Whispir (ASX:WSP) share price up 6% on solid FY21 result

Here's how Whispir performed in FY21…

| More on:
a happy investor with wide mouth expression grasps a computer screen that shows a rising line charting the upward trend of a share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Whispir Ltd (ASX: WSP) share price is climbing this morning. This follows the cloud-based communications company releasing its full-year results for the 2021 financial year.

At the time of writing, Whispir shares are up 5.93% to $2.50. It has been a challenging year for the Whispir share price. It's dropped 36% since the beginning of 2021. However, in the past 5 days, the company's value has crept up 10.8%.

Whispir share price in focus following double digit revenue growth

Here are the highlights from the company's full-year results:

  • Annualised recurring revenue up 28.5% to $53.6 million
  • Recurring revenue now represents 96.7% of total revenue, up from 95.6% in FY20
  • FY21 revenue of $47.7 million, up 22% from the prior corresponding period
  • Operating earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $4.7 million, up from a loss of $5.6 million in FY20
  • Net loss after tax of $9.65 million, a 2% improvement on FY20
  • Net new customers of 171 during the financial year, bringing the total to 801 in FY21

What happened in FY21 for Whispir

The market is responding positively to the Whispir share price on Wednesday after the company released its full-year results for FY21. Growth metrics across the board were solid, with most financial measures indicating an increase of 20% to 30% from the prior year.

According to the release, Whispir achieved total revenue of $47.7 million in FY21 – representing an increase of 22% from the previous year. Similarly, annualised recurring revenue grew by 28.5% to $53.6 million.

This growth was underpinned by the increased usage of existing customers. In addition, new customers — to the tune of 171 across Whispir's operating regions — pushed the company's top-line result higher.

Looking at the geographic breakdown of performance — Australia and New Zealand delivered growth of 29% to $39.7 million. Meanwhile, the company's Asia and North America segments shrunk by 1% and 12% respectively.

Fortunately, the latter geographies are smaller in revenue terms to begin with. However, the challenging international growth environment may be an eyebrow-raiser for some investors.

According to Whispir, the challenging international environment reflects the impacts of COVID-19 and a pivot in its marketing strategy in North America during the year.

What did management say?

Commenting on the result, Whispir Chief Executive Officer Jeromy Wells said:

During FY21 the Whispir platform continued to scale with ARR increasing 28.5% and largely driven by increased usage amongst existing customers who are extracting more value from the platform, as well as new customer sign-ups across each region.

Additionally, regarding the company's future opportunities, Mr Wells said:

We see significant opportunity for growth in the underserved SME and SMB segments identified in North America. We have successfully delivered new customer growth in the recent half as a result of adding more capability to execute against our strategic plan and our refined persona-led strategy.

What's next for Whispir?

Looking ahead, Whispir intends to focus on increasing customer numbers, platform usage, and revenue across its operating regions. While the pandemic has produced a headwind in customer wins in Asia, it has also accelerated the digitisation of many businesses.

Additionally, the company provided guidance for FY22 for four important metrics:

  • Year-end annual recurring revenue between $65.4 million and $70 million, representing growth of 22% to 31%
  • Revenue between $57.2 million and $60.2 million, representing growth of 20% to 26%
  • Operating EBITDA loss between $15.5 million and $13 million
  • Research and development spend between $17.5 million and $18 million, representing 70% to 80% growth

Whispir share price snapshot

Unfortunately for shareholders, the Whispir share price has underperformed the S&P/ASX 200 Index (ASX: XJO) by a significant margin over the past year.

The benchmark index returned 21.8% as it recovered from the crash in March 2020. Meanwhile, shares in the communication platform have tumbled 50.6% during the past year.

Whispir currently holds a market capitalisation of $275.9 million.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

More on Share Market News

A man has computer-generated images rushing through his head indicating an AI (Artificial Intelligence) concept of a communication network.
Technology Shares

ASX investors are obsessed with Nvidia shares! Here's why

The global chipmaker reported a 94% increase in annual revenue in the third quarter.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another disappointing day for ASX investors this Thursday.

Read more »

two racing cars battle to take first place on a formula one track with one tailing the the leader and looking to overtake the car.
Opinions

Down 21% in 2024. This ASX 300 stock looks like a money-making monster

Profits are expected to plunge, but the future could still be bright.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
52-Week Lows

Down 68% from highs, this ASX 200 stock just hit a 4-year low. Time to pounce?

Is this beaten down stock a buy? Let's see what one leading broker is saying.

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Pinnacle, PWR, Race Oncology, and Vulcan shares are flying today

These shares are having a good session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Accent, Sayona Mining, Web Travel, and Weebit Nano shares are dropping today

These shares are having a tough time on Thursday. Why are they being sold off?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Market News

Insider buying alert: 3 ASX 200 shares directors are snapping up right now

Directors in some of Australia's blue-chip businesses aren't shying away from the market.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

Guess which beaten down ASX share is rocketing 11% today

Why are investors buying this beaten down stock? Let's find out.

Read more »