Ackroo achieves 42% year over year revenue growth
OTTAWA, May 6, 2016 /CNW/ - Ackroo Inc. (TSXV: AKR)(OTC: AKRFF) (the "Company"), a gift card, loyalty and rewards technology and services provider, today announced that it has filed financial statements for the three months ended March 31st, 2016.
The results for the first quarter of 2016 represent 42% revenue growth and 56% operating cost reduction over the same period the previous year. The results were fueled by the Company's continued efforts to increase revenues both organically and inorganically while continuing to enhance their market leading gift card and loyalty solution offering.
"The Company took yet another big step forward during the quarter" said Steve Levely, chief executive officer at Ackroo. "Not only did we achieve our revenue growth goals we also completed two acquisitions, completed the bulk of the migration of our DealerCard platform to the new Ackroo Anywhere (AKR3) platform, we added a number of operational efficiencies and we further developed our channel partnerships. Our acquisitions during the quarter are significant from a product perspective as we now have our own payment gateway that we can incorporate into our product to provide processing options, functional enhancements and cost savings to our merchants utilizing the e-commerce aspect of our offering. The other major advancement was in regards to mobile where we had planned to develop a white label mobile application for our customers later in the year and now through the acquisition of D1 Mobile's Appetite platform we will have this offering within the next 90 days. Very exciting advancements for our product and for our current and prospecting customers."
"The migration of our DealerCard customers to our new core platform is also a critical advancement for the Company. This represents the last set of merchants from the original MoneyBar acquisition that we needed to migrate over. That work is not only exciting from a cost savings and product focus perspective it emphasizes our ability to acquire other technologies and integrate them into our operations while also growing our business. A critical proof point as we continue to acquire complimentary and competitive companies. We are excited about all of the great accomplishments we had during the quarter and look forward to even greater success in Q2."
The complete financial results for Ackroo are available at www.sedar.com. Highlights include:
- Sales of $548,300 for the three month period ended March 31st, 2016 as compared to $385,138 for the three month period ended December 31st, 2015 (42% growth);
- Gross Profit of $358,777 (65%) for the three month period ended March 31st, 2016 as compared to $247,997(64%) for the three month period ended March 31st, 2015 (45% growth);
- Loss from operations before depreciation, amortization, and stock based compensation was $88,122 ($62,442 from Q1 operating losses + $25,680 for non-recurring IR related activities) for the three month period ended March 31st, 2016 as compared to $199,259 for the three month period ended March 31st, 2015 (56% reduction);
- Comprehensive loss of $274,107 for the three month period ended March 31st, 2016 as compared to $414,203 for the three month period ended March 31st, 2015 (34% reduction);
Ackroo provides gift card and loyalty processing solutions to help small to medium sized businesses 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.
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
These forecasts and forward-looking statements 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@example.com