"we don't know how many subscribers are actually paying for the...

"we don't know how many subscribers are actually paying for the additional services. Are you concerned about that?"

No, because it is very early days. Just like a snowball starting its roll down the mountain, the take-up of Dubber's services will keep evolving.

Dubber's service is now a standard free feature on all Cisco's Webex Calling and UCM Cloud services (approx. 100 million users combined). All of these customer calls are now automatically recorded and available for playback for 30 days. Dubber and its Foundation Partners are then able to cross-sell and upsell richer functionality for compliance, AI services, additional storage and better business insights, so I expect a rapid rise in customers upgrading and paying for more services. Already having the basic service will make it much easier for customers to implement the upgrades as they gradually discover how important this data is for them.

Competition will drive competitors of existing Foundation Customers to also come on board as foundation customers, meaning a very long and steep runway of growth. IBM is now introducing a number of its enterprise and government customers to Dubber, including banking, insurance and financial services. They are unlikely to be the only ones, with Microsoft Teams, Zoom and others also partnering with Dubber.

Customers requiring call recording services for regulatory compliance will be one of the biggest and fastest growth areas. I suspect that regulators have been rather tolerant on failures to comply during the pandemic due to practical difficulties in recording a whole workforce working remotely on different communications platforms. Once the regulators become aware that some financial institutions are using Dubber to achieve full compliance under these difficult circumstances, I believe that regulators will then require all regulated businesses to fully comply. Imagine the rush to Dubber when this starts to happen in most countries with strong regulators - IMO it will dwarf all growth levels we have had up to now.

All of these things will happen gradually. There will be time delays at each stage for a company to try the basic service for a while, then upgrade their subscriptions to better fulfil their needs, for them to be invoiced by their service provider, for them to then pay their service provider, and for the service provider to pay Dubber. So, although quarterly growth might be all over the place while momentum is only just getting started, I do not expect the 1 and 2 year growth rates to go down. If anything, they should accelerate.