Whispir (ASX:WSP) shares have surged more than 10% today after the workflow communications company beat analyst expectations and achieved its first quarter with positive operating cashflow due to increased annualised recurring revenue.
The company put it down to customers increasing their use of the workflow communications platform to automate internal and external communications processes as digital disruption around the world gains momentum as businesses evolve to work more flexibly and remotely in the new operating environment.
The company released quarterly results to 31 December 2020 showing annualised recurring revenue (ARR) of $47.4 million, an increase of 29.2% on the prior corresponding period (pcp) and up 8.5% on the quarter to 30 September 2020.
Cash receipts increased 8.2% to $11.3 million. Existing customers were the main drivers of this growth, increasing platform usage to solve their communications challenges.
Revenue growth and optimal management of working capital delivered Whispir’s first operating cashflow positive quarter, at $0.4 million. Slightly lower quarterly staff costs reflect the net effect of short-term incentive payments in Q1 FY21 being offset by a higher headcount in Q2 FY21, as the business continues to prepare and invest for growth.
The company said its ANZ and Asia operations continue to perform well, and the recently released North American strategy is preparing it for long-term growth in the US, which will no doubt be buoyed by the positive market sentiment after the Biden inauguration.
Investment in product development, including AI-inferred intelligence, is supported by a cash and equivalents balance of $10.9 million as at 31 December 2020.
CEO Jeromy Wells said, “Whispir is benefitting from existing customers continuing to increase their usage of the platform to improve internal and external communications and digitise their operational processes. Many organisations are evolving processes to cater to new operating environments, which require more integrated communications with internal and external stakeholders.
“Strong revenue growth from our install base reflects the long-term nature of our customers, now supported by a larger customer success team.
“We’re seeing more organisations looking to implement our versatile and easy-to-use technology platform that can be used by multiple departments for a broad range of communication solutions. As Whispir integrates with existing IT systems and can be deployed within a matter of days without developer expertise, our platform provides an immediate and cost-effective communications solution.”
Whispir continues to expand its footprint across its three key regions and remains on track to achieve its FY21 guidance.
“As COVID-19 continues to disrupt businesses globally, it has never been more important for organisations to effectively engage with their stakeholders using contextually relevant, personalised, two-way communications. We continue to invest in our platform’s functionality, building AI-inferred intelligence to ensure our customers achieve the highest engagement rates possible.”
