- After a strong first half to FY22, software solutions business WiseTech Global (WTC) has upgraded its earnings guidance for the full year
- Based on an 18 per cent revenue jump to $281 million and net profits rising 74 per cent to $77.4 million, the tech stock upgraded its EBITDA guidance to $275 million and $295 million
- WiseTech also reaffirms that it expects FY22 revenue growth of between 18 to 25 per cent, representing $600 million to $635 million
- Founder and CEO Richard White says WiseTech’s “top line” revenue growth, organisation-wide efficiencies and acquisition synergies extraction program allow it to drive operating leverage
- WTC shares are up 4.23 per cent to trade at $44.60
After a strong first half to FY22, software solutions business WiseTech Global (WTC) has upgraded its earnings guidance for the full year.
The ASX 200-lister reported an 18 per cent increase in revenue to $281 million which it attributed to increased usage by existing customers, new customers, and a price change to its CargoWise tech platform.
Gross profit increased by 19 per cent to $242.6 million which was driven by CargoWise revenue growth and cost reduction initiatives. Gross profit margin also slightly increased to 86 per cent for the same reasons.
Total operating expenditure came to $131 million, a slight 5 per cent drop on the prior year, which comprised product design and development costs, sales and marketing, and general and admin costs.
After taxes and expenses, net profits saw a 74 per cent jump to $77.4 million in H1 FY22.
The results prompted the tech stock to upgrade its full-year guidance on earnings before interest, tax, depreciation and amortisation (EBITDA) to between $275 million and $295 million from $260 million to $285 million.
It has reaffirmed its expectation that the FY22 revenue growth will be between 18 to 25 per cent, representing revenue of $600 million to $635 million.
To achieve its revenue guidance, the company will need to generate nearly $320 million for the current second-half period which it seems confident in doing through its strategic growth outlook.
The company said it’s extending the reach of its CargoWise integrated platform, expanding technology to increase market penetration, investing in transforming its content and brand, while also growing its research and development capacity.
“Our top line revenue growth, coupled with our organization-wide efficiencies and acquisition synergies extraction program, is enabling us to drive operating leverage, as evidenced by our strong 1H22 financial performance,” founder and CEO Richard White said.
Mr White also said he’s assessing small and large acquisition opportunities to add value to the CargoWise ecosystem.
WiseTech announced a full-year interim dividend of 4.75 cents a share, fully franked to be paid on 8 April 2022.
It paid $11.8 million in dividends during 1H22, with shareholders choosing to reinvest an additional $700,000 of their dividends through WTC’s dividend reinvestment plan.
The company rounded off the year with $380.3 million in cash and no outstanding debt other than lease liabilities.
WTC shares were up 4.23 per cent to trade at $44.60 at 3:06 pm AEDT.