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Digerati Technologies Reports Third Quarter FY2019 Results
Digerati Technologies Reports Third Quarter FY2019 Results.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n- Revenue Growth of 658% to $1.5 Million -- Adjusted EBITDA Improvement of 64% -\n SAN ANTONIO, Texas, June 17, 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 April 30, 2019, the Company’s third quarter for FY2019. Key Financial Highlights for the Third Quarter of Fiscal Year 2019 (Ended April 30, 2019) Revenue increased by 658% to $1.485 million compared to $196,000 for the third quarter of FY2018.Gross profit increased to $715,000 compared to $90,000 for the third quarter of FY2018.Gross margin increased to 48% compared to 46% for the third quarter of FY2018.Adjusted EBITDA loss of $102,000, excluding all non-cash items and one-time transactional expenses, improved by 64% compared to an Adjusted EBITDA loss of $281,000 for the third quarter of FY2018.Average monthly revenue per customer (ARPU) was $723.Net customer count increased by 374% to 688. Digerati participates in high-growth segments of the telecommunication industry that are driven by demand from enterprise customers, specifically small to medium-sized businesses.  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 an 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 strategy, 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 strategic initiative and increase its market share in the 2nd and 4th largest state economies in the U.S. Chief Executive Officer Arthur L. Smith, commented, “We are pleased with our third quarter results, ...