While Intouch Insight (TSX-V:INX) posted deeper losses in the first quarter of fiscal 2018, the Ottawa-based firm is hoping the past year of investments in a new product line will yield higher revenues come 2019.
The customer experience software developer saw revenues of $3.6 million in the quarter ending Mar. 31, an increase of nine per cent year-over-year. Recurring revenues from the firm’s SaaS stream were up five per cent, while services increased 10 per cent.
Increased R&D and marketing spending deepened Intouch’s losses for the quarter. The firm reported a net loss of $614,487 this past quarter, compared to $148,709 a year earlier.
That higher spending may soon pay off. Earlier this month, the firm unveiled LiaCX, a comprehensive AI platform to give clients actionable insights on gaps in their customers’ experiences. CEO Cameron Watt told OBJ that the “higher-ticket item” targets a market that few others in the space are addressing.
“Everyone out there is saying, ‘I have enough data,’” he said a few weeks ago. “What they really want is the ability to distill that information and then take action.”
In a statement this week, Watt said that Intouch isn’t expecting significant revenue from the new product line until fiscal 2019, but asserted confidence that Intouch’s investments would be worth the firm’s recent losses.
Intouch Insight expects revenues of $15 million in fiscal 2018, a 10 per cent increase year-over-year.