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Sangoma Technologies (TSE:STC)
TSX:STC
Earnings Data
Report Date
May 08, 2025TBA Not Confirmed
Period Ending
2025 (Q3)Consensus EPS Forecast
-0.05Last Year’s EPS
-0.06Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 05, 2025
|% Change Since: -37.87%
|Next Earnings Date:May 08, 2025
Earnings Call Sentiment|Neutral
The earnings call reflects a strategy shift towards high-margin recurring revenue streams and an acceleration of debt reduction, with notable improvements in cash flow and churn rates. However, challenges include a decline in third-party hardware resale revenue, uncertainty in federal government spending, and a lowered revenue guidance.Company Guidance
During Sangoma's second quarter fiscal year 2025 investor call, the company detailed its guidance and strategic direction. Sangoma reported revenue of $59.1 million and adjusted EBITDA of $10.1 million, with a gross profit margin maintained at 68%. Despite a sequential revenue decline due to a $1.2 million drop in third-party hardware resale, the company's focus is on transitioning towards high-margin recurring revenue streams. This shift aligns with their adjusted FY 2025 revenue guidance of $235 million to $240 million, while maintaining an EBITDA margin of 17%. The company achieved a significant reduction in net debt, decreasing to $43.3 million, and a churn rate improvement to below 0.95%. Sangoma aims for long-term revenue models with over 85% recurring revenue and plans to increase gross margins to near 80% and EBITDA margins to 20%, supported by their strategic realignment and divestiture of non-core assets.Net Cash from Operating Activities
Generated $11.9 million in net cash from operating activities in Q2, a 30% increase over the prior year period. Fiscal year-to-date net cash from operating activities reached $24 million, representing a 41% increase over the prior year.
Debt Reduction
Retired $8.7 million in total debt during the second quarter, reaching target debt position of $55 million to $60 million two quarters ahead of schedule.
Churn Rate Improvement
Churn rates dropped back to below 0.95%, a significant improvement from 1.1% a quarter ago, reflecting stronger client relationships.
Adjusted EBITDA Improvement
Adjusted EBITDA improved by 3% to $10.1 million while adjusted EBITDA margin improved from 16% to 17% of revenue.
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TSE:STC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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TSE:STC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 05, 2025 | C$10.35 | C$9.18 | -11.30% |
| Nov 06, 2024 | C$8.54 | C$9.07 | +6.21% |
| Sep 18, 2024 | C$8.42 | C$7.76 | -7.84% |
| May 08, 2024 | C$5.65 | C$6.11 | +8.14% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Sangoma Technologies (TSE:STC) report earnings?
Sangoma Technologies (TSE:STC) is schdueled to report earning on May 08, 2025, TBA Not Confirmed.
What is Sangoma Technologies (TSE:STC) earnings time?
Sangoma Technologies (TSE:STC) earnings time is at May 08, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSE:STC EPS forecast?
TSE:STC EPS forecast for the fiscal quarter 2025 (Q3) is -0.05.
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