The Whispir Ltd (ASX: WSP) share price is pushing higher on Wednesday.
This follows the release of a strong quarterly update by the communications workflow platform provider, which has helped its shares avoid the tech selloff.
At the time of writing, the Whispir share price is up 2% to $1.54.
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Whispir share price higher on strong quarterly growth
- Annualised Recurring Revenue (ARR) up 24.1% year on year to $62.4 million
- Quarterly cash receipts up 81.6% over the prior corresponding period to $19.8 million
- Free cash outflows for the quarter of $5.6 million
- Cash on hand of $31.2 million
What happened during the quarter?
For the three months ended 31 March, Whispir reported an 81.6% increase in quarterly cash receipts to $19.8 million. And while this was down 22% on the previous quarter, it was in line with management's expectations. It notes that the previous quarter benefited from COVID vaccine rollout programs.
Despite this, the company's ARR grew both quarter on quarter and year on year. Whispir ended the period with ARR of $62.4 million, up 4% from the end of December and 24.1% from a year earlier. This was supported by the addition of 82 new customers during the period.
Another positive was that Whispir's cash outflows reduced as cost efficiencies and savings were realised. The company reported free cash outflows for the quarter of $5.6 million, which was in line with expectations. This was driven largely by a 47% reduction in administration and corporate costs to $2.2 million.
Whispir's Founder and CEO, Jeromy Wells, commented: "We have had an exceptional three quarters, and I fully expect our sales momentum to continue into the last quarter, which is traditionally the strongest quarter of the year for Whispir. Our sales momentum, combined with savings delivered from operational efficiencies, provide line of sight to sustainable profitable operations."
Outlook
Also supporting the Whispir share price today was the company's outlook statement.
Management revealed that the company continues to be on track to meet its FY 2022 guidance, with revenue trending towards the upper end of the guidance range to $68 million.
