Digerati Technologies Outlines Strategic Initiatives for Calendar 2021
-Seeking Additional Accretive Acquisitions-
-Planning for Uplist to a National U.S. Exchange-
SAN ANTONIO, TX (GlobeNewswire) – December 8, 2020 – Digerati Technologies, Inc. (OTCQB: DTGI) (“Digerati” or the “Company”), a provider of cloud services specializing in UCaaS (Unified Communications as a Service) solutions for the small to medium-sized business (“SMB”) market, is pleased to announce its strategic initiatives for calendar 2021 with a focus on continuing to drive long-term revenue growth, profitability, and build shareholder value.
Digerati’s operating subsidiary, T3 Communications, Inc., including recently acquired Nexogy and ActivePBX, now serves over 2,600 business customers and approximately 28,000 users, while generating over $14 million in annual revenue. The annual EBITDA contribution from the recent acquisitions is $1.5 million before additional improvements over the next several months from the anticipated operating efficiencies, synergies and cost savings.
The Company’s plan to successfully meet its corporate goals and objectives includes:
A continued emphasis on its UCaaS/cloud communication business, which operates in a segment of the telecommunication industry that continues to experience solid growth as businesses migrate from legacy phone systems to cloud-based telephony systems and implement ‘stay at home’ teleworking environments.
Enhancements to the Company’s UCaaS solutions to include collaboration tools and integration with third-party systems that improves its business customers’ internal communication and engagement with underlying customers.
Continued enhancements to its broadband product portfolio with an emphasis on marketing leading-edge network and business continuity solutions like cloud WAN, also known as SD-WAN (Software Defined Wide-Area Network), to its customers, which the Company anticipates will increase average revenue per customer.
Targeting a range of YoY organic revenue growth between 5% and 10% subject to the Company’s balancing of resources between organic growth and integration of its acquisitions. Near-term, the Company will focus on the integration of its recently closed acquisitions while building on its solid operational and financial foundation of $14 million in annual revenue.
A disciplined approach to evaluating additional accretive acquisitions as it continues to target local and/or regional UCaaS/cloud telephony providers, which have excelled in their market with that “local” touch when serving their business customers. The Company will assimilate best practices from its acquisitions to optimize productivity and performance throughout the organization.
Executing on its capital markets strategy to position the Company for an up-listing to a national U.S. stock exchange (NASDAQ or NYSE).
A continued focus on the U.S. market of SMBs, of which a significant portion has not yet migrated to a UCaaS or cloud communication solution.
A continued emphasis on the Company’s channel strategy that enables its agents and Partners to offer cloud and session-based communication services to the enterprise market, primarily the SMB.
Continued enhancement of its infrastructure and back office systems to streamline operations and automate processes for efficiency, all which support both its organic and acquisition growth model.
Implementing a total support model (pre and post sales) for building a world-class service delivery and help desk organization.
Digerati is participating in two high-growth areas driven by demand from the enterprise market. The global market for UCaaS solutions is forecasted to reach $96 billion in value by 2023 with growth in the U.S. driven by the digital transformation of SMBs while revenue from SD-WAN (cloud WAN) service providers is growing at 70% annually and is estimated to reach $8.05 billion worldwide by 2021. Approximately 95% of Digerati’s revenue is contracted monthly recurring revenue.
Arthur L. Smith, CEO of Digerati, stated, “We are extremely pleased to report that we successfully delivered on previously stated objectives with the recently closed acquisitions of Nexogy and ActivePBX. We would like to thank our new financial partner, Post Road Group, who shares in our strategic vision of combining organic growth with accretive acquisitions in building a formidable UCaaS provider for the small and medium-sized business market. Our team is focused on implementing operating efficiencies and cost savings to improve our newly combined operations in order to increase EBITDA. We are focused on business execution while we seek additional accretive acquisitions to add to our platform. A major corporate goal for calendar 2021 is to work closely with our investment banking partner, Maxim Group, in attaining an uplist to a national U.S. exchange. We look forward to what lies ahead for us over the next 12 months.”
About Digerati Technologies, Inc.
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) and Nexogy (Nexogy.com), the Company is meeting the global needs of businesses seeking simple, flexible, reliable, and cost-effective communication and network solutions, including cloud PBX, cloud mobile, Internet broadband, SD-WAN, SIP trunking, and customized VoIP services, all delivered on its carrier-grade network and Only in the Cloud™.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company’s periodic filings with the Securities and Exchange Commission.
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