Ackroo Releases Q1 2024 Financial Results
May 23 2024 - 7:00AM
Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a gift card,
loyalty marketing, payments and point-of-sale technology
consolidator and services provider, has filed its financial results
for the period ended March 31, 2024. The Company is pleased to
report quarterly revenues of $1,547,417, recurring subscription
revenue of $1,425,369, and adjusted EBITDA of $505,705. The total
and subscription revenues declined by 15% and 12% respectively year
over year primarily from the divesture of their GGGolf business on
March 31st, 2023 however adjusted EBITDA has increased by 12% year
over year representing 33% of total revenues. The Company delivered
these results, paid off the debt obligation associated with the
acquisition of GiftFly, completed the bulk of the Simpliconnect
migration work and continued to streamline and optimize operations
for further scale.
The complete financial results for Ackroo, along
with management’s discussion and analysis for the quarter ended
March 31, 2024, are available under the profile for the Company at
www.sedarplus.ca. Highlights include:
Q1 2024 vs. Q1 2023:
|
Q1 2024 TOTALS |
Q1 2023 TOTALS |
+/- % Change |
Total Revenue |
$1,547,417 |
$1,825,486 |
- 15% |
Subscription Rev |
$1,425,369 |
$1,613,199 |
- 12% |
Gross Margins |
$1,387,716 (90%) |
$1,607,583 (88%) |
+ 1% |
Adjusted EBITDA |
$505,705 |
$451,424 |
+ 12% |
EBITDA % of Rev |
33% |
25% |
+ 8% |
|
“We had a very busy quarter integrating both of
our 2023 acquisitions, further streamlining of operations and
keeping a close eye on our earnings,” said Steve Levely, CEO of
Ackroo. “We knew we had lots to accomplish, while also being aware
that Q1 revenues would be lower than Q4 seasonality wise and
certainly much lower than Q1 2023 with the GGGolf revenue out. What
we didn’t expect was a drop in one-time revenue orders in Q1. Our
merchants simply ordered fewer additional items and our sales team
won less deals in Q1 than previous quarters. We fortunately have
seen a bounce back in early Q2 on both fronts and we have made a
number of cost savings adjustments to compensate for it. In turn,
between where the business was to start the year and the
adjustments made during the period, afforded us another great
earnings quarter. We delivered one of our highest adjusted EBITDA
as a percentage of revenue quarter in Company history, delivering a
great 33%, which resulted in a 12% year over year EBITDA growth
quarter. We believe EBITDA management is key to our future growth
plans, so we plan to continue to manage and optimize for earnings
so that we drive quarter over quarter growth in that area.”
The Company also announces that BDC Capital has
agreed to extend their current loan term an additional 3 months.
Currently Ackroo has an existing loan facility with a balance of
$3,000,000 that matures on June 21, 2024, however, BDC Capital and
Ackroo have mutually agreed to extend the maturity date to
September 15, 2024.
About Ackroo
As an industry consolidator, Ackroo acquires,
integrates and manages gift card, loyalty marketing, payment and
point-of-sale solutions used by merchants of all sizes. Ackroo’s
self-serve, data driven, cloud-based marketing platform helps
merchants in-store and online process and manage loyalty, gift card
and promotional transactions at the point of sale. Ackroo’s
acquisition of payment ISO’s affords Ackroo the ability to resell
payment processing solutions to their growing merchant base through
some of the world’s largest payment technology and service
providers. As a third revenue stream, Ackroo has acquired certain
custom software products, including hybrid management and
point-of-sale solutions that help manage and optimize the general
operations for niche industries, including automotive dealers and
more. All solutions are focused on helping to consolidate, simplify
and improve the merchant marketing, payments and point-of sale
ecosystem for their clients. Ackroo is headquartered in Hamilton,
Ontario, Canada. For more information, visit: www.ackroo.com.
For further information, please contact:
Steve LevelyChief Executive
Officer | AckrooTel: 416-360-5619 x730Email: slevely@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 StatementsThis
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.
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