Full Year 2024 WiseTech Global Ltd Earnings Call Transcript
Key Points
- WiseTech Global Ltd (ASX:WTC) achieved an EBITDA margin run rate of 50% in the fourth quarter, a full year ahead of schedule.
- The company reported a 28% increase in total revenue to $1.04 billion, with CargoWise revenue growing by 33% to $880.3 million.
- WiseTech Global Ltd (ASX:WTC) announced three breakthrough products: CargoWise Next, Container Transport Optimization, and ComplianceWise, which are expected to drive future growth.
- The company declared a final dividend of $0.092 per share, up 10% on FY23, representing a payout ratio of 20% of underlying NPAT.
- The business continues to show strong financial performance with underlying NPAT up 15% to $283.5 million and free cash flow up 14% to $333 million.
- Gross profit margin decreased by 1 percentage point to 85%, diluted by M&A activities in FY23 and FY24.
- Operating cash flow conversion rate decreased by 5 percentage points to 107%, reflecting higher working capital driven by growth.
- Free cash flow conversion reduced by 8 percentage points to 67%, due to increased R&D investment.
- The company missed its acquisition contribution target, delivering $114 million versus the guided range of $125 million to $150 million.
- There is a significant second-half revenue bias expected for FY25, which may pose risks if product launches or customer uptake do not meet expectations.
Good morning, everyone, and thank you for joining us for our FY24 results briefing. Before we look at the financials, I'd like to call out the highlights we are sharing today.
Firstly, we delivered a strong result, especially at the EBITDA level due to a solid lift in margin as we can execute on our 3P strategy. Our EBITDA margin run rate in the fourth quarter was 50%, which we achieved a full year ahead of schedule.
Secondly, penetration of our world-leading CargoWise solution has continued with the addition of TIBA Tech, Grupo TLA Logistics, as well as post-year-end signing Nippon Express, a top 10 global freight forwarder and the largest Japanese freight forwarder, taking us to 52 large global rollouts and more than 50% of the top 25 with Nippon.
Thirdly, we are announcing three breakthrough products that present a substantial advance in product capability. CargoWise Next, our fourth-generation web-enabled feature-rich platform; Container Transport Optimization, which dramatically extends
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