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Whispir (ASX:WSP) - Chief Executive Officer, Jeromy Wells
Chief Executive Officer, Jeromy Wells
Source: Robb Report Singapore
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  • A growing customer base and increased revenue stream were not enough to pull Whispir (WSP) out of a loss in its half-yearly report
  • Despite growing annualised recurring revenue by 29.2 per cent, the cloud-based software company turned a $3.4 million loss for the period ended December 31
  • All up, total revenue jumped 27.3 per cent over the half-year, bringing in $23.1 million
  • Following the mixed performance, Whispir has decided to make adjustments to its FY21 guidances by trimming EBITDA and increasing annual recurring revenue expectations
  • Investors have responded somewhat unfavourably to the announcement, with Whispir shares trading at $3.85 cents each

A growing customer base and increased revenue stream were not enough to pull Whispir (WSP) out of a loss in it half-yearly report.

While the ASX lister experienced growth across a portion of its performance metrics over the half-year to December 31, the figures were not enough to clear the company out of an overall loss for the period.

Highlights included a 27.3 per cent increase in total revenue, with Whispir collecting an extra $5 million on the prior corresponding period (pcp), bringing in $23.1 million all up.

The onboarding of 77 new customers also brought in an additional $1.3 million in new revenue for the ASX lister, taking their total client count to 707 and marking a 38.9 per cent improvement on the pcp.

Whispir says its existing customer base was a key driver of the revenue figures, with annualised recurring revenue jumping 29.2 per cent to $47.4 million on the same period as last year.

Its Australia and New Zealand market was a strong performer in terms of geography, with half-yearly revenue increasing 30.2 per cent. The company also flagged plans to increase its presence in the Asian market, with revenues up 24.4 per cent.

Net losses after interest and tax came in at $3.4 million, albeit an improvement on the $6 million loss it incurred in the prior corresponding period.

Gross margins also shrunk slightly from 60.4 per cent to 61.7 per cent with earnings before interest, taxes, depreciation and amortisation (EBITDA) clocking in at a loss of $1.8 million for the period marking an overall $2.9 million reduction compared to the pcp.

Following the half-yearly performance, Whispir has decided to make adjustments to its FY21 guidances by trimming EBITDA and increasing annual recurring revenue expectations.

“Our enterprise customers are spending more with us as they increase use cases, utilising our contemporary tools to solve more of their communications challenges,” Whispir Chief Executive Officer Jeromy Wells explained.

“We continue to execute our growth strategy and are well-positioned to deliver a strong result for FY21,” he concluded.

Investors have responded somewhat unfavourably to the announcement, with Whispir shares down 7.36 per cent trading at $3.90 cents each at 2:57 pm AEDT.

WSP by the numbers
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