The following is a summary of the Sangoma Technologies Corporation (SANG) Q2 2024 Earnings Call Transcript:
Financial Performance:
Sangoma reported Q2 2024 revenue of $62.3 million, a slight decrease compared to the same period a year ago, and a 1% decrease sequentially.
Product revenue decreased 3% sequentially to $11.6 million, accounting for 19% of total quarterly revenue.
Gross profit rose to $44 million, up 3% compared to the same period last year, with a gross margin increase of 2% to 71%.
Operating expenses amounted to $44.5 million, down from $45 million in the first quarter.
The company reported a net loss of $3.2 million. The company also reported a 17% sequential increase in cash flow from operations.
The company has resumed forward financial guidance, predicting fiscal 2024 revenue to range between $245 million to $250 million, and adjusted EBITDA to be in the range of $41 million to $44 million.
For Q2, the company reported total revenues of $62.3 million and adjusted EBITDA of $10.4 million, with a 17% margin.
Business Progress:
Sangoma is in a transformative phase, focusing on internal integration that allows the company to bundle its component technologies, targeting more sophisticated and larger clients.
The company has made substantial progress in its evolution into a cloud-based managed communications services provider.
Sangoma has made key changes to the leadership team and streamlined its functions for increased agility and innovation.
The company has made significant improvements in their internal operations and efficiency.
Mark Strachan was appointed as the company's first-ever CIO and, Maria, a new Head of Marketing, has also been added to the team to help strengthen Sangoma's brand in the industry.
Sangoma has reimagined its market strategy and its product offerings are being rejuvenated with new bundles; they aim to complete their customer support enhancements by the end of this fiscal year.
More details: Sangoma Technologies IR
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