Why WiseTech’s stock price is up 69% in eight weeks

WiseTech’s 2022 figures, which showed underlying earnings rose 72% over the year to $181.8 million, with revenue up 26% to $632.2 million, served as an additional reminder. that the company is certainly not in the “no product, no revenue, no profit” category.

With White forecasting EBITDA growth of around 25 percent in 2023, shares of WiseTech jumped 11 percent on Wednesday, taking gains from that June 22 low to a staggering 68.7 percent.

be more efficient

“The bottom line is that there is the ability to be high-growth and profitable, which WiseTech has in spades. I think that’s what the market really loves,” says White.

The former engineer loves to talk about the idea of ​​making an engine run more efficiently and insists this is the story of WiseTech’s recent growth.

But that possibly understates what appears to be, at least from the outside, a philosophical shift. The acquisition-driven growth that fueled much of the company’s rise since it listed in April 2016 has been replaced by a shift to organic growth and even cost cutting: $32.6 million in cost cuts in 2022, then of $13.8 million being extracted in 2021.

White considers these cuts to be more touch-ups than major surgery; CFO Andrew Cartledge has cut sales and marketing costs from 13% of revenue in 2020 to 7% in 2022, and sales continue to rise.

The incredible pressures on the global logistics industry seem to have helped make WiseTech’s CargoWise solution more valuable to customers; nearly 90 percent of revenue comes from existing customers.

And having emerged from the worst of COVID-19, White is increasing his focus on potential acquisitions. WiseTech made three small add-on deals in 2022 to fill very specific gaps in its product range, but White is prepared to consider larger deals if they could speed up its entry into a new part of the market.

“We don’t say ‘no’ to any reasonable foundational idea, but our core strategy is always to build our own product and grow organically.”

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