The Whispir Ltd (ASX: WSP) share price is down marginally today even as the company reaffirmed its prospectus forecast. Whispir reported that many of its customers are using its platform to send business-critical communications to stakeholders during the COVID-19 pandemic.
Whispir platform used for COVID-19 communications
Whispir offers a software-as-a-service (SaaS) communications workflow platform that automates interactions between businesses and people. Many of the company’s customers are utilising the platform to activate and coordinate their COVID-19 business continuity plans. This activity is positively impacting platform utilisation from existing customers, while demand for crisis communications software during the evolving pandemic is also generating new interest from potential customers.
The Whispir platform enables organisations to send two-way interactions at scale to diverse groups of stakeholders across geographies and multiple delivery channels in real time. Communications can be swiftly updated as local conditions change and recorded for auditing purposes. This is providing traceable communications as the pandemic continues to evolve.
The platform is a business-critical communications solution during the COVID-19 maelstrom, allowing customers to effectively inform staff, clients and suppliers as the situation changes rapidly. Whispir itself has tested protocols in place to ensure it is able to continue to service customers as they respond to challenging operating environments.
CEO Jeromy Wells said, “while the impact of COVID-19 is flowing through the operating rhythms of our customers, and may change some of our traditional sales cycles, the current operating environment also provides the opportunity to assist new customers with their COVID-19 communications, incrementally introducing new customers to the platform starting with a single use case.”
On track to achieve prospectus forecast
Whispir has noted that it is well funded and remains on track to achieve its FY20 prospectus forecast of revenue of $37.84 million. The prospectus forecast calls for earnings before, interest, tax, depreciation and amortisation (EBITDA) of negative $9.4 million, which would be an improvement of 14.5% on FY19.
In its recent half-year results, Whispir reported revenues of $18.2 million, up 20% on the prior corresponding period. Annualised recurring revenue was $36.7 million, an increase of 22% on 1HFY19. Average recurring revenue per customer increased 17% to $72,100. EBITDA was negative $4.8 million, ahead of the Prospectus forecast by $1.6 million.
Australia and New Zealand and Asian operating segments performed strongly over the first half with revenue growth of 22% and 26% respectively. This offset the US revenue which was below expectations for the half.
CEO Wells said, “our strong performance in the first half reaffirms we are on track to deliver our FY20 Prospectus forecast, having achieved or outperformed key financial metrics. We continue to see significant growth opportunities, particularly in Asia and the US.”
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Motley Fool contributor Kate O'Brien 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.