OTTAWA, Canada August 29, 2019 – Intouch Insight Ltd. (“Intouch”) (TSXV: INX) (OTCQB: INXSF) today announced its operating and financial results for the quarter ended June 30, 2019.
Revenue for the second quarter was $5,037,491, which was 30% higher than revenue of $3,861,846 in the same quarter of 2018. Recurring SaaS revenue increased 13% during the second quarter at $691,307 compared to $610,327 in the second quarter of 2018. Recurring services revenue increased 33% to $4,301,071 in Q2 2019 from $3,225,904 in Q2 2018.
Loss from operating activities in Q2 2019 was $11,545 compared to a loss of $669,264 in Q2 2018. Net loss and comprehensive loss for the second quarter was $34,822 compared to a net loss of $669,605 in the same quarter of 2018. Gross Margin increased to 52% in the second quarter compared to 51% for the same quarter in 2018.
Company-defined adjusted EBITDA was a positive $248,000 for the second quarter, compared to a negative EBITDA of approximately $453,000 for the same quarter in 2018.
“I am very pleased to report another strong quarter for revenue growth across our customer experience management product lines including recurring revenues of almost $5M. We will continue to utilize our new technologies to drive growth in our core product lines while furthering our investment in our new CX software products. Based on current sales information we are forecasting strong growth in year over year results with revenues exceeding $18M for 2019. We remain committed to harnessing the power of Artificial Intelligence (AI) within our software to revolutionize the customer experience management space,” said Cameron Watt, President & Chief Executive Officer.
| Consolidated Statements of Operations | Q2 2019 | Q2 2018 |
|---|---|---|
| Revenue | $ 5,037,491 | $ 3,861,846 |
| Cost of services | $ 2,401,470 | $ 1,884,476 |
| Gross profit | $ 2,636,021 | $ 1,977,370 |
| Total operating expenses | $ 2,647,566 | $ 2,646,634 |
| Earnings (loss) from operating activities | $ (11,545) | $ (669,264) |
| Finance costs | $ (23,277) | $ (341) |
| Net loss before income taxes | $ (34,822) | $ (669,605) |
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