Australia's WiseTech cuts 2025 view amid product launch delay, governance review
WiseTech lowers FY25 revenue guidance on product launch delay
Findings clear former CEO Richard White of any wrongdoing
Shares slump 11.5%
Adds share move in paragraph 2, details on former chief Richard White's conduct in paragraphs 3-8
By Sherin Sunny
Nov 22 (Reuters) -Australian software maker WiseTech Global WTC.AX lowered its annual revenue forecast on Friday, citing a delay in the commercial launch of certain products amid governance concerns relating to its former chief Richard White.
Shares of WiseTech were down 11.5% to A$123.01, as of 0034 GMT, eyeing their worst session since mid-August 2023, while the broader benchmark ASX 200 index .AXJO was up 0.8%.
In response to allegations of misconduct, WiseTech last month said its founder, White, would step down from his position as the CEO. The company had appointed finance chief Andrew Cartledge to serve as the interim CEO during the transition.
Multiple media reports made allegations about White's personal life last month, including payments to a past sexual partner.
An ongoing external governance review, which includes an investigation into White's conduct, found there was no evidence that any required matters had not been disclosed to the board.
The initial findings largely cleared White of any wrongdoing, though the review acknowledged that his management style might be perceived as intimidating by some employees.
WiseTech engaged Herbert Smith Freehills and Seyfarth Shaw LLP to investigate the "current state of affairs" surrounding White, with Seyfarth Shaw concluding that "the close personal relationships set out in Mr White's disclosures were in each instance previously disclosed or known to relevant WiseTech officers and senior managers."
Meanwhile, the launch of its Container Transport Optimization product, designed to reduce freight costs and surcharges, is delayed.
WiseTech now expects its 2025 revenue in the range of A$1.2 billion to A$1.3 billion ($781 million to $846 million), compared with its prior forecast of A$1.3 billion-A$1.35 billion.
"We see other factors (potentially slower roll-outs) as contributing to the revenue downgrade and will further raise concerns on lack of revenue visibility/drivers as an analyst/investor," analysts at Citi said.
($1 = 1.5359 Australian dollars)
Reporting by Sherin Sunny in Bengaluru; Editing by Shilpi Majumdar, Subhranshu Sahu and Rashmi Aich
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