HAMILTON, Ontario, May 24, 2023 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a loyalty marketing, payments and point-of-sale technology and services provider, has filed its financial results for the period ended March 31, 2023. The Company is pleased to report record quarterly revenues of $1,825,486 including $1,613,199 of subscription revenue. The results represent a 17% increase in total revenue and 19% increase in subscription revenue over the same period in 2022. The Company also achieved $451,424 of positive adjusted EBITDA during the quarter representing a year over year increase of 86% and equates to 25% of total revenues. The Company began normalizing and integrating its latest acquisition of Simpliconnect, divested of GGGolf, and paid off $269,210 of debt/liabilities during the period. Ackroo continues to be focused on simplifying its operations and generating positive cash flow in order to continue these trends in future quarters.
The complete financial results for Ackroo, along with management’s discussion and analysis for the quarter ended March 31, 2023, are available under the profile for the Company at www.sedar.com. Highlights include:
Q1 2022 vs. Q1 2023:
| Q1 2022 TOTALS | Q1 2023 TOTALS | +/- % Change | |
| Total Revenue | $1,556,495 | $1,825,486 | + 17% |
| Subscription Rev | $1,353,486 | $1,613,199 | + 19% |
| Gross Margins | $1,393,636 (90%) | $1,607,583 (88%) | + 15% |
| Adjusted EBITDA | $242,561 | $451,424 | + 86% |
| EBITDA % of Rev | 16% | 25% | + 9% |
“We accomplished a lot in the first quarter of 2023 which helps position us to meet and ideally exceed many of our goals this year,” said Steve Levely, CEO of Ackroo. “As we continue our tight focus on simplifying and optimizing our business, it is critical that we complete certain tasks and deliver on specific goals we have for the business. Our divesture of GGGolf is a very good example of our plans to simplify the business by reducing complimentary products that have been a challenge to manage and grow for us. We then focused on optimizing our AckrooMKTG business by acquiring Simpliconnect in order to expand both into the US market and into the Petroleum/Convenience verticals that are important growth sectors for us. As an acquisition first, organic growth second focused business, we naturally have technical debt accumulated in the business so we did and continue to focus on migration of legacy platforms and swift normalization of acquired assets. We made great strides in both of those areas in Q1 and expect to take even bigger steps in Q2 so that we can get even more focused on growth initiatives in Q3 onwards. We continued our focus on improving Ackroo’s finance and operations by adding key talent in those areas in Q4 of 2022 and Q1 of 2023 while getting the full leadership team involved in tight financial management and optimizing operations across the business. Finally, our largest accomplishment during the period was the Company hitting the “rule of 40” by delivering a great 25% EBITDA as a percentage of revenue while growing our revenues year over year by 17%. The rule of 40 is a SaaS financial ratio where the best SaaS companies have a combined growth rate and profit margin of 40% or more. Seeing Ackroo exceed that in Q1 has us really bullish on what the future holds for Ackroo, our clients and our shareholders.”
About Ackroo
Through vendor and industry consolidation, Ackroo provides marketing, payment and point-of-sale solutions for 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 payment services provide merchants with low-cost payment processing options through some of the world’s largest payment technology and service providers. Ackroo’s hybrid management and point-of-sale solutions help manage and optimize the general operations for niche industry’s including used automotive dealers. 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 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 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.
