The WiseTech Global Ltd (ASX: WTC) share price has been one of the biggest movers on the market today following the release of its full-year results.
At the time of writing the software-as-a-service company's shares are up over 9% to $7.60.
Here are key highlights from its full-year results:
- Revenue up 50% to $153.8 million.
- Statutory EBITDA increased 71% to $53.9 million.
- Statutory net profit after tax increased 1386% to $32.2 million.
- Earnings per share of 10.9 cents.
- Annual attrition rate of under 1% by CargoWise One.
- Outlook: EBITDA growth between 32% and 39% in FY 2018.
According to the release, management has put its impressive profit result down to a combination of strong revenue growth from existing customers and new sales worldwide which were given an extra boost from targeted acquisitions.
New customer wins included small-mid market companies and large third party logistics such as Morrison, CLASQUIN, and Allport Cargo Services.
Despite restricting its sales and marketing expense to just 10% of revenue, WiseTech now has 32 of the top 50 global third party logistics companies as customers. I feel this is a testament to the quality of the product and explains its impressively low attrition rate.
Pleasingly, management expects another strong result in FY 2018. Revenue guidance is for between $200 million and $210 million, representing year-on-year growth of between 30% and 37%. EBITDA guidance for FY 2018 is between $71 million and $75 million, which would mean growth of between 32% and 39% on FY 2017's result.
Should you invest?
Whilst its shares are by no means cheap at 70x earnings, I believe the company has a long runway for growth that goes some way to justifying the premium.
After all, although the company has over 7,000 customer in over 125 countries, management believes that its global penetration is still at an early stage.
All in all, I think WiseTech is up there with XERO FPO NZX (ASX: XRO) and Aconex Ltd (ASX: ACX) as a great option for patient investors that are willing to make a long-term buy and hold investment.
