Sangoma Technologies: Anticipating Q1 2025 Results and Conference Call
Thursday, Oct 24, 2024 1:55 pm ET
1min read Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG), a leading provider of cloud-based Communications as a Service (CaaS) solutions, has announced the release date for its first quarter fiscal 2025 financial results and a subsequent conference call. The company expects to publish its results after market close on November 6, 2024, and will host a conference call on the same day at 5:30 PM Eastern Time to discuss the findings.
Sangoma's financial performance in recent quarters has been robust, with the company reporting total revenue of $247.3 million for fiscal 2024, squarely within its guided range. Adjusted EBITDA also aligned with expectations, reaching $42.6 million against a guidance range of $41.5 to $43.5 million. The company's strong financial position is reflected in its net cash provided by operating activities, which increased by 8% and 67% over the prior year periods, respectively.
For Q1 2025, Sangoma expects revenue in the range of $61 million to $62 million and Adjusted EBITDA from $9 million to $10 million. The company's gross margin for fiscal 2024 was approximately 70% of revenue, an increase from the 68% in fiscal 2023, driven by the favorable Services/Product revenue mix. Operating expenses were $41.6 million for the quarter and $173.9 million for fiscal 2024, down by about 5% and 1% respectively over the prior period.
Sangoma's debt repayment plan, aiming to reduce debt to under $60.0 million by the end of Fiscal 2025, is expected to have a positive impact on its financial performance. The company's balance sheet remains strong, and it continues to comfortably meet its debt covenants.
Analysts' estimates for Sangoma's revenue and earnings have been generally positive, with revenue estimates ranging from $61.5 million to $62.5 million for Q1 2025 and earnings estimates ranging from $0.03 to $0.05 per share. These estimates suggest that Sangoma is on track to meet or exceed its guidance for the quarter.
In conclusion, Sangoma Technologies' upcoming Q1 2025 financial results and conference call are highly anticipated by investors and analysts alike. The company's strong financial performance in recent quarters, coupled with its positive outlook for the current quarter, bodes well for its continued growth and success in the cloud-based CaaS market.
Sangoma's financial performance in recent quarters has been robust, with the company reporting total revenue of $247.3 million for fiscal 2024, squarely within its guided range. Adjusted EBITDA also aligned with expectations, reaching $42.6 million against a guidance range of $41.5 to $43.5 million. The company's strong financial position is reflected in its net cash provided by operating activities, which increased by 8% and 67% over the prior year periods, respectively.
For Q1 2025, Sangoma expects revenue in the range of $61 million to $62 million and Adjusted EBITDA from $9 million to $10 million. The company's gross margin for fiscal 2024 was approximately 70% of revenue, an increase from the 68% in fiscal 2023, driven by the favorable Services/Product revenue mix. Operating expenses were $41.6 million for the quarter and $173.9 million for fiscal 2024, down by about 5% and 1% respectively over the prior period.
Sangoma's debt repayment plan, aiming to reduce debt to under $60.0 million by the end of Fiscal 2025, is expected to have a positive impact on its financial performance. The company's balance sheet remains strong, and it continues to comfortably meet its debt covenants.
Analysts' estimates for Sangoma's revenue and earnings have been generally positive, with revenue estimates ranging from $61.5 million to $62.5 million for Q1 2025 and earnings estimates ranging from $0.03 to $0.05 per share. These estimates suggest that Sangoma is on track to meet or exceed its guidance for the quarter.
In conclusion, Sangoma Technologies' upcoming Q1 2025 financial results and conference call are highly anticipated by investors and analysts alike. The company's strong financial performance in recent quarters, coupled with its positive outlook for the current quarter, bodes well for its continued growth and success in the cloud-based CaaS market.
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