Revenues and profits up for software provider

WISETECH Global Limited, provider of the logistics software platform CargoWise, announced its financial results for the six months ended December 31, 2021 (1H22). The company recorded total revenue of $281.0 million, up 18% from the six months ended December 31, 2020 (1H21).

The company also reported net income after tax in the period of $77.4 million, up 74% and underlying NPAT in HY22 of $77.3 million, up 77% from compared to the prior corresponding period (1H21: $43.6 million).

WiseTech Founder and CEO Richard White said, “We are seeing continued momentum in our market penetration with three new major global CargoWise deployments secured since July 1, 2021 and continued strong growth in CargoWise revenues demonstrating the attractiveness of our customer value proposition.

“Our revenue growth, combined with our program of efficiency and extracting organization-wide acquisition synergies, allows us to generate operating leverage, as evidenced by our strong financial performance. at 1S22.”

Mr. White said the continued growth of e-commerce and strong demand for goods, coupled with challenges posed by outbreaks of novel variants of COVID, have resulted in continued capacity constraints, port congestion, labor shortages, labor in the supply chain and higher freight rates.

“From WiseTech’s perspective, while higher freight rates don’t lead to immediate revenue growth, we do benefit from accelerating the longer-term structural changes they drive,” he said. declared.

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“In particular, we are seeing increased investment by logistics companies in replacing legacy systems with integrated global technology, such as CargoWise, to boost productivity and facilitate planning, visualization and control of global operations.

“We are also seeing continued consolidation within the logistics sector. Over the past two years, the top 25 global freight forwarders such as DHL, DSV, CEVA Logistics, Kuehne + Nagel and JAS Worldwide have embarked on acquisitions, with consolidation activity intensifying in the second half of the year. calendar year 2021,” Mr. White said.

The company reported total revenue growth of 18% in HY21 (HY22: $281.0m; HY21: $238.7m) reflecting growth in its CargoWise platform and an expected 1% contraction in revenue from acquisitions.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 54% on pcp to $137.7 million. The company achieved a HY22 EBITDA margin of 49%, up 12pp from HY21. This improvement reflects the impact of strong WiseTech revenue growth and net cost reduction benefits of $19.7 million.

The company’s outlook remains strong with FY22 EBITDA guidance raised to 33% to 43% growth (from 26% to 38%). The revenue growth target of 18% to 25% has been reaffirmed.

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