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Summary
- ASX200 listed stock, Whispir, the global-scale SaaS provider, has embraced COVID-19 headwinds, and has generated a miraculous return of 210.42 per cent over the last six months.
- An emerging SaaS minnow, Whispir has capitalised on the burgeoning need for auditable and secure communication software, which entails no IT expertise to use it and can also be deployed across multi-delivery channels.
- Whispir, with its robust financial performance during FY20 plans to continue its focus on strategic investment towards considerable increment in its global footprint; acquisition of new clients; expansion of channel partners and amplification of its platform capability, as well as functionality.
- The Company further expects FY21 EBITDA in the range -AU$6.2 to AU$4.8 million, R&D cash investment in the range AU$9.2 -AU$9.8 million and revenue in the range AU$47.5 - AU$51 million.
Numerous ASX-listed technology companies have turned the corner by witnessing a remarkable growth in their businesses during the highly uncertain times brought about by COVID-19 pandemic.
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Australia’s S&P ASX All Technology Index (ASX:XTX) has been promising since its launch in February 2020. However, on 27 August 2020, XTX noted a marginal rise of 0.56 per cent and was trading at 2,525.8 (at 12:29 PM).
Notwithstanding the COVID-19 turbulent waves, ASX200 listed stock, Whispir Limited (ASX:WSP), an emerging SaaS minnow, has generated an awe-inspiring return of 210.42 per cent over the last six months. On 27 August 2020, Whispir share price was trading at AU$4.63, indicating a rise of 3.579 per cent (at AEST 12:28 PM).
Also, the stupendous 6-month return of Whispir share price is followed by the positive business updates during the last few months, showcasing inflated earnings, and continuous uptake of its products across the globe during the COVID-19 pandemic period.
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Founded in 2001, Whispir is engaged globally in the business of offering communications workflow platform to its client base, facilitating automatised interactions between firms and individuals.
Notably, its clients use the Company’s software to generate multiparty, interactive, and multichannel communications from templates, which further solve both simple as well as complex communications workflow tasks.
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Impressive financial performance during FY20, exceeding prospectus forecasts
On 26 August 2020, ASX listed stock, Whispir unveiled its FY20 bolstered business performance for the period ended 30 June and highlighted that the businesses either achieved or outperformed all key FY20 prospectus forecasts.
Whispir’s revenue noted an impressive y-o-y increase of 25.5 per cent and stood at AU$39.1 million, exceeding prospectus forecast of AU$37.8 million. The swelled revenue was driven majorly by enlarged demand for its communications software by the client’s cohort for business-critical stakeholder communications.
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Noteworthy, Whispir’s boosted performance is underpinned by strengthened annualised recurring revenue (ARR), surging by 34 per cent (y-o-y) to AU$42.2 million. ARR witnessed enlargement primarily due to soared platform usage by installed base, as well as considerable growth of 630 new clients during the year.
Source: Company’s presentation, dated 26 August 2020
Despite the fact that COVID-19 pandemic has impacted businesses across varied verticals, it has also augmented the adoption trend of ready-to-use yet revolutionary communication software. As per Whispir, the accelerated shift resulted in its y-o-y growth across Australia, New Zealand, and Asia market.
Source: Company’s Annual report, dated 26 August 2020
Notably, amid slow growth of North American business in FY20, Whispir is making constant efforts to boost its footprint with new go-to-market initiatives with channel partners AWS and Vonage.
Whispir’s net loss after interest and tax was noted at AU$9.9 million. The Company’s EBITDA enhanced by AU$6.7 million (y-o-y) and stood at AU$7.3 million, demonstrating inflated operational efficiency as well as productivity.
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Additionally, Whispir’s customer churn (number of consumers lost in the period divided by the number of operating customers in the period) during FY20 was noted of 7 per cent, materially below the prospectus forecast of 11 per cent. The reduced churn is ascribed to the stickiness of the Company’s platform.
Furthermore, Whispir also divulged its bolstered financial position with AU$15.2 million cash and cash equivalents, as on 30 June 2020 versus AU$26.8 million noted in FY19.
It is worth noting that the Company invested (on a cash basis) AU$8.8 million in R&D (Research and Development) during FY20, which resulted in 81 new platform features, a new user interface, and boosted data as well as analytical capabilities.
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Outlook for FY21
Whispir is believed to lay emphasis on continuously implementing its long-term growth plan comprising of considerable increment in its global footprint; acquisition of new clients; expansion of channel partners and amplifying its platform capability, as well as functionality.
Despite the COVID-19 induced uncertainty across the business and economic environment, Whispir provided the earnings guidance for FY21 and anticipated the following-
- Revenue between AU$47.5 - AU$51 million;
- ARR at the end of the year to strike between AU$51.1 - AU$55.3 million;
- Cash investment in R&D between AU$9.2 -AU$9.8 million and
- EBITDA in the range of -AU$6.2 to AU$4.8 million.
Whispir’s capital light business and recurring revenue growth model, with a continued focus on the implementation of the strategic opportunities to expand the business footprint and platform capability and functionality makes the Company an interesting stock.
