MELBOURNE, Australia, Oct. 28, 2021/PRNewswire/ -- Dubber Corporation Limited (ASX: DUB) ('Dubber' or 'the Company'), the leading global Unified Call Recording & Voice Intelligence cloud service designed for service providers, government, and businesses of any size, today released an update on the Company's operating focus along with the Appendix 4C for the quarter ended 30 September 2021.
Highlights within the Quarter:
Revenue increased by ($700k) to $8.1m(149% pcp)
Cash receipts increased by ($2.4m) to $9.1m (231% pcp)
Dubber subscribers now exceed 450,000
ARR increased ($4.55m) to $43.5m (140% pcp)
The Company has more than $126m cash on hand
Completed $110m placement (before costs at $2.95 per share)
Successful acquisition of Notiv
ASX 300 inclusion
Continued growth in all key metrics – Users and ARR
During the September quarter the Company continued to experience substantial growth across all key metrics.
Subscribers continued to grow at a record rate via a combination of 'standard' SaaS and Foundation Partnership subscriptions, where a Dubber service is embedded as a standard feature of every subscription on a network.
The Company's 'standard' SaaS subscriptions grew organically by over 30,000 during the quarter. The overall subscriber base grew significantly more through the addition of 'Dubber Go' subscriptions. As previously noted, the Company continues a current policy of not including Foundation Partner Program subscriptions in its overall numbers yet for reasons of consistency and commercial sensitivity. The Company will re-assess its reporting of these subscriptions on an ongoing basis.
Annualised Recurring Revenue (ARR) grew by $4.55m, to approximately $43.5m. The Company's ARR is calculated as the next 12 months of subscription revenue net of any incentives. Revenue for the quarter was $8.1m, an increase of 149% pcp. Revenue for the month of September was $3.2m, illustrating the progressive ramp-up of contracts that are reflected within the Company's ARR.
Customer receipts increased by $2.4m to $9.1m in line with the Company's internal expectations.
Telecommunications Networks Growth and Yield
During the quarter, the Company continued to expand its footprint of service provider networks along with increasing penetration and revenue yield from its current telecommunication and UC platform partners. Contracted service providers grew to 165 (16% pcp) and billing service providers grew to 108 (24% pcp).
Global Unified Communications Service Providers
The Company is noting a significant increase in activity in the global unified communications (UC and UCaaS) markets with service providers and enterprises (particularly in the financial services sector where compliance requires recording of voice conversations).
These businesses continue to deploy Cisco Webex Calling and Microsoft Teams as core infrastructure for business continuity and to accommodate hybrid workforce models. These services are sold by telecommunications carriers and service providers where Dubber is the embedded recording and voice data capture platform.
In the case of Cisco, Dubber is the embedded solution for Cisco Webex Calling and Cisco UCM Cloud calling platforms and is provided as a standard feature in every subscription. Cisco have indicated strong global growth in Webex Calling Subscriptions. Dubber will continue to be a beneficiary of the growth in these platforms as the services are deployed systematically into Cisco's customer base.
Dubber provides a unique offering for Microsoft Teams service providers in that Dubber is supplied as a single platform service, in the same way as Microsoft Teams operates, without the requirement for the end user to maintain their own cloud infrastructure or manage conversational recording integration.
In additional to compliance requirements within the financial services vertical, Dubber is seeing strong uptake of its services by enterprises and governments to aid in dispute resolution, track and improve customer sentiment and agent/employee coaching, provide for productivity enhancements and integration of voice data with CRM systems, among many other applications.
M&A, Completed Acquisition of Notiv
The acquisition of Notiv in September will enhance options for Dubber's Foundation Partner program, whereby service providers will have the ability to offer AI based note taking services for all calls on their network.
Notiv brings world class AI-driven notetaking and action items to every call and meeting - adding advanced technology capabilities in real-time transcription, artificial intelligence, and advanced natural language processing.
The Company believes that Notiv will bring a unique revenue generating service to existing and future Dubber customers, delivering product capabilities that enrich Dubber Foundation and broader service provider offerings. The Notiv team have been integrated into the Dubber business as a Centre of Excellence for AI, accelerating Dubber's AI programs and expanding Dubber's core offerings. The acquisition comprised consideration in the order of A$6.6m by way of cash and equity.
The Company continues to be active in pursuing additional M&A opportunities which will be accretive to the continued growth plan.
The Company announced in July that it had completed a placement for $110m (before costs) for the purpose of growing the business in all areas including acquisitions. The placement was aimed at institutional and sophisticated investors and was managed jointly by Shaw and Partners and Barrenjoey Capital Partners. While strategic acquisitions form part of the Company's overall plan, the core strategy remains to expand the organic growth of users via the Dubber platform and, to that end, the Company has filled key employment positions in every sector and geographic region of the business.
During the quarter, the Company was admitted to the S&P/ASX 300 and the FTSE Global Small Cap Index, expanding the company's investor base domestically and internationally.
Steve McGovern, CEO, Dubber:
On Notiv acquisition:
"We fundamentally believe that artificial intelligence will play a significant part of every call and conversation in the future. Notiv marks a significant step towards achieving this with clear and well defined use cases for everyone from individuals to the largest of enterprises.
With Notiv, Dubber and our service provider partners, will be able to automatically take notes and create action items for every call and meeting. We are confident that our service provider partners will see enormous potential for revenue-generating, value-added services for their customers at scale."
On Quarterly performance:
"We were very pleased with our quarterly performance and remain focussed on deploying our resources to deliver quarterly growth in all of our key metrics - supported by our strong balance sheet. There continues to be considerable demand for our industry-leading conversational recording services which will enhance our underlying growth trajectory.
Additionally, we see an accelerating trend towards the importance of enhanced voice data capability beyond just that required for compliance purposes. This trend is being observed by our service provider partners, allowing us to expand engagements with existing partners and attract new service providers through initiatives such as the Foundation Partner program.
We remain focused on deploying Dubber natively via mobile networks, creating the capability where subscribers can capture and unify conversational data across multiple service and solution provider networks and manage any and all conversations through a 'single window' on the Dubber platform.
Together, these trends, paired with our focus, position Dubber incredibly well to become the de facto global provider of conversational voice capture and data through its unique cloud platform, partnered with the world's leading service and cloud communications and collaboration providers."
As required by LR 4.7C.1 to 4.7C.3, expenditure amounts for the quarter ended 30 September 2021 on the Company's activities on R&D, operations, advertising and marketing, personnel and administration are as contained in the Appendix 4C accompanying this report. The amount disclosed in section 6.1 of the Appendix 4C is for executive and non-executive director remuneration for the quarter, including superannuation.
This ASX release has been approved for release to ASX by Steve McGovern, CEO & Managing Director.
Dubber is unlocking the potential of voice data from any call or conversation. Dubber is the world's most scalable Unified Call Recording service and Voice Intelligence Cloud adopted as core network infrastructure by multiple global leading telecommunications carriers in North America, Europe, and Asia Pacific. Dubber allows service providers to offer call recording for compliance, business intelligence, sentiment analysis, AI and more on any phone. Dubber is a disruptive innovator in the multi-billion-dollar call recording industry, its Software as a Service offering removes the need for on-premise hardware, applications or costly and limited storage.