The Whispir Ltd (ASX: WSP) share price is on watch following the release of the software provider's first-half results.
Whispir listed on the ASX in June last year in an oversubscribed $47 million IPO. Shares were issued at $1.60 and reached a high of $1.99 in October before trending down.
Whispir shares were trading at $1.46 at close of market yesterday and have remained flat this morning.
Whispir's business
Whispir provides a SaaS communications workflow platform to enterprise customers. The Whispir platform is used by more than 500 organisations globally to automate interactions between businesses and people.
Telstra Corporation Ltd (ASX: TLS) uses the platform to communicate rapidly with customers and staff, Qantas Airways Limited (ASX: QAN) to manage critical incidents, and New Zealand police to engage with the hearing impaired community. Key markets are Australia, New Zealand, Asia, and the United States.
Whispir's first-half results
Whispir's first-half revenue increased 20% to $18.2 million from $15.1 million in H1 FY19. Software contributed $17.4 million, up 24% from the prior corresponding period (pcp), while professional services revenue contributed $0.76 million, down 25% from $1.01 million in H1 FY19. Gross profit increased 19% to $11.2 million this half from $9.5 million in the pcp.
Whispir reports recurring software revenues grew 24% from H1 FY19 to close with annualised recurring revenue (ARR) of $36.7 million. ARR per customer also increased, growing 17% higher to $72.1k. The lifetime value of the customer base as at 31 December 2019 was $222 million, up 26% from 30 June 2019.
Total operating expenses of $16 million were reported, representing an increase of 9%. $7 million was spent on sales and marketing, $2.1 million on research and development (R&D), and $7 million on general and administration expenses.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at -$4.8 million, 26% ahead of the prospectus forecast. Earnings before interest and tax were -$5.9 million, with depreciation and amortisation of $1.1 million reported.
Whispir reported total current assets of $27.5 million including cash and cash equivalents of $19.1 million. Total assets were $38.5 million. Meanwhile, total current liabilities were $11.4 million, while total liabilities were $15.8 million. With a well-capitalised balance sheet, Whispir is well placed to fund future growth.
Outlook
In Asia, revenues grew 26% in H1 FY20 with revenue on track to hit $6.5 million in FY20. Whispir is focused on the Singapore and Indonesia markets, with expansion planned in Thailand and the Philippines.
In America, a new vice president has been appointed to drive growth in what is Whispir's largest market opportunity.
Whispir is focused heavily on R&D with $8.9 million in R&D spending forecast for FY20, up from $8.4 million predicted in the prospectus. Of this R&D spending, $4 million will be expensed with $4.9 million capitalised.
Whispir reports that it is on track to achieve its FY20 forecast.
