TeraGo reports Q2 2017 financial results

TeraGo Inc. (TSX:TGO) has announced financial and operating results for the quarter ended June 30, 2017, the company said.

Total revenue decreased 6.0% to USD 13.9 million for the three months ended June 30, 2017 compared to USD 14.8 million for the same period in 2016. The decrease in revenue was primarily driven by lower connectivity revenue, partially offset by growth in cloud and colocation revenue.

Cloud and colocation revenue increased 6.3% to USD 4.7 million compared to USD 4.4 million for the same period in 2016. The increase was driven by greater provisioning of cloud services from new and existing customers as well as from the acquisition of the Hosting Business in the second quarter of 2016.

The percentage of revenues from cloud and colocation of our total revenue has increased to 34% compared to 30% in Q2 2016. Total revenue decreased 5.2% to USD 28.2 million for the six months ended June 30, 2017, compared to USD 29.7 million for the same period in 2016.

TeraGo provides businesses across Canada and internationally with cloud, colocation and connectivity services. TeraGo manages over 3,000 cloud workloads, operates five data centres in the Greater Toronto Area, the Greater Vancouver Area, and Kelowna, and owns and manages its own IP network. The company serves approximately 4,000 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg.