The cloud communications platform, Pareteum (NYSEMKT:TEUM) shares started shining since the second half of last year. TEUM stock has the 52-week trading range of $0.50 – $3.59 and its market cap stand around $104 million. Pareteum shares continue getting strong support from increasing demand for its technologies.
The company posted revenue growth of 27% in the latest quarter, and it expects fiscal 2018 revenues to surge by 50% Y/Y.
The Pareteum strategy of enhancing its management and operational teams helped in achieving strong financial numbers and contractual backlog in the latest quarter.
Commenting on results CEO said, “We achieved record revenue growth for the fourth quarter and full year 2017. Our key performance indicators of connections, backlog conversion, connection values, revenue per employee and churn are all favorable and trending in the right directions.”
The company won 26 contracts last year, and its 36-month contractual revenue backlog jumped to $147 million by the end of the year. Its connection was standing around 1,711,000, sharply higher from 1,273,000 from the previous quarter.
Consequently, Pareteum expects a growth of 50% in its revenue in fiscal 2018, while its gross margin is likely to land around 70-75% and operating margins at 15-20%.
Liquidity position
Pareteum’s liquidity position strengthened substantially during the last year – setting its firm foothold for potential investments in growth opportunities. The company raised $20 million in equity offering during fiscal 2017 – which led it to eliminate $10.1 million senior debt. Its total assets also jumped from $13.0 million to $25.3 million by the end of 2017. With the cash balance of $13 million and robust revenue backlog, the company is in a position to expand its presence in global markets.
We are now focused on converting backlog to revenue, servicing our clients, selling into new geographical markets and industries and creating shareholder value,” said Hal Turner, Pareteum’s Founder.
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