Dubber Corp Ltd (ASX: DUB) has seen its share price take flight in 2015, rising 350% since the start of the year, including 181% in just the past month, and another 13% today to close at 90 cents.
But it's not hard to see why with the impressive platform Dubber has produced.
The micro cap with a market cap of just $48 million provides companies with the ability to capture all their call recordings directly from the PBX (the call switching system), from their service provider, the Dubber API or by using Dubber Telco on a cloud platform.
What is revolutionary about Dubber's call recording platform as a service (SAAS) system is that much of today's recording technology is hardware-based. Dubber can also be deployed onto a telco's network with hours, allowing the telco's end customers to switch on voice recording seamlessly.
Call recording is an essential function for many companies, particularly in customer service divisions, call centres as well as a legal requirement for many financial firms such as banks, brokers as well as telecommunications providers.
In fact, the company recently signed Blulp, a US telco, its first UK Carrier – The Voice Factory – and one unnamed Australian 'big 4' bank. The bank contract will result in around $1.68 million in revenue over 3-5 months.
Dubber has also announced that its system will be available with Broadsoft. Broadsoft provides unified communications for more than 500 global telcos. The company says many telcos view Dubber as a path to increase revenues and customer retention, which should mean the Broadsoft integration has the potential to generate plenty of growth for the company.
In the September quarter, Dubber had 4,938 users, up from 2,915 at the end of June – growth of 69%, but very little in the way of revenues. Clearly, this is early days for the company and growth is likely to be very strong initially. That could continue for some time if Dubber's system is as disruptive as it appears to be.
Foolish takeaway
Key to Dubber's success will be its ability to expand its user base and sign up more telco clients. While it might be too early to take a punt on now, investors might want to add Dubber to their watchlist. You may miss out on some of the gains, but you will also be investing in a less-risky business down the track.
