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MARKHAM, ONTARIO, November 8, 2023 – 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 first quarter financial results and unaudited condensed consolidated interim financial statements for the fiscal first quarter ended September 30, 2023.
| US $000 | Q1 FY2024 | Q1 FY2023 | Change | Q4 FY2023 | Change | ||||
| Revenue | $63,028 | $64,051 | (2)% | $63,680 | 1% | ||||
| Gross profit | $44,028 | $43,337 | 2% | $42,241 | 4% | ||||
| Operating expenses1 | $45,001 | $44,406 | 1% | $43,708 | 3% | ||||
| Net loss | $(2,444) | $(1,976) | $(23,630) | ||||||
| Net loss per share (fully diluted) | $(0.07) | $(0.06) | $(0.72) | ||||||
| Adjusted EBITDA2 | $9,882 | $10,725 | (8)% | $10,860 | (9)% | ||||
| Net cash provided by operating activities | $7,849 | $3,642 | 116% | $10,855 | (28)% | ||||
Sangoma’s Services revenue rose to $51.16 million, representing 81.1% of total revenue in the first quarter of fiscal 2024. Products revenue was down, resulting in total Revenue for the first quarter of $63.03 million, a decrease of 2% from the same period in the prior year, and a 1% decrease from the immediately preceding quarter.
The Company continues to maintain a healthy balance sheet, finishing the quarter with net cash provided by operating activities of $7.85 million and a cash balance of $11.14 million on September 30, 2023, reflecting a strong quarterly progression of cash flow. Sangoma continues to remain comfortably within its debt covenants.
“My first two months in the role have served to strengthen my convictions in the value of Sangoma’s uniquely positioned portfolio that addresses a large and underserved segment of the marketplace with a wide array of both standalone and bundled solutions” said Charles Salameh, Sangoma CEO. “Our transformational activities are well underway and our global team of dedicated employees, suppliers, and partners are capable and eager to execute to forge that path. During the coming months and quarters, I look forward to sharing with you the impact of those strategies as they drive value into the business and solidify Sangoma’s position in the global marketplace.”
Operating expenses1 were $45.00 million for the quarter, up from $44.41 million for the same period last year by about 1%. In line with recent history, first quarter operating expenses include certain one time annual costs.
Net loss for the first quarter was $2.44 million, while Adjusted EBITDA remained strong at $9.88 million.
Conference call
Sangoma will host a conference call on Wednesday, November 8, 2023, at 5:30 pm ET to discuss these results. The dial-in number for the call is 1-800-319-4610 (International 1-604-638-5340). Participants are requested to dial in 5 minutes before the scheduled start time and ask to join the Sangoma call.
1 Operating Expenses consist of sales and marketing, research and development, general and administration and foreign exchange (gain) loss.
2 Adjusted EBITDA is a non-IFRS financial measure used by the Company to monitor its performance and definitions of these terms along with reconciliation to the closest IFRS measure may be found in the accompanying MD&A on page 16 posted today at www.sedarplus.ca and www.sec.gov.