OTTAWA, Canada (November 26, 2018) – Intouch Insight Ltd. (“Intouch”) (TSXV: INX) (OTCQB: INXSF) today announced its operating and financial results for the quarter ended September 30, 2018.
LiaCXTM, the new customer experience management (“CEM”) flagship SaaS product of the Company, initiated sales of $16,667 in Q3 2018. Total revenue for the third quarter was $3,914,961, which was 7% higher than revenue of $3,669,461 in the same quarter 2017. Recurring software revenue also increased 7% during the third quarter at $664,344 compared to $618,217 in third quarter 2017. Recurring services revenue increased 9% over the same period from $2,960,759 to $3,232,127. Non-recurring revenue declined to $18,490 from $90,485.
Loss from operating activities in Q3 2018 was $584,957compared to earnings of $50,807 in Q3 2017. Net loss and comprehensive loss for the third quarter was $589,964 compared to a net income and comprehensive income of $33,383 in the same quarter of 2017. Gross Margin decreased to 49% in the third quarter compared to 54% for the same quarter in 2017. Year-to-date Q3 2018 Gross Margin is 51% compared to 54% for year-to-date Q3 2017.
The continued investments in sales, marketing and product development for the new LiaCX software produced a Company-defined adjusted EBITDA of negative $368,000 for the third quarter compared to a positive EBITDA of $268,000 for the same quarter in 2017.
“Management is very excited to have LiaCX revenue only three months after unveiling our best in class CEM software product, we are proud to have onboarded a significant customer. The already strong software product continues to evolve including our planned Q1 2019 launch of additional Artificial Intelligence (“AI”) driven features. LiaCX not only stands up to the largest players in the space but it also contains several key product differentiators including our patent pending Action Campaign™ technology.” said Cameron Watt, President & Chief Executive Officer. “We are now fully entrenched in the sales and marketing of LiaCX and continue to execute on our go-to-market plan,” said Watt.
| Consolidated Statements of Operations | Q3 2018 | Q3 2017 |
|---|---|---|
| Revenue | $ 3,914,961 | $ 3,669,461 |
| Cost of services | 2,008,407 | 1,672,279 |
| Gross margin | 1,906,554 | 1,997,182 |
| Total operating expenses | 2,491,511 | 1,946,375 |
| Earnings (loss) from operating activities | (584,957) | 50,807 |
| Finance costs | (5,007) | (17,424) |
| Net earnings (loss) before income taxes | $ (589,964) | $ 33,383 |
About Intouch Insight
Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Through its flagship SaaS product, LiaCX™, Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions. For more information, visit intouchinsight.com.
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 Pretli
Chief Financial Officer
gpretli@intouchinsight.com
613-270-7916