Digerati Technologies Inc. (OTC:DTGI) Stock falls 10%: What’s the Buzz?
There are a number of companies that may well be worth tracking this morning in light of developments from Tuesday, and one such company is Digerati Technologies Inc. (OTC:DTGI). The company is involved in providing cloud services with a specific focus on Unified Communications as a Service solutions for the small to medium-sized business niche.
Yesterday, the company announced its financial results for the fiscal quarter that ended on October 31, 2023. It was also the first fiscal quarter for Digerati Technologies for the 2024 fiscal year. It could be a good move for investors to take a look at some of the key highlights.
Digerati Technologies generated revenues to the tune of $7.654 million, which reflected a year-on-year decline of 6% from the revenues of $8.130 million. The gross profits stood at $5.103 million, which worked out to a decline of 3% from the $5.279 million in the prior-year period. However, the gross margins went up to 66.7% from 64.9% a year ago. The net loss attributable to the shareholders of the company stood at $4.085 million, which worked out to be a year-on-year decline of 18% from the net attributable loss to shareholders of $4.988 million.
The company’s operating EBITDA on a non-GAAP basis (generating accepted accounting principles) was $1.204 million for the quarter, and that reflected a year-on-year drop of as much as 6%. The interim Chief Executive Officer and Executive Chairman of Digerati Technologies, Craig K. Clement, spoke about the company’s performance.
He noted that the revenues had gone down slightly but highlighted the fact that the company managed to hit a new record in terms of its gross margin. He went on to note that the gross margin had improved consistently from the level of only around 50% around four years ago.
