Whispir delivers 35.7% quarterly revenue boost to $42.2m

The need to provide urgent communications during the coronavirus pandemic has delivered Whispir a revenue surge.

Whispr CEO Jeromy Wells. Picture: David Geraghty .

Shares in cloud-based communications provider Whispir are soaring on the back of the second wave of coronavirus infections.

The company signed up 72 new customers and lifted revenue by more than 35 per cent in the June quarter.

Its shares surged on the news, closing up 15.2 per cent at $3.87, marking a more than 150 per cent gain since the start of the calendar year.

The Telstra Ventures-backed company has been providing ready-made communications templates and tracking tools to customers including the Victorian Government and Mount Buller and Mt Stirling ski resorts.

The rush in clients looking to keep in touch with their own customers during the pandemic delivered Whispir a 35.7 per cent rise in revenue to $42.2m in the three months ending June 30.

 

Its quarterly customer cash receipts jumped 27 per cent on the prior quarter — and 36.5 per cent compared with the same period last year — to $11.3m. Meanwhile net cash used in operating activities fell to $100,000, while its customer retention rate remained high at 124.1 per cent.

Chief executive Jeromy Wells said the company was well on track to meet its prospectus forecasts. He attributed the increase in revenue to Whispir’s customers looking to “adopt more sophisticated yet easy-to-use communications systems” to ensure compliance with government COVID-19 regulations.

He said the company now had a total of 630 customers, including include BHP, Qantas, Telstra, Red Cross, Australia Post and the NSW and Victorian ambulance services.

“We’ve had a strong finish to the 2020 financial year despite unprecedented operating conditions. Our strong performance over the fourth quarter has been driven by increased platform utilisation from our existing customer base, particularly in ANZ and Asia, as well as significant new customer growth,” Mr Wells said.

“We have demonstrated our ability to provide fast-to-deploy, off-the-shelf and customised communications solutions for our diverse customer base,” he said.

During the quarter, Whispir invested $1.1m in research and development, in line with the previous quarter.

Mr Wells said the company had increased its focus on artificial intelligence, machine learning and data intelligence, which he said would continue to add value for customers by “ensuring they deliver timely and contextually-relevant information to stakeholders”.

Whispir floated on the ASX in June last year after raising $47m from new investors at $1.60 a share. It uses SMS messaging to direct staff to a web-link, which can host video, audio and text based messages.

Canaccord analysts Owen Humphries and Seth Hoskin are forecasting further share price increases, with a price target of $4.

“The company reports best net revenue retention of 126 per cent — upsell less churn — reflective of the strong organic revenue growth in its history, providing a strong lead for future revenue growth,” Mr Humphries and Mr Hoskin said in a note to investors.

“The company trades at a material discount (-50 per cent) to its closest listed peer Everbridge while experiencing an accelerating revenue growth profile.”