The WiseTech Global Ltd (ASX: WTC) share price is down 18.8% in late morning trade on Wednesday.
Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock closed yesterday trading for $86.59 each. At the time of writing, shares are swapping hands for $70.29 apiece.
For some context, the ASX 200 is up 0.54% at this same time.
This comes as investors mull over WiseTech's financial results for the 12 months ending 30 June (FY23).
Read on for the highlights from the logistics software provider.
Image source: Getty Images
WiseTech share price slides despite dividend boost
- Revenue of $817 million, up 29% from FY22
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $386 million, up 21% year on year
- Underlying net profit after tax (NPAT) up 30% year on year to $248 million
- Statutory NPAT of $212 million, up 9% from FY22
- Final fully franked dividend of 8.40 cents per share, up 31% on FY22
What else happened during the year?
Clearly, these are some solid results.
So why is the WiseTech share price getting hammered today?
Well, as one of the top-performing ASX 200 shares this year, investors have some top expectations as well. And the 21% boost in earnings to $386 million fell short of consensus estimates. Guidance for FY24, which we'll look at below, is also positive, yet not quite what many investors had been hoping for.
However, WiseTech continued to perform quite well over the year.
Recurring revenue from its key CargoWise segment came in at $650 million, up 48% from the prior year. The company attributed this strong performance to existing and new customer growth, including new large global freight forwarder rollouts.
FY23 also saw WiseTech enter into North American landside logistics, acquiring Envase Technologies and Blume Global.
And the ASX 200 tech company signed its first global customs rollout with the world's largest freight forwarder, Kuehne+Nagel.
WiseTech ended the financial year with free cash flow of $291 million, up 23% from FY22.
What did management say?
Commenting on the results that have failed to lift the WiseTech share price today, CEO Richard White said:
I am proud to announce a strong FY23 financial performance, reflecting the expansion of our product offering, ongoing financial discipline and enhanced operating leverage as we further penetrate our chosen markets and execute our 3P strategy…
We have also accelerated our development capability over the year, growing our product development team from just over 1,000 team members at the beginning of FY23 to now over 1,800. This incredible growth means that 60% of our global team is now focused on accelerating our product development.
What's next?
Looking to what could impact the WiseTech share price in the year ahead, the company forecasts FY24 revenue of $1.04 billion to $1.10 million, equating to annual revenue growth of 27% to 34%.
EBITDA guidance of $455 million to $490 million equates to earnings growth of 18% to 27%.
White said:
Our goal is to drive innovation within the CargoWise ecosystem, so that it is a 'must have' for large global forwarders and logistics operators. Looking ahead, our strong balance sheet and cash generation provide us with significant financial firepower to fund our future growth.
WiseTech share price snapshot
Despite today's sizeable retrace, WiseTech remains one of the top-performing stocks on the ASX 200 in 2023.
Since the opening bell on 3 January, the WiseTech share price is up 35%.
