WiseTech shares are on the move after showing a strong FY21 performance.
The post Wisetech (ASX:WTC) share price soars 23% as profit doubles in FY21 appeared first on The Motley Fool Australia. –
The Wisetech Global Ltd (ASX: WTC) share price has jumped out of the starting blocks in early trade on Wednesday.
Wisetech shares are on the move as the company reported its FY21 earnings before the market open.
Let’s investigate further.
Quick recap on WiseTech Global
WiseTech provides cloud based software to the logistics industry on a domestic and global scale. Its leading product is CargoWise One, which is an end to end logistics solution.
The company now operates in over 150 countries worldwide and has over 12,000 logistics companies using its software.
At the time of writing, WiseTech has a market capitalisation of $11.7 billion.
WiseTech beats FY21 guidance, doubles net profit
WiseTech recorded an 18% increase in revenue to $507 million and a 63% jump in EBITDA to $206 million in FY21.
Whilst revenue came in at the top end of guidance, the company beat its EBITDA guidance of $165 million to $190 million by a country mile.
The company advised that strengths here were underscored by increasing market penetration and growth in the number of users adopting its software.
In another positive for the WiseTech share price, the bulk of its sales growth came from recurring revenue. In other words, out of the entire $101.4 million in revenue gained for FY21, just over $97 million of that was recurring.
Looking down the income statement, the company also doubled net profit after tax (NPAT) to $105 million. This came through a free cash flow of $139 million, up 149% from the year prior.
As a result, WiseTech increased its final dividend by 141% to 3.85 cents a share. That brings the total FY21 dividend to 6.55 cents per share.
Management also upgraded FY22 guidance, forecasting 18%–25% revenue growth, and for EBITDA to expand a further 26%–38%. This calls for a range of $600 million to $635 million in sales, and $260 million to $285 million at the EBITDA line.
Speaking on its FY21 performance, WiseTech CEO Richard White said:
Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.
WiseTech share price snapshot
The WiseTech share price has gained 42% since January 1 this year, extending the previous 12 month’s climb of 51%.
These results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of about 25% over the last year.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended WiseTech Global. The Motley Fool Australia owns shares of and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.