Dubber.Dubber.Do., page-3398

I am interested to try and work out when Dubber becomes profitable... This always seems to be a key milestone for high tech / high growth businesses.

The annual revenue per subscriber is currently around $86pa. I have assumed direct costs will continue to grow more or less as a semi/variable cost as a % of revenue.

Here is my attempt to try to work it out :

Subscribers 700,000 (my estimate)
Revenue per subscriber $86pa

Annual Revenue $61.0m
Other Income $1.8m
Total Income $62.4m
Less Costs
Direct costs ($36.3m)
Salaries (15.0m)
G&A (6.0m)
Sub total Expenses (57.3m)
EBITDA $5.0m
Depreciation ($2.5m)
EBIT $2.5
Finance Cost ($2.5)
Net Profit $.00

The key assumption drivers are:

1) what will the direct costs be as a % of revenue as Dubber continues to grow.

2) what will the selling costs to continue to grow the subscriber numbers and capture the market before there is a lot of competition.

It would be great to get any other thoughts on how many subscribers it will take to break even and also the year it breaks even.


.Cheers