Ackroo achieves record earnings with 64% year -to-date YoY EBITDA growth over 2019
HAMILTON, Ontario, Nov. 04, 2020 (GLOBE NEWSWIRE) — Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company” or “Ackroo”), a loyalty marketing, gift card, payments and point-of-sale technology and services provider, has filed its financial results for the period ended September 30, 2020. The results for the nine-month period ended September 30, 2020 reflect 17% year-to-date year over year revenue growth and a 29% increase in subscription revenue over the same period in 2019. The Company also achieved a record $310,600 of positive EBITDA during the quarter representing a year over year increase of 24% and is at an all-time high of 22% of total revenues. The revenue and earnings growth are primarily related to the Company increasing subscription revenue by 29% year-to date and 10% over Q3 2019 which has led to an increased ratio of recurring revenue to one time revenue which is now at an all-time high of 84% of total revenues. Although Covid-19 had an impact on the Company’s one-time revenue it did not slow down the growth of the Company’s recurring revenue which is the main focus for the Company now and into the future.
“We are very happy with what we achieved in Q3 despite Covid-19,” said Steve Levely, CEO at Ackroo. “We were able to continue to grow our business and achieve record earnings without any government relief thanks to our strong focus on financial management. Our diversified approach to the market also assisted us as we delivered customer growth in our petroleum and hospitality business while maintaining our automotive business. Where we saw a decline was our retail business where we saw more attrition than normal in our small accounts. We increased our overall recurring revenue by 10% year over year which allowed us to deliver record earnings for the Company, however we did see a 54% decrease in our one-time revenue year over year leading to a small overall revenue decrease over the same period in 2019. We attribute the high retail business attrition and lower one-time revenue to Covid-19 as many businesses did not further invest in marketing initiatives to preserve cash and many retailers are struggling through the difficult times. We do expect this trend to change though especially as we head into our busiest quarter of the year. The holiday season is an opportune time for our clients to re-engage customers and to leverage our platform and services to drive growth. We are poised to help our clients succeed and expect a very strong close to the year for Ackroo.”
The complete financial results for Ackroo are available at www.sedar.com . Highlights include:
About Ackroo
Through vendor and industry consolidation, Ackroo provides merchants of all sizes a data driven cloud based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Via a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process loyalty, gift card and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their loyalty and gift card accounts. Ackroo also provides important marketing, payment and point-of-sale solutions as an extension of the Ackroo platform to drive even greater financial and operational results for their clients. Ackroo is headquartered in Hamilton, Ontario, Canada. For more information, visit: www.ackroo.com .
For information, please contact:
Steve Levely
Chief Executive Officer | Ackroo
Tel: 416-360-5619 x730
Email: slevely@ackroo.com
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the 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.
