Shares in Australian tech darling WiseTech Global are tanking

Manan Vatsyayana/AFP/Getty Images

Shares in WiseTech Global, an Australian software solutions provider for logistics companies, fell sharply after announcing its half year results.

A short time ago, its shares were down 22% to $11.37. The market cap still sits about $3.3 billion even after the share slump.

The company, which floated on the ASX in 2016 with IPO price of $3.35 and market cap of about $1.2 billion, posted strong growth in revenue and profit but analysts were disappointed that guidance wasn’t updated.

Total revenue for the six months was up 31% to of $93.4 million and net profit 8% higher at $15.6 million. The company declared a dividend of $1.05 a share, up from $1.

And the company expects revenue growth of 35% to 41% to between $207 million to $217 million.

RBC Capital Markets’ technology analyst Paul Mason says the results were below estimates but still showed strong organic growth.

“There appears to be an implicit downgrade to guidance that has occurred, as WTC’s guidance ranges have not changed,” he says.

The guidance now includes contributions from additional acquisitions, such as Microlistics and Intris.

CEO Richard White started the company from his basement in the 1990s with only four staff and a credit card.

Its core product is software package CargoWise One, which lets freight and shipping companies companies keep track of their goods.

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