The Motley Fool

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.

If you're looking for more income than growth right now, check out these 3 ASX dividend shares for the right price!

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 126%) and Collins Food (up 79%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!