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Highlights
- Despite announcing solid results, the shares of tech firm Whispir started the week in red territory today (July 25).
- Whispir’s positive results of Q4 appear to have been countered by widespread weakness in the tech sector.
- The shares of Whispir were trading at AU$1.13 each, down 8.16% on ASX today.
Software and services company Whispir Limited (ASX:WSP) today (July 25) shared its financial result for the fourth quarter ended 30 June 2022.
Despite the solid results, the tech firm started the week in the red as its shares were trading at AU$1.13 each, down 8.16% on ASX today (25 July 2022) at 12.06 PM AEST.
The release of the company's positive quarterly update today appears to have been countered by widespread weakness in the tech sector, which has negatively impacted the share price of Whispir.
IT was the worst performing sector today, down 1.44% at 12.07 PM AEST, followed by the energy and telecom sectors.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 25 July 2022
A look at Whispir’s quarterly report
Whispir reported cash receipts of AU$16.96 million, which increased 25.9% compared with prior corresponding period (PCP).
The company's free cash outflows were AU$4.74 million, a 15.8% improvement over the prior quarter, showing that the targeted cost management programme is progressing as expected.
Whispir had AU$26.08 million in cash at the end of the quarter. It's important to note that current plans call for cash reserves always to exceed the cash burn for FY23.
It will make sure that its current cash level is enough to fund the business to achieve its stated aim of positive EBITDA (excluding share-based payments) during the second half of this financial year (FY23) by enforcing strict cost management programme.
Update on customers
Over 1,000 customers are currently using Whispir's messaging platform. This quarter, growth was seen across all regions, with North America standing out with a 16.7% increase over Q3 FY22.
Customers from North America currently make up 11.6% of the company's clientele. Customer Revenue Retention (CRR) increased 8.4% from PCP to 125.5% in June. Less than 5% customer churn continues to be within predicted ranges.
Whispir’s FY 2022 guidance
Additionally, Whispir gave the market a preview of what to anticipate from its full-year earnings.
Whispir stated that it anticipates going up to 5% over the top end of its sales estimate range of AU$64 million to AU$68 million.
The company also stated that it anticipates going up to 10% above the top (the good end) of their EBITDA loss range.
However, one minor disappointment is that its annual recurring revenue (ARR) is only anticipated at the lower end of its estimate range of AU$65.4 million to AU$70 million.
