WiseTech reports strong financial results and positive outlook

ASX-listed WiseTech Global has announced robust financial results for its fiscal year ending 30 June 2024, with significant growth across key metrics.

The logistics software company reported a 28 per cent increase in total revenue, reaching $1041.7 million.

CargoWise, the company's flagship product, saw a 33 per cent revenue growth, contributing $880.3 million to the total.

This growth was driven by new customer acquisitions, including several Large Global Freight Forwarder (LGFF) rollouts.

The company's EBITDA rose by 28 per cent to $495.6 million, with a margin of 48 per cent, surpassing expectations.

Notably, the fourth quarter of FY24 saw an EBITDA margin run rate of 50 per cent.

Richard White, WiseTech's founder and CEO, expressed satisfaction with the results, attributing the success to the company's '3P strategy' - Product, Penetration, and Profitability.

"CargoWise's strong momentum continued throughout the year with the addition of new Large Global Freight Forwarder rollouts," White said.

White also announced three product releases for FY25: CargoWise Next, Container Transport Optimisation, and ComplianceWise.

These new offerings are expected to significantly enhance the company's product capabilities and value proposition to customers.

WiseTech continued its investment in research and development, spending $368.2 million in FY24, a 41 per cent increase from the previous year, which resulted in 1135 new product enhancements.

The company's market penetration strategy showed progress, with new LGFF wins including Sinotrans, APL Logistics, and Yamato Transport. Post-year-end, WiseTech secured Nippon Express, a Top 10 global freight forwarder.

Despite the challenging global economic environment, WiseTech demonstrated strong cash flow generation, with free cash flow increasing by 14 per cent to $333 million.