Digerati Technologies Outlines Strategic Initiatives for Calendar Year 2022
– Seeking Additional Accretive Acquisitions –
SAN ANTONIO, TX (GlobeNewswire) – March 10, 2022 – 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 year 2022 with a focus on long-term revenue growth, profitability, and shareholder value.
Digerati’s operating subsidiary, T3 Communications, Inc., has successfully executed over the past two years in combining organic revenue growth with the acquisitions of Nexogy, ActivePBX, SkyNet Telecom and NextLevel Internet. Prior to its recently closed acquisitions, the Company has executed successfully on integrating its Nexogy and ActivePBX acquisitions while streamlining operations and expenses. T3 Communications and its subsidiaries now serve over 4,000 business customers and approximately 45,000 users, with an annual run-rate of $31.5 million in revenue.
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 telecommunications industry that continues to experience solid growth as businesses migrate from legacy phone systems to cloud-based telephony systems and implement hybrid ‘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 and the delivery of “digital oxygen” to its business customers.
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 continue focusing on the integration of its recently closed acquisitions while building on its solid operational and financial foundation of an annual run-rate of $31.5 million in 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.
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 business 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 a high-growth market driven by demand from the business sector. The global UCaaS market projects to expand from $38.7 billion at a CAGR of 23.5% through 2027, reaching a value of $169.6 billion. 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 have successfully delivered on previously stated strategic initiatives and moved well beyond proof of concept with our business model. As indicated by our stated goals and objectives for 2022, we are not deviating from the plan we implemented several years ago when we launched our disciplined M&A strategy. Our leadership team and financial partner, Post Road Group, are aligned 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.”
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), Nexogy (Nexogy.com), SkyNet Telecom (Skynettelecom.net) and NextLevel Internet (nextlevelinternet.com), the Company is meeting the global needs of small businesses seeking simple, flexible, reliable, and cost effective communication and network solutions including cloud PBX, cloud telephony, cloud WAN, cloud call center, cloud mobile, and the delivery of digital oxygen on its broadband network.
The Company has developed a robust integration platform to fuel mergers and acquisitions in a highly fragmented market as it delivers business solutions on its carrier-grade network and Only in the Cloud™. For more information, please visit www.digerati-inc.com and follow DTGI on LinkedIn, Twitter and Facebook.
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, including but not limited to, total business customers, total users, and annual revenue, are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.
Factors that could cause results to differ include, but are not limited to, 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. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward looking statements, even if new information becomes available in the future.
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