VOL. XCIV, NO. 247

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Monday, December 29, 2025

WiseTech Global Limited

WTC · ASX

Market cap (USD)$15.4B
SectorTechnology
CountryAU
Data as of
Moat score
86/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

WiseTech Global is a logistics software company whose core business is CargoWise, an enterprise logistics execution platform for freight forwarders, customs brokers and 3PLs. The primary moat is switching costs driven by deeply embedded workflows and a unified global data model, reinforced by an ecosystem of partners and trained practitioners that supports implementations and retention. A newer bundling/usage-based commercial model (CargoWise Value Pack) is designed to broaden adoption and increase suite penetration. WiseTech also acquired e2open in August 2025, aiming to extend into a multi-enterprise supply chain network and leverage combined datasets, with execution and integration risk as key watch items.

Primary segment

CargoWise

Market structure

Oligopoly

Market share

96% (reported)

HHI:

Coverage

3 segments · 7 tags

Updated 2025-12-29

Segments

CargoWise

Enterprise logistics execution software for freight forwarders, customs brokers and 3PLs (CargoWise platform)

Revenue

87.6%

Structure

Oligopoly

Pricing

strong

Share

96% (reported)

Peers

DSGXKXS.TOMANHORCL+1

Non-CargoWise acquired platforms (legacy)

Legacy logistics software platforms acquired since 2012 that are not part of CargoWise revenue (maintenance + residual services)

Revenue

12.4%

Structure

Competitive

Pricing

weak

Share

Peers

DSGXORCLSAP

e2open (multi-enterprise supply chain applications & network; acquired)

Multi-enterprise supply chain software and network (planning, visibility, execution) spanning shippers, suppliers, carriers and logistics partners

Revenue

Structure

Oligopoly

Pricing

moderate

Share

Peers

DSGXKXS.TOMANHORCL+1

Moat Claims

CargoWise

Enterprise logistics execution software for freight forwarders, customs brokers and 3PLs (CargoWise platform)

FY25 total revenue was 778.7 and CargoWise revenue was 682.2 (company reporting). revenue_share computed as 682.2 / 778.7.

Oligopoly

Data Workflow Lockin

Demand

Strength: 5/5 · Durability: durable · Confidence: 4/5 · 3 evidence

CargoWise is used to execute mission-critical logistics workflows on a unified data model; persistent high recurring revenue and extremely low attrition are consistent with strong operational and data switching costs.

Erosion risks

  • Major customers keep or build in-house platforms
  • Open APIs/data portability reduce switching friction
  • Extended outages or security incidents reduce trust

Leading indicators

  • Customer attrition rate
  • Net revenue retention / expansion metrics
  • Global rollout milestones for large customers

Counterarguments

  • Large forwarders can fund proprietary systems and keep them in-house
  • Competing ERP/supply chain suites can integrate cross-function workflows at enterprise scale

Ecosystem Complements

Network

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence

A partner and certification ecosystem (implementation partners, education partners, and trained practitioners) lowers onboarding friction and supports implementations, reinforcing adoption and retention.

Erosion risks

  • Partners and integrators also support competing platforms
  • Training/certification value declines if workflows/UI change too fast

Leading indicators

  • Certified practitioner count
  • Partner agreement count
  • Partner-led implementation mix

Counterarguments

  • Large vendors can subsidize partner ecosystems and training programs
  • Ecosystem advantages weaken if customers standardize around generic integration layers

Suite Bundling

Demand

Strength: 4/5 · Durability: medium · Confidence: 4/5 · 3 evidence

The CargoWise Value Pack shifts toward a bundled, per-transaction commercial model that packages a broad set of capabilities under a single price, encouraging wider module adoption and simplifying purchasing.

Erosion risks

  • Customers resist bundled pricing if perceived as a price hike
  • Best-of-breed point solutions outperform bundled modules
  • Competitors respond with aggressive discounting

Leading indicators

  • Value Pack adoption rate
  • Average number of modules/features actively used per customer
  • Gross retention / churn after pricing changes

Counterarguments

  • Bundling can increase scrutiny of total cost of ownership and invite switching
  • Point solutions can win on depth/innovation in specific functions

Non-CargoWise acquired platforms (legacy)

Legacy logistics software platforms acquired since 2012 that are not part of CargoWise revenue (maintenance + residual services)

Non-CargoWise revenue is defined by the company as revenue from acquired businesses since 2012 not included in CargoWise revenue.

Competitive

Legacy installed-base tail

Demand

Strength: 2/5 · Durability: fragile · Confidence: 4/5 · 2 evidence

Residual revenue persists from acquired non-CargoWise products due to customer inertia and migration timelines, but is expected to contract as legacy platforms are consolidated/sunset.

WiseTech defines Non-CargoWise revenue as acquired businesses not included in CargoWise; management signals contraction from older acquisitions, implying limited long-term defensibility.

Erosion risks

  • Accelerated migration and sunset of legacy products
  • Local competitors displace legacy systems

Leading indicators

  • Non-CargoWise revenue trend
  • Number of platforms migrated or sunset

Counterarguments

  • This segment is a declining tail rather than a durable moat; customers can exit as contracts expire

e2open (multi-enterprise supply chain applications & network; acquired)

Multi-enterprise supply chain software and network (planning, visibility, execution) spanning shippers, suppliers, carriers and logistics partners

Segment represents the e2open business acquired by WiseTech (acquisition completed 2025-08-04).

Oligopoly

Two Sided Network

Network

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence

WiseTech positions e2open as enabling a multi-sided marketplace connecting customers and suppliers for digital straight-through processing, implying network-effect potential if participation and transaction volumes scale.

Erosion risks

  • Participants multi-home across competing networks
  • Integration and product rationalization reduce perceived value
  • Standard APIs reduce the need for a single network

Leading indicators

  • Active participants (shippers/suppliers/carriers) on the network
  • Transaction or message volumes
  • Customer retention and renewal rates post-integration

Counterarguments

  • Network effects are weaker if customers can connect via generic integration platforms
  • Large enterprises can stitch point solutions together and avoid single-vendor lock-in

Data Network Effects

Network

Strength: 3/5 · Durability: medium · Confidence: 2/5 · 2 evidence

WiseTech highlights potential to combine WiseTech and e2open datasets and monetize aggregated indicators; the moat depends on execution, data rights, and willingness-to-pay for data products.

Erosion risks

  • Data privacy/regulatory constraints on aggregation and resale
  • Low willingness to pay for indicator products
  • Competitors offer similar datasets

Leading indicators

  • Launch of data-indicator products
  • Number of paying data customers
  • Coverage breadth and update frequency

Counterarguments

  • Data products can commoditize; customers may rely on public or diversified data sources
  • Network/data advantages may not translate to durable pricing power without exclusive rights

Evidence

other
WiseTech Global Annual Report 2025 - Differentiation

single, global, database across multiple users, functions, offices, corporations, currencies, countries and languages.

A single global database and embedded workflows imply deep process and data lock-in for customers.

other
WiseTech Global Annual Report 2025 - Retention

98% recurring revenue and exceptionally low attrition (<1% for 12 consecutive years).

Long-run attrition under 1% indicates high switching costs and mission-criticality.

earnings_call
WiseTech FY25 Results Transcript

CargoWise revenue ... with recurring revenue at 99%.

Management reiterates a highly recurring revenue profile, consistent with stickiness.

other
WiseTech Global Annual Report 2025 - Partners & certifications

716 Partner agreements ... and ~41,000 certified CargoWise practitioners

The scale of partners and trained practitioners indicates a meaningful complement ecosystem around the platform.

other
WiseTech Global Annual Report 2025 - Network effect

This network effect strengthens customer retention, accelerates rollouts, and lowers onboarding friction.

The company explicitly links its ecosystem/network effects to retention and rollout speed.

Showing 5 of 15 sources.

Risks & Indicators

Erosion risks

  • Major customers keep or build in-house platforms
  • Open APIs/data portability reduce switching friction
  • Extended outages or security incidents reduce trust
  • Partners and integrators also support competing platforms
  • Training/certification value declines if workflows/UI change too fast
  • Customers resist bundled pricing if perceived as a price hike

Leading indicators

  • Customer attrition rate
  • Net revenue retention / expansion metrics
  • Global rollout milestones for large customers
  • Certified practitioner count
  • Partner agreement count
  • Partner-led implementation mix
Created 2025-12-29
Updated 2025-12-29

Curation & Accuracy

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