Business
Digerati Technologies Reports First Quarter FY2020 Results
Digerati Technologies Reports First Quarter FY2020 Results.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n - Revenue Increased to $1.6 Million Driven by Organic Growth -- 59% Improvement in Adjusted EBITDA - SAN ANTONIO, Dec. 16, 2019 (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 October 31, 2019, the Company’s first quarter for FY2020. Key Financial Highlights for the First Quarter of Fiscal Year 2020 (Ended October 31, 2019) Revenue increased to $1.589 million compared to $1.522 for the first quarter of FY2018, driven by organic growth.Gross profit increased to $786,000 compared to $765,000 for the first quarter of FY2019.Gross margin remained consistent at 50% compared to 50% for the first quarter of FY2019.Adjusted EBITDA loss of $23,000, excluding all non-cash items and one-time transactional expenses, improved by 59% compared to an Adjusted EBITDA loss of $57,000 for the first quarter of FY2019.Average monthly revenue per customer (ARPU) was $754.Net customer count increased to 708. Digerati participates in high-growth segments of the telecommunication industry that are driven by demand from enterprise customers, specifically SMBs.  The Company continues to emphasize its UCaaS/cloud communication business that is experiencing significant growth as businesses migrate from legacy phone systems to cloud-based telephony systems.  Other services offered to its business market include leading-edge network and business continuity solutions like SD WAN and a LTE mobile broadband service that guarantees up-time during network outages.  Approximately 95% of Digerati’s revenue is contracted monthly recurring revenue. In addition to executing on its organic growth, the Company is continuing its disciplined approach to acquiring cloud communication service providers that have excelled at serving regional markets in the U.S. With a solid operational base in Texas and Florida, Digerati is well positioned to execute on this key initiative and increase its market share in the second and fourth largest state economies in the U.S. The Company recently provided an update on its planned acquisition of Nexogy, Inc. that combined with Digerati̵...