Communications workflow platform Whispir (ASX: WSP) has confirmed it met or exceeded all key FY20 metrics in its first full-year results.
Increased platform usage from existing customers saw revenue rise 25.5% in FY20 to $39.1m – $1.3 million ahead of Prospectus forecast. Asia and Australasia were the main revenue growth drivers, up 44% and 24% respectively.
Annual Recurring Revenue (ARR) was up 34% in FY20 to $42.2 million, while increased operational efficiency and productivity improved Whispir’s EBITDA performance by $2.1m to $(7.3m). Gross margins remained in line with expectations at 62.5%.
Demand for communications software due to COVID-19 and digital transformation projects saw Whispir onboard 120 net new customers during the year. At the same time, revenue churn reduced to only 2.4% while customer churn was also significantly lower than forecast, at 7%.
Whispir CEO Jeromy Wells said, “While COVID-19 provided a tailwind for the business, it really just accelerated the macro trend for the adoption of easy-to-use yet sophisticated communications software.
“As businesses respond to rapidly changing operating requirements, they need to be able to communicate with all their stakeholders; employees, suppliers and customers, more effectively and Whispir has satisfied that demand.”
In a briefing to investors, Mr Wells said these new customers had yet to have an impact on the bottom line.
“Significant new customer growth in the second half is yet to have a material impact on revenue and ARR. Most new customers start by quickly deploying Whispir for one or two use cases that meet an immediate need. However, our experience shows that new customers quickly appreciate the significant benefits our cutting-edge communications workflow platform delivers, which inevitably leads to increased transactional volumes as customers deploy additional use cases.”
The mature Australia and New Zealand (ANZ) business continues to perform ahead of expectations, currently accounting for around 79% of total group revenue. Meanwhile, the company’s operations in Asia are rapidly growing with revenue increasing to $6.8m.
“Asia is well positioned to see sustained and significant revenue and customer growth over the coming year. Our strengthened team structure in the region is more effectively driving growth from existing customers while our established local channel partners enable us to cost-effectively acquire new customers.”
The rate of FY20 growth was slower for the North American business; but the company continues to sustainably increase its footprint in the region with new go-to-market initiatives with channel partners AWS and Vonage. New personnel hires in the region are expected to drive growth in FY21.
Whispir invested $8.8m on a cash basis in Research and Development (R&D) activity in FY20, representing 22% of revenue. R&D activity delivered in FY20 included a new user interface, 81 new platform features, and enhanced data and analytical capabilities.
As part of the recently announced five-year product roadmap, cutting-edge AI and IoT capabilities will further enhance Whispir’s communications workflow platform and drive the transition to a communications intelligence company. Whispir expects to invest a further $9.2 – $9.8 million in R&D in FY21.
The company provided FY21 guidance of $47.5 – $51 million in revenue, ARR in the range of $51.1 – $55.3 million and an EBITDA loss of between $6.2 and $4.8 million.
