Business
Digerati Technologies Reports Second Quarter FY2019 Results
Digerati Technologies Reports Second Quarter FY2019 Results.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n- Revenue Growth of 884% to $1.5 Million -- Adjusted EBITDA Improvement of 69% -\n SAN ANTONIO, Texas, March 19, 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 January 31, 2019, the Company’s second quarter for FY2019. Key Financial Highlights for the Second Quarter of Fiscal Year 2019 (Ended January 31, 2019) Revenue increased by 884% to $1.486 million compared to $151,000 for the second quarter of FY2018.Gross profit increased to $691,000 compared to $53,000 for the second quarter of FY2018.Gross margin increased to 47% compared to 35% for the second quarter of FY2018.Adjusted EBITDA loss of $86,000, excluding all non-cash items and one-time transactional expenses, improved by 69% compared to an Adjusted EBITDA loss of $276,000 for the second quarter of FY2018.Average monthly revenue per customer (ARPU) was $742. Chief Executive Officer Arthur L. Smith, commented, “Our second quarter results were in-line with our internal expectations as our first acquisition and Texas operations demonstrated significant growth and we continued working towards finalizing integration of our most recent acquisition in Florida.  We believe our business in Florida has stabilized and we have initiated new sales and marketing, customer service and additional products and services to spur organic growth. These initiatives have proven to be successful in our Texas region and are now being rolled out in Florida. Additionally, our potential acquisition pipeline is robust as our team continues to conduct due diligence on some exciting opportunities.” Chief Financial Officer Antonio Estrada, Jr., stated, “Our cloud delivery business model and scalability of our platform has resulted in improved margins, strong ARPU and consistent customer growth. We believe we are well positioned for future growth as our investments in sales channels, service delivery and customer care are driving strong organic growth in Texas. We continue to balance organic growth with seeking acquisitions to bolster our platform.” Three Months ended January 31, 2019 Compar...