> TeraGo Reports Second Quarter 2021 Financial Results
TeraGo Reports Second Quarter 2021 Financial Results
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TeraGo Inc. (“TeraGo” or the “Company”) (TSX: TGO, www.terago.ca), today reported financial and operating results for the second quarter ended June 30, 2021.
Second Quarter 2021 and Recent Operational Developments
- Selected by Compusense to provide private cloud, security, back-up, and data migration services within TeraGo’s data centres.
- Chosen by Ducks Unlimited Canada to provide National Managed SD-WAN services for its operating locations.
- Selected by Pure Storage as its first Canadian Elite managed service provider partner.
- Expanded Microsoft product portfolio with the addition of Microsoft 365, Managed Microsoft Azure, and Managed Disaster Recovery.
- Announced election of Directors at the 2021 Annual and Special Meeting of Shareholders.
- Extended credit agreement with Royal Bank of Canada and The Toronto-Dominion Bank.
- Closed a $14.7 million private placement in support of the Company’s proposed launch of 5G fixed wireless services in Canada.
Second Quarter 2021 Financial Highlights
- Total revenue for the second quarter increased 1% to $10.9 million compared to $10.8 million in the previous quarter and decreased 6% from $11.6 million for the same period in 2020. The year over year decrease in total revenue was driven by lower connectivity revenue.
- Connectivity revenue for the second quarter of 2021 decreased to $6.6 million from $6.7 million in the prior quarter and decreased from $7.4 million for the same period in 2020. The declines in both periods were attributable to churn exceeding customer provisions.
- Cloud and colocation revenue for the second quarter of 2021 increased to $4.3 million compared to $4.1 million in the prior quarter, and increased from $4.2 million for the same period in 2020. The growth in both periods was driven by new customer acquisition and upgrades from existing customers.
- Net loss for the second quarter of 2021 decreased to $1.8 million from $2.2 million in the prior quarter but increased from $0.7 million for the same period in 2020. The year-over-year increase in net loss was driven by lower revenues, higher cost of services due to the mix of services sold, as well as lower government grants received due to COVID-19.
- Adjusted EBITDA( )( ) for the second quarter of 2021 totaled $3.4 million which was an improvement from $3.2 million in the prior quarter but decreased from $4.8 million in the same period in 2020. The decrease was driven primarily by the decrease in revenue, higher cost of services due to the mix of services sold, and lower government grants received due to COVID-19.
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