NEW YORK, Dec. 14, 2017 /PRNewswire/ -- Pareteum Corporation (NYSE American: TEUM), ("Pareteum" or the "Company"), the rapidly growing mobile Cloud Communications Platform company, announced today the issuance of a shareholder update letter from its Executive Chairman and Principal Executive Officer, Hal Turner.
Dear Pareteum family, partners and shareholders,
We wish to start by thanking our TEUM, partners and shareholders for all your dedication and support. While we know there are ups and downs as an employee or a shareholder of a small emerging growth company, we strongly believe in our actions over the past two years and more specifically, recently, in building a strong and valuable company for the future.
These past two years, since I was appointed as Executive Chairman and Principal Executive Officer of Pareteum in November 2015, have been extremely eventful and successful. Our restructuring and repositioning in 2016 has led to solid growth in 2017, and has defined our innovation in both services and market positioning, establishing a strong outlook for our success in 2018 and beyond. We again thank you for your patience.
When Marconi invented the "wireless"... radio, it changed the world and lifestyles by enabling information to be widely broadcast. Pareteum's Global Mobility Cloud now has the capability to enable virtually any type of content and information (or transaction) by moving connectivity (via wireless mobility network access) to most elements of our lives, from home to work and all forms of interaction in between, like shopping, travel, entertainment, and sports. Pareteum's Global Mobility Cloud Platform enables our Mobile Network Operator and Communication Service Provider customers to manage these data information transactions and scale their businesses affordably.
Through TEUM's accretion of the current $129 million 36 Month Contractual Revenue Backlog (see definition below), our customer base increased from 4 as of year-end 2016 to currently 21 customers. This is the result of a strong TEUM effort by all our TEUMates, across all departments, including Vic Bozzo, Rob Mumby, Nick Barter, Eduardo Gimeno, Ali Davachi, Ted O'Donnell and many others that carry on every day, doing their jobs to serve our customers and create profitable growth. We have expanded into new markets and have provided new services as a result of the complete overhaul of our software and platform in order to fully support our Software as a Service business model, which we converted to in 2016.
Our decisions in 2016 to significantly reduce headcount and evolve our software and services offerings were difficult choices. These decisions were the right decisions for our business and were necessary for our survival. Our new business model facilitated better market positioning for Pareteum and accelerated growth in the beginning of Q4 2016. Our revenue per employee metric increased to a record $222,139 in the third quarter of 2017, a 4-fold increase from the end of 2015, when we started tracking this metric and demonstrating our improved efficiencies and scale.
We believe we have developed a leaner, more effective leadership and operational team with strong experiences in having successfully built software services and connection platforms. This resulted in value creation for stakeholders. We have streamlined our operations and processes and have seen the net positive effects throughout 2017. For the trailing twelve months ending September 30, 2017, Pareteum has generated positive adjusted EBITDA. Additionally, our third quarter 2017 operating results approached breakeven in both EBITDA and net earnings.
Our recent capital raises, aggregating to approximately $20 million, will address specific long-term strategies that we are executing, and, we believe, will establish Pareteum as the dominant player in this space. We expect to be able to announce these initiatives over the next several weeks. We believe these fundamental plans will lead to increased long term shareholder value. In addition, the capital raised increased our shareholders' equity and resulted in TEUM regaining compliance with the NYSE listing standards.
We are extremely proud of our TEUM and partners in developing our platform. Our innovation is an ongoing evergreen continuum. We expect that innovations will take us into new geographies, with new services and applications, and the ability to be in the ecosystem for the infinite directions available from connectivity among networks. Our ability to successfully scale and securely manage the geometrically exploding data and information generated by the simple acts of using mobility in our daily lives defines a great part of our bringing value to our customers and it is why they buy from us… at home, at work and in the cities where we live and shop.
All good wishes for a healthy, happy and prosperous 2018 to our families, partners and stakeholders,
Robert H. Turner
Principal Executive Officer
Pareteum Corporation (NYSE American: TEUM)
About Pareteum Corporation
The mission of Pareteum Corporation (NYSE American: TEUM) is to connect "every person and everything." Organizations use Pareteum to energize their growth and profitability through cloud communication services and complete turnkey solutions featuring relevant content, applications, and connectivity worldwide. By harnessing the value of communications, Pareteum serves retail, enterprise and IoT customers. Pareteum currently has offices in New York, Sao Paulo, Madrid, Barcelona, Bahrain and the Netherlands. For more information please visit: www.pareteum.com.
Forward Looking Statements:
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum's filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum Corporation.
Contractual Revenue Backlog Definition:
Contractual revenue backlog is measured on a forward looking 36 month snapshot view monthly, and, is generated by each of the Company's Managed Services, Global Mobility Cloud, and Application Exchange & Developer's Platform customers. The Pareteum multi-year Software-as-a-Service agreements include service establishment and implementation fees, guaranteed minimum monthly recurring fees, as well as contractually scheduled subscribers, in some cases including subscriber usage, during the term of the agreement, and, their resulting monthly recurring revenue. There can be no assurances that we reach the total revenue backlog. The revenue backlog assumes timing of revenue recognition that may vary from actual results.
Pareteum Investor Relations Contacts:
Chief Financial Officer
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SOURCE Pareteum Corporation