ASX Announcements

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.

Read the Report. 

Capital Raising and Release of Quarterly Report

Dubber Corporation Limited (ASX: DUB) (‘Dubber’ or ‘the Company’), the leading global Unified Call Recording & Voice Intelligence cloud service designed for service providers 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 June 2021.

Highlights within the Quarter:

• Revenue increased by 12% ($800k) to $7.4m
• Dubber users now exceed 420,000
• ARR increased 14% ($4.8m) to $39m
• The Company has in excess of $32m cash at bank
• Dubber now a standard feature for every subscriber on Cisco Webex Calling and Cisco UCM Cloud

Growth in all key metrics – Users and ARR

During the June quarter the Company continued to experience substantial growth across all key metrics.

User numbers grew at a record rate for Dubber’s SaaS monthly subscriptions. The Company announced the launch of its Foundation Partner Program, with Cisco’s Webex Calling and UCM Cloud platforms as the first such partner. Foundation Partners will embed Dubber services within their offering as a standard and in-built feature – from which both Dubber and the partner then benefit from upgrading users to richer functionality and product offerings. Accordingly, Dubber’s subscriber numbers have significantly expanded in this program, and for reasons of both consistency and commercial sensitivity, the Company has chosen not to include these numbers at the current time. The increase in subscriber numbers, therefore, relates to standard Dubber subscriptions.

As previously indicated, the key growth metric relating to short term growth is the Company’s Annualised Recurring Revenue (‘ARR’) which has grown by $4.8m, to approximately $39m, continuing a trend established in the March quarter, a milestone period relating to comparative ARR growth on a quarter on quarter basis.

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.

Cisco as a Foundation Partner

During the quarter, the Company announced that it significantly expanded its commercial relationship with Cisco. Dubber is now a standard feature of every subscription for Cisco’s Global cloud telephony platforms Webex Calling and UCM Cloud. An entry level service ‘Dubber Go’ is included, at no extra charge, in every subscription enabling individual users to record calls which they alone manage. Customers can then upgrade to extended features such as extended storage, transcription and AI based features or expansion to compliance-based capabilities for the entire organization. Cisco provides Dubber a monthly license fee for this capability, which enhances its offering to their end customers.

The benefits for Dubber are significant:

• An accretive revenue stream which enhances rather than competes with Dubber’s fundamental revenue models for Cisco users
• 100% attachment to the network customer base with an increased propensity to uptake additional Dubber products and service subscriptions
• Dubber has direct communication access to end customers for co-marketing as well as via Cisco and its global reseller network
• Cisco Webex calling is re-sold by many of the world’s leading telecommunications carriers, providing Dubber with further opportunities to expand its network footprint
• Inclusion in the world’s leading cloud telephony platform provides the opportunity for ‘network effect’ as both service providers and their customers seek to standardise their core infrastructure services
• The deployment will see Dubber’s user base increase exponentially

Steve McGovern, CEO, Dubber: “Dubber and Cisco share a common vision of the way that voice data will become a critical resource for all businesses and users in the future. Our joint initiatives have significant ramifications for Dubber, notably in the Company’s two areas of primary focus: growing the Company’s ARR and expanding its telecommunications network footprint. Dubber is now a core feature on an important network for many Carriers, providing the opportunity to expand the same functionality to the Carrier’s other networks. This provides opportunities for Carriers to add an important value-added service horizontally throughout their networks, and also provides a standardized experience for users.

This marks a major milestone in increasing the ubiquity of Dubber as the Unified Call Recording and voice data layer for the world’s leading telecommunication and collaboration platforms. We believe that customers worldwide will continue to prepare for, and respond to, increased regulatory and compliance obligations for their businesses in many markets and industry verticals. Embedding Dubber cloud call recording as a standard service will allow customers to meet these requirements, while providing them access to a host of advanced voice data services.”

Foundation Partner Program

The Dubber platform has been designed specifically for large scale availability across telecommunication and cloud communication networks, as opposed to legacy bespoke recording products for enterprises, which have historically been tied to on-premise equipment, capital expenditure and complex call centre environments.

The Company is actively engaged in discussions with major service providers to become Foundation Partners and, as previously disclosed, the Company expects several of its service provider partners to deploy the Dubber platform as a standard feature across their network base as “Dubber Foundation Partners.”

This will provide Dubber large scale customer reach into end user accounts for jointly upselling additional services, including extended storage, transcription, AI insights and more.

Unified Call Recording – the ‘Single Pane of Glass’

The Company has previously referenced Unified Call Recording (UCR) which defines Dubber’s unique value proposition of UCR and voice data at scale. UCR reflects how businesses and individuals work today, particularly through COVID-19 driven ‘work from home’ settings and hybrid work environments.

The Company has previously highlighted an industry trend whereby large global service providers are releasing their own network offerings in conjunction with cloud collaboration platforms like Zoom Phone, Microsoft Teams and Cisco Webex Calling. The Company is experiencing significant demand for these services, driven by its Service Provider partners, particularly in the financial services and healthcare sectors, and primarily in markets like the UK, Europe and North America, where there are immediate needs for compliance solutions across distributed workforces.

The ability to capture recordings and voice data across multiple networks, and have them managed in a single environment, the Dubber Voice Intelligence Cloud, is a compelling proposition which should underpin and accelerate the Company’s growth.

Continued Integration of Acquired Companies:

Dubber has successfully integrated the acquisitions of Speik and Calln, both of which continue to demonstrate strong ARR retention and growth. These acquisitions have not only provided outstanding development staff but have provided Dubber with key additional technology capabilities as seen in the recent debut of Dubber PCI Comply, based on core Speik technology.

Financials

As required by LR 4.7C.1 to 4.7C.3, expenditure amounts for the quarter ended 30 June 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. Operating costs include $1.869 million pre-paid for cloud services, a non-recurring expense, resulting in a significant discount to normal cost structures for such services. The amount disclosed in section 6.1 of the Appendix 4C is for executive and non-executive director remuneration for the quarter, including superannuation.

Cash receipts for the quarter were $6.7m, in line with expectations from the Company’s ARR and revenue recognized during the quarter. The Company’s ARR is calculated as the next 12 months of subscription revenue net of any incentives.

For example, an agreement signed in July may have a first billing date of September in which case the ARR would be 10x monthly subscription revenue. Dubber’s customers are predominantly service providers, which operate on varied payment terms, which can result in cash being received a further 60-90 days from billing. As a result, the ARR to revenue and cash receipt cycle can be across multiple quarters.

Steve McGovern, CEO, Dubber:

“The Company is very pleased to have continued its growth trajectory at a level established in the previous quarter. We are now one year into a five-year plan that is heavily focussed on expanding its network footprint, increasing ARR and developing revenue generating products and services which can be deployed at scale as a service directly from voice networks.

Our goal for the first year was to double the size of Dubber’s business – from a base of approximately $15m ARR and 190,000 subscribers, which the team has accomplished and exceeded. The opportunities for take up of the Dubber platform, both at a Service Provider and an end user level, have also been accelerated against a landscape where there are multiple key drivers.

The widespread movement to cloud infrastructure has been brought forward by the effects of the global social and economic requirement for working from home. Additionally, the communications sector has quickly expanded to meet these requirements, particularly with the prevalence of Cisco Webex, Microsoft Teams and Zoom services. Traditional Service Providers in turn are seeking to enrich their cloud offerings both in line with, and competing against these offerings and, finally, there is an urgent need for the extension of compliance, and customer/employee experience capabilities by enterprises at all levels.

Service providers have both an incentive and the means to deliver these capabilities, and Dubber is uniquely positioned to provide unified call recording and voice data capture services as part of this transition. All of these trends reinforce our view that the ability to turn calls into AI-enriched data, will be a standard feature for every phone in the future.

Dubber is incredibly well placed to become the de facto global provider of voice data through its unique cloud platform, partnered with the world’s leading service providers and cloud team collaboration providers.”

This ASX release has been approved for release to ASX by Steve McGovern, CEO & Managing Director.

About Dubber:

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.

For more information, please contact:

InvestorsSimon Hinsley simon.hinsley@dubber.net +61 (0) 401 809 653

MediaTerry Albersteinterry@navigatecommunication.com.au+61 (0) 458 484 921

Dubber Corporation Limited (ASX: DUB) (‘Dubber’ or ‘the Company’), the leading global Unified Call Recording & Voice Intelligence cloud service designed for service providers and businesses of any size, is pleased to release an update on the Company’s operating focus along with the Appendix 4C for the quarter ended 31 March 2021.

Highlights:

• Annualised Recurring Revenue (ARR) increased 20% QoQ ($5.6m) to $34m and 158% pcp ($13.2m)
• Revenue increased 54% ($2.32m) to $6.6m QoQ and 152% pcp ($2.61m)
• Operating cash receipts increased 54% ($2.31m) to $6.55m QoQ and 362% pcp
• Dubber users now exceed 380,000
• The Company has a strong balance sheet, with in excess of $37.7m as at 31 March 2021

Growth in all key metrics – Users and ARR

During the March quarter the Company’s key metrics all experienced substantial growth.

User numbers grew at a record rate for Dubber’s SaaS monthly subscriptions. The Company expects user growth to increase significantly in the current quarter due to new initiatives including the launch of its Foundation Partner Program. Foundation Partners embed Dubber services within their offering as a standard and in-built feature – from which both Dubber and the partner then benefit from upgrading users to richer functionality and offerings.

The March quarter represents a milestone period relating to comparative user growth quarter on quarter.

The Company expects to receive Foundation and consumption-based revenues moving forward with larger and varying user attachment rates to those revenues. Therefore, as previously indicated, the key growth metric relating to short term growth is the Company’s Annualised Recurring Revenue (ARR) which has grown by $5.6m, to in excess of $34m.

Telecommunications Networks Growth and Yield

The Company continued to expand its footprint of service provider networks along with increasing penetration and revenue yield from its current telecommunication and Unified Communication (UC) platform partners.

AT&T

During the quarter, the Dubber platform went live on three AT&T networks: AT&T IP Toll-Free, AT&T Hosted Voice Service (HVS), and Cisco Webex Calling with AT&T. All three of these networks target large enterprise, government, education, and business clients. The HVS and Webex Calling networks are already providing positive uptake in SaaS monthly subscription users and services.

AT&T’s IP Toll-Free is a major global network carrying calls for the largest organisations in North America and is billed on a per minute consumption rate. Dubber’s recording, API, transcription and AI services will also be billed on a per minute rate at accretive unit increments, thereby introducing meaningful consumption based revenue streams to Dubber.

Currently, AT&T and IBM are engaged with existing mutual large enterprise customers to demonstrate the value of the newly available services on the platform which add substantial insights to those organisations, enabling them to gain valuable business intelligence from their voice data.

The Company expects the Dubber platform to be live on additional AT&T networks in both the short and medium term.

Unified Call Recording Momentum

The Company has previously referenced Unified Call Recording (UCR) which defines the Company’s unique value proposition of unifying call recording and voice data at scale. UCR reflects how businesses and individuals work today, particularly in Covid-19 driven ‘work from home’ settings and hybrid work environments.

The Company has recently become one of only two vendors certified for Compliant Call Recording for Microsoft Teams.

Dubber is already the embedded and only recording offering for Cisco’s Webex Calling platform with the Company expecting to substantially extend its relationship and availability with Cisco Webex in the near term.

During the quarter, the Company also announced availability of a Unified Call Recording solution for Zoom that allows for secure compliance and voice intelligence call recording for Zoom Meetings as well as Zoom’s recently launched cloud phone service, Zoom Phone.

Typical business communications usually involve the use of desk phones, mobiles, and UC services such as Cisco Webex, Zoom and Microsoft Teams. Dubber is uniquely placed to be able to capture recordings and voice data from all services and store them in a single location, the Dubber Voice Intelligence Cloud, where they can be managed centrally.

Behind these UC platform announcements is an industry trend whereby large global service providers are releasing their own network offerings in conjunction with cloud collaboration platforms like Zoom Phone, Microsoft Teams and Cisco Webex Calling. Dubber has detected a pronounced acceleration of telecommunication services moving to a cloud environment, either from traditional telecommunications carriers or by stand-alone UCaaS services in the last two quarters. By virtue of its unique ability to be embed into the fabric of a network and operate at scale, the company is a significant beneficiary of this trend and we believe it will continue to accelerate globally in the quarters ahead.

Foundation Partner Program

The Dubber platform has been designed specifically for large scale availability across telecommunications networks, as opposed to legacy bespoke recording products for enterprises, which are largely tied to on premise equipment, capital expenditure and call centre environments.

The Company expects several of its service provider partners to deploy the Dubber platform as a standard feature across their network base as “Dubber Foundation Partners”. The Company is actively engaged in discussions with major service providers to become Foundation Partners and expects the first initiative of this kind will take place in the current quarter.

This will provide the Company large scale customer reach into end user accounts for jointly upselling additional services, including extended storage, transcription, AI insights and more.

Steve McGovern, CEO, Dubber:

“We are delighted to have delivered such a strong quarter, achieving outstanding growth in all of our key metrics. The company is very well positioned to continue to take advantage of the major shift towards cloud based and ‘work from anywhere’ communications we are seeing in all our geographies. Governments and businesses understand the need to act on the requirement to capture conversations and voice data across their entire business. Ever expanding requirements to record and store conversations for proactive compliance and dispute resolution, and, revenue, customer and personnel intelligence all continue to drive the need for voice data and intelligence at scale. We remain very positive as to Dubber’s growth and leadership.”

Related Party Expenses

In line with requirements of lodgement of the attached Appendix 4C, the Company advises that payments shown in Item 6.1 of the Appendix 4C are in relation to Executive and Non-Executive Director remuneration (including superannuation) and form part of the operating expenses for the March quarter.

This ASX release has been approved for release to ASX by Steve McGovern, CEO & Managing Director.

Download the ASX release and Appendix 4C here (PDF)

About Dubber:

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.

For more information, please contact:

Investors

Simon Hinsley simon.hinsley@dubber.net

+61 (0) 401 809 653

Media

Terry Alberstein terry@navigatecommunication.com.au

+61 (0) 458 484 921

Download the Interim Financial Report for the half-year ended 31 Dec 2020 below

Half Yearly Report and Accounts