Terago (TGO) Q4 2024 earnings summary

Executive summary

• Achieved 16.9% year-over-year growth in Adjusted EBITDA and a 5.2% increase in ARPA, with a $4.5M rise in cash flows from operations and a focus on mid-market and lower enterprise customers leveraging national wireless and fiber networks.

• FY 2024 total revenue reached $26.17 million, a slight increase from $26.05 million in FY 2023.

• Net loss for FY 2024 was $13.27 million, slightly higher than $13.19 million in 2023, but Q4 2024 net loss improved to $3.17 million from $3.56 million in Q4 2023.

• Gross profit margin for Q4 2024 improved to 74.1% from 72.4% year-over-year; full-year margin stable at 73.3%.

• Focused on leveraging significant mmWave spectrum holdings and expanding managed network and security services.

Financial highlights

• Q4 2024 revenue was $6.57 million, up from $6.54 million in Q4 2023; full-year 2024 revenue was $26.17 million, up from $26.05 million.

• Adjusted EBITDA for Q4 2024 was $1.2 million; full-year Adjusted EBITDA was $4.02 million, up 16.9% year-over-year.

• Cash and equivalents at year-end were $4.4 million.

• Cash from operations in 2024 was $5 million, a significant increase from $523,000 in 2023.

• Backlog MRR rose to $111.9 million as of Dec 31, 2024, up from $65,000, reflecting increased sales bookings and focus on larger, profitable deals.

Outlook and guidance

• Management expects continued momentum in MRR bookings and long-term value creation, supported by growing demand and a diverse range of network solutions.

• Focus remains on developing 5G Fixed Wireless Access and managed services for Canadian enterprises, with ongoing 5G trials expected to influence future offerings.

• Confident in securing refinancing for current debt facility before maturity.

• Recent multi-million-dollar contract win with a national retailer will contribute to future revenue.

• Sales pipeline is growing significantly, especially in connectivity, managed services, and 5G private wireless networks.