Business
Digerati Technologies Reports 98% Revenue Growth to $7.941 Million for Second Quarter FY2023
Digerati Technologies Reports 98% Revenue Growth to $7.941 Million for Second Quarter FY2023.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n - Non-GAAP Operating EBITDA of $1.204 Million -- Net Income of $0.220 Million -- Gross Profit of $4.973 Million -- Strong Gross Margin Improvement to 62.6% - SAN ANTONIO, March 20, 2023 (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 January 31, 2023, the Company’s second quarter for its Fiscal Year 2023. Key Financial Highlights for the Second Quarter Fiscal Year 2023 (Ended January 31, 2023) Revenue increased by 98% to $7.941 million compared to $4.019 million for Q2 FY2022.Gross profit increased 102% to $4.973 million compared to $2.466 million for Q2 FY2022.Gross margin increased to 62.6% compared to 61.4 % for Q2 FY2022.Non-GAAP Adjusted EBITDA income increased by 283% to $0.796 million, excluding all non-cash items and one-time transactional expenses, compared to Adjusted EBITDA income of $0.208 million for Q2 FY2022.Net income improved by 102% to $0.220 million, compared to a net loss of $11.047 million, for Q2 FY2022.Non-GAAP operating EBITDA (OPCO EBITDA) income increased 103% to $1.204 million, excluding corporate expenses, all non-cash items and one-time transactional expenses, compared to a non-GAAP operating EBITDA of $0.592 million for Q2 FY2022. Arthur L. Smith, CEO of Digerati, commented, “We are very pleased with our quarterly results which reflect continued positive trends in all of our financial metrics in spite of the short-term revenue loss we experienced in Southwest Florida due to Hurricane Ian. Initiatives during our 2nd fiscal quarter included winding down legacy revenue streams that do not meet our profitability objectives and re-organizing our sales team to maximize sales productivity. These initiatives and continued integration of our operating units have resulted in a business built to scale with stronger gross margins and improved operating profitability. We now serve nearly 4,500 business customers and approximately 45,000 users, predominantly in Florida, Texas and California.” Smith, continued, “We continue to make progress on our proposed merger with Minority Equality Opportunities Acquisition Inc. ...