The Whispir Ltd (ASX: WSP) share price has started the week in a positive fashion following the release of its fourth quarter update.
In morning trade the communications workflow platform provider's shares are up 8% to a record high of $3.62.
This means the Whispir share price is now up 130% since the start of the year.
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How did Whispir perform in the fourth quarter?
Whispir had a very positive fourth quarter thanks to strong demand by new and existing customers during the COVID-19 pandemic.
According to the release, the company's annualised recurring revenue rose 4.2% over the March quarter and 35.7% over the prior corresponding period to $42.2 million. This was driven by strong growth in the ANZ and Asia regions.
Quarterly customer cash receipts came in at $11.3 million, up 27% on prior quarter and 36.5% on prior corresponding period. Also catching the eye was its customer revenue retention, which was an impressive 124.1%.
Whispir also reported the second consecutive quarter of record customer growth, acquiring 72 net new customers during the quarter. Management advised that this was driven by organisations looking to adopt more sophisticated yet easy-to-use communications systems.
This growth is also being supported by its easy integration with existing IT systems and the new ready-to-use return to work templates. These ensure compliance with government COVID-19 regulations.
At the end of the period, total customers numbered 630. This includes the Victorian Department of Education, PersonaTech and Mt Buller Ski Resort.
Pleasingly, tight cost control and significant growth in customer receipts through the quarter means that net cash used in operating activities reduced to just $0.1 million. This left it with a cash and equivalents balance of $15.2 million, which it believes leaves it well funded to execute its international growth strategy.
Outlook.
In light of this strong form, the company advised that it is on track to deliver all key FY 2020 prospectus forecast metrics.
Whispir's CEO, Jeromy Wells, commented: "We've had a strong finish to the FY20 financial year despite unprecedented operating conditions. Our strong performance over the fourth quarter has been driven by increased platform utilisation from our existing customer base, particularly in ANZ and Asia, as well as significant new customer growth. This has offset some changes in traditional communications and transaction volumes from some customers within industries that have been hardest hit by COVID-19 restrictions."
The chief executive also notes that the Whispir platform is helping businesses during these turbulent times and appears optimistic on the future.
He added: "With current turbulent operating conditions constantly evolving, our customers realise how important it is to have a system that enables them to communicate effectively at scale to diverse stakeholder groups through multiple channels. Our ability to integrate with existing IT systems is a significant differentiator for our technology, enabling new customers to start using the platform within a day and without IT expertise."
"Our increased focus on enhancing the platform's AI, machine learning and data intelligence capabilities will continue to add value for our customers, ensuring they deliver timely and contextually-relevant information to stakeholders in their preferred delivery channel," Mr Wells concluded.
