Conferencia de resultados del segundo trimestre fiscal de 2027 de FatPipe (FATN): los ingresos aumentan un 22%, la facturación recurrente crece un 55%

Puntos clave

• Los ingresos del segundo trimestre fiscal de 2027 aumentaron un 22% interanual hasta situarse en aproximadamente 4,8 millones de dólares, mientras que el beneficio neto alcanzó los 1,2 millones de dólares y el EBITDA ajustado creció un 60% hasta los 1,16 millones de dólares.
• El margen bruto se mantuvo en el 90% y el beneficio por acción aumentó a 0,09 dólares, frente al resultado plano registrado en el mismo trimestre del año anterior.
• La facturación recurrente creció un 55% interanual y aumentó de 2,4 millones de dólares en el trimestre anterior a 2,9 millones de dólares, impulsada por nuevos negocios, renovaciones e implementaciones de mayor envergadura.
• Los ingresos del primer semestre aumentaron un 25% hasta los 9,9 millones de dólares. El beneficio neto se disparó un 250% hasta alcanzar los 2,43 millones de dólares, mientras que el EBITDA ajustado creció un 34% hasta los 2,45 millones de dólares.
• FatPipe lanzó Constellation, una plataforma de monitorización de redes disponible como producto independiente o integrada en su oferta general. La dirección señaló que ya han comenzado los pedidos y que la adopción por parte de los clientes ha sido más rápida que la de sus productos de ciberseguridad.
• La dirección afirmó que FatPipe alcanzó el punto de equilibrio en octubre y prevé buscar un flujo de caja positivo mientras amplía su equipo de ventas de 30 a 36 empleados para finales de marzo.

Datos financieros clave

Las cifras del primer semestre abarcan los seis meses concluidos el 30 de septiembre de 2026. La dirección indicó que la mayor parte de los ingresos del segundo trimestre fiscal estuvo impulsada por nuevas contrataciones.

Evolución comercial y operativa

Constellation fue el principal desarrollo de producto durante el trimestre. La plataforma monitoriza redes de área amplia y de área local, incluidos dispositivos individuales, puertos de conmutadores, conexiones de fibra, inventarios de software, fechas de renovación y vulnerabilidades de software. Asimismo, genera alertas, alarmas e informes en tiempo real.

Los clientes pueden adquirir Constellation de forma independiente o como parte de la oferta de FatPipe, ya sea con implementación local o en la nube. El modelo de precios se basa en el número de dispositivos o direcciones IP monitorizados. La dirección señaló que el producto ya ha recibido pedidos y que resulta más fácil de introducir porque, por lo general, no exige que los clientes sustituyan sus sistemas existentes.

FatPipe afirmó que la adopción de soluciones de ciberseguridad puede llevar más tiempo, ya que los clientes suelen tener contratos con múltiples proveedores de tres a cinco años de duración. Por el contrario, Constellation ha tenido una aceptación más rápida entre los clientes actuales, incluidos el ayuntamiento de una ciudad de Tennessee y una entidad bancaria.

La facturación recurrente se benefició de implementaciones escalonadas de clientes, renovaciones y contratos de mayor envergadura. El pedido de 7 millones de dólares en el sector educativo ha comenzado a contribuir a la facturación recurrente. La dirección indicó que su despliegue completo podría generar aproximadamente 118.000 dólares al mes, o unos 350.000 dólares por trimestre.

FatPipe también informó de avances a través de TD SYNNEX y Carasoft. La dirección señaló que las adjudicaciones de propuestas en el sector público y las carteras de proyectos de los socios están creciendo. La empresa formó recientemente a 72 comerciales de un socio y continúa ofreciendo formación presencial, soporte en la fijación de precios y recursos de ventas.

En octubre, FatPipe adquirió una pequeña empresa de tecnología de software utilizando recursos propios. El negocio adquirido prestará apoyo a FatPipe Technologies, que ofrece servicios de software y tecnología.

Previsiones de la dirección

La dirección reiteró un objetivo interno mínimo de un crecimiento del 18% y un 18% de EBITDA, al tiempo que reconoció una posible estacionalidad vinculada al periodo festivo en el trimestre de diciembre.

FatPipe planea ampliar su equipo de ventas de 30 a 36 empleados para el cierre de su ejercicio fiscal en marzo. El objetivo de la empresa para el año siguiente es alcanzar los 48 comerciales. La dirección señaló que las nuevas contrataciones de ventas suelen requerir entre tres y seis meses para alcanzar el punto de equilibrio o resultar rentables, mientras que los representantes centrados en operaciones de mayor tamaño pueden necesitar de seis a nueve meses.

La empresa afirmó que alcanzó el punto de equilibrio en octubre y prevé avanzar hacia un flujo de caja positivo sostenido mientras continúa adquiriendo hardware para los despliegues de clientes y expandiendo sus operaciones comerciales.

FatPipe también refinanció un préstamo de la SBA, lo que redujo su tipo de interés en aproximadamente 1,85 puntos porcentuales, y obtuvo una línea de crédito de 1,5 millones de dólares de un banco local.

Riesgos y aspectos a vigilar

• La venta cruzada de ciberseguridad podría avanzar con lentitud debido a que muchos clientes potenciales continúan sujetos a contratos de tres a cinco años con otros proveedores.
• La adopción de SATBoost ha sido más lenta de lo previsto inicialmente por la dirección, ya que muchos clientes utilizan las conexiones por satélite como respaldo y no para aumentar la velocidad.
• La ampliación del equipo comercial conlleva un periodo de maduración de tres a nueve meses, según el volumen de las operaciones y la productividad de los comerciales.
• Las obligaciones de desempeño restantes se mantuvieron relativamente estables en comparación intertrimestral, ya que el crecimiento de las nuevas contrataciones recurrentes se vio compensado por la transición de clientes tradicionales desde licencias temporales únicas hacia la facturación recurrente.
• Las continuas compras de hardware para las implementaciones podrían consumir liquidez, incluso cuando la dirección tiene como objetivo lograr un flujo de caja positivo.

Puntos destacados de la sesión de preguntas y respuestas con analistas

La dirección afirmó que Constellation puede adquirirse de inmediato sin necesidad de esperar a que venza un contrato vigente. El producto opera dentro de la red del cliente y factura según el número de direcciones IP monitorizadas.

En cuanto a la facturación recurrente, la dirección atribuyó el incremento intertrimestral a nuevos clientes, renovaciones y la aceleración de implementaciones de mayor tamaño. El contrato educativo de 7 millones de dólares ha comenzado a contribuir, junto con otros acuerdos importantes.

Con respecto a las oportunidades en el sector público, la dirección señaló que la ejecución del contrato educativo ha demostrado la capacidad de FatPipe para gestionar grandes despliegues. Posteriormente, la empresa ha cerrado operaciones adicionales en otras zonas del país.

La dirección calificó las renovaciones como una parte cada vez más importante del negocio a medida que crece la base instalada de clientes. Entre los clientes de FatPipe se encuentran ciudades, condados, servicios policiales y de emergencia, hospitales y grandes distritos escolares.

SATBoost aún no ha cerrado grandes acuerdos, aunque la dirección destacó un interés más reciente por parte de clientes que están desplegando conectividad satelital en 40, 50 o más ubicaciones. FatPipe también indicó que recientemente había completado dos o tres acuerdos de mayor envergadura para sustituir a VeloCloud y cuenta con propuestas adicionales de sustitución pendientes.

Transcripción completa de la conferencia de resultados

Transcripción completa de la conferencia de resultados

Comentarios de la dirección

Vikrant Ragula

Hi, everyone. Good afternoon, and thank you for joining FatPipe's earnings conference call.

Before we begin, I would like to remind everyone that today's discussion may include forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include, but are not limited to, statements regarding FatPipe's expected financial performance, business strategy, growth opportunities, customer demand, product deployment, recurring revenue initiatives, market position and future operating results.

These statements are based on management's current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.

For a discussion of important factors that could affect FatPipe's actual results, please refer to the risk factors and other disclosures contained in the company's filings with the Securities and Exchange Commission, including its most recent annual report, quarterly reports, current reports and other SEC filings.

Any forward-looking statements made on today's call speak only as of today's date. Except as required by law, FatPipe undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

And during today's call, we may also discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures, where applicable, are included in today's earnings release and related materials available through the company's Investor Relations website and SEC filings.

With that, I will turn the call over to management.

Ragula Bhaskar

Good afternoon, everyone. This is Ragula Bhaskar, the CEO of FatPipe Inc. And with me, I have Vikrant and Kanishka.

Vikrant is the one who read the safe harbor announcement. He's our VP for Corp Dev and IR. And then I also have with me our Chief Financial Officer, Kanishka. And Tanishka will join me for this presentation.

I'm excited to have you all on this call. A lot of exciting things are happening. We had a good quarter. And besides that, we also introduced a new product called Constellation.

That is for network monitoring, both on the wide area and on the local area side. And that is an exciting product that is gaining traction. Orders have already started coming in.

We are also working towards positive cash flow. Last quarter, most of our cash went to buy inventory to deliver on the orders we had. And in October, we broke even as a company.

So we hope to continue to be a positive cash flow company, as I promised you at the beginning of the year.

With that, I would like to move to the financial numbers that you have been waiting for. This is for quarter 2 of this year. Kanishka, please take it away.

Kanishka Ragula

Thank you, Dr. Bhaskar. So, as a summary of the financial results from this quarter, for Q2, we had about $4.8 million of revenue, which was a 22% year-over-year growth.

Net income of $1.2 million, which was an increase of $125 million of net income relative to the same quarter last year. Adjusted EBITDA of $1.16 million, which is about a 60% year-over-year increase on the EBITDA side.

Gross margins continue to remain healthy at 90%. And earnings per share were $0.09 a share, which was an increase from flat in last year's same quarter.

Going into the first half results as a whole for Q1 and Q2 combined on the next slide. We had 25% year-over-year growth -- apologies, can this move to the next slide?

Yes. We had $9.9 million of revenue, which is about 25% year-over-year growth for the 6 months ended September 30, '26. relative to the 6 months ended September 30, '25.

Net income grew 250% to $2.43 million. Adjusted EBITDA was up 34% year-over-year to $2.45 million. Gross margin once again remained healthy, 91% blended, and earnings per share was at $0.17 a share, which is up 240% year-over-year.

Next slide. Going to our recurring billings. Our recurring billings continued to be strong year-over-year. Relative to the same quarter last year, our recurring billings grew 55% year-over-year.

As a reminder, recurring billings are those billings that are billed regularly either on a monthly or annual basis. This represents those billings that were collected in the quarter for the 3 months ended September 30, 2026.

And with that, that's the summary of the financial results. I'll pass it back to Dr. Bhaskar to go over product and customer.

Ragula Bhaskar

Thank you, Kanishka. Ladies and gentlemen, when you go to the next slide, Vikrant, I would like to talk to you about the company.

As we always wanted to be, and we'll continue to strive to be, we always want to be the #1 product in our business and also provide the #1 support to our customers so that we have happy customers.

And the entire emphasis here is to make this customer experience the best that can be in the networking business. So with that goal in mind, we have always continued to do well in that arena.

And the customer feedback -- this is one of the charts from a company called InfoTech. I believe it's a $4 billion marketing company. As you can see, we are way ahead of Cisco, Meraki, VMware, and everybody else in the game. And that is because we actually focus on the customer.

If you look at Gartner survey, another company, if you look at independent surveys of customers, we are always rated #1 over all the other majors in every single category. And that will continue to be our goal.

In terms of what we plan to do for the next few quarters, keep up the same production, work on creating more sales. At the beginning of the year, our plan was to have 36 salespeople by the end of the year.

We are midway there. We are at 30 salespeople net, and we plan to add 6 more by the end of March, which is our fiscal year. And in terms of product, as I mentioned, Constellation was a very good product that we brought out.

To give you an idea of what Constellation does, we can monitor every single aspect of your network, every single device in your network, down to every single port in your switch and your fiber connection.

The advantage of that is, from a customer perspective, they don't have to go to multiple vendors. In a single stack, we are able to provide you with cybersecurity, FatPipe, of course, our base product, and complete network analysis.

Now, as a customer, what is the advantage? You have all the data you need, networking data, cybersecurity data and the entire company devices, inventory, in fact, including all the software you have, when the software are coming up for renewals, which software is vulnerable.

We can give you a list of software that has not been updated. So essentially, it's one stop, one call, that's all. And that's our goal: to achieve network singularity, and we are headed there.

That's our biggest achievement in terms of new product last quarter. At the beginning of this, in October, we acquired a small software technology company, and we'll continue to look for more companies to add.

We did not raise any money to buy that company. We are doing it with our internal resources. And again, we had to acquire quite a bit of equipment and hardware to meet our sales obligations.

We are doing that. And in October, we broke even, and we expect to continue to break even and make positive cash flow going forward as we continue to hire people and expand our sales motions.

I don't have any other things to share with you. Vikrant, are there any questions that I can answer? If anyone wants to ask questions, please do raise your hand and ask questions.

And Vikrant, could you transcribe for me.

Vikrant Ragula

Yes. So we have some questions from our equity analysts. So I will start off by pulling in Lisa Thompson to share her question.

I enabled her microphone and camera.

Preguntas y respuestas

Lisa Thompson

Thank you. So just to go back to Constellation, can you tell us a little bit more about how people are charged for that?

Do you have to have already bought cybersecurity? Or is this something you can buy without having all the other pieces? How does this work?

Ragula Bhaskar

Thank you, Lisa, for joining us on this call. Constellation can be bought as part of our FatPipe offering and can also be bought as an independent product.

So we are giving customers that option. And so which way if they want it on-prem or if they want it in the cloud, we are happy to do it either way.

Lisa Thompson

And can you buy it right away? Do you have to wait until your contract ends?

Ragula Bhaskar

Yes. You can buy it right away. It sits quietly in the network, and it monitors the network, generates alerts, generates alarms, and generates reports for you. It's all in real time. And the way we charge is by monitored devices.

So if you have 100 IPs, we will monitor them. We'll charge you for those 100 monitored IPs.

Lisa Thompson

Can you tell me about this little software company you bought? What does that add to you?

Ragula Bhaskar

We have a division called FatPipe Technologies, which provides software services and technology services. And this company is in the same area.

So we thought it would be good to add to that market and that segment.

Lisa Thompson

And how is this quarter looking? Is there seasonality in the business? Or what should we think about the December quarter?

Ragula Bhaskar

Yes. Good question. Our goal is always to do 18% growth rate and 18% EBITDA. So we will work very hard to achieve that minimum base.

The seasonality can be when the holidays kick in sometimes. But this time Christmas, I believe, is on Friday or Thursday, which means the next week after that would be a clean week for us to continue to close deals.

Lisa Thompson

I guess my last question is a big picture thing. So recently, Fortinet had controversies going on about their quarter.

Can you compare and contrast how you're not them?

Ragula Bhaskar

Fortinet is a massive company. So they are affected. They have a lot more wins in different parts of their business in the world.

We are focused on our market, and we are not, hopefully, going to see any of the issues that Fortinet has. And we are also constantly developing new products. As you can see, we introduced cybersecurity last year.

We are introducing Constellation this year. Our goal is to be, like I said, the best product company out there and have a good name in the market, have a good name with customers.

You can't say that about some of the other big companies.

Vikrant Ragula

I will now enable James Kisner to be able to participate as well.

James Kisner

So just a couple of quick ones. I guess talk about the sales force ramp and what you expect there. How long is it going to take, you think, for those folks to be productive?

Like, what does the ramp of a new salesperson look like in your company, do you think?

Ragula Bhaskar

Typically, a salesperson should become break-even to profitable in about 3 to 6 months. Some of them who are in the larger deals business will take about 6 to 9 months. That's typical.

But if they have a great pipeline, we'll work with them. If they're not able to create a pipeline, then we cut loose. Unfortunately, we have to do that.

Yes. And we are hiring senior salespeople who have experience, who have a Rolodex. So we expect them to come with a partner base. So if they're not able to develop that, convert that partner relationship into sales, then we are not the right company for them.

James Kisner

So I think you have a product that can hunt pretty well, too. So that should help. I think a $7 million education contract that you were expecting to land. Just maybe you can kind of update on that. And just in general, is that contract eventually open up other public sector opportunities?

Ragula Bhaskar

It does. It has, and it is. We are very fortunate to land a big contract, and we are executing on that.

So that does get the word out that we can be trusted with a large contract, and we have the resources, the means, and the expertise to execute. So we did land a couple more deals in different parts of the country, and we are looking forward to this coming year to do the same.

Vikrant Ragula

And now I'll let Derek Greenberg ask his questions.

Unknown Analyst

I wanted to start off just by asking about how we can think of revenue this quarter in terms of new customers versus renewals. If you had anything you could share on that?

Ragula Bhaskar

New customers: we are adding new customers. The quarter is still young. We have 60 more days to go, and the pipeline is looking good. We are continuing to build on the pipeline.

In terms of renewals, we have a good renewal clip rate. As the company base of customers increases, the renewal will be a significant and it is already, but it will be a significant portion of our business.

And our goal is, like I said, to keep the customers happy. If I can keep you happy and you're happy with the product and you're happy with the service, there is no reason for you to walk away from us.

Remember that every single customer of ours is a mission-critical customer. We run cities, counties, police, emergency services, hospitals- you name it, big school systems. I mean, school systems with 50,000 and 100,000 students.

That requires expertise, and we have been developing that expertise over the last 25 years. So we know how to take care of those customers. And if the network has an issue, we are on it immediately, and we try to solve it.

We have deep expertise in getting into a customer's network and figuring it out really fast.

Unknown Analyst

And then I was curious what you're seeing at renewal in terms of attach rates for your cybersecurity offerings, if you're seeing good uptake there, if there's anything you can share?

Ragula Bhaskar

We are seeing faster reception to our constellation network management and land management product. And I think part of that is because many customers, as I said in the earlier presentation, have this group of 4 or 5 different cybersecurity products from 4 or 5 different vendors with 3- to 5-year cycles.

Therefore, moving away from those contracts takes a little longer. On the other hand, constellation is easier to install. We are not replacing any system in almost all cases, or the contracts are coming up on an annual basis, so we are able to make presentations.

We have, for instance, a city in Tennessee. We have a customer who is a bank. So we are finding that it's a lot easier to sell. And I also believe that that product is a very exciting product. It has a lot of exciting features.

It's like Raghu peg sauce, if you will. It's in there. The features are in there. And so any time you have a question about Can I monitor this, my answer is yes, we can. And that people like that they can look at every look and training of that network.

So that, I believe, is also going to help us with our revenues going forward. And we are pushing it to our current customers. Our current customers trust us, and it's a lot easier to explain to them the value of another feature in the same product, which they buy separately, but it's a lot easier than saying I'm a new guy in.

Unknown Analyst

One more for me, and then I'll pass it along. I was wondering if you could just talk about how some of your newer distribution and reseller partnerships are progressing, particularly TD SYNNEX and Carasoft.

Ragula Bhaskar

Actually, the best person to answer that is Vikrant. Vikram has been working with TD SYNNEX and Carasoft, and Howard with our sales teams.

So, Vikrant, I don't need to put you on the spot, but if you can answer those questions since you're closer to the actuals that you travel to all these partners.

Vikrant Ragula

Yes. So as Dr. Bastar mentioned, we've been seeing good success with our partners, including with TD SYNNEX and Carasoft.

As with our partnership, it takes a little bit of time to grow it. But in the recent quarter, we have seen more wins coming in with these partners on different proposals to government customers that are looking to purchase solutions.

So we're seeing good traction and continued wins, and the pipeline from these partners is growing. So we are very excited about the partnerships and continue to invest more resources to further grow the revenue and opportunities to work with these partners.

Ragula Bhaskar

And I think this week, you trained like 72 salespeople at one of the partners.

And last month, one of you traveled to the partners and made on-site presentations. And then we also have another partner called Jenny in Ohio, and our sales manager there has been visiting them and training them.

And what is nice is we get very good reception. We are in a business where we have a good product, and our service quality is well known. And therefore, the salespeople are looking for products that can help them sell.

The most important thing is how you can help your partners' salespeople sell and achieve their quota. And a lot of that involves training and providing them the resources and the pricing they need to win the business.

Vikrant Ragula

And then I will bring on Nehal from Northland to also ask his questions.

Nehal Chokshi

Can you go back to the Billings slide? So yes, it looks like your recurring billings ticked up pretty significantly Q-o-Q here from $2.4 million to $2.9 million.

Can you talk about the driver of that big Q-o-Q uptick?

Ragula Bhaskar

Primarily, as we get more new business and circuit products, we have been billing. And then the current customer billing is a layered approach.

You have multiple layers of customers every quarter. And as the billings on each of those customers start, we are seeing growth in the billings. And for the bigger deals, we have been deploying bigger and bigger deals or installations.

And therefore, the monthly billing on those is significantly higher in terms of dollar value. So those are the reasons.

Nehal Chokshi

So the driver of this big Q-over-Q uptick has been a ramp in some large customers?

Ragula Bhaskar

Yes. Also recurring revenue streams from renewals that are also happening. Both.

Actually, if I were to think through it, recurring and renewals will continue to add to the baseline of the previous quarter. So a lot of that is new business. Yes.

Nehal Chokshi

And so that $7 million order, how much is it contributing to that $0.5 million Q-o-Q increase in recurring billings?

Ragula Bhaskar

It has started contributing. I think about 3 months ago, it started happening. Yes.

Nehal Chokshi

It will add about $300,000 a quarter.

Ragula Bhaskar

$300,000 a quarter; it should start contributing. And then we had other additional deals; we got bigger deals. So they are also contributing.

Nehal Chokshi

Okay. And is that $300,000 a quarter the full run rate of that $7 million order? Or is there more still to be deployed?

Ragula Bhaskar

At full run rate, it will be about $1.18 million, approximately $118,000 a month. So that will be about $350,000 a quarter.

Nehal Chokshi

And can you give us some color on how bookings proceeded during the September quarter?

Ragula Bhaskar

September quarter, Kanishka, do you happen to have those specific numbers?

Kanishka Ragula

Yes. The top-line revenue as reported on a GAAP basis is largely reflective of the new bookings for the quarter.

So that continued to be healthy year-over-year. So it did continue to grow. I can follow up with the exact growth on the bookings, but overall, top-line revenue was up 22% to $4.83 million for the quarter, and the majority of that was driven by new bookings.

Nehal Chokshi

Okay. So product RPO would be flattish Q-o-Q from $2.2 million in the June quarter?

Kanishka Ragula

Yes. So product RPO continued to grow. However, as we mentioned, the remaining performance obligation is slightly different relative to the contract receivables.

Remaining performance obligations and deferred revenue are both partially related to our legacy book of customers in addition to the net new bookings.

So remaining performance obligation remaining flat quarter-over-quarter has the benefit of the net new bookings from our recurring customers, but also, as we shift over the legacy customers from the more one-time term license billing to a more recurring basis, does see a decline from that basis.

So remaining performance obligation overall is relatively flat because of that.

Nehal Chokshi

Well, fantastic acceleration in the buildings here. Congratulations.

Vikrant Ragula

And then I think the last question we have in the chat comes from Rudy regarding 2 parts.

First is, how is SATBoost coming along as far as interest from prospective customers?

And then the second question is, are we still acquiring former VeloCloud customers? So, Dr. Bhaskar, would you like to answer those?

Ragula Bhaskar

Yes. SATBoost, it hasn't taken off as fast as we wanted. We are specking in. We have a lot of interest. We haven't done some big deals in SATBoost, but we do have customers using satellite as a backup solution.

SATBoost is the one where we can triple the bandwidth. I guess most of the customers are using satellites for backup, not speed. So that hasn't taken off as much.

However, in terms of VeloCloud replacements, we are doing well. I think we did 2 or 3 bigger deals recently. And then we have a number of quotations out there for replacements whenever those contracts get over.

So yes, we are replacing a significant number of VeloCloud customers.

Kanishka Ragula

And then, Dr. Bhaskar, if I may add on regarding SATBoost. This is more of a recent development in the past months, but we have a number of customers with 40, 50-plus sites who are deploying satellite in addition to terrestrial transport.

So we have seen more reception for SATBoost recently, especially as SpaceX has continued to deploy their Starlink constellation and customers have begun to use that for their primary transport. And this is happening in the last 2 weeks.

And I think that's it for the time we have on the earnings call. Vikrant, I'll pass it back to you.

Ragula Bhaskar

Somebody raised their hand. Did somebody raise their hand just now?

Kanishka Ragula

I think I see Nehal's hand up.

Vikrant Ragula

Yes. With that, I believe we are at the end of the Q2 FatPipe earnings call. So unless there are any final comments -- or sorry, Dr. Bhaskar?

Ragula Bhaskar

I see Nehal's hand up still.

Nehal Chokshi

No, no, that's an accident. Sorry about that.

Ragula Bhaskar

Okay. In terms of the next several quarters ahead, we will continue to work as hard as we can to keep our sales momentum up, our profitability up, and start putting cash in the bank.

We did refinance one of our SBA loans that we had before the IPO. So that helps us reduce our interest rate by about 1.85%. And then we also got a credit line of $1.5 million from a local bank here.

And so that gives us additional resources if we need to drop on them. We will continue to buy hardware for fulfilling our sales obligations or deployments.

But overall, we'll continue to keep the pace. By the end of March, we should have about 36 salespeople, and the goal for the following year is about 48 salespeople.

Vikrant Ragula

So with that, that should be the end of the FatPipe fiscal year Q2 earnings call. So thank you, everyone, for joining and learning more about the fiscal results of FatPipe and how we've been doing this quarter and going forward.

And we will see you again at the Q3 financial results update.

Ragula Bhaskar

Thank you, everyone. I appreciate you taking the time to join us. Thanks, everyone.