Here's why the Dubber (ASX:DUB) share price is surging today

Here's why the Dubber Corp Ltd (ASX: DUB) share price is surging today on the company's quarterly update for December 2020

The Dubber Corp Ltd (ASX: DUB) share price surged 3.07% early this morning before retreating close to its opening price of $1.64, up 0.61%, at the time of writing. 

This share price movement continues the run of good form Dubber investors have enjoyed over the past few months. Dubber is now up more than 70% in value since early October, and up a healthy 321% since the lows we saw in March last year.

Dubber is a 'Software-as-a-Service' (SaaS) and telephony data company which aims to unlock "the potential of voice data from any call or conversation".

So what's going on today for Dubber?

Well, we can probably put today's share price action down to an update for the quarter ending 31 December 2020 that Dubber released this morning.

Dubber delivers quarterly result

In this release, Dubber announced that quarterly revenue came in at $4.28 million, up 78% from the prior corresponding period. Quarter-on-quarter, this was a 31% increase. That equates to a $28.4 million figure for annualised recurring revenue, up 168% over the previous period. Dubber managed to add more than 300,000 subscribers (including from its recent Speik acquisition), which was up 145%.

Dubber also informed investors that, as a result of its Speik acquisition, the company now has "in excess of" $42 million in cash reserves.

Speaking of Speik, Dubber also gave investors an update into this acquisition (which was completed on 22 December).  Speik was a UK-based provider of mobile call recording and payment solutions. It was only founded in 2019, but is already profitable and growing, according to Dubber.

Here's some of what Dubber CEO Steve McGovern had to say on the acquisition this morning:

Dubber's acquisition of Speik is fundamentally accretive on all levels. Speik brings to Dubber a strong footprint in the leading UK-based mobile network provider, world-class technology resources, and a growing base of subscribers….

We believe that Dubber can substantially accelerate growth and adoption in that and other key UK-based relationships and use Speik's PCI services to drive additional revenues into our service provider partners. As a part of Dubber, the Speik team is able to capitalise on opportunities, without restraint, using cloud technologies as well asexpand product sets across the Dubber partner network.

In other news, Dubber also told investors that its technology has become certified for use "as the first Unified Cloud Call Recording solution" with Microsoft Corporation's (NASDAQ: MSFT) workplace collaboration software Teams.

As a result, the company "expects to see significant traction through some of its larger carrier partners and, also via joint initiatives with Microsoft directly".

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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