Whispir cuts forecast loss

Shares in cloud communications provider Whispir has surged after it slashed its forecast losses.

Jeromy Wells, CEO of Whispir. Picture: David Geraghty

Listed cloud communications provider Whispir has slashed its forecast losses amid a surge of companies looking at how best to manage employee communications during the coronavirus pandemic.

The Telstra Ventures-backed company said it was now forecasting a full-year loss of $7.4m-$7.9m, down from the $9.4m it originally projected in its prospectus. Chief executive Jeromy Wells said the result was driven by stronger-than-expected revenue and increased cost control.

“We have managed to achieve this with substantial savings in operating costs and our revenue has improved at the same time. Working this business at scale will be substantially cash accretive, and that’s something really to look forward to,” Mr Wells said.

Investors lapped up Whispir’s upgraded guidance, with its shares surging 7.3 per cent to $2.54 on Monday. This compared with broader sharemarket gains of 1.1 per cent.

The coronavirus pandemic fuelled a spike in clients for Whispir, which already has BHP, Qantas, Telstra, Red Cross, Australia Post and the NSW and Victorian ambulance services on its books. In March, it signed up the Victorian government, which will use its technology to communicate with those exposed to coronavirus cases. Whispir expects to release its audited 2020 full-year results on August 26.