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April 12, 2021, 9:45 a.m. EDT

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A tech accelerator, DGTL acquired Hashoff last summer and has grown sales exponentially in the first quarters under its umbrella. Revenue during the quarter ended August 31, 2020 (fiscal Q1 2021) rose 83% from the year earlier quarter to $1.16 million. In the second quarter, revenue rose to $1.25 million, up 70% from fiscal Q2 2020. Q3 results should be coming in the next few weeks,– and with these recent blockbuster signings, one would expect to see continued revenue growth.

Traders often look to a price-to-sales ratio get a snapshot of value amongst peers. A calculation of market capitalization divided by 12 months of sales, the interpretation is simple: the lower the P/S ratio, the more attractive the investment opportunity.

DGTL reflected $2,416,000 in revenue for the six months ending November 30, 2020, prior to announcing now six major new global brand accounts. According to DGTL Director John Belfontaine, the Hashoff acquisition included revenue growth milestones in which Hashoff must achieve $10 million in revenue in 2021 in order to receive 100% of cash and share payments from its initial $5 million valuation. Closest comparable IZEA Worldwide trades at $5.11 a share currently ($302.15 million MC) with $18.33 million in revenue in 2020 (in USD), or approximately 16:1 P/S ratio. With DGTL gaining quickly on IZEA’s annual revenue, DGTL presents a significant value opportunity especially when considering the potential of additional future SaaS acquisitions.

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COMTEX_384304134/2559/2021-04-12T09:45:22

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