Revenue up 40% Year-Over-Year;
Completes 49% Sale of Subsidiary; Deploys Proceeds to Repay Debt and Adds Substantial Cash For Growth
DALLAS, TX / ACCESSWIRE / May 16, 2024 / KonaTel, Inc. (OTCQB:KTEL) (www.konatel.com), a voice/knowledge communications holding firm, right now introduced monetary outcomes for the three month interval ended March 31, 2024.
First Quarter 2024 Financial Summary
- Revenues of $5.6 million, in comparison with $4.0 million within the first quarter final yr.
- Gross revenue of $1.1 million, or 20.0% of revenues, in comparison with $1.0 million, or 24.9% of revenues; up 12.5% on a greenback foundation in comparison with the primary quarter final yr.
- Operating lack of $(847,000) in comparison with an working lack of $(753,000) within the first quarter final yr.
- GAAP web earnings of $8.1 million, inclusive of a $9.2 million acquire on sale of 49% curiosity in IM Telecom, or $0.19 per share, in comparison with a web lack of $(915,000), or $(0.02) per share, within the first quarter final yr.
- Non-GAAP web earnings of ($833,793) or ($0.02) per diluted share, adjusting for the $9.2 million acquire on sale of 49% curiosity in IM Telecom, in comparison with a non-GAAP web lack of $(608,000), or $(0.01) per diluted share, within the first quarter of final yr.
Sean McEwen, Chairman and CEO of KonaTel acknowledged, “First quarter revenue increased 40% year-over-year, and just as important, we delivered sequential revenue growth in each of the last four quarters partially due to our strategy to diversify beyond government subsidized services. Within our Hosted Services segment, we increased revenue by 17% to record levels due to the addition of new customers and new revenue from existing customers. While there is uncertainty surrounding the government’s re-funding of the ACP program, our legacy Lifeline business is not impacted by government funding, and I am excited by our progress and the opportunities within our Hosted Services operation, given the attractive economics and stickiness of the customer base.”
take away adverts
.
McEwen continued, “We completed the sale of a minority position of our interest in IM Telecom in the first quarter, which resulted in cash proceeds of $9.0 million. We used a portion of the proceeds to pay off all outstanding debt obligations. With $3.9 million in cash, we ended the quarter with a much stronger balance sheet and additional, non-dilutive capital. We are using the additional capital to fund our growth and revenue diversification strategy through the addition of experienced sales and operations personnel within our Hosted Services business, which is now driving an expansion of that segment. And as previously disclosed, we secured a multi-million-dollar financing option which helps us fund our partners in pursuit of an ‘asset light’ strategy within the government subsidized (Lifeline and ACP) market.”
McEwen concluded “Our growth in revenue demonstrates that with the right amount of working capital, our management team has the experience and capability to rapidly accelerate growth in both our Hosted Services and Government Subsidized (Lifeline and ACP) operations. Looking forward, we have several pending projects within our Hosted Services business, including the upcoming five-year exclusive agreement to provide wholesale cellular service to Viva-USA. Viva-USA is part of the Viva Group of companies, an international MNO/MVNO with over three million customers in Mexico and Bolivia.”
Quarterly Financial Summary (Q1 2024 vs. Q1 2023)
Revenue of $5.6 million, in comparison with $4.0 million. The improve in income was primarily as a result of market and distribution channel growth undertaken in 2023, specializing in offering providers inside our core ETC licensed states.
take away adverts
.
Gross revenue was $1.1 million, or 20.0% gross revenue margin, in comparison with $1.0 million, or 24.9% gross revenue margin. This improve primarily resulted from including greater ARPU activations in our Mobile Services section, and sourcing decrease gear and community prices.
Total working bills had been $1.9 million, in comparison with $1.8 million. This improve was primarily resulting from greater payroll and associated expense related to the addition of headcount in our Apeiron subsidiary, as we start to provoke gross sales efforts of hosted providers, in addition to greater inventory expense from grants supplied in This autumn 2023.
GAAP web earnings was $8.1 million, or $0.19 per diluted share (primarily based on 43.6 million weighted common shares), in comparison with a web lack of $(915,000), or $(0.02) per diluted share (primarily based on 42.4 million weighted common shares). This improve was a results of the acquire on sale acknowledged as a part of the sale of 49% curiosity in IM Telecom.
Non-GAAP web earnings was ($833,793), or ($0.02) per diluted share, in comparison with a non-GAAP web lack of $(608,000), or $(0.01) per diluted share.
Balance Sheet
The Company ended the quarter with $3.9 million in money, in comparison with $777,000 on December 31, 2023. The improve in money was resulting from money obtained as a part of the sale of 49% curiosity in IM Telecom.
About KonaTel
KonaTel supplies a wide range of retail and wholesale telecommunications providers together with cellular voice/textual content/knowledge service supported by nationwide U.S. cellular networks, cellular numbers, SMS/MMS providers, IoT cellular knowledge service, and a spread of hosted cloud providers. KonaTel’s subsidiary, Apeiron Systems (www.apeiron.io), is a worldwide cloud communications service supplier using a dynamic “as a service” (CPaaS/UCaaS/CCaaS/PaaS) platform. Apeiron supplies voice, messaging, SD-WAN, and platform providers utilizing its nationwide cloud community. All Apeiron’s providers will be accessed by way of legacy interfaces and wealthy communications APIs. KonaTel’s different subsidiary, Infiniti Mobile (www.infinitimobile.com), is an FCC licensed nationwide wi-fi ACP and Lifeline provider with an FCC authorized wi-fi Lifeline Compliance Plan, licensed to supply authorities sponsored mobile service to low-income American households throughout eleven states. KonaTel is headquartered in Plano, Texas.
take away adverts
.
Safe Harbor Statement
This press launch comprises forward-looking statements inside the which means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are usually not a assure of future efficiency or outcomes and won’t essentially be correct indications of the instances at, or by, which such efficiency or outcomes shall be achieved. Forward-looking statements are primarily based on data obtainable on the time the statements are made and contain recognized and unknown dangers, uncertainties and different components which will trigger our outcomes, ranges of exercise, efficiency or achievements to be materially totally different from the data expressed or implied by the forward-looking statements on this press launch. This press launch ought to be thought of in gentle of the disclosures contained within the filings of KonaTel and its “forward-looking statements” in such filings which are contained within the EDGAR Archives of the SEC at www.sec.gov.
Contacts
D. Sean McEwen
(214) 323-8410
inquiries@konatel.com
Unaudited Balance Sheets, Statements of Operations, and Reconciliation of GAAP to Non-GAAP Measure Follow
KonaTel, Inc.
Consolidated Balance Sheets
(unaudited)
| March 31, 2024 | December 31, 2023 | |||||||
|
Assets |
||||||||
|
Current Assets |
||||||||
|
Cash and Cash Equivalents |
$ | 3,884,897 | $ | 777,103 | ||||
|
Accounts Receivable, Net |
1,946,997 | 1,496,799 | ||||||
|
Inventory, Net |
765,032 | 1,229,770 | ||||||
|
Prepaid Expenses |
118,197 | 129,706 | ||||||
|
Other Current Assets |
1,000,000 | – | ||||||
|
Total Current Assets |
7,715,123 | 3,633,378 | ||||||
|
Property and Equipment, Net |
21,735 | 24,184 | ||||||
|
Other Assets |
||||||||
|
Intangible Assets, Net |
323,468 | 634,251 | ||||||
|
Right of Use Asset |
413,119 | 443,328 | ||||||
|
Other Assets |
74,542 | 74,543 | ||||||
|
Total Other Assets |
811,129 | 1,152,122 | ||||||
|
Total Assets |
$ | 8,547,987 | $ | 4,809,684 | ||||
|
Liabilities and Stockholders’ Equity |
||||||||
|
Current Liabilities |
||||||||
|
Accounts Payable and Accrued Expenses |
$ | 2,636,260 | $ | 3,709,691 | ||||
|
Loans Payable, Net of Loan Fees |
– | 3,655,171 | ||||||
|
Right of Use Operating Lease Obligation – Current |
130,146 | 127,716 | ||||||
|
Income Tax Payable |
149,428 | – | ||||||
|
Total Current Liabilities |
2,915,834 | 7,492,578 | ||||||
|
Long Term Liabilities |
||||||||
|
Right of Use Operating Lease Obligation – Long Term |
297,154 | 330,511 | ||||||
|
Total Long Term Liabilities |
297,154 | 330,511 | ||||||
|
Total Liabilities |
3,212,988 | 7,823,089 | ||||||
|
Commitments and Contingencies |
||||||||
|
Stockholders’ Equity |
||||||||
|
Common inventory, $.001 par worth, 50,000,000 shares licensed, 43,333,220 excellent and issued at March 31, 2024 and 43,145,720 excellent and issued at December 31, 2023 |
43,333 | 43,146 | ||||||
|
Additional Paid In Capital |
9,447,273 | 9,182,140 | ||||||
|
Accumulated Deficit |
(4,155,607 | ) | (12,238,691 | ) | ||||
|
Total Stockholders’ Equity |
5,334,999 | (3,013,405 | ) | |||||
|
Total Liabilities and Stockholders’ Equity |
$ | 8,547,987 | $ | 4,809,684 | ||||
take away adverts
.
KonaTel, Inc.
Consolidated Statements of Operations
(unaudited)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
|
Revenue |
$ | 5,635,836 | $ | 4,031,719 | ||||
|
Cost of Revenue |
4,508,332 | 3,029,840 | ||||||
|
Gross Profit |
1,127,504 | 1,001,879 | ||||||
|
Operating Expenses |
||||||||
|
Payroll and Related Expenses |
1,452,100 | 1,139,546 | ||||||
|
Operating and Maintenance |
1,544 | 1,700 | ||||||
|
Bad Debt |
1,448 | 14 | ||||||
|
Professional and Other Expenses |
110,223 | 300,498 | ||||||
|
Utilities and Facilities |
50,786 | 57,045 | ||||||
|
Depreciation and Amortization |
2,449 | 3,088 | ||||||
|
General and Administrative |
61,395 | 40,234 | ||||||
|
Marketing and Advertising |
33,996 | 37,517 | ||||||
|
Application Development Costs |
206,083 | 143,529 | ||||||
|
Taxes and Insurance |
54,435 | 31,903 | ||||||
|
Total Operating Expenses |
1,974,459 | 1,755,074 | ||||||
|
Operating Loss |
(846,955 | ) | (753,195 | ) | ||||
|
Other Income and Expense |
||||||||
|
Gain on Sale of Subsidiary |
9,247,726 | – | ||||||
|
Interest Expense |
(104,329 | ) | (161,502 | ) | ||||
|
Other Income/(Expense), web |
(63,930 | ) | – | |||||
|
Total Other Income and Expenses |
9,079,467 | (161,502 | ) | |||||
|
Income Before Income Taxes |
8,232,512 | (914,697 | ) | |||||
|
Income Tax Expense |
149,428 | – | ||||||
|
Net Income (Loss) |
$ | 8,083,084 | $ | (914,697 | ) | |||
|
Earnings (Loss) per Share |
||||||||
|
Basic |
$ | 0.19 | $ | (0.02 | ) | |||
|
Diluted |
$ | 0.19 | $ | (0.02 | ) | |||
|
Weighted Average Outstanding Shares |
||||||||
|
Basic |
43,180,747 | 42,375,917 | ||||||
|
Diluted |
43,601,328 | 42,375,917 | ||||||
KonaTel, Inc.
Reconciliation of GAAP to Non-GAAP Measure
(unaudited)
| Three Months Ended | Three Months Ended | |||||||
| March 31, | March 31, | |||||||
| 2024 | 2023 | |||||||
|
Net Income (Loss) |
$ | 8,083,084 | $ | (914,697 | ) | |||
|
Add Back: |
||||||||
|
Gain on Sale of Subsidiary |
(9,247,726 | ) | – | |||||
|
Depreciation and Amortization |
2,449 | 3,088 | ||||||
|
Stock-based Compensation |
224,070 | 142,599 | ||||||
|
Interest Expense, web |
104,329 | 161,508 | ||||||
|
Non-GAAP Net Loss |
$ | (833,794 | ) | $ | (607,502 | ) | ||
SOURCE: KonaTel
MoneyMaker FX EA Trading Robot
powered by qhost365.com
Investing.com