Business
Digerati Reports Financial Results for the Fourth Quarter and Year Ended July 31, 2018
Digerati Reports Financial Results for the Fourth Quarter and Year Ended July 31, 2018.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n- Revenue up 2755% Quarter Over Quarter - - Revenue up 937% Year Over Year -- Company Achieves Positive Adjusted EBITDA in 4th Quarter -\n SAN ANTONIO, Nov. 19, 2018 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI) (\"Digerati\" or the \"Company\"), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, today announced financial results for the three and twelve months ended July 31, 2018. The Company is highlighting its fourth and final quarter of FY2018 as it is the first reporting period that reflects consolidated results for the acquisitions of both Synergy Telecom (“Synergy”) and T3 Communications, Inc. (“T3”). Financial highlights for the fourth quarter of Fiscal Year 2018 (ended July 31, 2018) Consolidated total revenue for the fourth quarter of 2018 increased to $1.59 million, compared to $56,000 for the fourth quarter of 2017.Gross profit for the fourth quarter of 2018 increased to $795,000, compared to $28,000 for the fourth quarter of 2017 resulting in a gross margin of 50%.Including non-cash items and one-time transactional expenses, SG&A expenses for the fourth quarter of 2018 increased by $855,000 to $1.506 million, compared to $651,000 for the fourth quarter of 2017.The Company incurred $671,000 in SG&A expense for non-cash items and one-time transactional expenses for the fourth quarter of 2018 that includes stock compensation and warrant expense and one-time costs associated with its acquisition of T3.Excluding all non-cash items and one-time transactional expenses, non-GAAP net income or Adjusted EBITDA was $17,000 for the fourth quarter of 2018.Average monthly revenue per customer (ARPU) was $857 for the fourth quarter of 2018, compared to $300 for the fourth quarter of 2017. Financial highlights for the fiscal year ended July 31, 2018 Consolidated total revenue for the year ended July 31, 2018 increased 937% to $2.0 million, compared to $193,000 for the year ended July 31, 2017.Gross profit for the year ended July 31, 2018 increased to $948,000 compared to $59,000 for the year ended July 31, 2017 resulting in a gross margin of 47%.Including non-cash items and one-time transactional expenses, SG&A expenses for the year ended July 31, 2018 increase...