News Out!!!
Ackroo achieves 31% year-to-date YoY revenue and 102% year-to-date YoY EBITDA growth over 2019
HAMILTON, Ontario, July 30, 2020 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company” or “Ackroo”), a loyalty marketing, gift card and payments technology and services provider, has filed its financial results for the period ended June 30, 2020. The results for the period ended June 30, 2020 reflect 26% year over year revenue growth from Q2 2019 and include a 49% increase in EBITDA over the same period in 2019. The Company also completed its ninth acquisition further expanding into payment services, made several product enhancements and efficiently managed through the challenging Covid-19 business climate with an even stronger balance sheet and business going into Q3.
“Q2 was a challenging quarter personally and professionally for all businesses,” said Steve Levely, CEO at Ackroo. “Moving to a remote work environment and having staff personally affected by the pandemic made this one of the more challenging quarters we have had. Layer in our customers, many of whom saw significant drops in their business and whose needs from Ackroo actually grew during the period created an interesting stress test on our people and our business. Our team worked harder than ever during the period providing even more digital marketing support as clients wanted to further engage and communicate with their customers. We began providing free access to our digital gifting product for those that weren’t already utilizing the tool to support remote purchasing. We continued to develop our platform by completing key pieces like adding our own Data Warehouse for BI and many new integrations to point of sale systems, and advancing our rules engine and merchant console interfaces to support our growing merchant needs. We had approximately 10% of our customers ask for our help with payment deferrals so lots of work between our finance team and our clients to support their strained cash flow demands. We also continued our strategic acquisition efforts closing our ninth acquisition with the purchase of BNA Smart Payments adding our first payment services portfolio. We managed to add over 70 new clients to our platform through our organic sales efforts and closed deals with our bank and our key lending partner to increase our cash position and access to cash in the event we needed it. We accomplished all of this and despite many customers spending less on one-time revenue items we saw only a 3% drop in revenues over Q1 and actually increased our earnings by 18% over Q1 in the process. Delivering these results coupled with the business momentum we saw at the end of June give us great confidence in the strength of our business and for what lies ahead.”
The complete financial results for Ackroo are available at www.sedar.com. Highlights include:
Total revenue of $1,440,625 for the three-month period ended June 30, 2020 as compared to $1,146,079 for the three-month period ended June 30, 2019 (26% growth);
Total revenue of $2,926,496 for the six-month period ended June 30, 2020 as compared to $2,234,861 for the six-month period ended June 30,2019 (31% growth);
Subscription and Service revenue was $1,220,994 for the three-month period ended June 30, 2020 as compared to $842,920 for the three-month period ended June 30, 2019 (45% growth);
Positive adjusted EBITDA of $292,631 for the three-month period ended June 30, 2020, as compared to positive adjusted EBITDA of $196,395 for the three-month period ended June 30, 2019 (49% increase);
Positive adjusted EBITDA of $541,605 for the six-month period ended June 30, 2020, as compared to positive adjusted EBITDA of $267,891 for the three-month period ended June 30, 2019 (102% increase);
Positive adjusted EBITDA as a percentage of total revenue increased to 19% for the six-month period ended June 30, 2020 as compared to 12% for the six-month period ended June 30, 2019 (7% increase);
Gross margins of $2,581,875 (88%) for the six-month period ended June 30, 2020, as compared to $1,869,811 (84%) for the six-month period ended June 30, 2019 (4% increase).
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