Dubber recently conducted an investor day, where they demonstrated their product and showcased use cases of real customers. Both Cisco and BT (British Telecom) feature in the demonstration and highlight their confidence in the uniqueness of the Dubber product having embedded the software as a core offering in their networks and point of difference from competitors. The presentation is available here, please note it runs for about 90 minutes.

Why is the share price where it is?

Dubber has grown rapidly since their founding in 2011. This rapid growth resulted in growing pains as the company outgrew the capabilities of its finance department and accounting mistakes were made regarding what can and cannot be counted as revenue. This led to the restatement of revenues at a time when the broader market re-priced currently unprofitable tech companies.

Fixing the issues

Dubber has since taken steps to remedy its operational issues and accelerate towards a profitable business. Among the changes made were:

• replaced the Chief Financial Officer (CFO) appointing Andrew Demery formerly CFO of carsales.com
• appointed Ernst and Young as the company auditors
• strengthened the board appointing a new chairman Mr. Neil Wilson who has a highly appropriate background focusing on the value of data and information
• reduced expenses by $25 million to $65 million per year. Accelerating the business towards operational breakeven in Financial Year 2025

Path to Breakeven

The company has recently reiterated its forecast recurring revenue numerous times, predicting $45 million this current financial year and published a breakdown of how this will be achieved based on current products. The new CFO has stated he believes Dubber is sufficiently funded to breakeven with existing cash reserves. (no further capital raises required)

Breakeven sooner

The management team has announced the release of a new product Dubber Moments in July 2023. As this is a new product management have omitted any revenue generation from their current forecasts.

Where is Dubber Now

Dubber is currently integrated with 185 Communication Service Providers contracted to increase to 205. For example, a communication service provider is Telstra or Optus these are the businesses reselling the Dubber products. The products on offer operate on a tier system:

• instant access to call recording – this differs from the established offerings as it is cloud based which enables greater scalability than traditional offering
• conversation capture – generates data capture across all types of conversations like video, voice or SMS. It allows for a greater interaction with voice recordings allowing for faster retrieval and meaningful insight generation
• AI – designed to generate meaningful structured content from all business communication channels

The company has committed to informing the market of its progress on a regular basis with the next update due by the end of October followed by the Annual General Meeting towards the end of November. Our view remains that Dubber has built the foundations for a highly successful company provided Dubber can remain disciplined and continue to build revenue momentum in the coming years and must focus on becoming cashflow positive.