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Why this ASX tech share has surged 10% this morning

The Whispir Ltd (ASX: WSP) share price has climbed 10% in early trade after an update from the ASX tech stock.

What did Whispir announce today?

Whispir released its Appendix 4C quarterly cash report to the market for the quarter ended 31 December 2019.

The ASX tech stock reported end of quarter average revenue recurring (ARR) of $36.7 million. That’s a 6.4% increase on the September quarter and up 16.5% on June figures.

Customer cash receipts jumped 36.5% on the prior corresponding period (pcp) to $10.1 million. Whispir attributed that to increased platform usage and improved collection performance.

The group’s cash and equivalents balance of $19.1 million was ahead of forecasts on the back of the strong quarterly performance.

Whispir shares have surged nearly 10% in early trade as investors look to buy the ASX tech stock.

The group continued to invest in research and development during the quarter. Management said this will help it remain “ahead of the market” with scalable and easy-to-integrate software.

Positively, Whispir reconfirmed its FY20 prospectus forecast with half-year earnings before interest, tax, depreciation and amortisation of -$4.5 million to -$5 million. That’s ahead of the -$6.4 million half-year prospectus forecast due to strong revenue and favourable expenditure timing.

Whispir is expecting to release its 1H FY20 results on or around 18 February. These numbers are subject to finalisation and review by the group’s auditors.

What does Whispir do?

Whispir is a leading software-as-a-service communications workflow platform that automates interactions between businesses and people.

The group raised $47 million in its June 2019 IPO at an initial price of $1.60 per share. The ASX tech stock currently boasts a market capitalisation of $167 million.

Whispir’s software platform allows organisations to use automated multi-channel communication workflows.

This allows organisations to manage, automate, and optimise their communication processes without requiring specialised technical expertise.

It’s been a bumpy ride for the ASX tech stock since listing, but the Whispir share price is surging beyond the $1.60 per share mark in today’s trade and is going for $1.62 at the time of writing.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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