Dubber (ASX:DUB) share price shoots up 14%, nears 52-week high

The Dubber (ASX: DUB) share price has surged up more than 14% today as it closes in on its 52-week high. Let’s take a look.
The post Dubber (ASX:DUB) share price shoots up 14%, nears 52-week high appeared first on Motley Fool Australia. –

Man looking excitedly at ASX share price gains on computer screen against backdrop of streamers

The Dubber Corp Ltd (ASX: DUB) share price is rocketing up 14.14% today to $1.66 as it closes in on its 52-week high of $1.675. The communication company’s share price has been on an upward trajectory in November, gaining more than 35% this month.

Why is the Dubber share price on the rise?

Dubber’s cloud-based software helps companies to transition away from traditional communications infrastructure to remote working arrangements. The business has benefited from the COVID-19 pandemic, with the company posting record growth customer acquisition numbers during FY20. This has resulted in its annualised recurring revenues jumping by 95% year-on-year in FY20 to $16.1 million.

The company has been able to expand rapidly through a series of capital raisings. In 2020 alone, it raised a total of $45 million from institutional investors. Earlier this month, Dubber also announced a $6 million share purchase plan (SPP), which was oversubscribed up to $33 million. The company eventually elected to keep just $10 million by scaling back its acceptance of SPP offers.

Big contract wins

Dubber has been dubbed a ‘disruptive innovator’ in the multi-billion dollar call recording industry. Its cloud-based technology removes the need for on-premise hardware, or costly and limited storage. 

IBM (NYSE: IBM) has taken note of Dubber’s technology. In early November, the ‘Big Blue’ selected Dubber to provide recording and data capture technology to support its newly launched service – the IBM Cloud for Telecommunication Services platform.

In this project, Dubber’s Unified Call Recording (UCR) solution would be used to integrate with the IBM Cloud for Telecommunications platform, and would enable IBM to offer solutions critical to their customers addressing compliance mandates, improving sales, and unlocking the critical information contained within voice data.

One month before the IBM project was announced, Dubber also unveiled the global launch of its unified recording and voice artificial intelligence solution for the Microsoft Corporation (NASDAQ: MSFT)’s Microsoft Teams platform. 

The Microsoft Teams platform has more than 75 million daily active users. Dubber’s technology would give companies on Teams more control to automate voice recording at scale, without the need for additional and expensive hardware.

About the Dubber share price in 2020

The Dubber share price started the year at $1.18, before plummeting to 39 cents in March. It has since regained its value to $1.66, a year-to-date gain of 38%. At this price, the company commands a market value of $396 million.

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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Dubber (ASX:DUB) share price shoots up 14%, nears 52-week high appeared first on Motley Fool Australia.

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