The Dubber Corp Ltd (ASX: DUB) share price has been a very strong performer on Wednesday.
The cloud-based call recording services provider's shares were up as much as 16% to $1.30 at one point today.
They have since given back some of these gains but are still up 10% to $1.23 at the time of writing.
Why is the Dubber share price rocketing higher?
Investors have been fighting to get hold of the company's shares following the release of its first quarter update this morning.
For the three months ended 30 September, Dubber reported solid growth across a number of key metrics.
According to the release, the number of subscribers of its services increased 20% or 38,062 on the prior quarter to 230,606. Over the 12 months, Dubber's subscriber numbers are up 96%.
Management advised that this reflects organic growth in recording users from its pre-existing service provider partner networks.
This strong subscriber growth underpinned a 12% or $2 million quarterly increase in its annualised recurring revenue (ARR) to $18.1 million. This means its ARR is now up 77% since this time last year.
Also growing strongly was its quarterly revenue, which lifted 26% or $687,000 to $3.25 million.
Finally, Dubber's cash receipts for the quarter came in at $2.7 million, which is up 64% or $1.1 million. The company ended the period with a cash balance of $16 million.
Outlook.
No guidance was given for the remainder of the year. However, management appears confident that it is well-positioned for the future.
It commented: "The Company believes that with the now accepted "new normal" of a distributed workforce, together with the resultant expectation levels for intelligent data services, there has never been a better time to operate a global scalable cloud-based platform."
And thanks to its re-branding program and growth strategy, management believes the company is on a path to $100 million in ARR.
