WiseTech Global FY24 Earnings Call Highlights

WiseTech Global (ASX: WTC) shares soared to all-time highs on Wednesday after its FY24 results and FY25 guidance topped analyst expectations.

FY24 Earnings Summary

• Revenue +28% to $1.04 billion

• Underlying EBITDA of $495.6 million vs. guidance of $455-490 million

• EBITDA margin of 48% vs. 47% a year ago

• Underlying net profit +15% to $283.5 million

• Earnings per share +23% to 79.4 cents

• Total dividend for FY24 of 16.9 cents

• FY25 EBITDA guidance of $680 million (at the midpoint or 37% year-on-year growth)

The net profit, dividend and FY25 guidance numbers were 6.0%, 5.6% and 8% ahead of Goldman Sachs estimates (as of 30 June 2024).

Earnings Call Highlights

The below topics have been answered by CEO Richard White and CFO Andrew Harrison.

FY24 performance: "We have delivered a strong result, especially at the EBITDA level due to a strong margin performance as we continue to execute on our 3P strategy. Penetration has continued across our key development areas, while the momentum in our opportunity pipeline is building everywhere, especially within Asia."

FY25 earnings skew: "We expect FY25 revenue to have a significant second-half bias due to the timing of new product launches and uptake."

CargoWise value add: "Our top 25 customers in production on CargoWise significantly outperform their peers, with container volumes growing by 82% between FY11 and FY23, compared to 12% for the remaining top 25."

CargoWise Next: "CargoWise Next gives our customers additional IT and labor cost improvements through a large set of powerful new capabilities and productivity improvements. New optional features and capabilities available only in CargoWise Next will enable further revenue growth for WiseTech ... CargoWise Next is planned for release to the majority of CargoWise customers starting in early Q2, FY25."

CompliaceWise release: "ComplianceWise, with deep functionality in trade compliance and GenAI-driven classification assistance, builds on our existing customs and compliance capability. It provides our customers with a sophisticated approach to diligently identifying the what, where, and who of international trade ... planned for Phase 1 release in late 1Q25."

Large global forwarders: "We have won a further two global rollouts of top 25 Large Global Freight Forwarders Sinotrans and Nippon Express, bringing us to a total of six new Large Global Freight Forwarder rollouts signed since the start of FY24."

Analyst Q&A Highlights

Confidence in revenue flow-through from new products: "These two breakthroughs and CargoWise Next as well are going to be much more quickly adopted."

CargoWise Next rollout: "CargoWise Next will upgrade a very substantial portion of the community in the second quarter of FY25."

On Neo rollout progress: "Neo has been offered through the early access program, and we've got some hundreds of customers running Neo and it's had very, very strong reviews."

CargoWise outlook: "We’re looking at 31% to 37% growth rate in CargoWise revenue here."

Market size: "We stand the very strong ability to win business against a market that doesn’t have an equivalent product."

Price increases in FY25: "The move to CargoWise Next does not require any price rises."

M&A strategy: "We have a continuous M&A program that is acquiring small tuck-ins and footholds ... Our preference is small targeted deals tuck-in that add a lot of value to CargoWise."

This article was generated with the support of AI and reviewed by an editor.

Related content from our network regarding the WiseTech result:

• WiseTech - Fund Manager insights

• WiseTech - Is it too late to buy?