Wednesday, November 02, 2022
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.
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In line Q4 results. The company reported year-over-year revenue growth of 116% to $8.2 million, in line with our forecast. Adj. EBITDA of $284,000 was slightly below our estimate of $560,000, illustrated in Figure #1 Q4 Variance.
Acquisition integration continues. In our view, the company has not begun fully realizing the synergies of the recent Next Level acquisition, with SG&A expenses once again higher than our forecast. Some of the cost reductions did not happen until later in the quarter. As such, we believe that margins will improve in Q1 and beyond as the 2022 acquisitions become more fully integrated.
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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.