In morning trade the WiseTech Global Ltd (ASX: WTC) share price has pushed higher following the release of a presentation ahead of the Macquarie Group Ltd (ASX: MQG) Australia conference today.
At the time of writing WiseTech Global's shares are up over 3% to $10.38.
What was in the presentation?
While the majority of the data included was just lifted out of the company's first-half results presentation, one new piece of data that management provided was its guidance for FY 2018.
According to the release, management has upgraded its FY 2018 revenue guidance to the range of $210 million to $220 million, subject to currency movements. This represents year-on-year growth of between 37% and 43%.
Previous guidance given at the end of the first half was for revenue of between $207 million and $217 million, up 35% to 41% on the prior corresponding period.
Despite the increase to its revenue guidance, management has made no changes to its earnings before interest, tax, depreciation and amortisation (EBITDA) guidance in today's release.
It remains at between $71 million and $75 million, which will be an increase of between 32% and 39% on FY 2017's result.
Should you invest?
I think that WiseTech Global is one of the best tech companies on the Australian share market.
With 24 of the top 25 global freight forwarders and 33 of the top 50 global third-party logistics companies as customers, it is clear to see that its software is valued highly in the industry.
Furthermore, the company continues to add value to users by acquiring smaller companies and integrating their offerings into its CargoWise platform. I believe this should help make the software extremely sticky and allow the company to benefit from high retention levels for a long time to come.
The only negative really is the premium that its shares trade at. Even after a significant decline over the last three months, WiseTech Global's shares were priced at 75x estimated full-year earnings prior to today.
Because of this, although I am a huge WiseTech Global fan, I see far more value in the shares of Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) right now.
