The S&P/ASX 200 Index (ASX: XJO) may be tumbling lower again, but that hasn't stopped the WiseTech Global Ltd (ASX: WTC) share price pushing higher on Wednesday.
At the time of writing the logistics solutions company's shares are up 3% to $14.19.
Why is the WiseTech Global share price pushing higher?
Investors have been buying WiseTech Global's shares after the release of a positive trading update this morning.
When the company released its half year results in February, it downgraded its guidance after internal data pointed to a potential impact of the COVID-19 outbreak in China on manufacturing and global trade.
Instead of full year EBITDA growth of 34% to 42%, it downgraded its guidance to a range of $114 million to $132 million. This represents growth of 5% to 22% year on year.
The data which supported its revised guidance has proven very accurate, with the business trading in line with its expectations in the third quarter.
Management advised: "For the 3 months to 31 March 2020, our business traded in line with our expected range for FY20 guidance, reflecting continued growth in revenue, cash generation from operations and further onboarding of additional users, which substantially offset the expected reductions from COVID-19 disruptions, including deferred rollout of new products, and slowdown in new business growth."
As a result, it has reaffirmed its guidance for revenue of $420 million to $450 million (growth of 21% to 29%) and EBITDA of $114 million to $132 million (growth of 5% to 22%).
Demand for its solutions continues.
The company also revealed that the pandemic hasn't stopped it from adding to its customer base.
"The continued demand for our globally integrated logistics technology is demonstrated by the global freight-forwarding rollouts already underway, and the finalisation in March of a further global rollout commitment with another of the world's largest logistics providers, Hellmann Worldwide Logistics, commencing in 2021,", it explained.
No capital raising is necessary.
Another big positive was management's comments on its financial position.
It notes that its financial position is strong with robust cash generation and significant liquidity. At the end of March the company's net cash position stood at $230 million, which was broadly in line with cash levels at the end of December.
In light of this and its undrawn debt facilities, the company believes it is well-funded to execute its strategy under a range of scenarios and do not intend to raise additional capital or debt.
Founder and CEO, Richard White, said: "We take seriously our responsibility in enabling the world's supply chains with our critical logistics execution technology. We are proud of the dedication of our employees and our customers in their important efforts to keep global supply chains moving across the world and within communities during this time."
"In this challenging economic environment, we will take necessary actions to prioritise critical technology development, be highly cost efficient, safeguard our financial strength, and continue to build our competitive position providing technology to many of the world's largest logistics providers," he added.
