Ackroo Releases Q1 2024 Financial Results

Ackroo delivers 12% YoY adjusted EBITDA growth

HAMILTON, Ontario, May 23, 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, has filed its financial results for the period ended March 31, 2024. The Company is pleased to report quarterly revenues of $1,547,417, recurring subscription revenue of $1,425,369, and adjusted EBITDA of $505,705. The total and subscription revenues declined by 15% and 12% respectively year over year primarily from the divesture of their GGGolf business on March 31^st, 2023 however adjusted EBITDA has increased by 12% year over year representing 33% of total revenues. The Company delivered these results, paid off the debt obligation associated with the acquisition of GiftFly, completed the bulk of the Simpliconnect migration work and continued to streamline and optimize operations for further scale.

The complete financial results for Ackroo, along with management’s discussion and analysis for the quarter ended March 31, 2024, are available under the profile for the Company at www.sedarplus.ca. Highlights include:

Q1 2024 vs. Q1 2023:

	Q1 2024 TOTALS			Q1 2023 TOTALS		+/- % Change
Total Revenue	$1,547,417			$1,825,486		- 15%
Subscription Rev	$1,425,369			$1,613,199		- 12%
Gross Margins	$1,387,716 (90%)			$1,607,583 (88%)		+ 1%
Adjusted EBITDA	$505,705			$451,424		+ 12%
EBITDA % of Rev	33%			25%		+ 8%

“We had a very busy quarter integrating both of our 2023 acquisitions, further streamlining of operations and keeping a close eye on our earnings,” said Steve Levely, CEO of Ackroo. “We knew we had lots to accomplish, while also being aware that Q1 revenues would be lower than Q4 seasonality wise and certainly much lower than Q1 2023 with the GGGolf revenue out. What we didn’t expect was a drop in one-time revenue orders in Q1. Our merchants simply ordered fewer additional items and our sales team won less deals in Q1 than previous quarters. We fortunately have seen a bounce back in early Q2 on both fronts and we have made a number of cost savings adjustments to compensate for it. In turn, between where the business was to start the year and the adjustments made during the period, afforded us another great earnings quarter. We delivered one of our highest adjusted EBITDA as a percentage of revenue quarter in Company history, delivering a great 33%, which resulted in a 12% year over year EBITDA growth quarter. We believe EBITDA management is key to our future growth plans, so we plan to continue to manage and optimize for earnings so that we drive quarter over quarter growth in that area.”