Intouch Insight Ltd. Announces Q1 2019 Record Revenues with a 29% Increase and a Return to Positive EBITDA
By: Lindsay Sykes May 17, 2019
OTTAWA, Canada May 17, 2019 – Intouch Insight Ltd. (“Intouch”) (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2019.
Revenue for the first quarter was $4,588,211, which was 29% higher than revenue of $3,567,328 in the same quarter in 2018. Recurring SaaS revenue increased 14% during the first quarter at $645,924 compared to $567,904 in first quarter 2018. Services revenue increased 31% to $3,896,174 in Q1 2018 from $2,968,276 in Q1 2018.
Earnings from operating activities in Q1 2019 was $32,712 compared to a loss of $610,974 in Q1 2018. Net loss and comprehensive loss for the first quarter was $20,696 compared to a net loss of $614,487 in the same quarter of 2018. Gross Margin decreased to 53% in the first quarter compared to 54% for the same quarter in 2018.
Because of the increased revenues, sales and marketing cost containment and the adoption of new lease accounting standards, the Company-defined adjusted EBITDA was positive $255,000 for the first quarter, compared to a negative EBITDA of $404,000 for the same quarter in 2018.
“We are very pleased to see such strong financial results so early in 2019. Q1 2019 EBITDA is a $925,000 improvement over Q4 2018. This rapid one quarter improvement comes from a combination of significant revenue growth and cost management initiatives. The speed and magnitude of this change speaks to the strength and flexibility of the company and taking advantage of our recent investments in new products,” said Cameron Watt, President & Chief Executive Officer.
“In addition to securing new clients, we continue to focus on creating new and innovative technology as seen in our latest patent filing we submitted in April. We are feeling very positive about our future as a leader in providing artificial intelligence (AI) solutions in the customer experience management space,” said Watt.
| Consolidated Statements of Operations | Q1 2019 | Q1 2018 |
|---|---|---|
| Revenue | $ 4,588,211 | $ 3,567,328 |
| Cost of services | $ 2,167,801 | $ 1,625,323 |
| Gross profit | $ 2,420,410 | $ 1,942,005 |
| Total operating expenses | $ 2,387,698 | $ 2,552,979 |
| Earnings (loss) from operating activities | $ 32,712 | $ (610,974) |
| Finance costs | $ (18,991) | $ (3,513) |
| Net earnings (loss) before income taxes | $ 13,721 | $ (614,487) |
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 More Information, please contact:
Cathy Smith
Chief Financial Officer
csmith@intouchinsight.com
613-270-7916