Sangoma Technologies Corporation Q1 FY2025 earnings call

• Charles Salameh discussed strategic priorities for fiscal 2025, including organic growth via go-to-market strategy with pillars: account expansion (6% YoY increase in customers with over $10,000 MRR), new logos (42% QoQ increase in bookings from new customers), and base building (28% YoY increase in large UCaaS opportunities). • Channel expansion efforts included partner segmentation, relaunch of Pinnacle Partner Program, and national MDF program with over 160 partner events planned. • Inorganic growth strategy is being positioned with a strong balance sheet, and work underway to build acquisition targets. • Larry Stock highlighted cash performance, with $12.1 million net cash from operating activities, debt reduction (retired $4.3 million, reduced total debt by $8.7 million), and adjusted EBITDA at high end of guidance.

No detailed breakdown of product segments by revenue contribution was provided in the transcript. Overall, revenue for the first quarter was slightly below guidance, but adjusted EBITDA was at the high end of guidance. Cash from operating activities was $12.1 million, a 55% increase year-over-year. Gross profit was $41.2 million, representing 68% of revenue.

• Maintaining revenue in the range of $250 million to $260 million for fiscal 2025. • Maintaining adjusted EBITDA in the range of $42 million to $46 million for fiscal 2025. • Expecting sequential revenue growth as they progress through the fiscal year.

• Macroeconomic factors impacting retail sector and churn rates. • Hurricane impacts affecting product volumetric growth. • Election uncertainty and potential differences between forward-looking statements and actual results. • Risks related to achieving forward-looking goals as outlined in MD&A and other filings.

Q: Gavin Fairweather asked about NEC exiting the prem business, competitive landscape, and election uncertainty.

A: Charles Salameh and Jeremy Wubs discussed NEC exiting creating an opportunity, prem market size, and minimal election impact.

Q: Vijay Devar asked about product vs service mix and sequential growth.

A: Charles Salameh and Jeremy Wubs talked about focus on services, product margin, and sequential growth from go-to-market efforts.

Q: Robert Young asked about working capital, debt targets, NEC opportunity, channel relationships, and leads.

A: Larry Stock and Jeremy Wubs discussed working capital benefits, ongoing debt reduction, ongoing NEC opportunity, channel relationships, and lead conversion to revenue