The following is a summary of the Sangoma Technologies Corporation (SANG) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Sangoma posted Q3 revenues of $61 million, a decrease of 3% YoY and 2% on a sequential basis.

• Services revenue was stable at $50.4 million, constituting 82% of the total quarterly revenue.

• There was a 13% drop in Product revenue YoY, from $12.2 million to $10.7 million.

• Adjusted EBITDA for Q3 was $11.2 million, up 7% from the previous quarter.

• Net loss for Q3 was reported at $1.3 million, equating to $0.04 per fully diluted share.

• The company significantly increased their net cash from operating activities to $15.5 million, from the $7 million achieved during the same period in the previous year.

Business Progress:

• Sangoma is making strides in their transformation strategy, focuses on fiscal management, growth and integration.

• Redesign of its go-to-market approach is underway with a new Chief Revenue Officer and a revamped sales model.

• A brand revitalization is also in effect with an emphasis on demand-generation activities through strategic partnerships.

• The company has launched new products in AI and Unified Communications as a Service (UCaaS) as part of its innovation focus.

• Moving forward, Sangoma eyes increasing debt repayments and driving growth organically, through market expansion and inorganic avenues.

• A guidance for FY '24 was given, forecasting revenues to lie between $246.5 million and $248.5 million.

• Sangoma is making progress in its partner programs and the transformation of its go-to-market strategy, leading to increased close rates and efficiency in operations.

• A potential for inorganic growth via mergers and acquisitions is also being considered, based on certain criteria that would enable entry into new markets or technologies.

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