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iQSTEL Revenues Surge 182% In Q1; Crushes Estimates on Way To $60.5 million 2021

iQSTEL, Inc. (OTC: IQST) is continuing to outperform expectations. And the pace of growth is quickening. Last week, the company published its Q1 results that showed its core and subsidiary operations gaining extensive traction as each continue to penetrate respective global markets. The report was excellent across the board.

Not  only has IQST reached the “debt free” milestone at the end of Q1, it increased its cash and cash equivalent balances by 302%, increased total assets by 37%, and took stockholders equity from a deficit of ($2.395 million) to a surplus of $3.754 million. Now, with its cash and cash equivalents reaching $3.032 million combined with strengthening margins and an ability to tap capital through its REG A offering, IQST is better positioned than ever to capitalize on global telecommunication opportunities. 

Better still, its revenues of $14.197 million for the quarter substantially eclipsed what was already a near record setting quarter in Q4. The gains also position IQST closer to bottom line profitability with its net loss decreasing by 51% to $1.878 million. Those numbers generated an even higher decrease in diluted loss per share of 92%, from ($0.13) to ($0.01). Thus, it’s all systems go in the back half of the year as the company continues to demonstrate its ability to gain competitive traction in key international markets. 

Beats Expectations and Targets $60.5 Million In 2021

Indeed, with IQST surpassing its own lofty estimates, the remainder of 2021 appears to be set for accelerating growth. Moreover, what once looked like an extraordinarily high 2021 revenue goal of $60.5 million is comfortably in its crosshairs. Better still, IQST’s strengthened balance sheet enables them to effectively invest capital into its operational divisions, raise working capital, boost earnings, and develop and release innovative high-margin services to diversified markets.

Its latest initiatives, expected to launch by the end of Q2, are its Mobile Number Portability Application MNPA (Blockchain Platform), the unveiling of the IoTSmartTank for a Fortune 500 client, and the release of its VisaDebitCard (VisaMoneyOne) for the EEUU market. Each one of these products and services are expected to create additional revenue streams that have inherently high margins.

Finally, to effectively communicate with its shareholders, IQST has committed to releasing company updates through its newly launched YouTube channel (iQSTEL - IQST Official Channel - YouTube) where it can provide project updates that provide investors better guidance into its operational performance.  

Already a Breakout Year

The Q1 report confirms the tailwind created by its fourth quarter report. Before its impressive $14.93 Q1, IQST delivered quarters where sales reached at least $4.8 million. Those numbers were impressive then. Now, its revenue benchmark has surged by triple digit percentages and if results continue this pace, investors should expect material share price growth in the coming weeks and quarters. 

Notably, since the start of 2021 IQST shares have risen by 242% and that takes into account the extraordinarily weak small-cap market performance during the past four weeks. And while Q4 created the momentum, IQST management is responsible for generating the velocity of growth. The great news is that operational performance is showing no signs of slowing down. In fact, reaching its $60.5 million 2021 revenue target now looks conservative but would still represent a more than 35% increase to last year’s revenues. Keep in mind that that growth adds to its 149% increase in revenues from 2019.

Further, with its diversified focus on established and emerging international telecomm market opportunities, its seven operating subsidiaries targeting markets across its four business divisions are better positioned than ever for substantial growth in the back half of the year. 

In short, IQST is in hyper growth mode. And its role as an international telecom services provider is earning tremendous respect. Better still, that growth is expected to accelerate during the remainder of this year and surge even more in 2022.

A Debt-Free Balance Sheet and Growing Revenues

Most impressive is that IQST is reporting substantial growth on a consecutive quarterly basis despite the significant global challenges created by the worldwide pandemic in 2020. IQST showed that despite its size, it had the expertise and innovation to not only survive the crisis but to also emerge stronger than ever.

The more excellent news is that its innovations, development strategies, and new partnerships continue to be the powerful engines behind its rapid growth. Moreover, the surge in revenues, its continued expansion into underserved markets, and its timeliness to market delivering trending business applications should lead toward a company-wide expansion into new markets. At the same time, they can continue to develop and streamline core operations.

At the end of the day, its comprehensive business plan drives accretive revenue growth and positions IQST to become a significant player in a broad range of services. That’s no exaggeration. 



Video Link: https://www.youtube.com/embed/gmpLL7cTVD4

Respect Earns Partnerships

Indeed, 2021 is setting up to be a breakout year. In fact, 2020 started that move, but it has clearly gained momentum. To gauge where the progress can lead, investors can make comparisons to Atento S.A. (NYSE: ATTO), another international services provider that has seen its market cap surge to $359 million from having operations in 13 countries. While substantially larger, America Movil, S.A.B. (NYSE: AMX) grew its small-cap roots into a large-cap international telecomm market player, amassing a $47.6 billion market cap. 

Thus, don’t consider that IQST will be stuck at its current $69.81 million market cap for long. Instead, expect them to gain momentum, build new markets, and generate additional revenues from its current diversified business divisions. Keep in mind, the impressive Q1 posted last week shows that IQST has the resources and ability to effectively grow its business, and with that being the case, its market cap will rise to compensate.

The remainder of 2021 looks extremely promising and at current price levels may offer the bargain of the year. Moreover, adding IQST’s aggressive strategy to acquire complimenting businesses to the mix, accretive value from those deals and from partnerships will build upon an already solid foundation and further maximize opportunities from its presence in 15 countries. 

Here’s the best part. With revenues targeting $60.5 million this year, a peer-given revenue-based multiple alone should have shares priced significantly higher. But since that model isn’t applied yet, it exposes a massive value opportunity. Thus, having prices at these levels a short time longer gives time for investors to appreciate the investment proposition. However, don’t expect these low valuations to last long. IQST has a history of outperforming the markets and when risk returns to the small-cap sector, expect IQST to run higher.  

Record revenues, no debt, a strong balance sheet, a 92% decrease in operating loss, a presence in 15 counties, and a history of developing acquisitions into revenue-generating assets…what’s not to like about iQSTEL, Inc.

 

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