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WiseTech share price surges on solid profit growth

Technology
ASX:WTC      MCAP $30.84B
20 August 2019 22:35 (AEST)

Software developers WiseTech’s profits jumped 33 per cent, to $54.1 million, during the 2019 financial year.

Revenue also shot up by 57 per cent, totalling $348.3 million.

WiseTech’s Founder and CEO Richard White said the boom in profits and revenue are a sign of the company’s successful merge as a key international player in providing cloud-based software solutions.

“We continued to deliver high-quality growth in [the 2019 financial year]… a reflection of our strategy to accelerate WiseTech’s global growth and industry penetration, driven by geographical expansion, relentless innovation and deepening product capability,” Richard said.

WiseTech’s product, CargoWise One, is a single platform software solution which is designed to simplify communication, integration and automation between the supply chain.

The company highlighted 43 out of the top 50 global third-party logistics providers use its solutions software. Including, DHL, UPS and Toll.

Additionally, all 25 of the global leaders in freight forwarding use WiseTech’s solutions.

These companies have rolled out the use of the software in a combined 150 countries.

WiseTech invested $113 million in product development over the fiscal year and made 830 product enhancements to CargoWise One.

Revenue during the 2020 financial year is expected to grow between 26-32 per cent, reaching $440-460 million.

Shareholders will receive a fully franked final dividend of $0.0195 per share, an increase of 18 per cent from the 2018 fiscal year.

WiseTech’s share price is up 10.32 per cent today, currently sitting at $30.56 per share as of AEST 1:39 pm.

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