Release Date: August 29, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dubber Corp Ltd (DUBRF, Financial) reported a 30% increase in revenue for FY24, reaching $38.7 million.
- The company achieved a gross margin of 65% for the year, up from 53% the previous year, indicating improved operational efficiency.
- There was a significant reduction in costs, with salaries and related expenses down by 39% and general and administration costs reduced by 28%.
- Dubber Corp Ltd (DUBRF) has implemented a new sales strategy that has shown positive results, with plans to accelerate growth.
- The company is focused on achieving operating cash flow breakeven in FY25, with a clear strategy to align business operations and market awareness.
Negative Points
- Dubber Corp Ltd (DUBRF) had to restate its FY22 and FY23 financial statements due to under provision for employment-related taxes.
- The company is dealing with outstanding tax liabilities from previous years, which could impact financial stability.
- Current payables are reported at $21 million, while cash reserves are just under $11 million, indicating potential liquidity challenges.
- There is ongoing uncertainty regarding debt funding, with no signed agreements yet, which could affect financial planning.
- The company is still addressing issues related to past misappropriated funds, which may continue to pose challenges.
Q & A Highlights
Q: How does Dubber Corp plan to manage its current payables of $21 million with cash just under $11 million, and is debt funding an option?
A: Andrew Demery, CFO, stated that while no debt funding has been signed yet, there is positive engagement with potential lenders. The largest component of the payables is outstanding tax items, and the company is working with tax authorities to establish appropriate payment plans. These plans are expected to be manageable over time.
Q: Can you explain how the new tax liability does not affect the company's guidance?
A: Steve Mcgovern, Executive Director, explained that the tax liabilities are historical and do not impact the FY24 or FY25 forecasts. The guidance remains focused on achieving operating cash flow breakeven in FY25, with the tax liabilities being a balance sheet issue to be repaid over time.
Q: Is factoring an option for managing working capital, given the current situation?
A: Steve Mcgovern mentioned that most customers are on 30-day payment terms, and the company has a low default rate. Andrew Demery added that all debt instruments, including factoring, are being considered to determine the best fit for the business.
Q: What are the early sales trends for the current quarter, particularly in July and August?
A: Steve Mcgovern reported strong sales activity in July, with numbers slightly above expectations. Although complete numbers for August are not yet available, the activity level remains positive.
Q: How is the company addressing the challenges from past financial misstatements?
A: Andrew Demery highlighted that the company has restated its FY22 and FY23 financials to address under-provisioned employment-related taxes. The leadership team is focused on transparency and improving systems to prevent future issues, with no impact expected on FY24 results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
