The Dubber Corp Ltd (ASX: DUB) share price could be facing a "buy the rumour, sell the fact" situation with the stock tanking this morning.
Shares in the call transcribing tech company slumped 4% to $1.22 during lunch time trade. In contrast, both the All Ordinaries (Index:^AORD) (ASX:XAO) and the S&P/ASX 200 Index (Index:^AXJO) are trading 0.3% higher.
The Dubber share price is underperforming even after management reported that its services are available to eligible to Telstra Corporation Ltd (ASX: TLS) customers.
The services were initially offered under a more limited early adopter program, although this failed to excite investors today.
Consolidating after a rally
Perhaps its because the stock has rallied by over 200% since the market's COVID-19 low point in March.
That's better than other small cap tech stocks like the Nearmap Ltd (ASX: NEA) share price and Audinate Group Ltd (ASX: AD8) share price.
Dubber's platform allows conversations to be automatically transcribed and stored in the cloud. The technology can also generate alerts on critical conversation elements such as sentiment, tone and keyword mentions.
What Dubber platform does
The company claims that its affordable services will enable Telstra customers to get recordings and insights in situations that would be difficult or impossible. For instance, from mobile recording to address compliance mandates.
"Dubber is recognised globally as a cloud platform designed to provide call recording in the same scale as a telecommunications carrier provides its services," said Dubber's chief executive Steve McGovern.
"For businesses, the platform delivers flexible use cases which suit the end user, for example, enabling recording of all calls for compliance or for individual calls on demand for convenience."
On the right path
The company reported a 22% increase in annual recurring revenue to $16.1 million at 30 June. It also added more than 40,000 new subscribers to take it total user base to 192,544 in the latest quarter.
Dubber recently completed a $9 million capital raise and is holding around $18 million in the bank.
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