Whispir Ltd (ASX: WSP) shares could be one to follow today after the company reported its quarterly update for December 2020.
What does Whispir do? It describes itself as a SaaS (software as a service) company that provides a communications workflow that automates interactions between organisations and people. It provides the tech for some of those automated chats that you might have with a business online. It operates across Australia, New Zealand, Asia and North America.
Here’s what Whispir reported
Whispir reported that its annualised recurring revenue (ARR) was $47.4 million at the end of the second quarter of FY21, 29.2% higher than the prior corresponding period, and up 8.5% compared to the September 2020 quarter.
Quarterly cash receipts of $11.3 million were 8.2% higher than the first quarter of FY21. It was the first quarter that the company was cashflow positive, at $0.4 million.
The tech company said that it acquired 42 net new customers during the quarter, bringing total customers to 707 by the end of the second quarter. Customer numbers are currently ahead of FY21 expectations. ANZ and Asia continues to account for most of the new customer growth.
Whispir said that there was ongoing demand for communications software to automate processes and improve stakeholder engagement. Existing customers customers were the main drivers of this reported growth, with increasing platform usage.
Management comments
Whispir CEO Jeromy Wells said: “Many organisations are evolving processes to cater to new operating environments, which require more integrated communications with internal and external stakeholders.
“Strong revenue growth from our install base reflects the long-term nature of our customers, now supported by a larger customer success team. We’re seeing more organisations looking to implement our versatile and easy-to-use technology platform that can be used by multiple departments for a broad range of communication solutions.”
Outlook and summary thoughts
Whispir said that it remains on track to achieve its FY21 guidance. The ANZ and Asia operations continue to perform well, and the recently released North American strategy is preparing the company for long term growth in the region.
COVID-19 may have helped accelerate the company’s growth in recent times. And it could be one to continue to watch, if it can remain the best available offering for customers. So I hope the company keeps investing and ensuring it’s ahead of the curve.
There are other ASX growth shares in the tech space that could be also be worth watching like Pushpay Holdings Ltd (ASX: PPH).
