Ackroo achieves major business milestones delivering operating profits and first $1 million dollar plus quarter
OTTAWA, May 02, 2018 (GLOBE NEWSWIRE) — Ackroo Inc. (TSXV:AKR) (OTC:AKRFF) (“Ackroo” or the “Company”), a gift card, loyalty and rewards technology and services provider, has filed its financial results for the three months ended March 31, 2018 and is pleased to report record revenues of $1,168,414 representing an 80% increase over the same period in 2017. The Company is very proud to have achieved its first earnings quarter delivering $70,686 of operating profits during the period. The record revenues and first time earnings further validates the progress the Company has made over the last few years and has the Company poised to meet and potentially exceed short term 2018 goals as well as longer term 2022 goals of servicing 10,000+ locations and exceeding $10 million of revenue, including $7 million of annual recurring revenue.
“The Company hit three very important milestones during the quarter,” said Steve Levely, chief executive officer at Ackroo. “Not only did we achieve our first million dollar quarter and our first earnings quarter, we also delivered our first cash flow positive month in March. A key win as we work to manage our cash flow while also driving continuous growth. We completed the migration of over 80% of the KESM/LoyalMark merchants acquired in December 2017 while also advancing our product and operations to better support the Company’s four main business segments:
We built our annual plans with the majority of our large go to market partners while also adding several new smaller partners in the process. While the KESM/LoyalMark transition costs were higher than expected, our cash management and successful migration of the majority of the clients acquired within this short timeframe further validates our operational strength and our core business model. We still have plenty more work to do however I am very pleased with the progress made and the quick start to the year we have had.”
The complete financial results for Ackroo are available at www.sedar.com. Highlights include:
- Sales of $1,168,414 for the three month period ended March 31st, 2018 as compared to $649,385 for the three month period ended March 31st, 2017 (80% growth);
- Positive EBITDA from operations excluding stock based compensation was $70,686 for the three month period ended March 31st, 2018 as compared to $163,618 of losses for the three month period ended March 31st, 2017;
- Subscription revenue of $790,983 for the three month period ended March 31st, 2018 as compared to $398,707 for the three month period ended March 31st, 2017 (98% growth);
- Gross Margins of $941,475 (81%) for the three month period ended March 31st, 2018 as compared to $426,613 (66%) for the three month period ended March 31st, 2017 (15% growth);
In light of the milestones achieved, Ackroo has granted options to purchase 300,000 common shares to certain directors, officers and employees of the Company exercisable at a price of $0.075, for a period of 3 years. The grant is subject to the approval of the TSX Venture Exchange.
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.
For information, please contact:
Chief Executive Officer | Ackroo
Tel: 613-599-2396 x730
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