Overview

* Terago ( TRAGF ) Q3 revenue declines 2.2% yr/yr due to increased churn from unprofitable accounts

* Adjusted EBITDA for Q3 rises 2.9%, driven by higher gross margins and lower expenses

* Company completes $46 mln financing transactions, strengthening capital structure for growth

Outlook

* Company did not provide specific financial guidance for future quarters or the full year

Result Drivers

* CUSTOMER BASE OPTIMIZATION - Increased churn due to discontinuation of service to unprofitable accounts, partially offset by new customer revenue

* ARPA INCREASE - Rise in ARPA driven by focus on mid-market and large-scale customers and changes in product mix

* OPERATIONAL EFFICIENCY - Higher gross margin and lower salaries and operating expenses contributed to increased adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$6.40

Revenue mln

Q3 EPS -C$0.12

Q3 Net -C$2.37

Income mln

Q3 C$971,00

Adjusted 0

EBITDA

Q3 Gross 73.90%

Margin

Q3 -C$1.48

Income mln

from

operatio

ns

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the integrated telecommunications services peer group is "buy."

* Wall Street's median 12-month price target for Terago Inc ( TRAGF ) is C$0.97, about 15.2% above its November 7 closing price of C$0.82

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)