Dubber Corporation Ltd (ASX: DUB) is an Australian cloud-based call recording software which operates as a software-as-service offering. It has a global customer base, primarily consisting of telecommunications service providers and enterprise customers. Dubber closed up 8% on Monday and is now trading at an all-time high. This represents share price growth of over 5,200% within the past 5 years. The technology stock appears to be popular amongst traders given its liquidity (volume of over 560,000 shares with over 750,000 shares traded in the past 3 months) and share price volatility.
Dubber Corporation Ltd (ASX: DUB) closed up 8% on Monday and is currently trading at an all-time high (Credit: ASX).
The most recent quarterly financials for Dubber Corporation outline $1.81 million in revenue (up 258.54% year on year), but a net income loss of $2.79 million (representing a net profit margin of –154.25%). However, investors appear more attentive to Dubber’s growth than its actual net income, consistently positing significant customer and revenue growth. Generally, sustained, fast revenue growth will lead to profits and if Dubber continues the path it’s on (66% revenue growth per year over the past 5 years – well above most pre-profit companies), whilst simultaneously lowering negative free cash flow, its net income should become positive relatively soon.
The future looks bright for Dubber Corporation Ltd, who reported a 222% increase in active users in August. Global expansion is appearing to materialise, with management commenting that the company has experienced a 179% increase in its global footprint in telecommunication providers (which helped reduced net losses by 15%). When accounting that the primary reason for share price growth in 2019 was due to increased revenue and customer base, Dubber’s key partnerships with Cisco and IBM provide a positive outlook for shareholders in 2020. Further, Dubber’s pursuit to accelerate growth does not look like its coming to an end any time soon, with capital raising activities occurring as recently as April and leverage opportunities available given the company is currently debt-free.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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