Dubber growth flatlines after alleged misuse of funds
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The news: Software firm Dubber has reported a hit to third-quarter earnings after its former CEO and managing director Steve McGovern was fired due to the alleged unauthorised use of $26.6 million in missing company funds.
The numbers: Revenue for the March quarter grew 29% year on year to $9.6 million, but was flat on the previous quarter, which the company said reflected "the disruption to the business experienced in the quarter following the announcement of the alleged misuse of funds in late February 2024".
Earlier in April, Dubber reduced its full-year revenue guidance to a range of $38.1 million to $41.6 million, down from $45 million.
The AI-powered call recording company's retail component of its capital raise to cover costs associated with the ongoing investigation is expected to close on 3 May.
Dubber said it is undertaking further investigations, with approximately $26.6 million of the $30 million missing funds remaining unaccounted for.
The context: The corporate regulator commenced an investigation on 1 March after Dubber informed the regulator that it had suspended McGovern after funds were found to be missing.
Dubber later terminated the employment of McGovern, alleging he and a third party trustee were likely involved in the unauthorised use of missing company funds.
Dubber confirmed that executive director Peter Pawlowitsch will remain in the role of acting CEO until a permanent CEO is appointed.
The source: ASX announcement
