The Dubber Corp Ltd (ASX: DUB) share price is trading lower today despite the company revealing strong growth in its 1H20 results.
After being down by as much as 9.38% in early trade, Dubber shares are now 5.73% lower for the day at $0.905. This comes as the S&P/ASX 200 Index (INDEXASX: XJO) is down by 3.20% after global markets were hit overnight on concerns surrounding the coronavirus.
Dubber is a cloud-based Software-as-a-Service (SaaS) solution provider. The Dubber Platform provides call recording and audio asset management in the cloud.
Strong revenue growth
Dubber delivered impressive revenue growth in the six-month period to 31 December 2019 of 125% to reach revenue of $4.5 million.
The company continued its operating strategy during the six-month period to build its growth platform across a diverse range of geographies and verticals.
Dubber executes on its global expansion strategy
The company commented that its global footprint has seen significant recent expansion.
The small-cap ASX tech company reported contracted annualised recurring revenue (CARR) of $10.66 million. Additionally, Dubber posted a very impressive 79% increase in end-user subscribers to 122,549 compared to the prior corresponding period (pcp) of 1H19.
Dubber noted a significant rise in the number of agreements that it has in place with service providers, increasing from 92 in 1H19 to 123 in 1H20. The company also highlighted a big jump in the number of Telecommunications Service providers at the billing stage from 35 in the pcp to 65 in the current half.
Along with this, Dubber recently signed a new agreement with Sprint Corporation, a Tier 1 US telecommunications provider, and also delivered the first Cisco Webex Calling customers during the half.
Outlook for remainder of 2020
Dubber commented that it is anticipating significant opportunities to come to fruition the second half of FY20, noting that several vertical industries in which it is operating is approaching the revenue generation stage.
The company believes that its new relationship with Cisco will result in significant revenues for Dubber moving forward, following the integration of the Dubber platform into the Cisco order entry system.
Dubber also believes its new agreement with Telstra Corporation Ltd (ASX: TLS), signed earlier in February, will provide a strong foundation for future growth. The company added that it expects this Telstra agreement to underpin similar agreements with North American telecommunication providers in 2020.
