Ackroo Announces 2023 Audited Financial Results

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Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) announces 2023 audited financial results with $6,977,597 in total revenue, an 11% YoY increase, and $6,086,981 in annual recurring revenue, a 14% increase. The company achieved $1,722,102 of adjusted EBITDA, a 23% YoY increase, representing 27% of total revenues. Ackroo improved its balance sheet, completed acquisitions, divested non-core assets, paid down debt, bought back shares, and enhanced operations. The company is optimistic about its future. Key financial data includes:

• Total Revenue: $6,977,596
• Recurring Revenue: $6,086,981
• Adjusted EBITDA: $1,722,102
• EPS: $0.007

Positive

• Ackroo achieved an 11% YoY revenue growth and 23% YoY adjusted EBITDA growth, demonstrating financial strength and operational excellence.

• The company increased recurring revenue by 14%, indicating a stable and growing customer base, which is essential for long-term success.

• Ackroo's improved balance sheet, successful acquisitions, debt reduction, and share buybacks show strategic financial management and commitment to shareholder value.

• The positive EPS of $0.007 showcases profitability and potential for future growth and returns to investors.

Negative

• Despite the revenue growth, the net income for 2023 was $843,370, down from -$2,036,940 in 2022, indicating potential challenges in increasing bottom-line profits.

• The decrease in gross margins from 91% to 89% may need attention to maintain profitability and efficiency in operations.

Ackroo achieves 11% YoY revenue and 23% YoY adjusted EBITDA growth

HAMILTON, Ontario, April 30, 2024 (GLOBE NEWSWIRE) -- Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a gift card, loyalty marketing, payments and point-of-sale technology consolidator and services provider, is pleased to report audited annual revenues of $6,977,597 for the year ended December 31^st, 2023 including $6,086,981 of annual recurring revenue. This represents an 11% increase in total revenue and a 14% increase in recurring revenue over the same period in 2022. The Company also achieved $1,722,102 of positive adjusted EBITDA during the year representing a 23% increase over 2022 and equates to 27% of total revenues. The Company improved their balance sheet, completed its thirteenth acquisition, divested of a non-core point-of-sale product, paid down debt, bought back shares, improved operations and continued the development of their core AckrooMKTG platform. The Company delivered their strongest year to date on many fronts and is very optimistic about what the future holds for Ackroo.

The complete financial results for the year ended December 31, 2023 will be available under the profile for Ackroo on SEDAR+ at www.sedarplus.com. Highlights include:

2023 vs. 2022 annual results:

	Year ended Dec 31, 2023	Year ended Dec 31, 2022	YoY growth
Total Revenue	$6,977,596	$6,264,107	+ 11%
Subscription Rev	$6,086,981	$5,350,098	+ 14%
Gross Margins	$6,230,869 (89%)	$5,685,210 (91%)	+ 10%
Adjusted EBITDA	$1,722,102	$1,403,546	+ 23%
EBITDA % of Rev	27%	22%	+ 5%
Net Income	$843,370	-$2,036,940
EPS	$0.007	-$0.018

2023 quarterly results:

	Q1 - March 31, 2023	Q2 - June 30, 2023	Q3 - September 30, 2023	Q4 - December 31, 2023	2023 TOTALS
Total Revenue	$1,825,485	$1,610,841	$1,624,001	$1,917,269	$6,977,596
Subscription Rev	$1,612,799	$1,408,516	$1,397,281	$1,668,385	$6,086,981
Gross Margins	$1,607,582 (88%)	$1,387,805 (86%)	$1,477,437 (91%)	$1,758,052 (92%)	$6,230,870 (89%)
Adjusted EBITDA	$451,424	$241,838	$394,155	$634,685	$1,722,102
EBITDA % of Rev	25%	15%	24%	33%	27%

“We delivered another great earnings and acquisition year” said Steve Levely, CEO of Ackroo. “We effectively closed two new transactions and divested of one distracting asset resulting in an 11% revenue growth year for the business. We increased our recurring revenue by 14% and adjusted EBITDA by a great 26% allowing us to deliver a solid 28% adjusted EBITDA as a percentage of revenue in the process. We believe our earnings growth is key to our short and long-term success and will remain a core focus for the business as we move forward. The Company also continued to make significant advancements in our operations and technology in order to help bring more value to our growing merchant base and to help further simplify our business. As an operator of our acquired assets it’s critical that we have simple and efficient operations and a core technology platform that is built for integration and scale in order to succeed. We plan to continue to improve in these areas while also maintain a very disciplined capital allocation strategy. We are very pleased with the many decisions we made and the earnings results we delivered in 2023 and are excited for a very prosperous year in 2024.”

Disclosure in this news release contains certain non-GAAP financial measures which include: “annual recurring revenue”, “gross margins” and “adjusted EBITDA”. These measures are used by the Company to provide investors with supplemental information to measure operating performance and highlight trends in the business which may not otherwise be apparent. These measures should not be considered in isolation or as a substitute for analysis of the financial information of the Company reported under IFRS. For information on the derivation of these non-GAAP financial measures, readers are encouraged to review managements’ discussion and analysis for the year ended December 31, 2023.

About Ackroo

As an industry consolidator, Ackroo acquires, integrates and manages gift card, loyalty marketing, payment and point-of-sale solutions used by merchants of all sizes. Ackroo’s self-serve, data driven, cloud-based marketing platform helps merchants in-store and online process and manage loyalty, gift card and promotional transactions at the point of sale. Ackroo’s acquisition of payment ISO’s affords Ackroo the ability to resell payment processing solutions to their growing merchant base through some of the world’s largest payment technology and service providers. As a third revenue stream Ackroo has acquired certain custom software products including hybrid management and point-of-sale solutions that help manage and optimize the general operations for niche industry’s including automotive dealers and more. All solutions are focused on helping to consolidate, simplify and improve the merchant marketing, payments and point-of sale ecosystem for their clients. Ackroo is headquartered in Hamilton, Ontario, Canada. For more information, visit: www.ackroo.com.

For further information, please contact:

Steve Levely
Chief Executive Officer | Ackroo
Tel: 416-360-5619 x730
Email: slevely@ackroo.com

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. 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.

Forward Looking Statements
This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the Company’s ability to raise enough capital to support the Company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the Company operates; projected capital expenditures and liquidity; changes in the Company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

FAQ

What are Ackroo's 2023 audited financial results?

Ackroo reported $6,977,597 in total revenue, an 11% YoY increase, and $6,086,981 in annual recurring revenue, a 14% increase.

What was Ackroo's adjusted EBITDA for 2023?

Ackroo achieved $1,722,102 of adjusted EBITDA, representing a 23% YoY increase and 27% of total revenues.

What is Ackroo's stock symbol?

Ackroo's stock symbol is AKRFF.

What is Ackroo's EPS for 2023?

Ackroo's EPS for 2023 was $0.007.