WiseTech plunges 20pc as deals squeeze margins

Tess BennettTechnology reporter

Updated Aug 23, 2023 – 5.27pm, first published at 9.22am

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Key Points

Why it matters: WiseTech is the most valuable largest technology company on the ASX.
Revenues rose to $819.8 million, but its EBITDA margin was squeezed.
WiseTech lifted its dividend 31 per cent to 8.4¢.

Freight software provider WiseTech Global wiped out $5.6 billion of its market value after warning shareholders that earnings this year will be lower than expected, and a return to an acquisitive growth strategy would pinch profit margins.

Its shares dropped 20 per cent to $69.60 on Wednesday despite the company reporting a 9 per cent jump in full-year profit to $212.2 million, and a 29 per cent increase in revenue to $819.8 million for the 2023 financial year.