SOURCE: Ackroo Inc.

Ackroo Inc.

May 08, 2017 15:46 ET

CORRECTION - Ackroo announces record quarter

OTTAWA, ON--(Marketwired - May 08, 2017) - In the news release, "Ackroo announces record quarter," issued earlier today by Ackroo Inc. (TSX VENTURE: AKR) (OTC PINK: AKRFF), we are advised by the company that the first bullet should read "Sales of $649,385 for the three month period ended March 31st, 2017" rather than "Sales of $649,385 for the three month period ended March 31st, 2016" as originally issued. Complete corrected text follows.

Ackroo announces record quarter

Ackroo achieves 18% year over year and 17% quarter over quarter revenue growth for Q1 2017

OTTAWA, ON -- May 8, 2017 -- Ackroo Inc. (TSX VENTURE: AKR) (OTC PINK: AKRFF) ("Ackroo" or the "Company"), a gift card, loyalty and rewards technology and services provider, has filed its financial results for the 3 months ended March 31, 2017 and is pleased to report record revenues of $649,385 representing an 18% increase over the same period in 2016. The record revenues, coupled with several key technical and operational initiatives during the quarter further validates Ackroo's business model as the Company continues down the pathway of becoming cash flow positive while making progress toward its goal of servicing 10,000+ locations by 2022.

The Company will be placing a very high level of priority and emphasis on generating sustainable positive cash flows through continued revenue growth and expense reduction. The Company will focus on organic growth, strategic acquisitions and key partnerships enabling Ackroo to not only drive bigger results into Canada but also to begin expanding into the US market.

"The Company worked very hard during the quarter to support product and customer migrations while also continuing to drive organic growth" said Steve Levely, chief executive officer at Ackroo. "We managed both platform and customer migrations while also adding new point-of-sale partners like i-lube and won several new merchant accounts as we added over 80 merchant locations during the quarter. We built our annual plans with our partners, trained several new staff and still managed to deliver a record quarter revenue wise further validating the strong team we have assembled and the go to market strategy we are executing on. We were challenged by several technical and operational delays during our migrations slowing our ability to focus purely on growth initiatives. As we move away from that work, the Company is now very well positioned revenue growth and cost management wise to achieve one of our primary 2017 goals of attaining our first operating profit quarter. An exciting step forward for the Company and for our shareholders."

The complete financial results for Ackroo are available at www.sedar.com. Highlights include:

  • Sales of $649,385 for the three month period ended March 31st, 2017 as compared to $548,300 for the three month period ended March 31st, 2016 (18% growth);
  • Sales of $649,385 for the three month period ended March 31st, 2017 as compared to $556,078 for the three month period ended December 31st, 2016 (17% growth);
  • EBITDA Loss from operations excluding stock based compensation was $163,618 (includes $50,598 in license fees and $94,490 in additional HR related costs from Q4 2016 hiring initiatives) for the three month period ended March 31st, 2016 as compared to $88,122 for the three month period ended March 31st, 2016;

Business and Operational Highlights and Updates:

  • All but 4 clients using the Dealer Rewards platform have migrated to the Ackroo Anywhere platform. This transition not only saves Ackroo on the associated license fees paid, the Company also is benefiting from streamlining their operations with less platforms to support allowing greater focus for scale
  • All but 6 clients using the Loyalint/Fidelint platform have migrated to the Ackroo Anywhere platform
  • Significant enhancements were made in Ackroo's platform to further support the automotive industry. This work provides the Company even greater confidence that they can aggressively pursue this business segment offering superior technology and services at a very competitive cost
  • Significant architectural enhancements were made in Ackroo's platform in order to better support scale, leverage technology partners and improve internal product delivery processes (cloud hosting migration, technology stack upgrade and better DevOps tools)
  • Have started discussions with various merchants and potential partners in the USA with several commitments already in place
  • Further deepening of channel partnerships through increased integrations and operational plans
  • Integration and deployment of i-lube POS has resulted in a healthy funnel of automotive services merchants looking to leverage our platform which will act as yet another organic growth driver for the Company
  • In order to provide extra guidance and support during Ackroo's next phases of growth the Company also plans to expand its board of directors in the comings months with 1 director expected to be added before this year's AGM and 1-2 others joining later in the year.

About Ackroo

Ackroo provides gift card and loyalty processing solutions to help retail and hospitality merchants 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

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.

Contact Information

  • For information, please contact:
    Steve Levely
    Chief Executive Officer | Ackroo
    Tel: 613-599-2396 x730
    Email: slevely@ackroo.com