwarder rollouts with APL Logistics and Yamato Transport, taking us to 49 LGFFs overall.”
The 1H24 operating cash flow of $249.9 million was up 23% on 1H23 and free cash flow of $155.3 million was up 13% on 1H23, demonstrating the highly cash-generative nature of the company’s operating model.
The company has significant financial headroom, with total liquidity of $445 million from cash and undrawn debt facilities.
Subject to the assumptions set out in the WiseTech Global 1H24 results presentation, the company reconfirms its FY24 guidance range for revenue of $1040 million – $1095 million (representing revenue growth of 27% – 34%) and EBITDA of $455 million – $490 million (representing EBITDA growth of 18% – 27%).
The company’s full year EBITDA margin guidance range increases to 44% – 46%, due to 1H24 EBITDA margin strength.
