Pareteum Corporation Announces 2020 Financial Results
- 2020 total revenue of $69.6 million, 12% year-over-year growth
- Net loss attributable to common equity decreased to $45.5 million in 2020, an 80% improvement from $222.3 million in 2019
- Surpassed 1,100 clients and partners globally, including key enterprise customers and MVNE/MNVOs
- Management to host conference call today at 4:30 p.m. ET
NEW YORK, June 17, 2021 — Pareteum Corporation (OTC: TEUM), a global cloud Communications-Platform-as-a-Service (CPaaS) company, today announced financial results for full year 2020.
“While 2020 was a transitional year for Pareteum as we worked towards resolving corporate legacy issues and financial restatements, we continued to make progress across our business that we believe has laid a foundation for significant future growth,” commented Bart Weijermars, Pareteum’s interim Chief Executive Officer. “Our mission is to empower our customers to simply create and control their wireless communication products and experiences through our powerful cloud platform and global connectivity. We have grown revenue 244% over the past three years and improved net loss attributable to common equity from $222.3 million in 2019 to $45.5 million in 2020. We added over 50 additional customers last year, and have grown platform connections 156% since 2018. We believe Pareteum is well positioned to address a large, rapidly growing global opportunity and have developed an expanded corporate strategy to do so.”
Full-Year 2020 Financial Results Highlights:
- Revenue: Total revenue was $69.6 million for the full year 2020, up 12% compared to $62.0 million in 2019. This increase was primarily due to strong demand for services in our mobility business, partially offset by a decrease in connectivity services, which includes travel-related communications.
- Gross Profit: Gross profit (revenue minus cost of revenue) for the full year 2020 was $20.7 million, compared to $14.9 million for 2019.
- Net loss attributable to common equity: Net loss attributable to common equity was $45.5 million for the full year 2020, compared to a net loss of $222.3 million in 2019. During 2019, the Company recognized a non-cash impairment charge of $156.8 million, consisting of a $125.9 million impairment of goodwill and a $30.8 million impairment of intangible assets.
- Cash: Cash and cash equivalents, together with restricted cash totaled $14.8 million as of December 31, 2020, compared to $5.9 million as of December 31, 2019.
Key Business Metrics and Highlights:
- Diversified business portfolio across MVNE, MVNO, Enterprise, Messaging and SMB, which supports one stop solutions for customer communication needs.
- Surpassed 1,100 customers and partners globally, up from 533 in 2018, including key enterprise customers and MVNE/MNVOs.
- Added over 50 new customers in 2020.
- Renewed strategic deal with Vodafone.
- Connections grew to 4.6 million in 2020, up from 3.9 million in 2019, and 1.8 million in 2018.
- Operations in North America, Latin America, Europe, Middle East and Africa and Asia-Pacific.
- Recent expansions in Brazil, Colombia and Tunisia.
- 200 employees worldwide as of December 31, 2020.
Conference Call and Webcast Information
Pareteum will hold a conference call today at 4:30 p.m. ET. The live audio webcast may be accessed through the “Events & Presentations” page on the “Investors” section of the Company’s website at www.pareteum.com. Alternatively, participants may dial 888-506-0062 (toll free) or 973-528-0011 (international) and provide participant passcode 41778. A replay of the webcast will be available for 30 days following the live event.
About Pareteum Corporation
Pareteum is a global provider of Communications Platform-as-a-Service (CPaaS) solutions with operations in North America, Latin America, Europe, Middle East and Africa, and Asia-Pacific regions. Pareteum empowers enterprises, communications service providers, early-stage innovators, developers, Internet-of-Things (IoT), and telecommunications infrastructure providers with the freedom and control to create, deliver and scale innovative communications experiences. The Pareteum platform connects people and devices around the world using the secure, ubiquitous, and highly scalable solution to deliver data, voice, video, SMS/text messaging, media, and content enablement. For more information, please visit www.pareteum.com and follow the company on LinkedIn.
Forward Looking Statements
Certain statements contained herein constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. With the exception of historical matters, the matters discussed in this release are forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events. Forward-looking statements are generally identified by words such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “project,” “should,” “will,” “would” and other similar expressions. In addition, any statements that refer to expectations or other characterizations of future events or circumstances are forward-looking statements. However, our actual results may differ materially from those contained in, or implied by, these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: risks and uncertainties associated with the integration of the assets and operations we have acquired and may acquire in the future; our possible inability to raise additional capital that will be necessary to expand our operations; the substantial doubt about our ability to continue as a going concern expressed in the most recent report on our audited financial statements; our potential lack of revenue growth; the length of our sales cycle; pending investigations by the SEC and other lawsuits; the outbreak and impact of the novel coronavirus (COVID-19) on the global economy and our business; our potential inability to add new products and services that will be necessary to generate increased sales; our potential inability to develop and successfully market platforms or services or our inability to obtain adequate funding to implement or develop our business; our ability to successfully remediate the material weakness in our internal control over financial reporting within the time periods and in the manner currently anticipated; the effectiveness of our internal control over financial reporting, including the identification of additional control deficiencies; risks related to restrictions and covenants in our convertible debt facility that may adversely affect our business; risks related to our current noncompliance with certain terms under our senior secured convertible indebtedness; our potential loss of key personnel and our ability to find qualified personnel; international, national regional and local economic political changes, political risks, and risks related to global tariffs and import/export regulations; fluctuations in foreign currency exchange rates; our potential inability to use and protect our intellectual property; risks related to our continued investment in research and development, product defects or software errors, or cybersecurity threats; general economic and market conditions; regulatory risks and the potential consequences of non-compliance with applicable laws and regulations; increases in operating expenses associated with the growth of our operations; risks related to our capital stock, including the potentially dilutive effect of issuing additional shares and the fact that shares eligible for future sale may adversely affect the market for our common stock; the possibility of telecommunications rate changes and technological changes; disruptions in our networks and infrastructure; the potential for increased competition and risks related to competing with major competitors who are larger than we are; our positioning in the marketplace as a smaller provider; risks resulting from the restatement of certain of our financial statements; and the other risks discussed in our Form 10-K for the year ended December 31, 2020. Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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Pareteum Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
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