Paul asked the audience a simple question during his keynote at the 2019 Smallcap Discoveries Conference last week in Vancouver:
“Is the market’s next multi-bagger in the room today?”
It was a good question. We worked hard after all to get 9 of Canada’s most promising growth companies in the room. And each of our last 2 conferences produced at least one multi-bagger over the following year.
Well now just days after the conference, one of the presenting companies is firmly in the lead…
Sangoma Technologies
Sangoma (STC.V / SAMOF) announced FY2019 (June 30 ending) results last Friday, one day after our conference. Revenues were CA$110 million, up 91% over last year and most importantly – 10% above guidance. EBITDA nearly doubled year-over-year to $12.3 million.
Sangoma, you’ll recall, sells communication solutions that work over the internet. Think how you can leave a coworker a voicemail and they can listen to it later from their smartphone. That’s STC’s technology in action.
Here’s CEO Bill Wignall with commentary on the results:
“Early in fiscal 19, we announced guidance of $100 million in sales and $10 million of EBITDA, figures that seemed ambitious at the time. I’m particularly proud of our growing team at Sangoma because not only did we further increase our guidance part way through this fiscal year, we have now finished 2019 by exceeding even those revised estimates.”
On top of that, STC also announced an acquisition that will add US$18.9M in revenue (90% recurring!) and US$5.6M in EBITDA. The deal will leave them with CA$46 million in debt, just over 2X this year’s projected EBITDA.
Guidance for FY2020 is now CA $135-143M with EBITDA of $19-20M.
The market cheered the news, sending shares to 10-year highs:
