Ackroo Files Financial Results for the Year Ending December 31st, 2014
02 Apr, 2015, 15:00 ET
Ackroo's provides audited results for 2014 including updated audited Q4 2014 revenue results
OTTAWA, April 2, 2015 /CNW/ - Ackroo Inc. (TSXV: AKR), a gift card, loyalty and rewards technology and services provider, announced it has filed financial results for Ackroo Inc. for the year ended December 31, 2014.
The results for the year ended December 31, 2014 reflect revenue growth of 3%, gross margin growth of 6%, subscription and service revenue growth of 12% and operating loss reduction of 36% as compared to the previous year. For Q4 of 2014 Ackroo's audited revenues were $350,260 vs. the previously announced $374,760 due to the adoption of a more conservative revenue recognition policy related to reseller licenses. This adjustment has no cash impact, slightly lowers the quarter over quarter growth rate and recognizes the adjusted revenue in future quarters
"2014 was a very important year for Ackroo as we made several key strategic changes to position us for growth." said Steve Levely, chief executive officer at Ackroo. "We focused on continuous development of our product, customers and partners while driving our overall operating costs down. We shifted to a more channel focused model to help reduce our cost of sales and position ourselves to scale. We began pursuing M&A opportunities to provide complimentary solutions and to help remove competitors from the marketplace. We adjusted our share structure via a 10-1 rollback to allow us to attract new investment so that we could recapitalize the company and continue to execute our current plan. All of these items were key parts of our strategic plan and I am very thankful to the team, our investors and advisors for supporting us throughout the year. We look forward to carrying the momentum into a very prosperous 2015."
The complete financial results for Ackroo are available at www.sedar.com. Highlights include:
- The Company's operating activities for the year ended December 31, 2014 consumed cash of $1,312,288 as compared to the year ended December 31, 2013 of $2,734,647 (52% reduction);
- Loss from operations before depreciation, amortization, and stock based compensation was $1,608,162 for the year ended December 31, 2014, as compared to $2,509,484 for the year ended December 31, 2013 (36% reduction);
- Comprehensive loss of $2,810,292 which included $557,450 of impairment expense of intangible assets and goodwill originally acquired from MBT in 2011 for the year ended December 31, 2014 as compared to a comprehensive loss of $3,882,411 which included $NIL of impairment expenses for the year ended December 31, 2013 (28% reduction);
- Subscription and service revenue of $986,511 for the year ended December 31, 2014 as compared to $876,880 for the year ended December 31, 2013 (12% growth);
- Increased Gross Profit of $967,278 (67%) for the year ended December 31, 2014 as compared to $867,565 (73%) for the year ended December 31,2013 (6% growth);
- Revenue of $1,328,166 for the year ended December 31, 2014 as compared to $1,284,016 for the year ended December 31, 2013 (3% growth);
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. These statements supersede all prior statements made by Ackroo regarding 2015 financial results.
- Consolidated revenues are expected to exceed $2 million for 2015
- Gross margins are expected to continue to exceed 70% in 2015
- Breakeven is budgeted at $2.25 million
- Location growth of at least 75% is expected in 2015
- Continued pursuit of at least 1 more merger or acquisition in 2015
- Continued development and addition of resellers from various geographies and industries
- Further development and strengthening of our channel partnerships
Ackroo provides gift card and loyalty solutions into the $160 billion North American gift card and loyalty market. Their solutions enable businesses, merchants and business networks to increase profitability and build long-term customer relationships through customized gift card and loyalty programs. Ackroo's web-based solutions provide the power of a massively scalable software platform in a lightweight online tool that works with existing point-of-sale equipment, making it easy and affordable for businesses to launch gift card & loyalty programs that deliver immediate return on investment. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.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.
SOURCE Ackroo Inc.
For further information: Steve Levely, Chief Executive Officer, Ackroo, Tel: 613-599-2396 x730, Email: [email protected]
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