Not even a global slowdown could stop this 25-bagger

Who could have predicted the growth trajectory that would catapult WiseTech Global (ASX: WTC) to 25-bagger status back when it listed at just $3.35 a share in April 2016? 

The logistics software company's share price has soared a whopping 2,491% in just under eight years and has already risen 14% in 2024 alone. 

On Wednesday, WiseTech announced that for the six months until 31 December, underlying net profits increased 5% to $128.4 million, compared to analyst estimates of $103.6 million - a 24% beat. Meanwhile, revenues lifted 32% to $500.4 million, narrowly beating analyst expectations by 1%. The global tech company also announced a record interim dividend of 7.7 cents per share, fully franked and representing a 20% payout ratio. 

And yet, despite that stellar result, which would see the stock's share price soar 12% higher on Wednesday, WiseTech Global founder and CEO Richard White isn't resting on his laurels or handing over the reins anytime soon. 

"We provide enormous value. We cut the operating costs of our customers dramatically. We make them less subject to risk and compliance issues. We help them grow their businesses much faster. There are many benefits, and I think the benefits vastly outweigh the cost of the software," he told Livewire on Wednesday. 

The team is focused on conservative cost measures, he adds, and making WiseTech more efficient, and is also extracting value out of its recent acquisitions to build a better business.

It is also hellbent on helping its customers navigate volatility - like the disruption in the Red Sea - which White says, is actually a "slight advantage from a transactional point of view for the company". Even the global freight slowdown many have predicted will continue throughout 2024 and into 2025 doesn't faze White - who notes only 3% of the company's growth comes from volumes. 

In this interview, White takes investors through WiseTech's recent half, outlines why the company can use disruption to its advantage, and shares why investors should get excited over the coming 12 months. 

Note: This interview was recorded on Wednesday 21 February 2024. 

Timecodes

• 0:00 - Intro 
• 00:29 - A brief explainer on WiseTech Global and CargoWise 
• 1:14 - The WiseTech Global growth engine 
• 1:53 - WiseTech beats analyst estimates - but can this continue? 
• 2:45 - Why WiseTech will be sticking to its 20% dividend payout ratio 
• 3:50 - Navigating volatility and why shipping disruption provides WiseTech with a "slight advantage" 
• 4:56 - The global freight slowdown - and what impact this has on the business
• 6:05 - Customer penetration and reactions to price increases 
• 7:31 - R&D and M&A spend 
• 8:29 - How WiseTech is using AI (even in this latest result) 
• 10:08 - If Richard named his next acquisition target he'd have to get me killed, so instead, he shares why M&A has been a powerful growth driver for the business and outlines the Matchbox Exchange integration... I live another day...
• 11:19 - Why there isn't "much in the way of risks" that WiseTech needs to worry about 
• 12:13 - The importance of thinking differently and solving problems 
• 13:03 - WiseTech's track record - can it continue?