Monday, May 16, 2022
Digerati Technologies (DTGI)
A Consistent Message To Investors
Digerati Technologies, Inc. (OTCQB: DTGI) is a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the business market. Through its operating subsidiaries, T3 Communications (T3com.com), Nexogy (Nexogy.com), SkyNet Telecom (Skynettelecom.net) and NextLevel Internet (nextlevelinternet.com), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Non deal road show highlights. This report provides highlights of a non deal road show hosted by Arthur Smith, CEO, to investors in St. Louis last week. Mr. Smith outlined the company’s dual-path of organic growth and a roll-up acquisition strategy. After completing six acquisitions in under 5 years, the company is on a path to achieve a revenue run-rate of $50 million in the medium term.
Solid business metrics. Mr. Smith indicated a goal to achieve an organic growth rate between 5% and 10% on top of the acquisition-fueled growth. Given the low churn rate of the company’s recent acquisition targets, the overall churn rate is likely to be around a favorable 0.7% in the near term, well below larger peers that lack Digerati’s high-touch customer service. Attracting high-margin recurring revenue streams on multi-year contracts is a competitive advantage for the company….
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.