Fusion Reports Fourth Quarter and Full Year 2016 Financial Results

Fusion (NASDAQ:FSNN) announced financial results for its Q4 and full year ended December 31, 2016. Highlights include a consolidated revenue of $28.9 million in Q4, as well as an adjusted EBITDA of $2.2 million for the same period.
As quoted in the press release:
Fourth Quarter 2016 Highlights

• Consolidated revenue grew 8% to $28.9 million, compared to $26.8 million in Q4 2015, driven by a 41% increase in Business Services segment revenue to $24.2 million
• Consolidated gross margin increased 850 basis points to 51.2%, compared to 42.7% in Q4 2015
• Adjusted EBITDA (a non-GAAP measure) grew 36% to $2.2 million, compared to $1.6 million in Q4 2015
• Completed the acquisition of Apptix, adding a high-quality business customer revenue base and advancing Fusion’s leadership position in the rapidly expanding cloud computing market for SMB and Enterprise customers
• Closed a new $70.0 million senior secured credit facility, at an interest rate of LIBOR (with no floor) + 5.00%, which replaced Fusion’s previous $40.0 million senior credit facility
• Signed new Business Services sales (bookings) with a total contract value of $9.9 million, up 39% year-over-year
• Ended the quarter with approximately 13,300 Business Services customers and approximately $393,000 of Business Services monthly recurring revenue (MRR) in backlog and representing $13.4 million in total contract value, up 28% year over year
• Ended the quarter with an average monthly revenue per customer (ARPU) of $679 and a churn rate of 0.8%, compared to $568 and 1.1% at September 30, 2016 and $544 and 0.7% at December 31, 2015
• Named to Deloitte’s 2016 Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America

Full Year 2016 Highlights

• Consolidated revenue grew 20% to $122.0 million, compared to $101.7 million in 2015, driven by a 31% increase in Business Services segment revenue to $86.6 million
• Adjusted EBITDA grew 9% to $8.9 million, compared to $8.2 million in 2015
• Expanded Fusion’s product offering in the Contact Center market through the acquisition of Technology for Business Corporation (TFB) in March 2016
• Received a 2016 INTERNET TELEPHONY Product of the Year Award for Fusion360, Fusion’s comprehensive and integrated cloud communications solution

Click here for the full press release.