> TeraGo Reports Third Quarter 2020 Financial Results
TeraGo Inc. (“TeraGo” or the “Company”) (TSX: TGO, www.terago.ca), today reported financial and operating results for the third quarter ended September 30, 2020.
Third Quarter 2020 Financial Highlights
- Total revenue for the third quarter of 2020 decreased 4.2% to $11.3 million compared to $11.8 million for the same period in 2019. The decrease in total revenue was driven by lower connectivity revenue.
- Connectivity revenue for the third quarter of 2020 decreased 8.0% to $6.9 million compared to $7.5 million for the same period in 2019. The decrease in connectivity revenue was primarily due to churn exceeding customer provisioning.
- Cloud and colocation revenue for the third quarter of 2020 increased 1.7% to $4.3 million compared to $4.3 million for the same period in 2019. The increase in cloud and colocation revenue was primarily driven by customer upgrades.
- Net loss for the third quarter of 2020 totaled $3.2 million compared to net loss of $915,000 for the same period in 2019. The higher net loss was primarily driven by lower revenue, severance charges, and impairment of network assets, property, and equipment.
- Adjusted EBITDA(1)(2) for the third quarter of 2020 decreased 13.6% to $3.8 million compared to $4.4 million for the same period in 2019. The decrease was primarily driven by the decrease in revenue.
Third Quarter 2020 and Recent Operational Developments
- Signed on as Connected2Fiber’s first Canadian provider of networking solutions, enabling TeraGo to connect to and service customers more effectively, both international and domestic, including remote regions.
- Effective on September 25, 2020.