Business
Digerati Technologies Reports 140% Revenue Growth to $3.751 Million for Third Quarter FY2021
Digerati Technologies Reports 140% Revenue Growth to $3.751 Million for Third Quarter FY2021.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n - Non-GAAP Operating EBITDA of $0.619 Million -- Gross Profit of $2.225 Million - - Strong Gross Margin Improvement to 59.3% - SAN ANTONIO, Texas, June 10, 2021 (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, announced today financial results for the three months ended April 30, 2021, the Company’s third quarter for its Fiscal Year 2021. Key Financial Highlights for the Third Quarter Fiscal Year 2021 (Ended April 30, 2021) Revenue increased by 140% to $3.751 million compared to $1.566 million for Q3 FY2020.Gross profit increased 177% to $2.225 million compared to $0.802 million for Q3 FY2020.Gross margin increased to 59.3% compared to 51.2% for Q3 FY2020.Non-GAAP Adjusted EBITDA income improved to $0.321 million, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA loss of $0.013 million for Q3 FY2020.Non-GAAP operating EBITDA (OPCO EBITDA) improved to income of $0.619 million, excluding corporate expenses, compared to a non-GAAP operating EBITDA of $0.207 million for Q3 FY2020. As previously cited, operating efficiencies, expected cost synergies and consolidation savings from the Nexogy and ActivePBX acquisitions were realized over several months following the closing of the transactions. As a result, all of Digerati’s financial measures have steadily improved over the past two quarters, resulting in an increase in gross margin to 59.3% and non-GAAP operating EBITDA of $0.619 million for the three months ended April 30, 2021. Operating loss for the three months ended April 30, 2021 was $0.588 million. Arthur L. Smith, Chief Executive Officer of Digerati, commented, “We are extremely pleased with these quarterly results, which annualize to $15.0 million in revenue. Our operating and financial teams have been hard at work on identifying and implementing operating cost efficiencies to improve our margins and EBITDA. We are proud of the results which demonstrated improved margins at every operating level and a boost to our profitability.” Smith concluded, “Once again our team has shown a strong capability in successfully implementing acquisiti...