Business
Digerati Technologies Reports Second Quarter FY2020 Results
Digerati Technologies Reports Second Quarter FY2020 Results.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n - Organic Revenue Growth of 5% -- Gross Margin Improved to 50% - SAN ANTONIO, March 09, 2020 (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, 2020, the Company’s second quarter for FY2020. Key Financial Highlights for the Second Quarter of Fiscal Year 2020 (Ended January 31, 2020) Revenue increased to $1.557 million compared to $1.486 for the second quarter of FY2019, driven by organic growth.Gross profit increased to $781,000 compared to $691,000 for the second quarter of FY2019.Gross margin increased to 50% compared to 47% for the second quarter of FY2019.Adjusted EBITDA improved to a loss of $81,000, excluding all non-cash items and one-time transactional expenses, compared to an Adjusted EBITDA loss of $86,000 for the second quarter of FY2019.Average monthly revenue per customer (ARPU) was $731.Net customer count increased to 705 compared to 673 for the second quarter of FY2019. Subsequent events reported in its quarterly report include the Company’s FCC approval of its acquisition of Nexogy, Inc. and a Letter of Intent (LOI) on its fourth (4th) acquisition that it plans to close simultaneously with the Nexogy transaction. The combined business (Nexogy and fourth (4th) acquisition) will triple the Company’s business user base and in the aggregate total over $14 million in annual revenue with improved EBITDA from further consolidation savings derived from the additional acquisition. The Company previously reported that it plans to close these transactions under a larger and lower cost financing facility with funding availability for future acquisitions that will facilitate the Company’s acceleration of its acquisition efforts. 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 includ...