Ackroo achieves 11% year over year growth and reduces operating losses to less than $5,000 per month
OTTAWA, ON–(Marketwired – November 07, 2017) – Ackroo Inc. (TSX VENTURE: AKR) (OTC PINK: AKRFF) (“Ackroo” or the “Company”), a gift card, loyalty and rewards technology and services provider, has filed its financial results for the third quarter ended September 30th, 2017 and is pleased to report revenues of $622,867 representing an 11% increase over the same period in 2016 and has reduced operating losses to only $13,988 representing an 87% decrease over the same period in 2016. The Company also achieved several milestones during the period including reaching over 500 restaurant locations, increasing gross profits to above 75%, and exceeding over $400,000 in recurring revenue per quarter. All of these accomplishments combined with the recent announcement of their latest acquisition further validate the Company’s operating plan and position the Company at a very exciting inflection point.
“We are very happy with the many things we accomplished in Q3,” said Steve Levely, chief executive officer at Ackroo. “After making some operational changes in order to reduce operating costs it was important that we stayed poised to continue growing our business technically and commercially. We were successful in those plans as we made a number of product advancements, further developed several of our partnerships, added many more new clients and increased our recurring revenue to over $400k a quarter. We achieved our lowest operating losses in Company history and now have our monthly burn below $5,000 a month. With lots of organic growth expected in Q4 along with the latest acquisition we are doing with KESM/LoyalMark the Company is finally at a point where both scale and operating profits are right in front of us. A very exciting milestone for the Company and for our shareholders.”
The complete financial results for Ackroo are available at www.sedar.com. Highlights include:
- Revenue of $1,923,709 for the nine month period ended September 30th,2017 as compared to $1,668,087 for the nine month period ended September 30th, 2016 (15% growth);
- Revenue of $622,867 for the three month period ended September 30th,2017 as compared to $560,564 for the three month period ended September 30th, 2016 (11% growth);
- Subscription and service revenue of $437,868 for the three month period ended September 30th, 2017 as compared to $348,421 for the three month period ended September 30th, 2016 (26% growth);
- Gross profit of $470,022 (75%) for the three month period ended September 30th,2017 as compared to $381,011 (68%) for the three month period ended September 30th,2016 (7% increase);
- EBITDA Loss from operations excluding stock based compensation was $13,988 for the three month period ended September 30th, 2017 as compared to $107,959 for the three month period ended September 30th, 2016 (87% reduction).
Ackroo provides gift card and loyalty processing solutions to help retail and hospitality merchants of all sizes attract, retain and grow their customers and their revenues. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card & loyalty transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo’s technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
For information, please contact:
Chief Executive Officer
Tel: 613-599-2396 x730