The SkyNet and NextLevel acquisitions (in 12/2021 and 2/2022) have been extremely successful, to say the least.
The proof: The highest quarterly revenue in the group's history.
So, what elements have played into this achievement?
Let’s take a look.
Larger Pool of Customers Served
With the recent joint ventures, we now serve over 4,000 business customers and approximately 45,000 users, with a run-rate of over $32 million in annual revenue.
Increased Efficiency Reduces Costs
Over the months since the acquisitions, we’ve seen the expected improved efficiency and cost synergies with the consolidation savings.
As a result, all of our holding company Digerati’s financial measures have steadily improved over the past several months which contributed to an increase in gross margin to 61.3% and improvement in non-GAAP operating EBITDA (OPCO EBITDA) to $0.969 million for the three months ending with April 30, 2022.
Our group continues to execute on its integration playbook and expects additional cost synergies over the next two to three quarters.
A Satisfied Team
Happy employees speak volumes about an organization.
NextLevel was recently awarded and certified a Great Place to Work for the third year in a row. The prestigious award is based entirely on what current employees say about their experience working at NextLevel.
This year, 97% of NextLevel’s employees said it is a great place to work, totally crushing the national average of 53%.
The CEO Weighs In
Arthur L. Smith, Chief Executive Officer of Digerati, commented, “We are pleased with the progress on integration of both SkyNet and NextLevel since the closing of both acquisitions earlier in FY2022.
Our emphasis on the UCaaS/Cloud Communication business, which operates in a segment of the telecommunications industry that continues to experience solid growth as businesses migrate from legacy phone systems to cloud-based telephony systems, has proven to be a solid strategy. We also continue to prove that the M&A aspect of our business model works while increasing penetration in Texas and expanding west into California.”
Mr. Smith added, “I commend our team on successful execution of our integration playbook while achieving financial results that demonstrated improved margins at every operating level and a boost to our profitability.”