The Dubber Corp Ltd (ASX: DUB) share price is losing its footing on the last day of trading for the week.
At the time of writing, shares in the cloud-based call recording software provider are 25% in the red. This contrasts with yesterday's solid 13.4% gain ahead of the company releasing its fourth-quarter results after market trading hours.
Yet, today is a different story after investors have had a chance to dissect the latest results. Furthermore, management conducted a quarterly webinar this morning, providing more information to digest.
So, what could be pushing the Dubber share price lower today?
Chasing down payments
For the most part, Dubber's fourth quarter is a story of robust growth. To quickly summarise the company's achievements, here is a recap of the highlights:
- Annualised recurring revenue (ARR) up by 51% year on year to $59 million
- Total annual revenue increased 75% YoY to $36 million
- Subscribers increased 38% YoY to more than 580,000
- Cash receipts grew by 48% YoY to $29.9 million
- Cash on hand at the end of the quarter finished at $84.3 million
The above metrics are all relatively impressive given the challenging macro environment. However, it is possible investors are taking issue with the more granular details around cash receipts for the quarter, putting pressure on the Dubber share price.
According to the report, cash receipts fell by $1.8 million compared to the prior quarter. As a result, Dubber booked $6.7 million for Q4 or a 21.1% decrease. The company states this was due to outstanding payments, the majority of which are expected to flow through in the September quarter.
However, comments regarding cash receipts made by Dubber CEO Steve McGovern on the quarterly webinar this morning may have caused some unease among investors.
I think if you have followed Dubber for a while, the most important factor here is that whilst we have 580,000 subscribers who are on our call recording plan, they're not credit card subscribers. Our customers are actually service providers. And so, if we have a service provider that doesn't pay in a quarter, it can be quite meaningful. If you look at the four quarter's over the past year, you will see that that's happened, you know, quite regularly — fluctuating in terms of our receipts.
This uncertainty created by fluctuations in payments from service providers may have spooked some investors today.
Dubber share price snapshot
Today's reaction to Dubber's quarterly report puts a dampener on what has been a recent resurgence in the Dubber share price. Prior to today, shares had surged 75% from the year's low of 51 cents.
As a result, the company's share price has retreated nearly 74% since the start of 2022. Despite the rather disappointing move, Dubber has continued to deliver revenue growth over the last 12 months. However, the company reportedly burned through $12.7 million of cash at an operational level during the fourth quarter.
Based on the current Dubber share price, the company holds a market capitalisation of $283.7 million.
