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Whispir delivers another impressive quarter of growth for Q2FY22

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Shannon Brien

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21 Jan 2022
4 min read

Whispir Limited (Whispir or Company) provides its Appendix 4C Cash Flow and Activity Report for the Quarter ending 31 December 2021 (Q2 FY22 or the Quarter). Highlights

  • Annualised Recurring Revenue (ARR) of $60.0 million, up 26.6% on the prior corresponding period (PCP)

  • Cash receipts for the Quarter of $25.4 million; 56.2% higher than Q1 FY22, a 124.6% increase on PCP

  • New customers acquired during the Quarter increased by 119% on PCP 

  • New customers with high-growth potential signed across all regions during the Quarter

Quarterly performance

Whispir has delivered another strong Quarter with a significant boost in new customers acquired.  Both new and existing customers are driving increased utilisation of the Whispir platform and generating many new use cases. This is evidenced by the continued strong growth in ARR and cash receipts during Q2 FY22.

ARR has increased 26.6% over PCP to $60.0 million, up 5.6% on the first Quarter.

Net cash used in operating activities for the Quarter was $3.1 million, in line with expectations and broadly consistent with Q1 FY22. Whispir ended the Quarter with a strong cash and equivalents balance of $38.1 million and no debt.

Quarterly cash receipts increased 56.2% on Q1 FY22 to $25.4 million. Managing COVID was a key driver for growth, particularly for government customers across Australia and New Zealand. These tailwinds continue to reinforce the valuable role Whispir plays in keeping organisations and communities connected as they navigate the challenges of COVID.

Operating cash outflows for the Quarter increased 49.0% over PCP to $28.6 million. This growth is in line with expectations and largely reflects the increase in cost of sales to support revenue growth, together with the planned investment in sales and marketing activities, and the Whispir platform.

A key focus for the Quarter has been the successful establishment of an Inside Sales function. 

“Our sales function continues to mature, and the investment in our people is producing serious results. Over the past Quarter we have acquired new customers with high-growth potential in North America, ANZ and Asia,” said CEO and Founder, Jeromy Wells.

“As announced to the market in December, the Singtel deal provides us with an unmatched competitive advantage in the APAC market and confidence that our strategy and product roadmap are absolutely aligned to the aspirations of large enterprise customers.”

Payments to related parties and their associates totalled $0.2 million comprising Non-executive Directors fees and expenses and the CEO's base remuneration and expenses for the Quarter.

Regional Customer Growth

Gross new customer growth for the Quarter was well ahead of plan, including a significant uplift across ANZ, Asia and North America, and represented an overall increase of 119% compared to the PCP.

ANZ secured 74 new customers by continuing to leverage trusted relationships with our channel partners and included several enterprise contracts - a major federal government customer and a state-based utility company.

Asia is showing signs of recovery after being significantly impacted by COVID throughout FY21 and Q1 FY22. In addition to the recently announced Singtel deal, the region acquired 19 new customers with many based in Indonesia and the Philippines.

“The recently announced Singtel deal validates that we are leading the market when it comes to security, privacy, scalability and resilience and this approach can be leveraged for new and existing customers, across all our markets,” commented Jeromy Wells.

North America signed 34 new customers in Q2, including a major insurance provider. Our new digital presence with region-specific content, case studies, and pricing, has led to increased sales and pipeline growth. This improved sales productivity in the Quarter was generated from a mix of the direct sales team and aligned channel partner sales activity, which continue to focus on core industry personas.

“The global megatrend of digital transformation occurring in all regions is expected to endure for many years, and we are well placed to support enterprises as they transition to new ways of working,” commented Jeromy Wells.

Product Roadmap

Investment in Data and Artificial Intelligence has enabled Whispir to provide its customers with relevant and timely communication functionality. The ‘Tone of Voice’ feature was successfully launched in the Quarter, enabling customers to craft SMS messages that reflect their brand, identity, and unique personality, providing for engaging and dynamic content.

Outlook

Whispir had an impressive Q2 and remains on track to deliver results in line with previously provided FY22 guidance.

Jeromy Wells said, “We continue to attract quality talent to ensure our communications intelligence platform and product roadmap will continue to evolve and deliver the highest engagement rates across an ever-expanding range of channels. 

The growth we have experienced throughout the Quarter reinforces that our people and product strategy is delivering results. From significant enterprise customer wins to our impressive growth in new customers, particularly in North America, we continue to diversify and de-risk our business.

Enabling our customers to manage their COVID responses and communications has contributed to our improved performance this Quarter. In working with our customers to provide communications intelligence during the pandemic, we are becoming their trusted partner in navigating the new normal. The expansion in use cases goes far beyond the needs of managing COVID, particularly as we become embedded in our customer’s operations.”

Half-year results and investor presentation will be released on Tuesday, 22 February 2022.

Authorised by the Disclosure Committee.

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