Business
Digerati Technologies Reports Third Quarter FY2020 Results
Digerati Technologies Reports Third Quarter FY2020 Results.
About this update from Digerati Technologies, Inc.
[{"type":"text","content":"\n - Organic Revenue Growth of 5% -- Gross Margin Improved to 51% - SAN ANTONIO, Texas, June 10, 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 April 30, 2020, the Company’s third quarter for FY2020. Key Financial Highlights for the Third Quarter of Fiscal Year 2020 (Ended April 30, 2020) Revenue increased to $1.566 million compared to $1.485 for the third quarter of FY2019, driven by organic growth.Gross profit increased to $802,000 compared to $715,000 for the third quarter of FY2019.Gross margin increased to 51% compared to 48% for the third quarter of FY2019.Adjusted EBITDA improved to a loss of $13,000, excluding all non-cash items and one-time transactional expenses, compared to an Adjusted EBITDA loss of $117,000 for the third quarter of FY2019.Average monthly revenue per customer (ARPU) was $715.Net customer count increased to 731 compared to 688 for the third quarter of FY2019. During the third quarter, the Company secured FCC approval of its acquisition of Nexogy, Inc. and entered into a Letter of Intent (LOI) on its 4th acquisition. 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 acquisitions. The Company  reported during the quarter that it plans to close these transactions under a larger and lower cost financing facility.    It has continued to work closely with its lenders during the COVID-19 Pandemic to establish funding availability beyond what is required for the current transactions, thus allowing for acceleration of its acquisition strategy in the future. The Company and Nexogy have extended the outside date for closing the transaction to June 30, 2020. The Company’s fourth (4th) acquisition under LOI has also been extended. Chief Executive Officer Arthur L. Smith, commented, “It is exciting to management that even during the midst of the Covid-19 Pandemic, we produced positive financial res...