Why the Whispir (ASX:WSP) share price is surging 10% higher today

The Whispir (ASX:WSP) share price is surging higher today after renewing its agreement with Telstra Corporation Ltd (ASX:TLS)…

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The Whispir Ltd (ASX: WSP) share price has been a very strong performer on Friday morning.

At the time of writing, the communications workflow platform provider's shares are up over 10% to $4.33.

This latest gain means the Whispir share price is now up 188% since this time last year.

rising asx share price in food and consumer staples sector represented by happy face made from cut up banana

Image source: Getty Images

Why is the Whispir share price zooming higher today?

Investors have been buying Whispir shares following the release of a positive announcement this morning.

According to the release, the company has renewed its business partner agreement with telco giant Telstra Corporation Ltd (ASX: TLS).

Whispir and Telstra have agreed to extend their agreement for a further period of three years. Positively, this is on the same terms and conditions as their previous agreement.

The release explains that the agreement allows Telstra to enter into contracts with its customers for the re-sale of the Whispir platform and other services. The agreement also provides the terms under which Telstra can use the Whispir platform and services for its own internal purposes.

What else is supporting the Whispir share price?

The Whispir share price may also be getting a boost today from bargain hunters swooping in following a 7.5% decline on Thursday. The company's shares dropped following the release of its half year results.

While its results were very strong, it appears as though some investors were expecting an even stronger result or a greater upgrade to its annualised recurring revenue (ARR) guidance.

Management has narrowed its ARR guidance range from between $51.1 million and $55.3 million to between $53 million and $55.3 million. This represents a year on year increase of 21% to 31% over FY 2020's ARR of $42.2 million.

In addition, Whispir's CEO, Jeromy Wells, spoke positively about the future and its international expansion.

He said: "While ANZ currently accounts for around 81.9% of total revenues, Asia and North America are key to our longer-term growth strategy and we anticipate these markets will account for 50% of Group revenues by the end of FY23. We are sustainably building our footprint within Asia and leveraging past learnings within North America to ensure we are able to capitalise on our largest market opportunity." 

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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