The Dubber Corp Ltd (ASX: DUB) share price is trading lower on Friday following the release of its half year results.
At the time of writing, the cloud-based call recording and audio asset management company's shares are down 3% to $1.72.
How did perform in the first half?
For the six months ended 31 December, Dubber reported revenue of $10.1 million and a loss after tax of $7.5 million.
This was a 61% increase and a 14% improvement, respectively, over the prior corresponding period. However, this result includes a $1.8 million research and development tax rebate received in December.
What else?
Also heading in the right direction was the company's user numbers, recurring revenue, and cash balance.
At the end of FY 2020, the company had annualised recurring revenue (ARR) of approximately $16 million, 192,000 users, and $18 million cash at bank.
Fast forward to today, and the company has $28 million ARR, in excess of 300,000 users, and $42 million cash at bank.
This has been driven by sustained organic sales growth and a strategic acquisition process. Management notes that the latter is being strongly endorsed by shareholders, as evidenced by its recent $45 million capital raising.
Outlook
Looking ahead, management believes that the addition of key personnel has placed the company in a very strong position to accelerate against both its immediate and long-term strategy.
This is particularly the case given its recent acquisition of Speik. Commenting on the acquisition last month, Dubber's CEO, Steve McGovern, said:
"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. The team at Speik have been pioneers in terms of network-based mobile recording together with O2. Their success with one major recording partner over seven years provides an insight into Dubber's ambitions for our own 150 plus service provider partners, globally."
"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 as expand product sets across the Dubber partner network. We welcome the team on the Dubber journey, as they effectively form the majority of our UK and European team through this acquisition."
Despite today's decline, the Dubber share price is still up 81% over the last 12 months.
