Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Agreed. S-4 will be filed by MEOA I think, not DTGI
This stock has been heavily manipulated for as long as I can remember. Hasn't had enough volume to knock out these crooks.
The million dollar question - who is market maker PUMA fronting for? They've been boxing it in for weeks and weeks and won't let it above .12.
Good lord
I was told goal is still end of year but once S-4 is filed it’s up to the SEC to review and approve so they preemptively are getting approval until Q1
20K in volume off record revenues. This stock continues to just astound and baffle.
NASDAQ uplist mentioned several times in that PR, seems like it's on track IMO
Still trading at less than HALF of revenues.
Digerati Technologies Reports 116% Revenue Growth to $8.2 Million for Fourth Quarter FY2022 Resulting in $32.8 Million Annual Revenue Run-Rate
9:10 AM ET 11/1/22 | GlobeNewswire
Digerati Technologies Reports 116% Revenue Growth to $8.2 Million for Fourth Quarter FY2022 Resulting in $32.8 Million Annual Revenue Run-Rate
- FY2022 Non-GAAP Operating EBITDA of $3.6 Million -
- FY2022 Gross Profit of $14.8 Million -
- FY2022 Gross Margin Improvement to 61.3% -
SAN ANTONIO, Nov. 01, 2022 (GLOBE NEWSWIRE) -- Digerati Technologies, Inc. (OTCQB: DTGI) ("Digerati" or the "Company"), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business ("SMB") market, announced today financial results for the three and twelve months ended July 31, 2022, the Company's fourth quarter and annual year end for its Fiscal Year 2022.
Key Financial Highlights for the Fiscal Year 2022 (Ended July 31, 2022)
-- Revenue increased by 95% to $24.2 million compared to $12.4 million for
FY2021.
-- Gross profit increased 103% to $14.8 million compared to $7.3 million for
FY2021.
-- Gross margin improved 270 basis points to 61.3% compared to 58.6% for
FY2021.
-- Non-GAAP Adjusted EBITDA income increased by 90% to $2.2 million for
FY2022, excluding all non-cash items and one-time transactional expenses,
compared to Adjusted EBITDA income of $1.1 million for FY2021.
-- Non-GAAP Operating EBITDA (OPCO EBITDA) income increased by 64% to $3.6
million, excluding corporate expenses, compared to a non-GAAP operating
EBITDA of $2.2 million for FY2021.
Key Financial Highlights for the Fourth Quarter Fiscal Year 2022 (Ended July 31, 2022)
-- Revenue increased by 116% to $8.2 million compared to $3.8 million for Q4
FY2021.
-- Gross profit increased 114% to $5.1 million compared to $2.4 million for
Q4 FY2021.
-- Gross margin remained strong at 61.6% compared to 62.3% for Q4 FY2021.
-- Non-GAAP Adjusted EBITDA income decreased by 40% to $0.3 million for Q4
FY2022, excluding all non-cash items and one-time transactional expenses,
compared to Adjusted EBITDA income of $0.5 million for Q4 FY2021.
-- Non-GAAP Operating EBITDA (OPCO EBITDA) income increased by 44% to $1.3
million, excluding corporate expenses, compared to a non-GAAP operating
EBITDA of $0.9 million for Q4 FY2021.
Arthur L. Smith, CEO of Digerati, commented, "Our fiscal year 2022 was highly successful as we closed two additional acquisitions, SkyNet Telecom and NextLevel Internet, and continued to execute on our acquisition playbook that improves operating efficiencies through integration while growing organically as demonstrated by our 4% increase in annualized revenue on a sequential quarterly basis. Our accomplishments over the past few years in building a significant UCaaS platform in Florida, Texas and California generating $32.8 million in annualized revenue and $5.3 million in annualized non-GAAP operating EBITDA has proven that our consolidation strategy works."
Mr. Smith continued, "We are thrilled to have announced on September 6(th) our signing of a definitive business combination agreement with Minority Equality Opportunities Acquisition Inc. that will take us into the next chapter of our corporate development plan with a listing on NASDAQ. We believe that a NASDAQ listing is the final ingredient needed for the acceleration of our acquisition strategy in our highly fragmented industry. We will continue to work diligently on closing this key transaction and achieving a significant milestone for our Company."
Antonio Estrada, CFO of Digerati, stated, "Due to our successful integration of acquisitions, we exited fiscal year end July 31, 2022 in a great financial position with annual run-rates of $32.8 million in revenue and $5.3 million in non-GAAP Operating EBITDA. Our team is successfully integrating the acquisitions of SkyNet Telecom and NextLevel Internet and we are now seeing the financial reward. We have proven that our operating and financial teams can execute on our acquisition strategy and believe our planned move to NASDAQ will greatly enhance our abilities to replicate this success with accretive acquisitions in the future."
Accomplishments for the Fiscal Year ended July 31, 2022 include:
-- Closed acquisition of SkyNet Telecom, a leading provider of cloud
communication and broadband solutions tailored for businesses. The
acquisition of SkyNet expanded the Company's footprint in Texas and
increased its customer base by over 215% to 737 business customers in the
Lone Star State.
-- Closed acquisition of NextLevel Internet, a leading provider of cloud
communication and broadband solutions tailored for the SMB market. The
acquisition of NextLevel expanded the Company's growing nationwide
footprint and added a strong West Coast presence with nearly 1,000 SMB
clients in California.
-- As a combined business, Digerati's operating subsidiaries serve over
4,000 business customers and 45,000 users. The business model of the
combined entities is supported by strong and predictable recurring
revenue with high gross margins under contracts with business customers
in various industries including banking, healthcare, financial services,
legal, insurance, hotel, real estate, staffing, restaurant, education and
municipalities.
Three Months ended July 31, 2022, Compared to Three Months ended July 31, 2021
Revenue for the three months ended July 31, 2022 was $8.2 million, an increase of $4.4 million or 116% compared to $3.8 million for the three months ended July 31, 2021. The increase in revenue between periods is primarily attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet during the period. The total number of customers increased from 2,655 for the three months ended July 31, 2021, to 4,023 customers for the three months ended July 31, 2022.
Gross profit for the three months ended July 31, 2022 was $5.1 million, resulting in a gross margin of 61.6%, compared to $2.4 million and 62.3% for the three months ended July 31, 2021. The slight decrease in gross margin is primarily due to the addition of slightly lower-margin revenue associated with SkyNet Telecom's and NextLevel Internet's broadband services.
Selling, General and Administrative expenses (excluding legal and professional fees) for the three months ended July 31, 2022 increased by $2.4 million, or 114%, to $4.5 million compared to $2.1 million for the three months ended July 31, 2021. The increase in SG&A is attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet.
Operating loss for the three months ended July 31, 2022 was $0.15 million, a decrease of $0.27 million or 64%, compared to $0.42 million for the three months ended July 31, 2021.
Adjusted EBITDA income for the three months ended July 31, 2022 was $0.3 million, compared to an adjusted EBITDA income of $0.5 million for the three months ended July 31, 2021. In accordance with SEC Regulation G, the non-GAAP measurement of Adjusted EBITDA has been reconciled to the nearest GAAP measurement, which can be viewed under the heading "Reconciliation of Net Loss to Adjusted EBITDA" in the financial table included in this press release.
Of note were the following non-cash expenses associated with the three months ended July 31, 2022:
Company recognition of stock-based compensation and warrant expense of $0.15 million and depreciation and amortization expense of $0.40 million. Gain on derivative instruments was $1.65 million for the three months ended July 31, 2022.
Non-GAAP operating EBITDA (OPCO EBITDA) for the three months ended July 31, 2022 improved to income of $1.3 million, excluding corporate expenses, compared to a non-GAAP operating income of $0.9 million for the three months ended July 31, 2021.
Net loss for the three months ended July 31, 2022 was $3.3 million, an increase of $2.1 million as compared to a net loss of $1.2 million for the three months ended July 31, 2021. The resulting EPS for the three months ended July 31, 2022 was a loss of ($0.02) as compared to a loss of ($0.01) for the three months ended July 31, 2021.
At July 31, 2022, Digerati had $1.5 million of cash.
Twelve Months ended July 31, 2022, Compared to Twelve Months ended July 31, 2021
Revenue for the twelve months ended July 31, 2022 was $24.2 million, an increase of $11.7 million or 95% compared to $12.4 million for the twelve months ended July 31, 2021. The increase in revenue between periods is primarily attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet during the period. The total number of customers increased from 2,655 for the twelve months ended July 31, 2021, to 4,023 customers for the twelve months ended July 31, 2022.
Gross profit for the twelve months ended July 31, 2022 was $14.8 million, resulting in a gross margin of 61.3%, compared to $7.3 million and 58.6% for the twelve months ended July 31, 2021. The increase in gross margin is primarily due to the addition of high-margin revenue associated with SkyNet Telecom's and NextLevel Internet's UCaaS product line.
Selling, General and Administrative expenses (excluding legal and professional fees) for the twelve months ended July 31, 2022 increased by $5.4 million, or 77%, to $12.4 million compared to $7.0 million for the twelve months ended July 31, 2021. The increase in SG&A is attributed to the consolidation of the acquisitions of SkyNet Telecom and NextLevel Internet.
Operating loss for the twelve months ended July 31, 2022 was $3.7 million, an increase of $1.3 million or 53%, compared to $2.4 million for the twelve months ended July 31, 2021.
(MORE TO FOLLOW) Dow Jones Newswires
November 01, 2022 09:10 ET (13:10 GMT)
How many times are these criminals going to keep bringing asks back down after the .12s get taken out for the zillionth time. It’s absolutely incredible
OTCX again today, holding it down for the millionth time.
Someone seems to be obsessed with keeping this around a $15M market cap despite revenue of over $30M, an uplist merger and no dilution. It is freaking baffling to say the least.
And yet endless bid hits in the .12s and .11s. Makes alot of sense.
Earnings next week will probably show $25M annual revenue and yet they're still keeping this at a $15M market cap lol. Still pretty unbelievable with uplist coming.
If these guys really want to keep selling air .11s and .12s I'll buy every damn share
$MEOA up to $10.20
I saw that, and it's trending up a bit.
Something seriously wrong with the way this trades. I still can't believe the manipulation here.
I'm just continuously baffled at the way this trades.
So much manipulation and naked shorting. That's what's going on.
Read recent PR. They are reverse merging into an existing SPAC that already trades on the NASDAQ, none of those minimum prices apply, MEOA is already trading above $10 a share on Nasdaq
They literally will not stop effing with this thing.
Anyone else sick of the constant manipulation here? WTF
Boy these MM never seem to run out of air shares with this one, it's incredible.
Quite the candle today, and that chart is insane right now.
Agreed. Looking to head back to that .20 level IMO.
I would say $DTGI because it's trading at a calculable discount to conversion right now. Just my opinion.
8-K and some action boys
Well, that ask certainly just cleared out
These pieces of garbage can't help themselves with the market sells before close
Smacky smack smack. Gotta cover these air shares at some point
250K buy at the ask and these jokers drip it back down to .1145, just incredible.
Nice hits - Noble article just came out maybe that’s why
Low volume walk down 4 days in a row. They need to blow up the OTC and start from scratch, it’s a complete joke
It’s literally back to where it was before the merger announcement.
If I was management, I would start buying up shares soon at 50% discount to the conversion value. Doesn't make any sense to be trading down here if the deal is getting done.
Makes zero sense but no point in selling
Yeah, and probably a double before then. 79M float, these jokers can't hold this down much longer
They certainly won't be able to hold it down here forever
Yeah, ASCM shorted the run and failed to realize that it was tied to a merger with a set conversion price lol