Shares in embattled logistics software company WiseTech Global plunged after it lowered expectations of revenue and profits for the current financial year due to the delayed release of a new product, which it blamed on the media and internal changes.
At 11.30am (AEDT) WiseTech (ASX:WTC) shares were trading at $123.15, down $15.78 or 11.4%, after trading between $112.12 and $126.59, and capitalising the company at $46.5 billion.
The company earlier updated its guidance for financial results in the financial year to 30 June 2025 (FY25), which were originally announced to the market at its FY24 results on 21 August 2024.
WiseTech said Interim CEO Andrew Cartledge and the Board, in consultation with founder Richard White, had reviewed the progress of ‘breakthrough products’ including Container Transport Optimization since 24 October, when Cartledge was appointed.
“As a result of distractions flowing from the recent media attention and the organizational changes that have subsequently been implemented, the commercial launch of Container Transport Optimization has been delayed,” the company said in an announcement to the Australian Securities Exchange (ASX).
“It is now expected to launch in the second half of FY25, resulting in a delay to anticipated revenue. WiseTech considers it appropriate to update its FY25 guidance.”
WiseTech said it now expected FY25 revenue of $1.2 billion to $1.3 billion, 15%–25% more than in FY24, earnings before interest, tax and depreciation (EBITDA) of $600 million to $660 million, 21%–33% higher, and a full year EBITDA margin of 50%-51%.
This is below guidance issued on 21 August when it forecast revenue of $1.3 billion to $1.35 billion, EBITDA of $660 million to $700 million, and an EBITDA margin of 51%-52%.
“Importantly, the Company’s expectations of the long-term value these products will create for WiseTech customers remain unchanged,” it said.
WiseTech's shares fell 25%-plus in the week before White resigned as Chief Executive on 24 October following reports of relationships with female employees and people outside the company, before recouping most of their losses.
White co-founded and owns 37.5% of WiseTech, which remains Australia's largest ASX-listed tech company by market capitalisation of $35.27 billion.
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