Sangoma Technologies Corporation · TSX:STC
Sangoma Technologies — Investor Presentation (February 2025)
27 slides from Sangoma Technologies's investor presentation, February 2025
Slide 1: Sangoma February 2025 Investor Slides
Sangoma February 2025 Investor Slides
Slide 2: Disclaimer
Disclaimer General This presentation is property of Sangoma Technologies Corporation (the “Company”, “Sangoma”, “us” or “we”). It cannot be circulated or forwarded without our consent. Any graphs, tables or other information demonstrating our historical performance or that of any other entity contai
Slide 3: We Simplify Essential IT Communications for Small & Mid-market Business
We Simplify Essential IT Communications for Small & Mid-market Business Security & Voice Video Data Connectivity Tailored Solutions with a Single-Vendor Approach 3
Slide 4: Sangoma at a Glance
Sangoma at a Glance 2.6M 100K 650+ 9 Years UC Seats Customers Employees Gartner® Magic Quadrant™ $247M 82% 0.9% $44M Fiscal 24 Revenue1 Recurring Customer Churn2 Fiscal 2024 Net Cash Revenue1 Generated from Operating Activities1 1. As of June 30, 2024 2. See the definition of “Churn” under “Non-IFRS
Slide 5: We Provide the Widest Set of Solutions In the Industry
We Provide the Widest Set of Solutions In the Industry Culture of Innovation & Support Cloud-Based SaaS Equipment Services Bundles À la carte Wholesale + Sophisticated Support + Deep Engineering Skills +Proprietary Technology System Lower Total Cost of More Choice Increased Innovation Ownership 5
Slide 6: Aligned to Meet the Needs of the Small & Mid-Market
Aligned to Meet the Needs of the Small & Mid-Market The SMB market accounts for 44% of all IT spending SMB IT spend on Unified Communications was expected to be US$33B in 2023 Small Market Mid-Market Less Than 500 Employees 500 to 5,000 Employees • Component Buying • Single Vendor Requirement • Mini
Slide 7: Diverse Customer Base Across Private & Public Sectors
Diverse Customer Base Across Private & Public Sectors 100,000+ Customers today Differentiated Service Model: Differentiated Service Model:Uniquely positioned to serve both the increasingly sophisticated mid-market and single component buying small market with industry relevant solutions. 7
Slide 8: Customer Profile: A Story of Growth & Efficiency
Customer Profile: A Story of Growth & Efficiency As a major U.S. restaurant chain expanded to over 150 locations, it faced the challenge of $55K+ MRR requiring robust communication and network solutions despite having limited IT resources. Lorem 1 Initial Success Lorem 2 Growth Lorem Ongoing 3 Innov
Slide 9: Industry-low Churn Rates Validate Customer Value Proposition
Industry-low Churn Rates Validate Customer Value Proposition Churn as a % of Gross Margin1 Revenue Mix1 Services Rev1 2.6M <1% 17% UC seats Churn 100K+ 83% Customers 68% 99% Service Rev Sticky Customers & Steady Recurring Revenue Mix with Sustained Strong Gross Margins 1. For the six months ended De
Slide 10: New Channel Program Drives Partner and Account Expansion
New Channel Program Drives Partner and Account Expansion Pinnacle Partner Program 1,100+ Partners Channel Accounts for 84% of SMB IT Spending Worldwide1 1. Canalys Consulting Report 2023 10
Slide 11: Inward Focus: Systems and Platform Consolidation
Inward Focus: Systems and Platform Consolidation Transformational work completed in F2024 provides a sustainable platform to scale: • Refined CRM enables new GTM initiatives • Comprehensive ERP to deliver operational efficiencies, streamlined reporting and integrated billing • Robust program to impr
Slide 12: Outward Focus: Go-to-Market Transformation
Outward Focus: Go-to-Market Transformation 1. Account Expansion / Share of Wallet 6% increase in the number of deals with $10K+ of monthly revenue Q2-F25 vs Q1-F25 2. Market Share / New Logo Infrastructure Platform revenue grew 10% in H1 F25 vs H1 F24 3. Base Building / Strategic Deals 75% of $10K+
Slide 13: Our Roadmap: Solutions Focused - Technology Driven
Our Roadmap: Solutions Focused - Technology Driven Leading Experience Leading Platforms Leading Productivity (Control Panel) (and features) (Partnerships, Innovation, AI) AI Assistant Knowledge Automation Quality 13
Slide 14: Technical Framework
Technical Framework Growth / Expansion Opportunities 1. SDWAN/SASE/Security 2. Int’l Expansion / Contact Centre as a Services 3. Next gen productivity tools targeting key verticals 4. Integration with MSFT and other ecosystems 14
Slide 15: A Clear Path to Growth Vectors
A Clear Path to Growth 3 Vectors 15
Slide 16: Pivoting to Growth – Focus Areas
Pivoting to Growth – Focus Areas Organic Expansion Inorganic • Leveraging Industry Bundles • New offerings – Sangoma • Ability to leverage cash flow • Innovation and R&D Security position to acquire key Investments focused on • New models – MDU, others capabilities that align with Strategic GTM Offe
Slide 17: Inorganic Growth: Mergers, Acquisitions, & Strategic Partnerships
Inorganic Growth: Mergers, Acquisitions, & Strategic Partnerships • Consistent track record of sustained profitability through M&A integration • Inorganic growth through mergers, acquisitions, and strategic partnerships will accelerate our expansion and diversification efforts Our Targets • New tech
Slide 18: Highly Experienced Management Team Delivers Results
Highly Experienced Management Team Delivers Results Charles Salameh Larry Stock Jeremy Wubs Sam Reburn Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Legal Officer ● Previously Global Head of ● Previously CFO at Star2Star ● Previously SVP of Product, ● Previously Gener
Slide 19: Fiscal Foundational Strength
Fiscal Foundational Strength Cash Flow Total Debt 121% Net Cash provided by Operating Activities as a Percentage of Adjusted EBITDA in F25H1 Steady Cash Flow Generation & Debt Reduction Provides Optionality to Drive Value Creation 19
Slide 20: Stable Recurring Revenue Base
Stable Recurring Revenue Base Revenue • Top line driven by industry-best product breadth serving the evolving needs of the SMB market • Significant opportunity to leverage large SIs, carriers, hyperscalers, and national partners • Improve Services revenue marketability through more effective bundlin
Slide 21: Strong Profitability
Strong Profitability Gross Profit Adj. EBITDA1 F25 F25 H1 H1 Consistent Track Record of Sustained Profitability Through M&A Integration 1. Adj. EBITDA is a non-IFRS Measure. See "Non-IFRS Measures and Industry Metrics" in the disclaimer and to the Appendix of this presentation for a reconciliation t
Slide 22: Financial Highlights
Financial Highlights 33.5M $8.93 $6.24 Shares Outstanding Share Price CAD1 Share Price USD1 US$260M Enterprise Value (EV) 6.0X 1.0X 0.87X 0.83X EV to TTM AEBITDA1,2 Net Debt to TTM AEBITDA2 Price to TTM Sales Ratio1,2 Price to EV Ratio1,2 1. Price at close of 02/10/25 2. As of December 31, 2024 22
Slide 23: We simplify essential IT communications for small and mid-market business
We simplify essential IT communications Steady cash flow generation provides for small and mid-market business optionality to drive value creation We have a clear path to growth We embody optionality 23
Slide 24: Appendix
Appendix 24
Slide 25: Non-IFRS Measures and Industry Metrics
Non-IFRS Measures and Industry Metrics “Adjusted EBITDA” means earnings before income taxes, interest expense (net), share-based compensation, depreciation (including for right-of-use assets), amortization, restructuring and business integration costs, goodwill impairment and change in fair value of
Slide 26: Adjusted EBITDA Reconciliations
Adjusted EBITDA Reconciliations The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net loss. F2019 F2020 F2021 F2022 F2023 F2024 F25 H1 Net Loss 1,740 2,631 (1,566) (110,780) (29,026) (8,659) (3,791) Tax (479) (298) 3,177 6,390 (2,932) (840) (617) I
Slide 27: investorrelations@sangoma.com
investorrelations@sangoma.com 27
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