Listed communications workflow platform Whispir (ASX:WSP) continues to execute its growth plans, reporting a 20 percent revenue increase to $18.2 million and an EBITDA improvement of $1.6 million in its FY20 half yearly results.
Asia and Australasia were the main revenue growth drivers over the six-month period, up 26 and 22 percent respectively. Increases were recorded across all key revenue streams including subscription licenses and transactions, while gross margins were in line with expectations at 62 percent.
Whispir continued to expand the use of its platform by its existing customer base in the first half of the financial year, increasing recurring software revenues 24 percent over the half year to an annual recurring revenue of $36.7 million.
Customer recurring revenue retention of 116.1 percent shows Whispir’s more than 500 global blue-chip customers increase their use of the platform over time. Annual Recurring Revenue per customer also increased over the reporting period, up 17 percent compared to the prior corresponding period to $72,100.
At the same time, changes to the timing of operating expenditure improved Whispir’s half year EBITDA position by $1.6 million to a loss of $4.8 million.
Commenting on the company’s performance, Whispir CEO Jeromy Wells said: “We continue to execute our growth strategy, with increased use of the platform by existing customers and new customer growth in ANZ and Asia.
Our strong performance over the first half reaffirms we are on track to deliver our FY20 Prospectus forecast, having achieved or outperformed key metrics. We continue to see significant growth opportunities, particularly in Asia and the US. Asia revenue increased by 26 percent on 1H FY19, and we expect it to continue to underpin our growth in the medium term.”
Strong performances in Australasia and Asia offset US operations, where revenue was below expectations for the period.
“Now that we have our new VP of Americas, Mr Peter Gehl, on board we are confident his leadership of our US go-to-market strategy will positively impact US revenue in FY21. The US remains the largest market opportunity. We remain focused on growing sustainably in this region, utilising our channel partners to target sectors where we have a unique sales proposition, such as healthcare and government.”
Ongoing new product development and increased platform functionality saw R&D activity total $4.4 million in the first half of FY20, bringing total R&D investment over the past four years to $30 million.