Fusion Reports Third Quarter 2018 Financial Results

Fusion (NASDAQ:FSNN) announced financial results for the three and nine months period ended September 30, 2018 with the company reporting revenues of US$143.4 million for the third quarter representing 19 percent improvement sequentially.

The company said that average revenue per user was US$303 as compared to US$309 in Q2 2018 and US$298 in Q3 2017.

As quoted in the press release:

Third Quarter 2018 Highlights

 

• Gross margin was 49.1%, compared to 45.2% in Q2 2018 and 47.9% in Q3 2017
• Net loss attributable to common stockholders was $18.1 million, or $0.23 per share, compared to a net loss of $34.5 million, or $0.59 per share in Q2 2018 and a net loss of $1.5 million, or $0.06 per share in Q3 2017
• Adjusted EBITDA (a non-GAAP measure) was $30.6 million, or 21.3% of revenue, compared to $26.6 million in Q2 2018 and $30.1 million in Q3 2017
• Capital expenditures were 7.6% of revenue, compared to 8.8% of revenue in Q3 2017
• Monthly Recurring Revenue (MRR) bookings were $2.1 million, up sequentially from $2.0 million in Q2 2018 (inclusive of the full Q2 2018 results)
• More than 80% of Fusion’s total bookings in September consisted of higher margin services, while approximately 40% of these sales had an MRR over $1,000
• Approximately 55% of the MRR of all new bookings represented sales of multi-product solutions
• Significant improvement in the customer experience, as reflected in higher first call resolution rates, shorter call wait times, and higher CSAT (customer satisfaction) scores

“The third quarter marked an important milestone for Fusion, as we are reporting our first full quarter of consolidated results following the closing of the Birch and MegaPath acquisitions, and our strong performance is beginning to demonstrate the power of our combined platform,” said Matthew Rosen, Fusion’s Chairman and Chief Executive Officer. “Our revenue trend has now largely been stabilized, and we showed sequential, month-over-month growth in MRR in September. Our churn rate improved materially, while bookings, backlog and ARPU were all solid. We exited the quarter having achieved 77% of our pre-merger synergy target, and since we have uncovered a substantial amount of additional integration-related cost savings, we now expect to outperform our original synergy target by at least 30%.”

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