Thursday, December 16, 2021
Digerati Technologies (DTGI)
What The Recent Results Indicate?
Digerati Technologies, Inc. (OTCQB: DTGI) is a telecom and technology provider of diverse, carrier-grade, Only in the Cloud™ communication and network solutions including Unified Communication as a Service, cloud telephony, cloud WAN, cloud call center, cloud mobile, and delivery of digital oxygen on its fiber/mobile broadband network. Digerati has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers flexible, cost-effective services with enterprise-grade quality and reliability. A multi-year recipient of Deloitte’s Fast500 and Fast50 Awards for one of the fastest growing technology companies in North America, Digerati has become an expert at successfully merging and managing subsidiary operations since 2015. The Company’s impressive tech-stack serves 28,000 business users on its platform and its dynamic channel program includes over 300 channel partners that serve as a conduit for sales growth. Digerati has continuously increased customer adoption while serving diverse industries including Healthcare, Banking, Financial Services, Legal, Real Estate, and Construction. Digerati currently has a strong platform for growth throughout Texas and Florida, the 2nd and 4th largest state economies by GDP in the U.S. The Company’s clean and clear fundamentals, combined with its clearly defined growth plan, disciplined acquisition strategy and seasoned leadership team is expected to increase shareholder value as it enters the next phase of its corporate development plan. For more information, please visit www.digerati-inc.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Surprisingly better results. Fiscal Q1 revenues were just shy of our expectation coming in at $3.78 million versus our $3.8 million estimate. Adj. EBITDA, which excludes Legal and Professional Fees, was much better compared with our previously lowered expectations, $523,000 versus our previously lowered expectations of $293,000.
Gross margins better than expected. Gross margins were slightly lower sequentially from the fiscal fourth quarter of 62.3% to close the fiscal first quarter at 60.6%, but the gross margins were better than expected. We estimate that gross margins likely will be higher than our base line estimate of 58% in the second quarter and for the fiscal full year …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.