In This Article:
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Revenue: $60.2 million for Q1 fiscal 2025, slightly below guidance range of $61 million to $62 million.
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Adjusted EBITDA: $9.8 million, representing 16% of revenue, at the high end of guidance range.
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Net Cash from Operating Activities: $12.1 million, a 55% increase over the prior year period.
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Gross Profit: $41.2 million, representing 68% of revenue.
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Debt Reduction: Total debt reduced by $8.7 million in Q1, with net debt to trailing 12 months adjusted EBITDA ratio at approximately 1.2 times.
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Cash and Total Debt: $16.7 million in cash and $69.1 million in total debt at the end of Q1.
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Customer Growth: 6% year-over-year increase in customers with over $10,000 in monthly revenue.
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Bookings from New Customers: 42% of bookings from new customers, up from 36% in Q4 fiscal 2024.
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Large UCaaS Opportunities: 28% year-over-year increase in sales funnel opportunities with greater than $10,000 in MRR.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sangoma Technologies Corp (NASDAQ:SANG) has stabilized its revenue base and enhanced operating cash flow, providing financial flexibility for expansion.
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The company reported a 6% year-over-year increase in customers generating over $10,000 in monthly revenue, indicating successful account expansion.
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Sangoma Technologies Corp (NASDAQ:SANG) achieved a 42% quarter-over-quarter increase in bookings from new customers, demonstrating effective new logo acquisition strategies.
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The company has significantly reduced its debt, creating opportunities for inorganic growth and strategic acquisitions.
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Sangoma Technologies Corp (NASDAQ:SANG) has improved its Net Promoter Scores, reflecting enhanced customer service and account management.
Negative Points
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Revenue for the first quarter was slightly below the guidance range due to delays in signing large deals and disruptions from hurricanes.
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The company experienced slightly higher churn from legacy contracts, influenced by macroeconomic factors and state-level minimum wage decisions.
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There was a slowdown in product volumetric growth, particularly affecting the Switchvox product line.
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Despite strong cash flow, the revenue mix remains heavily reliant on services, with product sales showing seasonality and potential volatility.
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The company faces challenges in maintaining sequential growth amidst external factors like natural disasters and economic uncertainties.
Q & A Highlights
Q: Can you elaborate on the impact of NEC's exit from the prem business and how it affects Sangoma? A: Charles Salameh, CEO, explained that NEC's exit from the prem business opens opportunities for Sangoma, especially in the midsized market. Sangoma is well-positioned to fill the gap left by NEC, particularly for customers requiring on-premises solutions like hospitals and schools. Jeremy Wubs, COO, added that the prem market is still significant, and Sangoma's existing relationships with NEC's partners allow them to capitalize on this opportunity.