Insights

Dubber (ASX:DUB) share price slides despite strong half year growth

The Dubber Corp Ltd (ASX:DUB) share price is trading lower on Friday despite releasing a solid half year update this morning…
The post Dubber (ASX:DUB) share price slides despite strong half year growth appeared first on The Motley Fool Australia. –

asx share price falling represented by graph of paper plane trending down

The Dubber Corp Ltd (ASX: DUB) share price is trading lower on Friday following the release of its half year results.

At the time of writing, the cloud-based call recording and audio asset management company’s shares are down 3% to $1.72.

How did perform in the first half?

For the six months ended 31 December, Dubber reported revenue of $10.1 million and a loss after tax of $7.5 million.

This was a 61% increase and a 14% improvement, respectively, over the prior corresponding period. However, this result includes a $1.8 million research and development tax rebate received in December.

What else?

Also heading in the right direction was the company’s user numbers, recurring revenue, and cash balance.

At the end of FY 2020, the company had annualised recurring revenue (ARR) of approximately $16 million, 192,000 users, and $18 million cash at bank.

Fast forward to today, and the company has $28 million ARR, in excess of 300,000 users, and $42 million cash at bank.

This has been driven by sustained organic sales growth and a strategic acquisition process. Management notes that the latter is being strongly endorsed by shareholders, as evidenced by its recent $45 million capital raising.

Outlook

Looking ahead, management believes that the addition of key personnel has placed the company in a very strong position to accelerate against both its immediate and long-term strategy.

This is particularly the case given its recent acquisition of Speik. Commenting on the acquisition last month, Dubber’s CEO, Steve McGovern, said:

“Dubber’s acquisition of Speik is fundamentally accretive on all levels. Speik brings to Dubber a strong footprint in the leading UK-based mobile network provider, world-class technology resources, and a growing base of subscribers. The team at Speik have been pioneers in terms of network-based mobile recording together with O2. Their success with one major recording partner over seven years provides an insight into Dubber’s ambitions for our own 150 plus service provider partners, globally.”

“We believe that Dubber can substantially accelerate growth and adoption in that and other key UK-based relationships and use Speik’s PCI services to drive additional revenues into our service provider partners. As a part of Dubber, the Speik team is able to capitalise on opportunities, without restraint, using cloud technologies as well as expand product sets across the Dubber partner network. We welcome the team on the Dubber journey, as they effectively form the majority of our UK and European team through this acquisition.“

Despite today’s decline, the Dubber share price is still up 81% over the last 12 months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Dubber (ASX:DUB) share price slides despite strong half year growth appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!