Why is the Whispir (ASX:WSP) share price rocketing 14% higher?

It has been a good day for Whispir shares…

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

In morning trade, the cloud-based communications management systems platform provider’s shares are up 14% to $2.40.

Why is the Whispir share price rocketing higher?

Investors have been bidding the Whispir share price higher today following the release of an update on its guidance for FY 2022 ahead of its annual general meeting.

According to the release, Whispir now expects its revenue to be in the range of $64 million to $68 million in FY 2022. This represents a year on year increase of between 34% and 42%.

In addition, it is an improvement on its prior guidance of revenue in the range of $57.2 million to $60.2 million which was given just over a month ago.

But the good news doesn’t stop there. Whispir’s guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) excluding non-cash share-based payments for FY 2022 is now a loss of $11.2 million to $13.2 million. This compares to previous guidance for a loss of $13 million to $15.5 million.

What is driving this?

Management advised that Whispir is well-positioned for growth in FY 2022, predicated by its book of long-term, blue chip clients.

It notes that several new business wins, including a sizeable customer in North America, provides confidence that the sales pipeline is strong, and the product is delivering to meet the changing needs of customers across the core regions of ANZ, Asia, and North America.

Commenting on the upgraded revenue and EBITDA guidance, Whispir founder and CEO, Jeromy Wells said:

This improved forecast performance, in revenue and EBITDA, validates that our strategy is working. Our updated guidance also highlights the valuable role we’re playing in the delivery of COVID specific communications across our install base.

Our ‘return to work’ and ‘vaccine roll-out’ campaigns are clearly benefiting our top-line and they also provide an increased opportunity, for up-sell and cross-sell, introducing our platform, and our products, to an expanding customer base.

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Motley Fool contributor 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 has recommended Whispir Ltd. 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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