WSP -5.5%: the cloud communications business posted a strong 1H22 result this morning however the stock was weighed on by weakness across the small ords. Revenue jumped 70%, helped by a strong transactional performance. This did weigh on margins though, but EBITDA was still ahead of expectations at a loss of $3.7m. They noted a ramp up in average reoccurring revenue (ARR) in North America while churn rates remain low (-1.8%). Guidance was maintained however it is looking extremely conservative and implies very little transactional revenue and ARR growth in the second half. They also expect margins to return towards 60% with a greater portion of sales coming from platform while the recent Singtel partnership should continue to boost performance.
MM continues to hold WSP in the Emerging Companies Portfolio
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