Software services company Whispir (ASX:WSP) announced on Thursday that the number of new customers increased sharply in the second quarter, climbing 119% year-on-year.
In addition, both new and existing customers increased utilization of the Whispir communications platform, supporting steady growth in annual recurring revenue (ARR) and cash receipts in the second quarter.
During the quarter, Whispir also signed a three-year contract with Singtel, a leading global communications technology company based in Singapore, with the option to extend it for an additional two years.
The minimum contract value for the transaction will be SGD1.3 million, which includes professional services and software licensing fees. In addition, as revenue rises, additional transaction royalty revenue will be generated in addition to the minimum contract value.
The company noted that its annual recurring revenue (ARR) increased by 26.6% year-on-year to $60 million. Cash income, on the other hand, increased significantly by 124.6 per cent to $25.4 million, of which the company consumed $3.1 million in cash from its operating activities.
As of the end of December, Whispir had no liabilities and had $38.1 million in cash and equivalents in the company's name.
Jeromy Wells, Founder and CEO of the company, said: "Our sales function continues to mature and investment in the company's people is having a significant impact. Over the past quarter, we have acquired new customers with high growth potential in North America, THE AUSTRALIA AND NEW ZEALAND region and Asia. ”
"As announced to the market last December, the Singtel transaction provides us with an unrivalled competitive advantage in the Asia Pacific market, and our strategy and product roadmap are definitely in line with the expectations of large enterprise customers."
Shares of the company moved lower after opening higher on Thursday. As of press time, the share price fell 3.85% to $2.50.
