Sangoma Technologies Corp (NASDAQ:SANG), a trusted leader in delivering cloud- based Communications as a Service solutions for companies of all sizes, stock plunges 9.32% (As on September 19, 11:41:31 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. Net loss was $1.7 million for the fourth quarter and $8.7 million for fiscal 2024, while Adjusted EBITDA remained strong at $11.1 million for the quarter and $42.6 million for the year, representing 18% and 17% of total revenue, respectively. The Company’s Services revenue for the fiscal year increased by 1.83% as compared to last fiscal year, while experiencing a decline in Products revenue, driven primarily by a deemphasis on certain lower margin products amid the Company’s go-to-market transformation and macroeconomic headwinds. Gross margin for fiscal 2024 was approximately 70% of revenue, an increase from the 68% in fiscal 2023, driven by the favorable Services/Product revenue mix of 82%/18% as compared to 79%/21% in the prior year period. The Company’s financial position remains strong, finishing the fourth quarter and fiscal 2024 with net cash provided by operating activities of $11.7 million and $44.2 million respectively, representing an increase of 8% and 67% over the prior year periods. The Company finished the year with a cash balance of $16.2 million, reflecting a strong quarterly progression of operating cash flow, primarily due to fiscal 2024 cost savings initiatives and effective net working capital management.

Meanwhile, Sangoma executed a debt repayment of $5.3 million in the fourth quarter, bringing total debt repayments for the quarter to $9.7 million, marking the first of a series of planned payments aimed at reducing Sangoma’s debt to under $60.0 million by the end of Fiscal 2025.

SANG in the fourth quarter of FY 24 has reported the adjusted loss per share of 5 cents, missing the analysts’ estimates for the adjusted loss per share of 4 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $60.93 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue by 0.07%.

The Company is providing guidance for fiscal 2025. Sangoma expects revenue in the range of $250 million to $260 million and Adjusted EBITDA from $42 million to $46 million, inclusive of $2.1 million in one-time ERP costs. The Company is also expecting Q1 revenue in the range of $61 million to $62 million and Adjusted EBITDA of $9 million to $10 million.