Intouch Insight Ltd. Announces FY 2018 Financial Results
By: Lindsay Sykes March 28, 2019
OTTAWA, Canada March 28, 2019 – Intouch Insight Ltd., (“Intouch”) (TSXV: INX) today announced its operating and financial results for the year ended December 31, 2018.
Revenue for the year ending 2018 was $14,888,450, which was 7% higher than revenue of $13,868,877 in 2017.
Due to the increased investment in product development and selling expenses regarding new software products, the net loss before income taxes was $2,730,797 compared to a net loss of $763,860 reported in 2017. Gross Margin remained stable at 52% in 2018 compared to 53% in 2017.
Company-defined adjusted EBITDA was a negative $1,896,000 for the year ended December 31, 2018, compared to an EBITDA of $151,000 for the year ended 2017. The decrease in EBITDA was planned and due to the significant investment into new software products.
“We are very pleased with the state of our technology, products and prospect for sales as we look forward. In addition to our patent pending technology and focus on artificial intelligence (“AI”) in the customer experience management software space, we have become a leader with disruptive technology verses our traditional competitors in the mystery shopping and operational auditing marketplace. Because of these investments we expect to double our revenue growth rate to 15% year over year to $17 Million in fiscal 2019,” said Cameron Watt, President and Chief Executive Officer.
“Having completed the majority of the up-front spending necessary for our technical repositioning and product launch we are excited to be planning to return the business to an EBITDA positive situation in 2019 while maintaining the spending required to ensure we capture our future growth potential,” said Watt.
| Consolidated Statements of Operations | 2018 | 2017 |
|---|---|---|
| Revenue | $ 14,888,450 | $ 13,854,877 |
| Cost of services | $ 7,175,306 | $ 6,502,612 |
| Gross profit | $ 7,713,144 | $ 7,352,265 |
| Total operating expenses | $ 10,431,676 | $ 8,053,828 |
| Loss from operating activities | $ (2,718,532) | $ (701,563) |
| Finance costs | $ (12,265) | $ (72,297) |
| Gain on disposal of equity accounted investment | - | $ 10,000 |
| Loss before income taxes | $ (2,730,797) | $ (763,860) |
Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company’s current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
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.
For further information, please contact:
George Aizpurua
Vice President, Communications
First Canadian Capital Corp.
Tel: 647-500-2389/416-742-5600
gaizpurua@firstcanadiancapital.com
or
George Pretli
Corporate Secretary
gpretli@intouchinsight.com
613-270-7916