Ackroo releases Q2 2021 Financial Results

Rhea-AI Summary

Ackroo Inc. (TSX-V: AKR, OTC: AKRFF) reported its financial results for Q2 2021, achieving its 14th consecutive positive adjusted EBITDA quarter. Revenue rose by 2% to $1.47 million, with recurring revenue constituting 85% of total revenue. The acquisition of InterActive DMS enhanced customer base and geographic reach. However, adjusted EBITDA fell by 85% to $45,026, and gross profit margin decreased to 88%. The company's focus remains on organic growth and M&A opportunities.

Positive

• 14th consecutive positive adjusted EBITDA quarter.
• 2% revenue increase ($1.47 million) compared to Q2 2020.
• 85% of total revenue is recurring.
• Acquisition of InterActive DMS doubled AckrooPOS customers and expanded US reach.

Negative

• 85% decline in positive adjusted EBITDA ($45,026 vs. $292,631 in Q2 2020).
• Gross profit margin decreased to 88% from 90% in Q2 2020.

Ackroo achieves 14th consecutive positive EBITDA quarter

HAMILTON, Ontario, Aug. 05, 2021 (GLOBE NEWSWIRE) -- Ackroo Inc. (the “Company” or “Ackroo”) (TSX-V: AKR) (OTC: AKRFF), a loyalty marketing, payments and point-of-sale technology and services provider, has filed its financial results for the period ended June 30, 2021. The results for the period ended June 30, 2021 reflect the Company’s 14^th consecutive positive adjusted EBITDA quarter and includes a 2% increase in revenues over the same period the previous year. The Company has continued to maintain a strong 88% gross margin and an attractive revenue mix with 85% recurring in nature. Over the quarter, Ackroo acquired InterActive DMS and continued its re-investment into sales and marketing to drive additional organic growth in future quarters.

“We are encouraged with our continued progress as we finished our 5^th quarter since COVID-19 lockdowns began” said Steve Levely, CEO of Ackroo. “Similar to Q1 we continued to see lower spend in one time revenue items and saw a higher attrition rate then previous years due to the various restrictions that still existed for many of our clients. Despite the challenging environment we have sustained our business and have continued to re-invest earnings into sales and marketing to drive much larger future organic growth. We also acquired InterActive DMS, our 11^th acquisition. This strategic acquisition has doubled the number of AckrooPOS customers, increased our relevance in automotive, and expands our geographic reach further into the US. We are in a strong position to remain active and opportunistic with our M&A strategy while building a solid foundation for organic growth leading to great results in the quarters ahead.”

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

• Revenue of $1,469,357 for the three-month period ended June 30, 2021 as compared to $1,440,625 for the three-month period ended June 30, 2020 (2% increase);
• Subscription and Service revenue was $1,250,299 for the three-month period ended June 30, 2021 as compared to $1,220,994 for the three-month period ended June 30, 2020 (2% increase);
• Positive adjusted EBITDA of $45,026 for the three-month period ended June 30, 2021, as compared to positive adjusted EBITDA of $292,631 for the three-month period ended June 30, 2020; (85% decline)
• Gross profit margin of $1,295,369 (88%) for the three-month period ended June 30, 2021, as compared to $1,308,610 (90%) for the three-month period ended June 30, 2020 (2% decline).

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 in order to attract, engage and grow their customers while increasing their revenues and margins. 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 golf clubs, automotive dealers and more. 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 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 the 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.

FAQ

What are Ackroo's recent financial results for Q2 2021?

Ackroo reported a revenue of $1.47 million, a 2% increase from Q2 2020, and achieved its 14th consecutive positive adjusted EBITDA quarter.

How much did Ackroo's adjusted EBITDA decline in Q2 2021?

Ackroo's adjusted EBITDA fell by 85% to $45,026 compared to $292,631 in Q2 2020.

What percentage of Ackroo's revenue is recurring?

Ackroo has maintained an impressive 85% recurring revenue.

What strategic acquisition did Ackroo make recently?

Ackroo acquired InterActive DMS, which doubled its customer base and expanded its presence in the US market.