Continued strength in Services mix at 82% of total revenue in Q3 while Net Cash provided by Operating Activities increased 121% over the prior year period.
MARKHAM, Ontario–(BUSINESS WIRE)–Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (Sangoma or the Company), a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, today announced its third quarter financial results and unaudited condensed consolidated interim financial statements for the quarter ended March 31, 2024.
|
US $000 |
Q3 FY2024 |
Q3 FY2023 |
Change |
Q2 FY2024 |
Change |
|
Revenue |
$61,046 |
$62,764 |
(3)% |
$62,276 |
(2)% |
|
Gross profit |
$43,000 |
$44,424 |
(3)% |
$43,986 |
(2)% |
|
Operating expenses1 |
$42,745 |
$43,368 |
(1)% |
$44,537 |
(4)% |
|
Net loss |
$(1,268) |
$(685) |
|
$(3,239) |
|
|
Net loss per share (fully diluted) |
$(0.04) |
$(0.02) |
|
$(0.10) |
|
|
Adjusted EBITDA2 |
$11,155 |
$12,243 |
(9)% |
$10,448 |
7% |
|
Net cash provided by operating activities |
$15,506 |
$7,008 |
121% |
$9,188 |
69% |
|
Cash conversion of net cash provided by operating activities to Adjusted EBITDA2 |
139% |
57% |
143% |
88% |
58% |
Sangoma’s Services revenue was $50.35 million, representing 82% of total revenue in the third quarter of fiscal 2024. Products revenue decreased year over year, driven by macroeconomic headwinds and some delayed orders, however is consistent with our strategic objective to shift towards services.
The Company’s balance sheet remains very strong as it continues to improve quarter over quarter. The third quarter finished with net cash provided by operating activities (“operating cash flow“) of $15.51 million, an increase of 121% from the prior year period, and a cash balance of $18.39 million on March 31, 2024, reflecting a strong quarterly progression of operating cash flow. Cash conversion of operating cash flow to Adjusted EBITDA2 during the second quarter reached 139%, almost two and half times the rate compared to 57% conversion a year ago and 88% from the immediately preceding quarter. Sangoma continues to remain comfortably within its debt covenants.
remove ads
.
“We are two quarters into the transformative journey and I am exceptionally pleased and proud of how the Sangoma team is maintaining excellent service for our core customers while bolstering our financial health,” stated Charles Salameh, Chief Executive Officer.
“Our initiatives in expanding our go-to-market, reinvigorating our brand and investing in our enterprise architecture program are all tracking to plan….
Click Here to Read the Full Original Article at All News…
