Australia's top software firm WiseTech slumps 10% as e2open acquisition costs weigh

By Aamir Khalid and Kumar ‌Tanishk

Aug 26 (Reuters) - ​WiseTech Global ​reported annual profit below market expectations on Wednesday, as acquisition-related interest and amortization costs tied to its e2open deal weighed on ‌earnings, sending the logistics software maker's shares down more than 10%.

Australia's ⁠largest technology company shares by market value closed 10.1% lower, becoming the top drag on ‌the benchmark ASX200, which ended ‌down 0.4%.

The $2.1 billion e2open acquisition, completed in June, to expand CargoWise beyond freight forwarding and customs into broader supply chain services came at the ​cost of higher interest and amortization charges, weighing on statutory profit.

WiseTech posted statutory net profit after tax of $178.7 million for the year ended June ⁠30, missing a Visible Alpha consensus estimate of $181.9 million, according to a Jefferies note. CargoWise revenue also ​fell short of the Visible Alpha estimate by 0.7%.

Citi flagged that consensus estimates could still drift toward the lower end of ​CargoWise's revenue growth guidance, citing uncertainty around ‌customer conversions, AI monetisation and price-increase timing, with a clearer acceleration unlikely before the second half.

"The gap between underlying and ⁠statutory NPAT is driven by acquired amortization, M&A costs, contingent consideration adjustments, and materially higher interest on the $2.4 billion of debt drawn to fund e2open," said Emanuel Ajay ⁠Datt, managing director at investment manager Datt Capital.

For fiscal 2027, WiseTech guided for revenue of $1.48-$1.54 ​billion and underlying operating earnings of $725-$780 million, up from $1.40 billion revenue and $644.5 million earnings in fiscal 2026.

Datt said the FY27 guidance range looks conservative, reflecting the product integration work ‌needed to digest the e2open business, and pointed to WiseTech's track record of beating its own guidance.

Separately, the broader logistics ‌technology sector is drawing fresh capital, with autonomous trucking company Gatik raising $200 million in ⁠a Series D funding round ‌on August 25 led ​by Qatar Investment Authority and Koch Disruptive Technologies.

(Reporting by Aamir Shaik Khalid in Bengaluru; Additional reporting by Kumar Tanishk; Editing by ‌Rashmi Aich)

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