Whispir Limited (ASX: WSP) listed on the Australian Securities Exchange last week. Following an oversubscribed Initial Public Offering (IPO), the company began trading with a market capitalisation of $163 million. In its first week of trading, the share price has fallen about 7%.
What Does Whispir Do?
Whispir is a SaaS (Software as a Service) technology company, offering a cloud-based platform where organisations can build customised two-way communications including SMS, voice messages, social media and email.
The platform allows content creation using methods including drag-and-drop templates and “app-like” mobile engagement reducing the requirement for complex coding. Interactions with sent communications can be readily monitored allowing users to gain valuable insights.
Whispir currently has about 500 corporate and government customers including Walt Disney Co (NYSE: DIS), Virgin Australia Holdings Ltd (ASX: VAH), Department of Jobs and Small Business, and Fire and Rescue New South Wales.
Is It A Buy?
Whispir reported revenue of $27.8 million in the 2018 Financial Year and is forecasting revenues to reach $37.8 million by the 2020 Financial Year.
What about profit you might ask?
Answering this question, the prospectus states: “Whispir has been loss making to date and will continue to make a loss through the forecast period, however we anticipate being EBITDA breakeven in the month of June 2020 (excluding non-cash share-based payments)”. Consider watching the below video to understand what EBITDA means.
Personally, I would like to see Whispir report positive EBITDA before considering purchasing shares in the company.
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At the time of writing, William does not have a financial interest in any of the companies mentioned.
