In morning trade, the Whispir Ltd (ASX: WSP) share price is pushing higher.
At the time of writing, the communications workflow platform provider's shares are up 3% to $3.34.
Why is the Whispir share price pushing higher?
Investors have been buying Whispir's shares following the release of its third quarter update.
According to the release, at the end of March, the company's Annualised Recurring Revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was also up 5.2% since the end of the second quarter.
Management advised that this was driven by continued strong growth in net new customers. During the period, the company onboarded 43 new customers, bringing its total to 750. This is up from 558 this time last year.
Whispir also revealed a 22.5% increase in quarterly cash receipts to $10.9 million. This left it with a cash and equivalents balance of $51.7 million at the end of March. Management believes it is well-fund for growth.
Management commentary
Whispir's CEO, Jeromy Wells, said: "Our successful capital raising during the Quarter ensures we are able to fast-track our product development and increase our sales and marketing capability to scale the business faster, particularly in Asia and North America where we have large addressable target markets. In ANZ, we are successfully using our land and expand strategy to not only acquire new customers but increase platform usage by our existing customer base."
"While we are continuing to build our customer base, existing customers remain the primary driver of revenue growth. This reflects the stickiness of our platform which easily integrates with existing IT systems and can be used for multiple use cases."
Outlook
Positively for shareholders and the Whispir share price, the company is on track to achieve its guidance for FY 2021.
This morning management reaffirmed its ARR guidance of $53 million to $55.3 million and revenue guidance of between $49 million to $51 million.
It also stressed that it remains focused on executing its long-term growth strategy; increasing customer numbers, platform usage, and revenue in ANZ, Asia and North America.
Mr Wells concluded: "Our strengthened balance sheet enables us to accelerate our international expansion to support our longer-term business objectives of 50% of total group revenue being generated internationally by the end of FY23. Given the strength of our ANZ business, we're increasing our investment in technology and headcount in Asia and North America to drive customer acquisition and product-led growth."
