The Dubber Corp Ltd (ASX: DUB) share price has tumbled lower despite the release of a positive update.
In morning trade the call recording service provider's shares are down 4% to $1.17.
Despite this decline, the Dubber share price is still up ~150% over the last 12 months.
Why is the Dubber share price zooming higher?
Investors have been selling Dubber's shares this morning despite it announcing an agreement with telco giant Telstra Corporation Ltd (ASX: TLS).
The agreement with Australia's largest telecommunications company will allow Telstra customers to access Dubber's Call Recording and Data Capture Platform for business telephony and mobile.
Eligible Telstra customers with certain products will soon be able to subscribe to the Dubber platform and call recording services. These products include Telstra Liberate, Telstra IP Telephony (TIPT), and Telstra SIP Connect.
Dubber's CEO, Steve McGovern, was very pleased with the agreement with Telstra.
He said: "We are delighted to be announcing our agreement with Telstra today and believe it will enable the full expression of the capability of the Dubber Platform. By providing call recording extensively on both Unified Communications and mobile networks, Telstra business customers of all sizes will be able to provide call recording, data capture, advanced analytics and AI throughout their entire organization."
"We believe this agreement with Telstra effectively 'democratises' call recording, at cloud scale, beyond the traditional domain of contact centres, to any and all business users. We believe this agreement will usher in a whole new class of services for call recording, delivered via SaaS, for compliance, business insights and AI services that were never before possible," he added.
Whilst the agreement is seen as a material one, management warned that the revenue from it will ultimately be dependent upon the take up of the service.
