In This Article:
Release Date: March 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TeraGo Inc (TSX:TGO) reported a 16.9% rise in adjusted EBITDA, indicating improved operational efficiency.
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The company achieved an 18% reduction in customer churn, reflecting enhanced customer retention strategies.
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Average revenue per account grew by 5.2%, showcasing successful revenue growth initiatives.
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Cash flows from operations increased by $4.5 million, demonstrating stronger financial health.
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TeraGo Inc (TSX:TGO) reduced capital expenditures by $1.5 million, focusing growth on existing assets.
Negative Points
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Total revenue for Q4 2024 showed only a marginal increase, rising from $6.54 million in 2023 to $6.57 million.
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The company reported a net loss of $3.2 million for Q4 2024, slightly improved from a $3.6 million loss in the same period in 2023.
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Net loss for the full year 2024 was $13.2 million, slightly worse than the $13.1 million loss in 2023.
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The decision on the flexible use of the 26 GHz spectrum by ISED is still pending, which could delay potential market opportunities.
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TeraGo Inc (TSX:TGO) is still in the process of refinancing its debt, which could pose financial risks if not resolved timely.
Q & A Highlights
Q: Can you provide an update on the timeline for ISED's decision regarding the use of the lower 26 GHz spectrum for mobile use? A: (CEO, Daniel Fusineic) ISED released a consultation in March, and responses are due within 60 days, followed by a 30-day response period. A decision could be made in 3 to 6 months, likely in 2025, as Canada is behind other countries that have already adopted flex use for these frequencies.
Q: How are discussions progressing regarding the renewal and restructuring of your debt? A: (CFO, Raj Sara) We are making progress and are confident that the debt will be refinanced and resolved well before its maturity date. An announcement is expected before the next quarterly report.
Q: Can you provide insights into the sales pipeline and potential growth in the connectivity segment? A: (CEO, Daniel Fusineic) Our sales pipeline is growing significantly, especially in connectivity, managed services, and security. The environment is favorable as large telcos struggle to serve the SMB market, and our 5G private wireless networks are also seeing increased demand.
Q: What are the financial highlights for Q4 2024 and the full year? A: (CFO, Raj Sara) Q4 2024 revenue was $6.57 million, slightly up from $6.54 million in 2023. Fiscal 2024 revenue was $26.16 million, up from $26.05 million. We saw a significant improvement in cash flow from operations, generating $5 million in 2024 compared to $523,000 in 2023.