In an age where we are bombarded with communications, companies need to stand out from the crowd. With an ever growing list of channels to connect through, companies need to adapt their messaging without compromising on clarity.
Enter Whispir (ASX: WSP), a global SaaS company providing communication solutions through their workflow platform. The Company expands across 3 regions and has a worldwide customer base of 834 companies. The platform offers custom communications to build brands and encourage engagement.
With organisations seeking to consolidate their communications in an increasingly digital world, Whispir has seen 33 new customers onboard in Q1 FY22. To support this, the staff headcount has increased by more than 30 to 241. This represents growth of 25.4% compared to the prior corresponding period.
Whispir’s quarterly activity report clearly shows growth. Their loyal customers are driving sustainable growth with an annualised recurring revenue of $56.8 million for the quarter, up 31.8% compared to the prior corresponding period. Customer revenue retention is at 117.2% indicating satisfied customers who are deriving value from the products.
Cash receipts for the Company are up by 55.7% to $16.3 million, whilst operating costs come in at $2.9 million for the quarter inclusive of marketing and admin costs. The Company closed out the quarter with $43.9 million in the bank and remains well funded for growth given their cash burn rate.
In light of their enviable cash position Whispir is planning to continue development of their platform, investing in R&D to create and realise roadmap initiatives over the next two years. Investments in the platform will accelerate their API offering, integrate messaging components and Facebook conversations as well as upgrade back-end technical workflow architecture.
Strengthening their tech offering will hopefully lead to an increased lifetime value of accounts and increase customer retention.
At present, Whispir services several Australian State-based government agencies such as the Victorian Department of Health and Human Services, Queensland Health and NSW Health, to manage their communication needs. This includes communications for vaccination roll-out and, COVID-19 communications.
The flexibility of the platform means that any business in any industry can benefit. Notable customers include AIA, Suzuki, the National Rugby League and Singapore Press Holdings.
With these trends, Whispir is on track to achieve FY22 guidance figures inclusive of a 20-26% revenue increase to $57.2m-$60.2m.
Whispir CEO Jeromy Wells commented on the results: “Strategic investments across our product roadmap, sales, marketing and customer service continued during the Quarter as we onboard our new customers across ANZ, Asia and North America, while delivering better value for existing customers on the platform.
“This is a strong Quarter of growth for Whispir and we’re seeing quality sales momentum across each of our regions. As COVID related restrictions continue to ease, we’re anticipating a return of demand from customers in suppressed industries including transport and aviation. We are ramping up investment in the capability of our global team- which increased by more than 30 people over the quarter- to widen our competitive moat, improve speed to market, and over time, reduce the cost of customer acquisition.”
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