Whispir (ASX:WSP) share price wobbles as cash receipts grow 125% in Q2

Here’s a closer look at how Whispir fared in the second quarter…

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The Whispir Ltd (ASX: WSP) share price is seesawing on Thursday morning.

The cloud-based communications company’s shares shot up almost 4% to $2.70 soon after the market open. However, they have since retreated and at the time of writing are swapping hands at $2.56, down 1.54% on yesterday’s closing price. This follows the release of Whispir’s second-quarter FY22 update.

Let’s take a closer look at how the company performed in the December-ending quarter.

Whispir share price gets a boost from quarter of growth

  • Annualised recurring revenue (ARR) up 26.6% year-on-year to $60 million
  • New customer growth increased 199% year-on-year with 127 new customers
  • Cash receipts up 125% from prior corresponding period to $25.4 million
  • Reaffirms previously upgraded FY22 guidance
  • Half-year results and presentation are slated for 22 February 2022

What happened in the second quarter for Whispir?

The Whispir share price has been up and down this morning as investors digest the company’s quarterly update. Positively, the release highlighted a period of growth for its operations.

According to the update, Q2 involved a significant boost in new customers acquired. Across the company’s various regions, new customers added reached 127.

Additionally, both new and existing customers drove increased utilisation of the Whispir communications platform. This underpinned solid growth in ARR and cash receipts during the second quarter.

Specifically, ARR increased 26.6% year-on-year to $60 million. Whereas, cash receipts witnessed a substantial 124.6% increase to $25.4 million. However, the company still burned through $3.1 million of cash through its operating activities.

At the end of December Whispir remained debt-free with a further $38.1 million of cash and equivalents to its name.

Management commentary

Speaking to shareholders, CEO and Whispir founder Jeromy Wells said:

Our sales function continues to mature, and the investment in our people is producing serious results. Over the past quarter we have acquired new customers with high-growth potential in North America, ANZ and Asia.

As announced to the market in December, the Singtel deal provides us with an unmatched competitive advantage in the APAC market and confidence that our strategy and product roadmap are absolutely aligned to the aspirations of large enterprise customers.

Whispir share price in review

The last 12 months have been a painful time for shareholders. While the S&P/ASX 200 Index (ASX: XJO) has gained around 8%, the Whispir share price has tumbled 34%.

According to past releases, Whispir took a hit to its operations at the hand of COVID-19. As the company has explained, the unforgiving virus has created delays to Whispir’s activations with new customers.

However, the company has been bouncing back more recently. In the past month, the Whispir share price has accrued a 46% gain.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns 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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