Shares in logistics software company WiseTech Global are on a fresh tear today, setting new records following the company’s FY2024 annual results on Wednesday.
Founder and CEO Richard White is already a billionaire thanks to the success of Sydney-based WiseTech, which the former AC/DC guitar technician launched in 1994 by writing code for Australian freight forwarders. But rises in the company’s share price (ASX: WTC) yesterday and again today, have have been enough to make him a fresh billionaire each day.
White owns around 39% of the freight shipping software business, now worth nearly $41 billion, after another 9.5% gain on Thursday to a new record high of $122.72. His holding added around $2 billion to its value on Wednesday and another $1 billion today
WiseTech Global shares rose 18.3% on Wednesday to $111.71 following the FY24 results, which saw total revenue up 28% (15% organically) to $1.04 billion, on 12 months ago.
EBITDA also popped 28% to $495.6 million, up 28% on FY23; with an underlying net profit after tax (NPAT) of $283.5 million, up 15% on FY23; and statutory NPAT up 24% to $262.8 million. The final dividend per share rose 10% to $0.092.
The company’s flagship software, Cargowise, saw revenue grow by 33% in FY24 to $866.8 million.
WiseTech’s software for logistics serves providers are now used by more than 17,000 customers in 181 countries.
Releasing the results, Richard White said EBITDA came in above our guidance range and EBITDA margin was 50% in the fourth quarter, over a full year ahead of expectations.
“CargoWise’s strong momentum continued throughout the year with the addition of TIBA Tech and Grupo TLA Logistics, as new Large Global Freight Forwarder (LGFF) rollouts, as well as the post yearend signing of Nippon Express, a Top 10 global freight forwarder and Japan’s largest, taking us to 52 large global rollouts, and more than 50% of the Top 25, with the opportunity pipeline across the world’s major economies strengthening,” he said.
“Importantly, our three breakthrough product releases CargoWise Next, Container Transport Optimization and ComplianceWise, will present a step change in our product capabilities, growth and value to customers. Building on our capabilities across our key development areas, the productivity advantages we expect to deliver for our customers are significant and have the potential to change the commercial models of the industry and make the adoption of our software mission critical to remain competitive.”
The business is predicting revenue growth of up to 30% this financial year and has total liquidity of more than $500 million from cash and undrawn debt facilities.
EBITDA guidance for FY25 is $660-700 million, a rise of 33- 41%.
WiseTech’s success over the eight years since it listed in April 2016 at $3.41 is one of the most remarkable rises in tech. It’s the ASX’s second most valuable tech stock behind Block, the parent company of Square and Afterpay. It’s also a 10x increase in the company’s share price since it fell below $12 in March 2020 in the wake of a sustained short seller attack followed by the pandemic shutting down borders and economies.
WiseTech’s growth has in part been due to an ambitious acquisition strategy, most recently US shipping container marketplace MatchBox Exchange in October last year.
White is also an avid personal investor, tipping $11m into ASX-listed music company, Vinyl Group (ASX: VNL) as part of a deal to acquire Australia’s largest youth publisher The Brag Media, publishers of local editions of Rolling Stone and Variety; as well as regtech venture Kyckr.
His rock n roll roots also came to the fore in backing music licensing startup Songtradr, valued at $879m valuation last November when it raised$106 million in a Series E.
The rise in WiseTech’s share price over two days of trade pushes White into Australia’s rich list top 10, surpassing the $13.62 billion combined wealth of privately-owned Canva’s cofounders, Melanie Perkins and Cliff Obrecht.
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