Fusion Telecommunications International, Inc. (OTCQB: FSNN), a provider of cloud communications, cloud computing and managed cloud solutions announced revenue growth of over 40% while achieving the milestone of reaching Adjusted Ebitda positive for the first time in the history of the company. The company cleared its first significant hurdle on its path towards profitability by achieving $200,000 in adjusted EBITDA. The Cloud Services industry represents a $109 billion market opportunity, and emerging companies such as FSNN are well positioned to capture a sizeable portion of the marketplace.
First Quarter Highlights
- Achieved revenues of $16.2 million for the quarter ended March 31, 2013, an increase of $4.6 million, or 40.2%, from the first quarter of 2012.
- Revenues from Fusion's higher margin Business Services Segment increased by $6.9 million to $7.5 million
- Gross profit increased 196% to $4.4 million
- Gross margin increased to 27.3% compared to 12.9% Achieved positive adjusted
- EBITDA milestone: Adjusted EBITDA for the first quarter of 2013 was $0.2 million compared to an adjusted EBITDA loss of $0.6 million
- The number of business customers totaled 3,495 in the first quarter of 2013, with the average revenue per customer reaching approximately $700.00.
- Signed contracts valued at more than $5.3 million, representing a record quarter of newly contracted business.
The first quarter results where the first including FSNN's previously announced acquisition of NBS. Expectations would be that the growth would continue over the next few quarters. It is key to point out from the release that NBS subsidiary directly attributed to the $6.9 million increase within our business services segment that generated a gross margin of approximately 50%. The influx of this higher margin recurring revenue proved to be instrumental in achieving positive adjusted EBITDA and going forward I would expect that management will continue to leverage the platform to increase their business services revenue. Based on NBS being fully integrated shareholders should expect FSNN to continue to grow revenues, expand margins, and improve their Adjusted EBITDA in the second quarter. If management can find similar acquisitions to NBS this company will begin to make waves in the Cloud Services sector.