Sangoma Announces Third Quarter Fiscal 2023 Results

Revenue increases 18% year-over-year and Services Revenue grows 37% from Q3 of last year

MARKHAM, Ontario, May 11, 2023 (GLOBE NEWSWIRE) -- Sangoma Technologies Corporation (TSX: STC; Nasdaq: SANG) (“Sangoma” or the “Company”), a trusted leader in delivering cloud-based Communications as a Service solutions for companies of all sizes, today announced its third quarter financial results and unaudited condensed consolidated interim financial statements for the third quarter ended March 31, 2023.

Revenue for the third quarter of fiscal 2023 was $62.76 million, an increase from the prior year of 18%.

US $000	Q3 FY2023		Q3 FY2022		Change	Q2 FY2023		Change
Sales	$62,764		$53,366		18%	$62,035		1%
Gross profit	$44,424		$37,201		19%	$42,789		4%
Operating expenses1	$43,368		$40,137		8%	$44,258		(2)%
Net loss	$(685)		$(6,755)			$(2,735)
Net loss per share (fully diluted)	$(0.02)		$(0.21)			$(0.08)
Adjusted EBITDA2	$12,243		$10,469		17%	$10,550		16%

“Our third quarter brought significant changes to Sangoma. While change can be very difficult at times, I am proud of our team for remaining focused on delivering excellent results for our customers and shareholders," said Norm Worthington, Interim Executive Chairman. “It is an exciting time for Sangoma to continue to see our team's hard work drive our transition to a more SaaS focused business. In the third quarter our Services revenue increased by 2.25% sequentially from the prior quarter, again equivalent to an annualized organic growth rate of 10%. Services also represented 81% of our total sales this quarter, up from 80% last quarter and 69% in the same quarter of last year. And while our Services business continues to grow and compound, our Product revenue slightly declined this quarter as it remains impacted by macro conditions resulting in continued sensitivity to capex purchases. While our increase in revenue quarter over quarter was modest we delivered an Adjusted EBITDA² for the quarter of over $12.24 million, representing about 20% of revenue and a 16% increase from last quarter."