ASX tech share Whispir Ltd (ASX: WSP) is having a day to forget, down 9.7% in afternoon trading.

Shares in the technology stock closed at 45 cents yesterday and are currently swapping hands for 42 cents apiece.

This comes following the release of the software-as-a-service (SaaS) provider’s half-year results for the six months ending 31 December (1H FY23).

Here are the highlights.

Whispir share price sinks on diving revenue

• Revenue of $28.8 million, down 27% from 1H FY22
• Net loss after tax of $13.7 million, compared to a net loss of $7.0 million in the prior corresponding period
• Earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $8.8 million, up from a net loss of $6.9 million
• Cash on hand as at 31 December of $9.4 million and $1.6 million in restricted cash

What else happened with the ASX tech share during the half year?

While the United States market was said to be “challenging”, Whispir saw revenue in its Asian market increase 13% from 1H FY22.

With that in mind, the ASX tech share intends to refocus its resources away from North America and to ANZ/Asia, where it said telco partnerships are delivering a steady stream of customer leads.

On the positive side of the ledger, cost came down year on year, with the ASX tech share reporting cost of services of $11.9 million, down 27% from the $16.4 million reported in 1H FY22.

The company has no debt and said it’s on track for positive cash flow in the current half.

What did management say?

Commenting on the results sending the ASX tech share lower today, Whispir CEO Jeromy Wells said:

Whispir is at a significant point in its corporate journey, offering a strong proposition to investors. Our telco partnerships and land and expand strategy are paying off, and we are seeing some healthy developments in our sales outlook in Asia…

We continue to take a prudent approach to managing cash while focusing on what Whispir does best – supporting existing and new customers to leverage our digital communications platform to enhance business operations for better outcomes.

What’s next?

Looking ahead, the ASX tech share forecasts revenue of $58 million to $62 million for the full year and positive EBITDA for the second half of FY23.

“Over the next three to five years, we anticipate strong organic revenue growth of more than 20% year on year, as well as an improvement in gross margins above 65% as regions scale,” Wells said.

How has this ASX tech share been performing?

It’s been a rough full year for the Whispir share price, down 79% over 12 months.

2023 is showing more promise for the ASX tech share, which was well into the green at yesterday’s close.

With today’s intraday losses factored in, shares are down 8% year to date.

The post ASX tech share Whispir dives 10% as half year revenues plunge appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Whispir. The Motley Fool Australia has recommended Whispir. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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