The Dubber Corp Ltd (ASX: DUB) share price has started the month deep in the red.
This follows the release of the call recording software company's half year results after the market close on Monday.
At the time of writing, the Dubber share price is down 13% to $1.28.
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Dubber share price sinks as losses grow
- Revenue up 122% over the prior corresponding period to $16.4 million
- Annualised recurring revenue (ARR) up 33% to $51.8 million
- Users up 70% to 510,000
- Cash receipts up 111% to $14.7 million
- Loss after tax increased 317% to $31.2 million
- Cash in bank of $108 million
What happened during the first half?
For the six months ended 31 December, Dubber reported a 122% increase in revenue to $16.4 million and a 33% lift in ARR to $51.8 million.
Management advised that this reflects continued and substantial growth across all key metrics, with subscribers continuing to grow at a record rate via a combination of standard SaaS subscriptions and Foundation Partnership subscriptions. The latter is where a Dubber service is embedded as a standard feature of every subscription on a network.
In addition, the company highlights that it reached notable milestones and achieved record growth in its key metrics while finalising landmark commercial agreements and deployments. It also continued to establish critical scale in its business in terms of fundamental additions to its leadership team through the expansion of products and services as accretive revenue generators.
This ultimately led to standard SaaS subscriptions growing organically by over 90,000 in the first half of the financial year to in excess of 510,000.
Things weren't quite as positive on the bottom line, with Dubber reporting a $31.2 million loss after tax. This compares to a loss of $7.5 million a year earlier. This reflects $11.5 million in share based payments and a large increase in costs as the business scales.
Management commentary
Dubber's CEO, Steve McGovern, was very pleased with the progress the company made during the half.
He commented: "We entered FY2022 with clearly stated ambitions, to use the positioning of our unique technology platform to grow network connectivity and Annualised Recurring Revenue. Underlying these ambitions was the requirement to scale our business operations to deliver against the opportunity presented by a combination of market conditions and our technology advantage."
"To that end, we are very pleased with our progress in scaling up company operations whereby key positions have been filled with world class personnel and technology has been developed to a point whereby the delivery of new products and services is as much a driver of new revenue as is continued selling of our core services to a wider audience. By default, delivery of these new services in itself creates a wider audience and increased opportunities to deliver more services via our service provider partners," he added.
And while no guidance has been given for the remainder of FY 2022, Mr McGovern spoke positively about the future.
He said: "Dubber is the number one source of Unified Call Recording and Voice AI services – and due to its unique capacity within telecommunications networks, the only way to provision voice AI on every phone and every end point. The activities during the half year illustrated this position enabling the Company to expand on its UCR strategy with initiatives with partners such as Cisco, Microsoft Teams and IBM."
