Fusion (NasdaqCM: FSNN), a provider of integrated cloud solutions, including cloud communications, cloud connectivity, cloud computing and other cloud services reported its financial results Friday, November 14th for its fiscal third quarter and for the nine months ended September 30, 2014.
CEO Matthew Rosen stated, “This was another fast-moving and productive quarter for Fusion, as we continued to make great progress in executing on our plan. Fusion is at an inflection point. Positioning ourselves for significant future growth has been and continues to be a key focus throughout 2014, as we work to finalize the integration of the Broadvox cloud services business, expand our cloud network, upgrade back-office infrastructure and systems, and expand our sales and marketing organization. Fusion’s acquisition of the cloud services provider PingTone on October 31, 2014 was our third acquisition in twenty-four months, reflecting the success of our strategy to grow through acquisition as well as organically. With the addition of PingTone, we now have a direct sales force to complement our nationwide network of distribution partners, and have expanded our inside sales team to upsell our services to existing customers. We’re creating value for our customers by providing a single integrated solution for the many benefits of the cloud, with advanced cloud services that increase productivity, replace large capital expenditures with predictable OpEx models, reduce staff and infrastructure requirements, future-proof investments and deliver built-in business continuity. Adoption of cloud services is growing at an impressive pace, and we believe we’re well positioned to emerge as a leading cloud solutions provider during a period of dramatic industry growth. We have confidence that our strong year over year performance will earn the attention of investors who will soon discover our strategy’s success.”
A quick summary of FSNN’s Q3 financials are as follows (the complete filing can be found at SEC.gov.): FSNN revenues increased by 51.8%, from $14.8 million in the third quarter of 2013 to $22.5 million in the third quarter of 2014. Business Services revenue increased 95.7%, from $7.8 million in the third quarter of 2013 to $15.2 million in the third quarter of 2014. Business Services bookings increased $2.0 million, or 57%, over the second quarter of 2013 to $5.5 million for the third quarter of 2014. Consolidated gross margin was 45.2%, up from 32.8% for the same quarter of 2013. Gross margin for the primary Business Services segment was 62.0%, compared to 51.4% in 2013. FSNN generated Adjusted EBITDA of $2.4 million, compared to $0.7 million in 2013. FSNN ended the quarter with approximately $9.3 million in cash.
Fusions revenues increased 51.6% over the first nine month period in 2013 to $68.5 million. Business Services revenue increased by approximately 105% over the first nine month period in 2013 to $46.6 million. Consolidated gross margin increased to 45.6% for the period from 30.7% in 2013. Business Services gross margin increased from 50.7% in 2013 to 62.0% in 2014. Adjusted EBITDA was $8.5 million in 2014, as compared to $1.5 million in 2013.
FSNN ended the quarter with approximately 11,000 customers, an ARPU for the quarter of $460, and customer churn for the quarter of 1.1%. Fusion entered into an exclusive agreement with TFB to integrate proprietary contact center software into Fusion’s cloud services platform and jointly market Fusion solutions to 500 existing TFB customers in key verticals, including healthcare, government and energy.Note that Vista Partners announced prior to the open go the market on November 11th that we had initiated coverage on Fusion Telecommunications International, Inc. (NasdaqCM: FSNN) with a twelve-month price target of $9.50. The stock was trading at $3.30 and closed trading today November 14th at $3.95 per share up 17.21% as the company saw an increase of buying post the above mentioned earnings release. A FREE Report can be downloaded at www.vistapglobal.com,
The post Integrated Cloud Solutions Provider- Fusion (FSNN) Reported Q3 Financials -Increases Q3 Revenue by 52% & Consolidated Gross Margin Was Up to 45.2% appeared first on Vista Partners.