Voice AI platform Dubber drums up support for $110m capital raise

Voice AI platform Dubber drums up support for $110m capital raise

Dubber Corporation CEO Steve McGovern.

Voice intelligence software group Dubber Corp (ASX: DUB) has today put out a clarion call to investors, outlining a $110 million capital raise alongside a strong quarterly showing.

The deal won't leave Dubber hanging though. Fully underwritten by investment giants Barrenjoey and Shaw, DUB is priced at $2.95, representing a 7.8 per cent discount on the last close.

The Melbourne-based company aims to reap the rewards of its products' integration into the working from home (WFH) digital ecosystem, and plans to use funds from the raise for merger and acquisition (M&A) opportunities, along with product development, brand awareness, and go-to market initiatives.

"The widespread movement to cloud infrastructure has been brought forward by the effects of the global social and economic requirement for working from home," explains Dubber CEO Steve McGovern.

"Additionally, the communications sector has quickly expanded to meet these requirements, particularly with the prevalence of Cisco Webex, Microsoft Teams and Zoom services.

"Service providers have both an incentive and the means to deliver these capabilities, and Dubber is uniquely positioned to provide unified call recording and voice data capture services as part of this transition. All of these trends reinforce our view that the ability to turn calls into AI-enriched data, will be a standard feature for every phone in the future."

Against the backdrop of these trends, last year the company launched Dubber Unified Recording to integrate with Microsoft Teams as well as its Foundation Partner Program, which has since seen Dubber services embedded as a standard feature into Cisco Webex and other platforms.

"Dubber and Cisco share a common vision of the way that voice data will become a critical resource for all businesses and users in the future," says Dubber CEO Steve McGovern.

"Our joint initiatives have significant ramifications for Dubber, notably in the Company's two areas of primary focus: growing the Company's ARR (annualised recurring revenue) and expanding its telecommunications network footprint."

He explains Dubber is now a core feature on an important network for many carriers, marking a major milestone in increasing the ubiquity of Dubber as the Unified Call Recording and voice data layer for the world's leading telecommunication and collaboration platforms.

"We believe that customers worldwide will continue to prepare for, and respond to, increased regulatory and compliance obligations for their businesses in many markets and industry verticals," McGovern says.

"Embedding Dubber cloud call recording as a standard service will allow customers to meet these requirements, while providing them access to a host of advanced voice data services."

The Cisco partnership was identified as a money spinner in Dubber's June quarterly results, which were also released today.

The company reported an uptick across all key metrics, highlighting $39 million in annualised recurring revenue, $7.4 million in revenue for the quarter, and a subscriber count of over 420,000 - a 118 per cent increase year-on-year.

"The Company is very pleased to have continued its growth trajectory at a level established in the previous quarter," says McGovern.

"We are now one year into a five-year plan that is heavily focused on expanding its network footprint, increasing ARR and developing revenue generating products and services which can be deployed at scale as a service directly from voice networks.

"Our goal for the first year was to double the size of Dubber's business - from a base of approximately $15 million ARR and 190,000 subscribers, which the team has accomplished and exceeded."

Dubber's share price has been trending steadily upwards since offices were first shuttered in March last year. At the beginning of the outbreak, DUB shares plummeted to $0.50 though, by the time trading was halted for the current announcement, they sat at a record high of $3.20.

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