Why the Whispir (ASX:WSP) share price is on the rise today

The Whispir share price is gaining in morning trade, up more than 2%. We take a look at the company’s half year financial results.
The post Why the Whispir (ASX:WSP) share price is on the rise today appeared first on The Motley Fool Australia. –

Five stacked building blocks with green arrows, indicating rising inflation or share prices

The Whispir Ltd (ASX: WSP) share price is gaining today, up more than 2% in morning trade. At the time of writing, the Whispir share price has retreated slightly to $4.16, down 1.2%. 

This comes following the release of the cloud-based communication platform provider’s financial results for the half-year ending 31 December (H1 FY21).

Financial results for H1 FY21

In this morning’s ASX release, Whispir reported a 29.2% increase in its Annualised Recurring Revenue (ARR) to $47.4 million. That’s up from ARR of $36.7 million over the prior corresponding half year. The company credited most of the boost to increased activity from its existing customers.

Total revenue of $23.1 million was up 27.3% over the prior corresponding period (PCP).

Bringing 77 net new customers aboard during the half-year, Whispir reported it now has 707 customers, an increase of 38.9% from the first half of the 2020 financial year.

Earnings before income, taxes, depreciation and amortisation (EBITDA) was $(1.8) million. Though still negative, this represents a 61% improvement year-on-year.

Commenting on the results, Whispir’s CEO Jeromy Wells said:

Our Australia and New Zealand (ANZ) operations continue to outperform our expectations with revenue increasing 30.2% over the PCP. Our enterprise customers are spending more with us as they increase use cases, utilising our contemporary tools to solve more of their communications challenges. This region is also experiencing strong growth in new customers as organisations look for platforms that can be implemented quickly to digitise their business communications…

In line with our five-year product roadmap, we continue to add new features and functionality to improve user experience. Enhanced platform functionality with AI-inferred insights will enable us to better serve our existing customers with additional data driving more valuable, higher margin products and supporting our transition to becoming a communications intelligence company.

Whispir spent $4.6 million on research and development (R&D) during the half-year to deliver its five-year product roadmap. The company expects to increase its R&D expenditures in the second half of the 2021 financial year.

Looking ahead, Whispir upgraded its guidance of the FY21 EBITDA from $(6.2)–$(4.8) million to $(4.5)­–$(3.0) million.

Whispir share price snapshot

Whispir is among the star performers over the past 12 months, with shares up 198%. By comparison, the All Ordinaries Index (ASX: XAO) is down 3% over that same time.

So far in 2021, the Whispir share price is up just over 17%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Whispir Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Whispir (ASX:WSP) share price is on the rise today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!