# WSP - Whispir Limited



## System (7 June 2019)

Whispir is a global scale software-as-a-service (SaaS) company, founded in 2001 to provide a communications workflow platform that automates interactions between businesses and people.

Whispir's products enable organisations to improve their communications through automated workflows to ensure stakeholders receive accurate, timely, useful and actionable insights in a manner that is sensitive to individual contexts and preferences. 

The Whispir platform is industry agnostic and is a product for all business organisations. Whispir's customers range from small organisations that have adopted the platform for a single use case and a small group of people, to large government departments servicing millions of people. Other common industries Whispir service include: banking and finance, insurance, transport and logistics, utilities, telecommunications, emergency services, education, healthcare and government.

It is anticipated that WSP will list on the ASX during June 2019.

https://www.whispir.com


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## Dona Ferentes (30 June 2020)

Whispir specialises in the development and provision of communications management systems via a cloud-based platform. The Group enables the integration of smart applications and micro communications services into existing workflow solutions to automate specific areas of business critical communications across mobile/email/voice/social/web.

WSP operates across three key regions of ANZ, Asia and North America.

Since IPO in June 2019, it has traded well and recovered from the Covid sell-off to be well above initial offer price. This has been helped by a good 01 June update, with 







> FY2020 EBITDA result ... now expected to be between ($7.9m) - ($7.4m) which is materially ahead of the Prospectus forecast of ($9.4m).
> 
> This has been achieved by a combination of stronger than forecast revenue and operating expenditure being lower than expected.



The company seems to have been a beneficiary during Covid, picking up new customers and adding services to existing ones.
• Increased demand for communications software
• Increased platform use for business critical COVID-19 interactions
• Improved productivity and operating efficiency

The software could be up and running in 24 hours, in most cases.

(_don't hold; not yet)_


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## finicky (30 June 2020)

Looked at this just yesterday. Claude Walker stock. As usual I don't understand it - tech stock, but it's not making a profit, is new to ASX and sells for high multiple of book value (which admittedly they all do) so I'm leaving it till a crash to pick up a sampler.


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## Dona Ferentes (3 July 2020)

finicky said:


> Claude Walker stock...



Had to look him up. I see he's busy on twitter. Famous for being famous?



finicky said:


> As usual I don't understand it - tech stock, but it's not making a profit, is new to ASX and sells for high multiple of book value (which admittedly they all do.)



Therein lies the challenge. Does a viable profitable definable company with real prospects emerge? Digital disruption is really only digital adaption, with the multiplier effect of being able to sell the product (software) to multiple users with little incremental cost - that's the Pay Day. Scalability. Leverage.   What caught my eye, such that I looked a bit longer, is the new customers put on during Covid., plus increasing utilisation by existing ones. If they are sticky, then let the scalability begin.



> wait till a crash to pick up a sampler



probably sensible. Assuming there's a specific crash when the general one occurs (usually does).  but up 10% this morning.


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## finicky (3 July 2020)

Started my long term selling today - a third of the way to my cash goal. As someone said, "cash is an underrated financial asset". Resisting all buying temptation. Except for that AR9 buy, that was just too much to resist - thankyou for bringing it to my attention.

Claude Walker, thought you knew of him as some of your interests have coincided with his, e.g OCL recently which he is very keen on. He used to write the 'ethical equities' newsletter which has since morphed into mostly pay to view A Rich Life


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## Dona Ferentes (10 July 2020)

WSP seems to be quietly moving ahead, and up. Another 10% today.


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## Dona Ferentes (20 July 2020)

there's an App for that:

*Return to Work templates*
 Enables organisations to keep their employees, suppliers and customers safe, as they transition back to business as usual.
• Businesses with 300+ employees
• Office environments and field-based 
• Broad industry focus 

Whispir communication templates can:
1. Communicate a company’s RTW strategy to employees 
2. Market a company’s RTW strategy to customers and suppliers 
3. Manage a safe and staggered return of the workforce 
4. Manage visitors on-site and keeping employees safe 
5. Proactively manage a confirmed case onsite 
6. Keep employees updated on latest COVID-19 updates 
7. Remind employees about hygiene and safety guidelines


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## Dona Ferentes (21 July 2020)

Messaging platform Whispir has defended its technology, used for coronavirus contact tracing in Victoria, saying the delays in notifying the public about their exposure to COVID 19 has nothing to do with its system.
Jeromy Wells, chief executive and founder of Whispir said:_



			It is nothing to do with us, our platform is super efficient..... These kinds of use cases are complicated and there are many stakeholders.
		
Click to expand...


_
Mr Wells said the initial contact tracing was performed by a team of people and the Whispir platform came into play only after the necessary information is uploaded.







> _It is an evolving project that can continue to become increasingly effective over time. I think we have got to be realistic about what is possible there is a lot of pressure on the system_, he said.




Whispir was awarded the contract in March to facilitate text messages and emails to close contacts and those required to quarantine by Victoria's Department of Health and Human Services. 







> _The [Victorian] DHHS is one of many state and government departments and agencies that are leveraging the platform for several uses cases related to COVID-19 operational responses._
> .. *[F]or us COVID-19 is an unanticipated but welcome tailwind*. _I think the thing about COVID-19 is it is not so much the content of the message, which has to be sensitive, nuanced and culturally appropriate, but it's really the ability for the platform to be able to facilitate the automation of these interactions in a highly targeted way and at scale, _Mr Wells said.



.


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## Dona Ferentes (23 July 2020)

Dona Ferentes said:


> WSP seems to be quietly moving ahead, and up. Another 10% today.



and now $5. Roaring along on great volume. ($2.10 at start of month). Should have tipped this for July comp


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## Dona Ferentes (26 August 2020)

Covid has been kind to WSP

*FY20 Highlights*:
_• Annualised Recurring Revenue (ARR) up 34% year on year (YOY) (from $31.5m at end of FY19 to $42.2m at end of FY20), *exceeding *the Prospectus forecast of $42.0m  _
_• Revenue increased 25.5% YOY to $39.1m, *ahead *of Prospectus forecast of $37.8m  _
_• Net new customers up by more than 120 in FY20 to 630 total customers at year-end, *ahead *of Prospectus forecast of 621 _
_• Gross revenue and customer churn at 2.4% and 7.0% respectively, *better *than Prospectus forecast _
_ • Total operating expenditure of $31.7m, *better *than Prospectus forecast of $32.9m _
_• EBITDA of $(7.3m), significantly *better *than Prospectus forecast of $(9.4m) _
_• Strong balance sheet with net cash balance of $15.2m_


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## Dona Ferentes (26 August 2020)

Whispir software allows public or private sector enterprises to message, call and email staff or customers at scale. The FY results reveal a full year EBITDA loss of $7.3 million on revenue that was up 25.5 per cent to $39.1 million.

Founder Jeromy Wells said the company was growing quickly despite COVID-19, partly because existing subscribers were learning new ways to engage consumers. Whispir also plans to launch a digital direct strategy within 12 months to help smaller businesses.







> "If you think about it, people in the hospitality industry use Instagram as a primary way of telling people what's going on," Mr Wells said. "But that ignores huge segments of the market that don't have an appetite for Instagram. How do these organisations build a competitive advantage by engaging with people in the channel that they prefer?"




He said Whispir's off-the-shelf workflow offering that allowed small businesses to reach consumer smartphones in a targeted way could be part of the answer.

Whispir's shares traded as high as $4.68 today, nearly three times their June 2019 IPO price of $1.60.
(but today's FY wasn't that warmly received <missed a scalp this morning>)


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## aus_trader (26 August 2020)

Dona Ferentes said:


> Whispir software allows public or private sector enterprises to message, call and email staff or customers at scale. The FY results reveal a full year EBITDA loss of $7.3 million on revenue that was up 25.5 per cent to $39.1 million.
> 
> Founder Jeromy Wells said the company was growing quickly despite COVID-19, partly because existing subscribers were learning new ways to engage consumers. Whispir also plans to launch a digital direct strategy within 12 months to help smaller businesses.
> 
> ...




Just had a look at the FY reporting just released and looks like a fast growing company:






For a fairly newly listed firm, the customer base is nothing short of impressive:


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## Dona Ferentes (26 August 2020)

aus_trader said:


> Just had a look at the FY reporting just released and looks like a fast growing company;
> 
> For a fairly newly listed firm, the customer base is nothing short of impressive:



they have actually done well with their technology during the pandemic - accelerating the uptake. All those demands on call-centre work flows (tracing rooms for  Covid contacts, one every visible use). I still want to make sure its not 'business brought forward', though.


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## Dona Ferentes (10 September 2020)

the other side of IPO and early investors wanting to monetise



> [...for the] final tranche of shares subject to escrow from the Company’s IPO in June last year, in a block trade after market close yesterday, 20,320,950 of the Released Shares were sold to new and existing domestic and international investors at a price of $3.81 per share. The shares were crossed prior to the market opening today.



_OK, so that's $76mill of new money that has a view on what they're will to pay:



_


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## aus_trader (10 September 2020)

Dona Ferentes said:


> the other side of IPO and early investors wanting to monetise
> 
> 
> _OK, so that's $76mill of new money that has a view on what they're will to pay:
> ...



Crap !

It's a nasty surprise when they can release lumps of crap like this whenever they feel like it. Only good news: It's the last of the clogged up lump they can release from the rectum...


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## Dona Ferentes (10 September 2020)

aus_trader said:


> Crap !
> 
> It's a nasty surprise when they can release lumps of crap like this whenever they feel like it. Only good news: It's the last of the clogged up lump they can release from the rectum...



so there are still another 33 million WSP shares looking for a home, or are they to be held for longer?

$3.80-3.90 is the new normal


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## aus_trader (10 September 2020)

Dona Ferentes said:


> so there are still another 33 million WSP shares looking for a home, or are they to be held for longer?
> 
> $3.80-3.90 is the new normal



Yeah, could be the new normal for a while...

But I think the clog has passed, so no more constipation to look out for, i.e. nothing further escrowed.

See 2nd paragraph in the above attachment. The sold block is at the hands of "new and existing domestic investors at $3.81". So it's these receivers now setting the market price with their newly acquired shares.

So you could be right, it could go higher or lower depending on the price they sell the remainder of the block.


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## aus_trader (11 September 2020)

Dona Ferentes said:


> $3.80-3.90 is the new normal






aus_trader said:


> Yeah, could be the new normal for a while...



Looks like another big sell off, so those yesterday's optimistic predictions are all way off...  

Another dumping today


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## Dona Ferentes (11 September 2020)

aus_trader said:


> Looks like another big sell off, so those yesterday's optimistic predictions are all way off..
> 
> Another dumping today



Ouch.
, ,, Haven't heard any crowing about how they are integrated in the Vic contact tracing efforts, recently


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## aus_trader (11 September 2020)

Dona Ferentes said:


> Ouch.
> , ,, Haven't heard any crowing about how they are integrated in the Vic contact tracing efforts, recently



Yeah, that's been a very difficult procedure to trace, and Govt admitted even the official "*Coronavirus Australia app" *was a waste of money.


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## Dona Ferentes (20 February 2021)

In a world of astronomical tech valuations, finding reliable performance at reasonable prices can be tricky. It's easy to get caught up in the explosive fluctuations of fintech names. But sometimes, predictability is a good thing. That is exactly what the solid half-year 2021 earnings report from *Whispir (ASX:WSP) *delivered.

Innovative communication solutions delivered via easy-to-use software lies at the core of Whispir's business model. This allows customers to leverage the power of artificial intelligence and smart online infrastructure without having any specialised coding expertise. Used extensively by the NSW government to relay COVID test results to the public, the platform has proven results at scale. With aspirations to take international markets by storm, the adaptability of offerings certainly holds Whispir in good stead.

I recently sat down with Joe Magyer from Lakehouse Capital to unpack Whispir's latest results and consider the possibilities for future expansion.

*Given a lot of our audience won't be too familiar with Whispir, could you give us a description of what they do?*

Whispir creates and sells communication software that enables companies and governments to connect with employees, customers, and individuals. It's highly customisable and can be used in a lot of different ways. A very topical example of this is if you've been tested for COVID in NSW anytime in the last year, and you got your test results over text, all that was administered through Whispir’s platform. Its adaptability is a key reason that it's been able to scale so quickly in the past year: Companies and governments finding a lot of utility in the platform and ways to engage with their stakeholders. We have held this stock since the IPO in June 2019, and it currently makes up around 5% of our Small Companies Fund.

_Fig. 1 - Spread and growth of customers by industry_








*Could you please outline the key points on why you were initially attracted to this company and its future prospects?*

We love loyalty driven businesses where it is easy to implement the product or service and becomes very sticky once it's implemented - and that is the case with Whispir. The beauty of that is you end up with very attractive unit economics. When we run our numbers on Whispir, we estimate that they create more than $5 in present lifetime value for every dollar they spend acquiring customers, which is tremendous. That has us excited about them continuing to reinvest. It's rare that you'll find a business on the ASX with that kind of lifetime value relative to customer acquisition costs. 

Something else we really like about the business is that it is led by its founder who is still heavily engaged and has a lot of skin in the game (around 15%).


> Another thing I'd add to the unit economics is that customers tend to be very sticky and loyal because they build Whispir’s tools into their workflows and how they engage with both the inside and outside world.




Whispir also adds new services over time through investment in R&D, which entrenches the relationship further. 

_Fig. 2 - Expenditure on R&D and future service offerings_






*What were the key points that you've taken away from today's earnings report?*

The big story was new *customer acquisition*. The company net added 23 new customers in calendar 2019, but 198 in calendar 2020. It was just a massive jump because there were so many businesses, governments, organisations of various stripes that suddenly realised their engagement and communication tools were not up to snuff. They weren't dynamic enough. A lot of businesses had business continuity plans that were pretty dusty and not very current, and COVID highlighted the value of being able to communicate with large swaths of people dynamically and quickly.

The impact of this jump in customers hasn't wholly flowed through yet. All customers are contributing to revenue, but some of them came on late in the year, and so the impact is not pronounced just yet. 


> Whispir's customers spend more as they stay on the platform, which translates into 115% net revenue retention. Roughly speaking, a customer will be spending a third more in their third year with Whispir than they were in the first year.




The beauty of that is you get a really clear line of sight on very strong growth, even without any new customer additions for the next couple of years. So it's a long-term hold and we are very happy to see that.

_Fig. 3 - Annual Revenue Retention breakdown and growth_






I still think Whispir's business is relatively undiscovered on ASX. You could certainly find a lot of businesses that aren't nearly at this quality that have much richer valuations.

*You've mentioned your long-term hold approach towards this, so has your position on this stock changed post results?*

I'd say it was a thesis affirming result. We tend to view results as questioning whether this is falling short of, meeting or exceeding expectations. 

I think it's fair to say the past year they've exceeded what we thought they would have achieved.

That said, we did grow our position earlier this year after seeing that new customer acquisition was picking up and having the sense that engagement would pick up on the platform as well. It's a good size position for us, and we are very happy to stay long term holders. 

*Currently, ANZ accounts for 81.9% of revenues. Whispir is aiming for Asia and North America to grow to 50% of revenues by 2023. Do you view this as viable and what actions will they have to take in order to achieve this?*

A lot will have to happen between now and then for them to get to those levels. I think they've got a lot going for them that will set them up well for it. *On top of good relationships, they have a quality core product which is very scalable and that is the kernel of whether or not you can really take something offshore*. Whispir has had good traction with that. Twilio, which is what you might call a frenemy (friend-enemy) to the business actually uses Whispir services, which I think speaks highly to the quality of the product and their ability to scale in that market. 

Now we're happy for them to go after the US. Will it be a challenge? Will it take some capital? Yes. But if they can generate the kind of unit economics in the US that they do here, or close to it given the size of that market, it's a no brainer for them to try it. To their credit, they've laid some track on distribution in the market, so it's not entirely greenfield. I know the ASX is littered with companies that have talked a big game about going to the U.S and struggled. But there have been plenty of others that have found a lot of success there. Altium has done very well in the US, Afterpay has obviously created a lot of value for shareholders in the US. 

_Fig. 4 - Key channels for expansion _


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## Dona Ferentes (1 March 2021)

Stockbrokers Shaw and Wilsons launched a snap $45 million equity raising for software company Whispir after market on Monday.


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## greggles (24 November 2021)

Whispir Limited have updated their FY22 revenue guidance today. They had previously advised that FY22 revenue was expected to be in the range of $57.2 million to $60.2 million but have upgraded that today to between $64 million and $68 million. This represents an improvement on revenue for FY21 of between 34% and 42%, and an improvement on prior guidance of between 11.9% and 13.0%. 

Looks like it's been a solid first half of the new financial year so far. If they can keep this up there might be another guidance upgrade in the new year sometime. The revenue increase has been driven by better than expected customer acquisition, so their sales strategy is clearly working and will hopefully continue to increase revenue in 2022.


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## Miner (10 December 2021)

greggles said:


> Whispir Limited have updated their FY22 revenue guidance today. They had previously advised that FY22 revenue was expected to be in the range of $57.2 million to $60.2 million but have upgraded that today to between $64 million and $68 million. This represents an improvement on revenue for FY21 of between 34% and 42%, and an improvement on prior guidance of between 11.9% and 13.0%.
> 
> Looks like it's been a solid first half of the new financial year so far. If they can keep this up there might be another guidance upgrade in the new year sometime. The revenue increase has been driven by better than expected customer acquisition, so their sales strategy is clearly working and will hopefully continue to increase revenue in 2022.



Was reading Shaw's daily commentary and heavy upsize for WSP .
Thanks @greggles for your posting when I searching for recent posts on WSP.
No wonder Shaw is recommending it heavily because they invested through their clients on a more than double price.
Technically Shaw will keep on ramping this stock due to conflict.
DNH


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## Dona Ferentes (31 December 2021)

Whispir  jumped 6 per cent after inking a $1.32m contract with Singtel to replace the regional telco's core SMS notification systems across 21 countries.


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## Dona Ferentes (15 November 2022)

_one way to get the price up (and less change of needing to raise cash)_

Whispir is cutting 30 per cent of its staff to deliver millions of dollars in annual savings, as part of an acceleration to cashflow breakeven.

WSP planned to be operating cashflow breakeven from the 2024 financial year, but the internal restructure brings forward the timing to the third quarter of the 2023 financial year.



> “_With this restructure we expect the company will be both EBITDA positive and cash accretive from next quarter onwards_,” CEO Jeromy Wells


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