Digerati Technologies Inc. (OTC:DTGI) Stock Takes a Hit: What Next?

There are a number of companies that could be worth tracking this morning owing to developments from yesterday, and one of the companies that could be in play today is Digerati Technologies Inc. (OTC:DTGI). The company is best known for providing UCaas (Unified Communications as a Service) products to the small to medium-sized business segment. On March 25, Digerati Technologies came into focus after it announced its financial results for the three and six-month periods, both of which ended on January 31, 2024. In the three-month period, the company generated revenues of $7.565 million, which worked out to a year-on-year decline of 5% from the revenues of $7.941 million in the prior-year period.

The gross profit reported by the company stood at $4.905, which worked out to a drop of 1% from the prior-year period gross profit of $4.973 million. However, the gross margin went up to 64.84% from 62.62%. The non-GAAP adjusted EBITDA from income went down 15% year on year to drop to $0.676 million from $0.796 in the prior-year period. The non-GAAP operating income went up 5% year on year to hit $1.267 million as opposed to $1.204 million in the prior year period. The Executive Chairman and interim Chief Executive Officer of Digerati Technologies, Craig K. Clement, spoke about the company’s performance yesterday.

He noted that in the 2023 calendar year, the company had been completely focused on boosting its profitability from the existing revenue streams. Additionally, Digerati Technologies had also worked on winding down the legacy revenues from the acquisitions that it had made in the past, which could not meet the profitability aims of the company. It was also noted that revenues had dropped since the company had decided to wind down unprofitable businesses. However, it had also led to bigger margins.