Communications platform Whispir eyes profitability as revenue surges to record $70.6m

Communications platform Whispir eyes profitability as revenue surges to record $70.6m

Communications platform provider Whispir (ASX: WSP), buoyed by partnerships that have supported vaccine messaging to the Australian public, is on track to deliver an underlying profit this financial year after posting record revenue of $70.6 million in FY22.

The 48 per cent boost in revenue has been driven by increased take-up of Whispir’s communications-as-a-service model through its no-code platform that is user friendly for non-technical users.

Whispir, which describes itself as a global communications intelligence company that automates interactions between organisations and people, has been expanding outside of its dominant Australian base with key partnerships in offshore markets including Asia and the US.

While the Melbourne-based company posted a bottom-line loss of $19.4 million for FY22, which was better than expected, CEO and founder Jeromy Wells says a strong take-up of the company’s services is driving the company closer to delivering positive EBITDA, which is expected in the second half of FY23.

“Over the period we secured a number of significant customer signings, including a strategic telco partnership that will accelerate growth in the Asian market and protect our customer base in the region,” says Wells.

“Governments, enterprises and other organisations are now clearly committed to a future where digitisation plays an essential role in ensuring communications are targeted, efficient and effective.

“The benefits of incorporating artificial intelligence, algorithms and data to inform how and when to communicate are becoming clear, and this realisation continues to drive our business in all markets. Put simply, it is becoming costly for organisations not to invest in intelligent communication services.”

Whispir this year signed a three-year contract with Singapore Telecommunications (SGX: Z74) to replace the telco group’s core SMS notification systems while also enhancing App Push, Email, Voice, WhatsApp and Rich Message capability for internal users.

Despite the deal, revenues were largely flat in Asia, a result anticipated by the company as the region has been slow to rebound from COVID-induced disruptions. But Whispir says the SingTel partnership will ‘protect and increase’ the company’s position in Asia over time.

The Australian and New Zealand operations remain the company’s profit engine with revenue in these markets rising 56 per cent to $62 million, a result aided by vaccine rollouts. Whispir has partnered with major healthcare providers to deliver personalised communications during Australia’s pandemic response.

The company says government agencies are expressing interest in the capabilities offered by the Whispir platform, among them the Victoria Police through the launch of public safety transport initiative STOPIT, which enables commuters to instantly report cases of unwanted behaviour on the public transport systems.

In FY22, the Department of Education South Australia signed a 36- month contract with Whispir, enabling the department and 900 schools across the state to use the Whispir platform. Whispir’s omnichannel capabilities are used for internal communications and to contact schools, caregivers and other stakeholders for a broad range of uses.

"With leading global brands and governments continuing to endorse Whispir’s product, we are very confident about where Whispir is headed,” says Wells.

“We have a market-leading platform, a proven strategy of both onboarding new customers and increasing platform usage by existing customers, as well as an ambitious and dedicated leadership team that is ensuring we continue to drive growth while simultaneously improving efficiencies and managing expenses prudently.

“Low revenue churn combined with high net revenue retention reflects the appeal and multiple applications of the Whispir platform. We are motivated by our opportunities to scale in the year ahead and to becoming EBITDA positive in the second half of the current financial year.”

Whispir is making inroads in North America, with revenue up 38 per cent to $1.8 million. The company sees the US as its largest future market opportunity.

Whispir, which was founded in 2001 and listed on the ASX in 2019, had a solid cash position of 26.1 million and no debt at the end of June this year.

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