Dubber Corporation (ASX: $DUB) provides update on recent events and financial results for HY24

Dubber Corporation Limited (ASX: $DUB) provides an update on recent events, including the investigation into the alleged misappropriation of company funds, the release of its financial results for the half-year to 31 December 2023, and the announcement of a capital raising of approximately $24.06 million.

Executive Commentary on Recent Events and Financial Results

The Company uncovered the alleged misappropriation of funds and immediately commenced an investigation. The investigation revealed that the misappropriation occurred beyond the Company's control and led to an overstatement of assets and earnings. Despite the challenges, the Company's revenue for HY24 grew by 37%, reflecting strong performance across Europe, Americas, and Rest of World. Operating costs reduced by 27% in the same period, resulting in a 55% reduction in loss before certain expenses. The Company is focused on reducing costs without impacting services and support, targeting over $5 million in annualized savings for FY25. Peter Pawlowitsch will remain as Acting CEO, and the Company is undertaking a fully underwritten capital raising to address working capital needs and costs associated with the financial investigation.

Summary of Announcement and Outlook

Dubber Corporation Limited (ASX: $DUB) has faced challenges with the alleged misappropriation of funds, leading to a reduction in revenue guidance and a loss before certain expenses. However, the Company has shown resilience with a 37% revenue growth in HY24 and a 27% reduction in operating costs. The focus on reducing costs without impacting services and support, along with the commitment to annualized savings, demonstrates the Company's determination to navigate through the challenges. The appointment of an Acting CEO and the fully underwritten capital raising reflect the Company's proactive approach to address the situation and ensure the continuity of its operations. Despite the setbacks, Dubber remains focused on its business growth and efficiency objectives, aiming to improve its gross profit margin and deliver annualized savings in the coming year.