Terago (TGO) Q3 2024 earnings summary

Executive summary

• Achieved strong results in Q3 2024, with revenue of $6.54 million, improved gross margin, ARPA, and Adjusted EBITDA, affirming ongoing transformation and value creation strategies.

• Net loss for Q3 2024 increased to $3.34 million, mainly due to higher interest costs on term debt.

• Continued execution of smart growth and operational enhancements, positioning for profitable growth.

• Secured a multi-million-dollar, multi-year contract with a major Canadian retailer for managed network solutions.

Financial highlights

• Q3 2024 revenue was $6.54 million, up 0.8% year-over-year; nine-month revenue reached $19.59 million.

• Adjusted EBITDA rose to $944,000 in Q3 2024, up 2.8% year-over-year.

• Net loss increased to $3.34 million from $3.09 million year-over-year.

• Cash flow from operations grew 56% year-over-year.

• Cash and short-term investments totaled $5.72 million at quarter end.

Outlook and guidance

• Expecting revenue contribution from the new multi-year retailer contract to begin in the second to third half of next year.

• Sales pipeline remains robust with significant market activity and focus on top-line growth.

• Positioned for continued success and long-term value creation, supported by diverse network solutions and industry tailwinds.