The WiseTech Global Ltd (ASX: WTC) share price is down 4.7% to $18.96 this afternoon and down around 19% since the software-as-service (SaaS) delivery logistics platform handed in a marginally-softer-than-expected interim profit report.
For the half-year ending December 31 2018, WiseTech posted a net profit after tax of $23.1 million on revenue of $156.7 million, which were up 68% and 48% respectively.
The profit translated into dividends of 1.5 cents per share on earnings of 7.6 cents per share at a payout ratio around 20% of net profit. This leaves plenty of free cash flow left over for reinvestment into the business or to potentially help fund the group's aggressive growth by acquisition strategy into the future.
Despite the strong results and attractive recurring revenues generated by this SaaS business, investors sold off the stock on valuation grounds.
Others in the SaaS space widely tipped to grow profits long into the future by investors include Pro Medicus Limited (ASX: PME) and Xero Limited (ASX: XRO), but investors should be aware all these businesses trade on high book, sales, or earnings multiples only reserved for the sexiest growth stories.
