The unique growth company with a $600 million-plus war chest

WiseTech Global's (ASX: WTC) share price soared nearly 20% on the back of its FY24 result on Wednesday, after the company beat analyst estimates on underlying NPAT and announced earnings guidance between $660-700 million in FY25 (representing growth of 33-41%) at a margin of 51-52%.

But as Richard White, Chief Executive Officer and co-founder of WiseTech Global, said when congratulated on the result, he's just doing his job. And despite the stock now trading on a P/E of 165 times, he argues that unique businesses, like WiseTech, deserve a unique multiple.

"[WiseTech] is creating a valuable high-growth business with a fantastically powerful product. We've got a huge moat around us in that product space. We really have a substantial advantage, and I think people are actually pricing the growth that WiseTech has had very reliably," White says.

"WiseTech is very unusual in that it's very high growth. It's quite substantial in that as an Australian company, it's a world leader, and it's very, very profitable and cash generative. Those things are quite unique and really good businesses have really good multiples."

While some investors may argue that everything has a price, WiseTech Global continues to defy gravity - with its share price up 240% over the past five years. Since listing, the company's share price has soared 2,719.45% - making its founders (and early investors) some of the richest people in Australia.

The company continues to invest in innovation - revealing it is developing three new products as we speak, and is steadfast on nurturing the next generation of tech leaders by hiring hundreds of students straight out of school and paying their way through university.

"We're a product-led company. We've got great innovation. We are building things that revolutionise the marketplace. These are breakthrough products," White says.

WiseTech also has more than $120 million in cash on its balance sheet and $500 million in undrawn debt facilities - a "war chest" that the company can use if it needs it, but it's not "burning a hole" in WiseTech's pockets.

So, why has White been selling shares over the last few years? After all, he's sold north of $300 million worth of shares in 2024 alone.

In this interview, White takes investors through the company's latest result, shares why there are likely to be further major contract wins on the horizon (particularly in Asia), and outlines how the company is using automation to trim the fat within the business. He also shares the company's growth plans over the next 12 months and explains why he has been selling shares in recent years. 

Timecodes

• 0:00 - Intro 
• 0:30 - Key figures investors need to be aware of 
• 2:03 - How investors should think about valuing WiseTech 
• 3:37 - Sales momentum set to continue in FY25
• 4:30 - Impact of global trade disruption on WiseTech's business
• 5:06 - Cost-cutting program and use of automation
• 6:34 - WiseTech's war chest 
• 8:01 - Impact of new product releases on WiseTech's bottom line 
• 8:56 - On selling down stock 
• 11:38 - How WiseTech will achieve its FY25 guidance