Our Holding company Digerati is listed on the OTC QB exchange and boasts a successful track record that CEO Art Smith detailed in a presentation for investors during NobleCon 2022.
Before we dive into what Art covered, here’s a quick explanation of what the Noble Conference is all about.
What is the Noble Conference?
Noble Conference is all about small and microcap companies.
Made up of Noble Capital Markets’ analysts, investment bankers, senior executives, and, in the case of life sciences, a select group of advisors, the committee evaluates requests-to-present based upon sector relevance, market position, changes in management, intellectual property, liquidity/exit strategies, potential catalytic events and other aspects of fundamental analysis.
The goal is simple: Put the best possible selection of companies on the stage in front of an audience who’s got an appetite for small and microcap investing. It’s what NobleCon is all about.
Art Smith at NobleCon
Let’s take a look at some of the highlights of what Art covered.
- 12.4 Million – Cloud and Network Services Revenue in 2021
- 45,000 Business Users
- 97% YoY Growth from 2020 to 2021
- 400+ Channel Partners
- 31.5 Million Annualized Consolidated Revenue for Fiscal Year 2022
Art’s Proposed Multi-Faceted Growth Initiative
There are four areas of focus.
1. Secure Adequate Growth Capital
2. Acquire Synergistic Business
3. Drive Revenue Growth
4. Future Growth and National Listing
During the presentation, Art also covered the latest acquisitions.
Let’s take a look at the newest additions.
- Texas-based provider of cloud communication and broadband solutions.
- Expands service and support capabilities in the large-and-growing Texas market.
- Executing go-to-market strategy in secondary and tertiary high-growth markets.
- Adds 500 business customers and 5,000 total users.
- California-based provider of cloud-based Unified Communications and Collaboration, Contact Center, and Managed Connectivity Services.
- Expands reach of Digerati’s cloud communications and broadband solutions to include a strong west coast presence.
- Expected to be accretive to earnings and add over $13 million in annual revenue, increasing Digerati’s consolidated annualized revenue to $31.5 million.
- Adds 1,000 business customers and 12,000 total users.
What’s the rationale for these acquisitions?
They provide an increase in revenue and EBITDA contribution via a contracted customer base with recurring revenue streams. It also provides access to a greater pool of small and medium-sized business customers in various industries.
Combined with T3 Communications, these acquisitions have resulted in over 400 channel partners as a conduit for sales growth.
Another important topic that Art highlighted for the investors was the competitive landscape.
These are the major competitors in the same space:
It’s important to note that Ericsson’s acquisition marks Vonage’s ascension to enterprise, forming a void in an already fragmented SMB market in need of a full-service cloud solution. This provides the perfect opportunity for Digerati to expand and penetrate previously inaccessible markets.
- 60% increase in HoH revenue to $7.796 million.
- $15.6 million LHA revenue.
- $526K Adjusted EBITDA.
- $1.283 million in OPCA EBITDA.