TORONTO — Cloud, colocation and connectivity services provider TeraGo reported lower first quarter revenue and earnings saying it was partly due to the Covid-19 pandemic’s effect on its business.
“Like most businesses, we were impacted by the Covid-19 crisis as it spread through Canada,” said Tony Ciciretto, president and CEO of TeraGo, in the news release. “However, the impact to TeraGo was less than most because our solutions are critical to our customer’s operations even as they temporarily closed operations and transitioned to a remote work environment.”
In the release, the company highlighted its pandemic response plan which prioritizes the health and safety of its employees and eliminates non-essential spending, while also enabling TeraGo to remain fully operational during the slowdown caused by Covid-19.
“We remain committed to continued cost management and prudent capital spending during these times,” said Ciciretto. “Covid-19 has made it even more apparent that broadband connectivity is crucial to business success. Our technology delivers networking and infrastructure solutions that our mid-market and enterprise customers rely on for critical services such as virtual collaboration, telehealth and remote applications.”
The company’s total revenue for the first quarter of 2020, ended March 31, 2020, decreased 6.5% to $11.6 million, compared to the same period in 2019. The decrease in total revenue was primarily due to customer churn exceeding provisioning activity, according to the news release.
Breaking down its revenue figures, the company’s connectivity revenue decreased 7.6% to $7.3 million in Q1 2020, compared to $7.9 million in Q1 2019. Cloud and colocation revenue for the first quarter of 2020 decreased 4.4% to $4.3 million, compared to $4.5 million for the first quarter of 2019.
The company’s net loss for the first quarter of 2020 totalled $2.2 million, compared to a net loss of $1.2 million for the same quarter of 2019. TeraGo’s adjusted EBITDA decreased 21.7% to $3.6 million in the first quarter of 2020, compared to the first quarter of 2019.
TeraGo also recently announced it has begun 5G technical trials in the Greater Toronto Area, using 5G fixed wireless network equipment from Nokia and customer premise equipment from Askey Computer Corp., as reported by Cartt.ca.
