Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-7

• from Ords this morn re WSP:
• Event: Solid 2QFY22 performance ARR $60.0m vs $56.8m in September quarter (+26.6% on pcp, +5.6% qoq). ARR of $3.2m added during quarter (same as Sep qtr)
• Customer revenue retention not stated (was 117% in September quarter)
• Gross new customers +127 (ANZ +74, North America +34, Asia +19)
• Customer cash receipts $25.4m (+56.2% on pcp, in line with Sep qtr growth)
• Net cash outflows from operating activities -$3.1m (vs -$2.9m in Sep qtr)
• Cash balance $38.1m (vs $43.9m in Sep qtr)
• Impact: New customer growth picking up Customer cash receipts grew strongly as existing users continue to ramp up usage and new customers are onboarded. Revenue was positively impacted during the period by the increase in communications regarding COVID.
• WSP saw solid new customer growth across all regions, with numbers seeming to pick up as the impact of COVID on new sales relative to FY21 and 1Q22 has receded.
• ANZ gross new customers rose by 74, compared with 7 net new customers in the September quarter (net numbers not provided for December quarter). Asia gross new customers were +19 (cf +13 net new in Sep qtr), North America gross +34 (cf +13 net new in Sep qtr).
• The Singtel deal in particular was notable, which was a 3-year contract with a 2-year option and a minimum value of SG$1.3m (A$1.3m) for licence fees and professional services. Given that Singtel is using WSP both internally and will be reselling the solution to their enterprise clients, the actual value of the deal is likely to be much higher as transaction volumes ramp up..
• Investment view: Remains on track to meet guidance WSP reiterated guidance for ARR of $65.4 to $70.0m (+22-31% on pcp) and EBITDA of -$11.2 to -$13.2m. We note that if the current rate of $3.2m new ARR per quarter is maintained, WSP would hit just above the bottom end of ARR guidance. However, we expect growth rates will accelerate, giving us increased confidence in a strong FY22 result.
• The increase in customer acquisition rates in North America and Asia is a positive sign that WSP’s expansion in those regions is gaining traction. We believe these rates will continue to tick up as additional resources are focused on these regions.