The Whispir Ltd (ASX: WSP) share price is plummeting today after the company announced COVID-19 has impacted its performance over the 2021 financial year.
The software-as-a-service company released a business update today, stating that a resurgence of COVID-19 in Asia has stalled its activities in the region.
Right now, the Whispir share price is $2.48, 12.06% less than its previous closing price.
Let's take a closer look at today's news from Whispir.
COVID-19 causing delays
The Whispir share price is in the red after it released a business update this morning.
Despite the company announcing strong (unaudited) sales and growth for the 2021 financial year, the market has reacted poorly to the pandemic which has delayed its new customer activations in Asia.
According to Whispir's release, the delay in activations has affected its revenue for the 2021 financial year.
Whispir now expects to deliver revenue of around $47.7 million, 22% more than it brought in last financial year.
However, Whispir previously expected to report between $49 million and $51 million of revenue over the financial year just been.
Despite the trouble facing Whispir's Asian operations, the company's annual recurring revenue (ARR) has met its previous guidance.
It expects it has received $53.6 million of ARR over the 2021 financial year, 28.5% more than the prior period. Previously, Whispir said it expected to report ARR of $53 million to $55.3 million.
Additionally, Whispir expects to report $6.1 million worth of earnings before interest, tax, depreciation, and amortisation (EBITDA).
Commentary from management
Whispir's CEO Jeromy Wells commented on the news driving the Whispir share price lower, saying:
Our growing business in Asia is strategically important to medium and long-term revenue growth. A resurgence of COVID-19 in the region has been the main catalyst for today's update on FY21 revenue and earnings performance. We are confident the impact of COVID-19 is temporary, and that the revenue from our strong sales, particularly in Asia in H2FY21, will materialise in the first half of FY22.
Whispir share price snapshot
Today's fall has added to the woes facing the Whispir share price on the ASX.
Right now, Whispir's shares are trading for 33% less than they were at the start of 2021. They have also fallen 47% since this time last year.
The company has a market capitalisation of around $329 million, with approximately 116 million shares outstanding.
