Wednesday, June 22, 2022
Digerati Technologies (DTGI)
Trying To Move To The Next Level
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.
Q3 above expectations. Revenues of $8.2 million were above our $7 million estimate, largely reflecting one month earlier closing of the NextLevel acquisition. Gross margins improved in the quarter to 61.3%, better than our 60.7% estimate. Adj. EBITDA of $557 million was slightly less than our $617,000 estimate, related to a timing issue for NextLevel’s cost synergies.
Favorable same store revenue growth. The fiscal Q3 revenue reflected favorable 1.8% sequential quarterly revenue growth from the fiscal second quarter and year over year same store revenue growth of 1.6%. This is compelling given that resources are allocated toward integration and acquisitions and not focused on growing its markets, at this time. As the company gains scale, we believe that the company will ramp up marketing efforts for enhanced in-market growth….
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.
