Wisetech Global Ltd (asx:wtc) Revenue Up 68%, Ebitda Up 52%, Npat Up 48%, on Track to Deliver Fy19

WiseTech Global Ltd (ASX:WTC) (OTCMKTS:WTCHF) announces revenue up 68%, EBITDA up 52%, NPAT up 48%, on track to deliver FY19.

Key statutory results 1H19 vs 1H18

- Total 1H19 revenue of $156.7m, up 68%

- Net profit attributable to equity holders of $23.1m, up 48%

- Fully franked interim dividend of 1.5 cents per share

Key performance indicators 1H19 vs 1H18

- Recurring revenue 100% for CargoWise One platform

- Annual attrition rate of and lt;1% by CargoWise One customers

- EBITDA $48.5m, up 52%

- EBITDA margin 31% (49% excluding acquisitions) (see Note 1 below)

Strong growth in revenues while expanding global platform

CEO, Richard White, said "We continued to deliver high quality growth in 1H19 with revenues up 68% to $156.7m and EBITDA up 52% to $48.5m, a reflection of our strategy to accelerate WiseTech's global growth and industry penetration, driven by geographic expansion, relentless innovation and deepening product capability, all of which saw usage by the world's largest logistics providers increase.

"The strength of our CargoWise One global platform is reflected in its 100% recurring revenue and annual customer attrition rate of and lt;1% and our EBITDA margin is 49% (excluding acquisitions)- all delivered while enlarging our reach across key trade regions and significantly expanding our pipeline of innovation. CargoWise One continues to be a unique powerhouse technology changing global logistics for the better."

Organic revenues from our existing and new customers delivered nearly half of our total revenue growth period on period. This 89% increase in growth on 1H18 reflects increased usage across our existing customer base. Continuing existing customers' revenue growth of $25.5m, delivered 84% of the 1H19 organic revenue growth. This growth was generated by:

- our large customer base increasing their use of the CargoWise One platform, adding transactions, users and geographies and moving into more modules;

- increasing usage by many of the world's largest freight forwarding groups. We now have 25 of the top 25 global freight forwarders as customers and seven of the top 25 are on, or have completed, global forwarding rollouts including DSV, DHL and Yusen;

- continued transition of customer licensing (excluding acquisitions), with 99% of CargoWise One revenues generated from On-Demand licensing;

- further growth in revenue from larger multi-region customers - 38 of the top 50 global 3PLs are now customers, yet our top 10 customers contribute only 25% of revenue (1H18: 28%); and

- all of our top 20 customers have shown revenue growth year on year and each cohort of customers from FY06 to FY18 grew revenue in the period.

Revenue from customers on acquired platforms increased by $32.8m, up over 150% period on period, including $30.6m from 26 acquisitions completed in FY18 and 1H19. Our strategic acquisitions bring seamless entry into new markets, local leadership, quality customer bases and local infrastructure and development teams which, over time, we will utilise to expand the reach of CargoWise One geographically and build globally scalable adjacencies.

Customer attrition The attrition rate for the CargoWise One technology platform continued to be extremely low, at under 1%, as it had been for the previous six and a half years since we started measuring. Our customers stay and grow their transaction usage due to the productivity of our platform.

EBITDA of $48.5m for 1H19 (more than doubled since 1H17) with a healthy margin of 31% including our acquisitions. EBITDA margin excluding acquisitions grew to 49% over the year - as we continue seeing the benefits of our disciplined and highly efficient commercial model for our core business.

Highlights from execution of strategic growth initiatives

In 1H19, we continued to execute our powerful growth levers, prioritising relentless innovation to maximise the opportunities available to us from building out our global platform and accessing new addressable markets. In addition, we acquired a further 11 leading market positions in key geographic markets for the world's manufactured trade flows and valuable adjacencies to add to our innovation pipeline that can be grown to a global scale.

As we expand geographically, we have also been widening our reach into, and across, the supply chain. Our vision is of a comprehensive global logistics execution solution for our customers, capable of managing from the first-mile road movement, connecting to long-haul air, sea, rail and road, crossing international borders, while navigating complex regulatory burdens with improved compliance, safety, visibility, predictability, manageability and productivity through deep and live data and device integration.

Moving out from our stronghold of international logistics and complex cross border compliance, we are now leveraging our innovation pipeline and putting in place the key technologies and assets to start building unassailable ecosystems. We can now accelerate the network effect of our new geographic markets and dozens of new technology adjacencies with our integrated global CargoWise One platform across 130 countries, significant multi-year innovation pipeline and the 14,000 logistics organisations who currently use our solutions worldwide.

Expansion of our global platform

We invested $51.2m and 47% of our people in product...