Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a loyalty marketing, payments and point-of-sale technology and services provider, has filed its financial results for the period ended September 30, 2022. The results for the period ended September 30th, 2022 reflect 8% year-to-date year over year revenue growth and 275% year-to-date year over year adjusted EBITDA growth. During the period the Company also achieved 22% adjusted EBITDA as a percentage of total revenue increasing the year-to-date EBITDA as a percentage of revenue to 19%, a significant increase over the previous year. The Company used these earnings plus some of their current cash flows to pay down $664,726 worth of debt/liabilities during the period while also locking in a 7.5% interest rate on their debt agreement with BDC. The Company plans to continue their focus on growing their earnings not only to continue to improve their balance sheet but to also help fund future acquisitions.
The complete financial results for Ackroo, along with management’s discussion and analysis for the quarter ended September 30, 2022, are available under the profile for the Company at www.sedar.com. Highlights include:
Nine Months Ended Sept 30, 2022 vs. Nine Months Ended Sept 30, 2021:
| YTD 2022 TOTALS | YTD 2021 TOTALS | +/- % Change | |
| Total Revenue | $4,668,402 | $4,320,769 | + 8% |
| Subscription Rev | $4,034,077 | $3,628,562 | + 11% |
| Gross Margins | $4,293,970 (92%) | $3,800,289 (88%) | + 13% (+4%) |
| Adjusted EBITDA* | $874,776 | $233,372 | + 275% |
| EBITDA % of Rev | 19% | 5% | + 14% |
Q3 2022 vs. Q3 2021:
| Q3 2022 TOTALS | Q3 2021 TOTALS | +/- % Change | |
| Total Revenue | $1,528,411 | $1,567,121 | – 3% |
| Subscription Rev | $1,333,237 | $1,323,794 | + 1% |
| Gross Margins | $1,403,618 (92%) | $1,381,224 (88%) | + 2% (+4%) |
| Adjusted EBITDA* | $337,504 | $179,936 | + 88% |
| EBITDA % of Rev | 22% | 11% | + 11% |
“We have been very focused on earnings generation as a key part of our strategic plans,” said Steve Levely, CEO of Ackroo. “At an economic time when cash is more important than ever we feel this is the right strategy short and long term for our business. We made significant HR changes in the business in order to get our revenue per employee back above $230,000 while also settling on long standing consulting agreements that weren’t generating growth for us. We reduced several other operating costs across the business as we migrated clients off of old platforms and by renegotiation of various agreements. We did however make a reinvestment in our staff as we gave all staff on July 1st a raise as we recognize inflation is not only hitting us corporately it is hitting our staff personally. We paid down debt to help improve our balance sheet and to lock in a reduced interest rate and we continued to evolve our AckrooMKTG platform. We accomplished all of this while also maintaining our revenues and delivered a strong 22% of revenue EBITDA for the period. As we head into Q4 we are now cash flow positive again with plenty of great strategic opportunities for growth ahead of us.”
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