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Dec 31, 2024
Stewart Q4 2024 Earnings Report
Sangoma Technologies Corporation announced its fourth quarter and fiscal year 2024 financial results, achieving fiscal year guidance and a significant increase in net cash provided by operating activities.
Key Takeaways
Sangoma Technologies Corporation reported total revenue of $60.934 million for Q4 FY2024, a decrease of 4% compared to Q4 FY2023. The company achieved a net loss of $1.708 million and an Adjusted EBITDA of $11.110 million for the quarter. Net cash provided by operating activities increased by 8% year-over-year for the quarter.
Total Revenue for Fiscal 2024 was $247.3 million, within the guided range of $246.5 to $248.5 million.
Adjusted EBITDA for Fiscal 2024 reached $42.6 million, aligning with the guidance range of $41.5 to $43.5 million.
Net cash provided by operating activities increased by 67% for the full fiscal year 2024 compared to the prior year.
Gross margin for fiscal 2024 increased to approximately 70% of revenue, up from 68% in fiscal 2023, driven by a favorable Services/Product revenue mix.
Stewart
Stewart
Forward Guidance
For fiscal 2025, Sangoma expects revenue in the range of $250 million to $260 million and Adjusted EBITDA from $42 million to $46 million, inclusive of $2.1 million in one-time ERP costs. For Q1 fiscal 2025, revenue is expected to be in the range of $61 million to $62 million and Adjusted EBITDA of $9 million to $10 million.
Positive Outlook
- Guidance for FY2025 revenue and Adjusted EBITDA indicates continued growth and profitability.
- The company's strong financial position and cash balance provide confidence for future growth.
- An experienced go-to-market team is in place with a formidable growth plan.
- Underlying infrastructure is in place to support growth initiatives.
- The company expects continued demand and subscriber growth for Services and Products.
Challenges Ahead
- The guidance for Adjusted EBITDA includes $2.1 million in one-time ERP costs for FY2025.
- Macroeconomic conditions such as inflation, interest rates, recessions, invasions, or declarations of war could impact results.
- Changes in global exchange rates could affect demand for Products and Services.
- Potential delays in receipt of products from contract manufacturers or increases in manufacturing/shipping costs could impact performance.
- The ability to attract and retain employees is crucial for maintaining momentum.