Shares of the ASX-listed WiseTech Global Limited (AU:WTC) soared to a new high after the company released its annual results for FY24. The company’s total revenue surged 28% year-over-year to AU$1.04 billion. The full-year EBITDA rose to AU$496 million, also reflecting a 28% increase from FY23. WiseTech shares gained 18.4% today, resulting in a year-to-date gain of 47%.
WiseTech Global offers cloud-based software solutions with a focus on end-to-end logistics management through its flagship product, CargoWise.
WiseTech Delivers Impressive Performance
In FY24, CargoWise revenue grew 33% year-over-year to AU$880.3 million. This was driven by mergers and acquisition activities and customer growth. Additionally, the company’s NPAT (net profit after tax) increased by 15%, while free cash flow was up 14%.
Driven by solid results, WiseTech raised its final dividend by 10% to 9.2 cents per share for FY24.
WiseTech Poised for Growth in FY25
During the year, WiseTech announced three new product releases for FY25, including CargoWise Next. The rollout of these products is scheduled to begin in the first half of 2025. The new offerings are expected to outperform the company’s current product range in terms of automation and additional features. The company anticipates that these innovations will boost its revenue growth in FY25.
Overall, WiseTech expects its revenue to grow by 25% to 30%, reaching AU$1.3 to AU$1.35 billion in FY25. Moreover, the company forecasts EBITDA (earnings before interest, tax, depreciation, and amortization) growth between 33% and 41%, with margins estimated in the range of 51% to 52%. The company’s EBITDA margin was 48% in FY24.
Is WiseTech a Buy?
According to TipRanks, WTC stock has a Hold consensus rating, backed by four Holds and one Buy recommendation. The WiseTech Global share price forecast of AU$96.96 indicates a downside of 12.8% from the current level.
