TERAGO Reports Fourth Quarter and Full Year 2024 Financial Results
TORONTO, March 26, 2025 /CNW/ - TERAGO Inc. ("TERAGO" or the "Company") (TSX: TGO) (https://terago.ca/), Canada's 91% mmWave spectrum holder and a leading provider of Managed Fixed Wireless Internet, 5G Private Wireless Networks and SD-WAN solutions today reported financial and operating results for the fourth quarter and fiscal year ended December 31, 2024. All figures reported in this release are in thousands of Canadian dollars.
The Company announced positive performance for the fourth quarter and fiscal 2024, demonstrating the ongoing success of its smart growth strategy and operational enhancements. TERAGO has achieved strong fiscal 2024 results, including a 16.9% (Q4, 2024, 0.9%) rise in Adjusted EBITDA, a 5.2% (Q4, 2024 - 4.1%) growth in ARPA, and a year over year increase of approximately $4,492 in cash flows from operations.
"TERAGO is a critical player in the Canadian communications landscape driving competition, innovation and investments. We are uniquely focused on mid-market and lower enterprise sized businesses leveraging our national carrier grade wireless and fibre network.", said Daniel Vucinic, CEO of TERAGO. "We have experienced improved profitability, lower operational expenses, better margin profile on new customer deals, and a more streamlined approach to capital investments. With growing demand for our services, supported by a diverse range of network solutions, we expect continued momentum in MRR bookings, contributing to long-term value creation for all our stakeholders."
Selected Financial Highlights and Key Developments
Total revenues for the quarter ended December 31, 2024 increased by 0.6% to $6,572 compared to $6,536 for the same period in 2023. For the year ended December 31, 2024, total revenue marginally increased by 0.4% to $26,165 compared to $26,052 for the same period in 2023. The increase in revenue in both periods is a result of higher bookings1, higher ARPA1 and lower churn1 as compared to prior year periods.
Adjusted EBITDA1,2 increased by 0.9% to $1,201 for the quarter ended December 31, 2024, compared to $1,190 for the same period in 2023. For the year ended December 31, 2024, Adjusted EBITDA1,2 increased 16.9% to $4,016 compared to $3,435 for the same period in 2023. The increase was a result of lower operating expenses partially offset by increased finance costs related to existing debt facility as compared prior year periods.
Net loss for the quarter ended December 31, 2024 was $3,174, or $(0.16) per share (basic and diluted) compared to a net loss of $3,561, or $(0.18) per share (basic and diluted) for the same period in 2023. The lower net loss in the quarter was a combination of higher margins and overall lower salaries and operating expenses, partially offset by higher finance costs, as a result of additional drawdowns from the existing debt facility. For the year ended December 31, 2024 net loss was $13,271, or $(0.67) per share (basic and diluted) compared to a net loss of $13,185, or $(0.67) per share (basic and diluted) for the same period in 2023. The increase in net loss was primarily resulting from higher finance costs, partially offset by a reduction in overall operating expenses year over year.
ARPA1 for the connectivity business for the quarter ended December 31, 2024 increased by 4.1% to $1,212 up from $1,164 for the same period in 2023. For the year ended December 31, 2024, ARPA1 increased by 5.2% to $1,184 compared to $1,125 for the same period in 2023 resulting from changes in customer base and product mix.
Churn1 for the connectivity business for the quarter ended December 31, 2024, decreased to 0.8% compared to 1.0% for the same period in 2023. Churn1 for the connectivity business for the year ended December 31, 2024, decreased to 0.9% compared to 1.1% for the same period in 2023. The decrease in customer churn1 was due to the continued execution of the Company's value creation strategy to focus on mid-market and enterprise customers, as well as implementing new strategies for customer renewals and retention.
Backlog MRR1 increased year over year to $111,905 as of December 31, 2024, from $65,363 for the same period in 2023. The increase in backlog MRR1 is the result of increase in sales bookings along with Company's continued focus on larger multisite customer deals and on profitable revenue generation.
In May 2024, ISED published Decision on the Licensing Process for Existing Licensees in the 24 and 38 GHz Bands and Considerations Related to the mmWave Auction. As a result of this decision, TERAGO retains all existing licences and those licences will be renewed annually until a new licensing process is established.
The Company's sales pipeline continues to expand, with notable recent wins, including a multi-million-dollar contract with a national retailer, as announced in November 2024, which will yield revenue in the coming year.
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(1) See " Non-IFRS Measures"
(2) (2) See "Adjusted EBITDA" for a reconciliation of net loss to Adjusted EBITDA.
RESULTS OF OPERATIONS
Comparison of the quarter and year ended December 31, 2024 and 2023(In thousands of dollars, except with respect to gross profit margin1, earnings per share1, Backlog MRR1, and ARPA1)
(in thousands of dollars, unaudited)
Quarter ended December 31
Year ended December 31
2024
2023
% Chg
2024
2023
% Chg
Financial
Total Revenue
$
6,572
6,536
0.6
$
26,165
26,052
0.4
Cost of Services1
$
1,703
1,801
(5.4)
$
6,981
6,948
0.5
Gross Profit Margin1
74.1 %
72.4 %
2.3
73.3 %
73.3 %
(0.0)
Salaries and Related Costs1
$
2,542
2,465
3.1
$
10,437
10,563
