KonaTel Inc. (OTCMKTS:KTEL) is up 75% in a month. The company has announced its Q32021 financial results for nine months ending September 30, 2021.
On Wednesday, KTEL stock ended flat at $1.43 with more than 27k shares, compared to its average volume of 57k shares. The stock has moved within a range of $1.3950 – 1.4500 after opening the trade at $1.45.
Q3 Earnings Recap
In Q3, the company reported 43% YoY revenue growth to $3.6 million while gross profit was up 80% to $r1.6 million. In addition, the company reported a net income of $320,000 or $0.01 per share relative to the income of $20,000 or $0.00 per share a year ago.
CEO Sean McEwen said that the company’s momentum continued in Q3 with a sequential-quarter revenue increase of 24%, driven by the increase in the company’s two business divisions.
McEwen explained that in the Hosted Services segment, the expansion of the agent sales channel outreach and improvements to the sales platform had enabled the company to capture and pursue more market opportunities. Equally, the company appointed three senior-level executives to its leadership team with a successful telecom record who will add expansive experience and expertise to the company. So, in the coming weeks, KTEL is worth watching.
“Our momentum continued in the third quarter with sequential revenue growth of 24% driven by increases in each of our two business segments,” stated KonaTel Chairman and CEO Sean McEwen. “In Hosted Services, expansion of our agent sales channel outreach and enhancements to our sales platform are enabling us to pursue and capture a larger share of market opportunities. We also added three new senior level executives to the management team who have successful track records in large telecom and bring a wealth of industry expertise to our organization. The sales teams are increasingly focused on diversifying our revenue mix and the sale of higher margin products, which is having a meaningful impact on our margins. Gross margin was up more than 900 basis points for the third quarter to 45.0% compared to 35.7% in the prior year quarter.
KTEL stock is trading above the 20-Day and 50-Day Moving averages of $1.32 and $1.04 respectively. Moreover, the stock is trading above the 200-Day moving average of $0.73. The stock is up 65% over the past month.