Sangoma Technologies Corp T.STC

Prediction

[AlwaysLong683]

Q2 2023 earnings released after close today do not bode well for the share price in my opinion.

The products part of their business is a real thorn in their side vs. other software companies that are more of a pure SaaS play. They are still producing quarterly net losses of about the same size and have lowered guidance to boot. Brace yourselves for a drop in the share price tomorrow and not sure what things will look like going forward in the next month or two.

We shall see....

[Torontojay]

Hopefully investors took some profits with that huge rally in such a short period of time. I'd prefer rallies to be slow which is more sustainable. The market is only seeing rainbows and unicorns and I see cloud storms ahead.   

[mlmack66]

In the statement "to build towards a pure SaaS business", sounds like they may be selling or spinning off the hardware business. A growing and profitable pure SaaS business would be worth much more than the current valuation. Annual  Revenue approximately 50M hardware, 200 million Software. Comments ?

[prophetoffactz]

The service side is alredy ~80% of the business and growing at a 10% annualized rate as of this report/ In another year it could be ~90%. Then add a service business acquisition...

[AlwaysLong683]

Good discussion. Not sure how STC transitions to a 95% plus SaaS business anytime in the forseeable future when their pitch to customers is STC is a one-stop shop for clients: All needed hardware installation and set-up plus a wide array of CaaS software modules from which to choose to customize their optimal CaaS solution with customer support and troubleshooting - all provided by a single