Dubber Global Sales Momentum Continues in 4Q FY22
June 2022 Quarterly Activities Report
MELBOURNE, Australia, July 28, 2022 /PRNewswire/ -- Dubber Corporation Limited (ASX:DUB) ('Dubber' or 'the Company'), the leading unified call recording and voice intelligence platform to telecommunication service providers globally, today reports its 4Q FY22 Appendix 4C and Quarterly Activities to 30 June 2022.
4Q FY22 Highlights
The fourth quarter of FY22 saw the Company continue to scale up its business operations in line with global opportunities for its services as the telecommunications sector continues to be disrupted with major service providers seeking value added services and differentiation.
"In a period of macroeconomic uncertainty, we are proving the durability of both our revenue and value proposition for service providers and their customers. We continue to experience strong demand signals globally and are conservatively deploying our capital to ensure we execute against the opportunities before us," said Steve McGovern, CEO & Managing Director, Dubber.
Strategy Driving Compelling Outcomes
Revenue increased $1.1m QoQ to $10.3m, from sales executed in the previous quarter and reflecting service provider demand and continuing growth in subscribers. Annual revenue was $36m, up 75% on the previous financial year, with a reduction of costs when non-recurring costs are removed.
Annualised Recurring Revenue (ARR) increased by $5m to $59m. On a constant currency basis, ARR was $60m.
The Company continues to experience growth in contracted revenue and the increase in ARR includes adjustments for contracted deployments which have been delayed beyond the quarter as service providers productise Dubber's services into their operations support (OSS) and business support (BSS) systems. The Company still retains the contracted revenues from these partnerships on a forward basis.
To date, revenues have been largely driven by call recording service agreements. However, Dubber is currently engaged predominantly with tier one service providers regarding long term strategies for monetising the content from their calling networks. The adjusted growth in the quarter reflects the timing of Dubber's availability in major service provider networks and enterprise deployments. Revenue can be impacted by implementation from contract signing to deployment. The company remains extremely positive on the ARR outlook for FY23.
Cash receipts in the quarter were $6.7m, down $1.8m on the prior quarter due to outstanding payments. Outstanding payments are anticipated in the September quarter with a portion received in July. In addition, the Company advises it has invoiced for new deals delivered late in the quarter which are expected to be received on an ongoing basis.
The global acceleration by service providers to unlock the power of communication data within their networks has stimulated investment activity by Dubber in the quarter. The Company pursued its strategy to enable existing global service providers and connect new ones with the purpose of delivering an expanding suite of services that is applicable for the entirety of the end users on their networks.
Recurring call recording revenue is to date, the predominant income stream for the Company and has a 'cloud scale' business model with associated margins. Currently, the Company's recording revenue is supported by direct expenditure which results in a gross margin which is in excess of 70% for the first time.
The Company has a global platform at scale which can support significant increases in subscribers and, for the foreseeable future, gross margins will continue to improve as more customers are added to the Dubber platform.
The Company has recruited a world-class product and engineering team in FY2022 and is focussed on delivering a 'manufacturing line' of scalable and repeatable products for which there is existing demand. Since the capital raise in July 2021 and the subsequent acquisition of Notiv in September 2021, the Company is able to invest in line with its global strategy.
During the quarter, the company invested based on demand by:
These initiatives remain pivotal to servicing major partnerships ahead of deployment in networks and to subscribers and supporting demand globally.
Business Performance Update
The Dubber platform is the only platform globally that can capture conversational data across multiple communication platforms as a native feature of service provider networks. Dubber enables both service providers and their enterprise, government, and business customers to extract value from every conversation.
More than voice recording and transcription, Dubber's AI conversational intelligence platform improves customer experience and remote workforce collaboration, easily and intuitively supporting compliance requirements and enabling training and dispute resolution without the requirement for hardware or capital expenditure.
A key element of Dubber's strategy is to extend its footprint with major service providers as Foundation Partners, where a Dubber service is embedded as a standard feature of every subscription on the service provider network as part of the telecommunications plan. Momentum with Foundation Partners continued late in the quarter and into the new financial year.
New deployments of Dubber with service providers increased during the June quarter to 175, up 9% on pcp. Churn with major service providers has not occurred since inception. Demand and aligned objectives with service providers are reflected in the highly sticky nature of Dubber services once embedded in a network.
In July, the company announced it will appoint Sarah Diamond to Dubber's Board as an Independent Non-Executive Director. Based in New York, Ms Diamond is a seasoned executive, most recently as Global Managing Director, Financial Services at IBM and will bring a wealth of international experience in business and technology to the company.
As announced, Ms Diamond's appointment will take effect upon her international application for a Directors Identification Number being ratified.
Dubber CEO & Managing Director, Steve McGovern
"The telecommunications sector is evolving quickly with service providers seeking to increase revenue streams with new products and services. The Dubber platform enables communications across networks to be converted into usable data and content - which has endless applications and opportunities for monetisation of products, with an addressable market which comprises the entire customer base of a network across all demographics from Enterprise and Government to Consumers.
Dubber is currently engaged with multiple tier one service providers to deliver these services at scale creating the reality of Conversational Data.
While compliance needs in regulated industries drove the first wave of demand for call recording and conversational data, a second wave is well underway for unified conversational recording and data to address a broad range of needs. These include improving remote work employee collaboration, driving productivity and revenue, actioning customer intelligence with real-time customer satisfaction reporting, and training and supporting dispute resolution.
Our opportunity is to increase exposure to the Dubber platform with users that continue to switch between mobile, unified and traditional communications services, effectively multiplying Dubber and our service providers' revenue opportunities as we address more endpoints and services than ever before.
Dubber's unique Foundation Partner model, which enhances our relationship with service providers and embeds a default Dubber solution, continues to be highly attractive to major service providers as evidenced by the addition of new Foundation Partners in the June quarter. Dubber recognizes revenue once services go live in the network and has direct access to customers to increase its ability to assist and drive increasing revenue together, in partnership with service providers, over the near-term.
We are market leaders in conversational recording, data, and AI globally. Increasing and maturing our engineering and product development capability will strengthen this leadership and ensure we continue to unlock the value in every conversation through innovative new services and products. The ability to drive world-class automation, analytics and insights through R&D make the Dubber platform an even more compelling proposition for services providers.
We are very excited about the future. Our revenue today largely reflects enterprise, business and government customers leveraging call recording from unified communication platforms. However, our focus on integration within mobile networks and unified communication platforms provides the ability to turn all conversations into content, and we believe that is valuable to every sector and demographic.
Our focus moving into the 2023 financial year, remains on delivering sustainable growth for our stakeholders by increasing the number of service provider networks and mobile integrations connected to the Dubber platform and expansion of services and margin with these providers.
We are thankful for the continued support of our team, shareholders, partners, and customers globally. We are currently planning an Investor & Technology Day, to be held in September, which will provide deeper insight into our business strategy and investment against the opportunity in which we hold absolute conviction."
Notes to the Appendix 4C
Cash outflows for the quarter shown in line 1.2(b) were subject to non-recurring and one-off items in the order of $1.5m which included:
The amounts shown at line 6.1 of the Appendix 4C relate to director fees and salaries. The expenditure incurred on the activities described in this report are materially salaries and operating costs set out in the Appendix 4C.
4Q FY22 Investor Webinar
Managing Director & CEO, Steve McGovern and Co-Founder & COO, James Slaney will present the June Quarter update at 9:15am AEST, on Friday 29 July 2022.
To register for the session and for more information on the conference, please click here:
Investors can submit questions prior to the webinar to [email protected] or do so via the Q&A functions on Zoom.
This ASX release has been approved by the Board.
Dubber enables service providers to unlock the potential of the network - turning every conversation into an exponential source of value for differentiated innovation, retention and revenue. Listed on the ASX, Dubber is the clear market leader in conversational intelligence and unified conversational recording - embedded at the heart of over 175 service provider networks and services and used daily by over 580,000 subscribers worldwide.
For more Information, please visit Dubber at dubber.net
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