The WiseTech Global Ltd (ASX:WTC) share price is on the move on Thursday after the release of its annual general meeting update…
The post Why the WiseTech Global (ASX:WTC) share price is climbing higher today appeared first on Motley Fool Australia. –
The WiseTech Global Ltd (ASX: WTC) share price is climbing higher following the release of its annual general meeting presentation.
At the time of writing, the logistics solutions company’s shares are up 2% to $30.73.
What happened at the WiseTech Global AGM?
As with all annual general meetings, the company started by providing investors with a reminder of how it performed in FY 2020.
For the 12 months ended 30 June, WiseTech Global delivered a 23% increase in revenue to $429.4 million. This was driven by a combination of acquisitions and its core CargoWise offering.
The latter continued its strong growth and recorded revenue of $263 million, up 20% on FY 2019. Management advised that this reflects new customer signings and increased usage by existing customers.
On the bottom line, excluding a fair value gain of $111 million, its underlying net profit after tax was flat at $52.6 million. This was due to increased depreciation and amortisation expenses from its increased investment in research and development and the amortisation from acquisition product development.
What is expected in FY 2021?
In August, WiseTech provided full year guidance for revenue of $470 million to $510 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of $155 million to $180 million.
This represents growth in the range of 9% to 19% and 22% to 42%, respectively, year on year.
This morning WiseTech has reaffirmed this guidance. However, it has warned that the ongoing and longer-term impacts of COVID-19 are still not completely predictable.
One thing management is much more certain on is its long term growth prospects beyond COVID-19.
WiseTech’s CEO, Richard White, commented: “Looking ahead, with penetration of automated, truly global logistics solutions still in early stages, WiseTech’s opportunity for growth is vast. We believe CargoWise is the market-leading platform for global logistics execution and is well-positioned to strengthen its position in the global market over the near-term and long-term.”
“… longer term, COVID-19 market disruptions have provided a tailwind for growing our market share as the need for digitalisation across the global logistics execution market accelerates and significantly increases the value and demand for CargoWise,” he added.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.