The Dubber Corp Ltd (ASX: DUB) share price was out of form on Friday and dropped notably lower.
The cloud call recording service provider's shares ended the day a sizeable 5% lower at $1.29.
Why did the Dubber share price sink lower?
Investors were hitting the sell button following the release of Dubber's first quarter update.
Although Dubber delivered a 200% increase in revenue compared to the prior corresponding period, much like the Bubs Australia Ltd (ASX: BUB) update, its quarter on quarter growth underwhelmed.
Dubber's revenue for the September quarter came in at $2.15 million, which was just 6% higher than the June quarter.
Management blamed this on atypical user growth towards the end of the quarter. This meant it was not reflected across the whole period. Also impacting revenue were incentives provided previously entitling some customers to free or subsidised services.
One metric growing at a stronger rate during the quarter was its end user subscribers. This increased 23% quarter on quarter to in excess of 117,000. Which is up 165% on the prior corresponding period.
Outlook.
The good news is that management appears confident its solid growth can continue thanks to recent investments.
Dubber's CEO and managing director, Steve McGovern, said: "We've continued to focus on accelerating our momentum across all core markets. We've invested significant energy and resources in accelerating our growth and team composition in North America, Europe and Asia Pacific. Fundamentally, we have scaled our operations from a 'Founder led' company to one which is able to execute on the opportunities which are in multiple jurisdictions."
During the December quarter the company looks set to benefit from the planned commercial launch of the Dubber services in a mobile offering and its deal with Cisco.
In addition to this, its artificial intelligence programs are performing well.
Mr McGovern explained: "Our AI programs are continuing to gain momentum with our large partners like IBM. We are seeing strong increases in the number of enterprise customers, particularly in North America, that are interested in garnering business insights like real time sentiment and key word spoken mentions across their entire operations. We believe that 'voice is the new keyboard' and gaining access to real-time voice calls on an enterprise-wide basis will be a strong business driver for us going into 2020."
