Digerati plans move to Nasdaq as quarterly revenue more than doubles
Digerati Technologies Inc., a San Antonio-based cloud and communication services company, plans to move its stock listing to the Nasdaq Stock Market from the over-the-counter market in the first quarter of next year.
Digerati said it’s been difficult to raise capital on the OTC and that listing its stock on Nasdaq would provide it with more access to money to grow its business through its acquisition game plan.
“There’s a lot of challenges with the currency on the OTC market right now. It’s not a primary exchange or currency that typically sellers of a transaction want to hold,” CEO Arthur Smith said. “This uplist transaction is important to what we’re doing overall strategically.”
Digerati announced its uplist timeline after reporting that revenue jumped to $8.1 million in its fiscal 2023 first quarter, which ended Oct. 31 — up 115 percent from a year ago. It also reported a net loss of nearly $5 million, down from a net income of $2.4 million in the same quarter last year.
Digerati attributed the revenue gains during the recent quarter to its acquisitions of NextLevel Internet, a Miami-based business communication company, in February, and San Antonio-based service provider SkyNet Telecom in December 2021.
Digerati grew to 4,565 customers from 2,658 over the past year in Texas, Florida and California. It has nearly 100 employees with ongoing plans to hire more staff to meet incoming demand.