Investor Presentaiton
Glossary
Profit or loss
•
•
Software revenue: revenue generated from collecting contracted monthly licence and
transaction fees from customers based on a contracted fee per user and cost per transaction;
Professional services revenue: professional fees in respect of implementation,
configuration, training and integration fees;
• Cost of service: the costs relating to the delivery of the software including the costs of
running the data centre, wages and salaries of data centre based Whispir staff and the carrier
cost in delivering transactions;
• Gross profit: total revenue less cost of services;
•
EBITDA: earnings (or losses) before interest, income tax, depreciation and amortisation.
Amortisation of contract acquisition costs are included within EBITDA. Management uses
EBITDA to evaluate the operating performance of the business. EBITDA can be useful to help
understand the cash generation potential of the business. EBITDA should not be considered as
an alternative to measures of cash flow under IFRS and investors should not consider EBITDA
in isolation from, or as a substitute for, an analysis of the results of Whispir's operations; and
EBIT: earnings (or losses) before interest and income tax.
Definitions
• TAM: Total Addressable Market;
• SME: Small to Medium Enterprise;
• SMB: Small to Medium Business.
whispir
FY22 Financial Results - Investor Presentation
Cash flow
•
Capitalised development: proportion of the wages and salaries of employees whose
activities relate to the development of software;
•
Capital expenditure: investment in property, plant and equipment including leasehold
improvements and IT equipment;
•
Working capital: trade and other receivables, contract acquisition costs, other current assets,
less trade and other payables and income received in advance;
•
•
Operating cash flow: EBITDA after the removal of non-cash items in EBITDA (such as
share-based payments, amortisation of contract acquisition costs and net foreign exchange
difference) less net interest paid and changes in working capital; and
Free cash flow: operating cash flow less capital expenditure.
Financial metrics
•
Gross margin: gross profit divided by revenue expressed as a percentage;
EBITDA margin: EBITDA expressed as a percentage of total revenue;
EBIT margin: EBIT expressed as a percentage of total revenue;
Contract acquisition cost: commission and other direct costs incurred in winning
new customers;
Customer acquisition cost (CAC): expenses directly incurred in winning new customers,
which includes the contract acquisition costs, divided by the total number of new customers
won in the period;
Customer revenue retention %: revenue earned from customers in a year divided
by the revenue from the same customer cohort in the corresponding prior year;
Customer churn %: number of customers lost in the last twelve months (LTM) divided
by number of opening customers in the period;
• Revenue churn %: Opening MRR of customers churned in LTM compared to opening
MRR of customer cohort;
•
Lifetime value of customer (LTV): ARR per customer multiplied by the gross margin for
the period, divided by the customer churn in the period. The LTV of the customer cohort
represents the LTV multiplied by the number of customers at the period end;
• Annualised recurring revenue (ARR): recurring revenue from the final month in a period
(licence and transaction revenue) adjusted for Monthly Messaging Days multiplied by 12 months;
• Monthly Messaging Days: monthly messaging days vary each month depending on
days within the transactional billing cycle (26th day to the 25th day of the reporting month). To
enable monthly comparisons on a consistent basis, ARR and related SaaS metrics are adjusted
to a standard number of days per month to remove this volatility. The standard month is 30.4
days (365 days / 12 months); and
Research and development % spend of revenue: The total of the research and
development expenditure recorded in the statement of profit or loss (excluding amortisation)
and the capitalised spend in the period divided by revenue.
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