AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Sangoma Technologies Corporation (TSX:STC), a leading provider of cloud-based Communications as a Service (CaaS) solutions, has announced its fourth quarter financial results and audited consolidated financial statements for the fiscal year ended June 30, 2024. Despite facing macroeconomic challenges, the company demonstrated resilience with significant improvements in its financial performance metrics.
For Q4 FY2024, Sangoma reported revenues of $60.9 million, a decrease of 4% from $63.7 million in Q4 FY2023. For the full fiscal year, total revenue stood at $247.3 million, down 2% from $252.5 million in the previous year. This performance fell within the company’s guided range of $246.5 million to $248.5 million, underscoring effective management in a challenging market environment.
Gross profit for Q4 was $41.8 million, slightly lower than the $42.2 million recorded in the same quarter last year. The company’s gross margin improved to approximately 70% for fiscal 2024, up from 68% in fiscal 2023. This increase was attributed to a favorable revenue mix, with Services revenue contributing 82% compared to 79% in the previous year.
Operating expenses also showed a positive trend, decreasing by 5% in Q4 to $41.6 million and by 1% over the entire fiscal year to $173.9 million. These reductions were primarily driven by cost-saving initiatives and enhanced net working capital management.
A noteworthy highlight was Sangoma's net loss, which significantly narrowed to $1.7 million in Q4, compared to a loss of $23.6 million in the same quarter of FY2023. For the fiscal year, the net loss was $8.7 million, down from $29 million the previous year. Correspondingly, net loss per share (fully diluted) improved to $(0.05) from $(0.72) in Q4 FY2023, illustrating the effectiveness of the company’s financial strategies.
Adjusted EBITDA for Q4 was $11.1 million, up 2% from $10.9 million in the prior year. For the fiscal year, adjusted EBITDA reached $42.6 million, slightly below the $44.4 million reported in FY2023 but still within the expected range.
Sangoma ended the fiscal year with a robust cash position, reporting $16.2 million in cash, bolstered by a 67% increase in net cash provided by operating activities to $44.2 million. Notably, net cash provided by operating activities as a percentage of adjusted EBITDA stood at 104%, a significant improvement from 60% in FY2023.
