Recurring revenues are on the rise at Intouch Insight, as the Ottawa-based firm sets its sights on a lucrative new market in 2018.
Intouch Insight (TSX-V: INX), an IT service management company, earned revenues of $3.67 million for the three-month period ending Sept. 30, an increase of 15 per cent year-over-year. Driving that growth was recurring software and services revenues, which rose roughly the same percentage.
Increased revenue brought the firm a slight profit of $33,383, compared to a net loss of $34,101 a year ago. This marks Intouch’s second straight quarterly profit.
Expenses also rose more than $300,000 in the third quarter. In a statement, CEO Cameron Watts said spending was up as Intouch developed recurring software streams and transitioned existing customers to new technologies.
Mr. Watt said that the firm will enter the customer experience management market in 2018, a field he says already aligns with Intouch’s existing products. The firm believes that CEM, which generally involves tracking and organizing interactions between clients and companies, has a $700-million addressable market.
“We are very optimistic about the future direction of the company and look forward to accelerating our software vision,” said Mr. Watt.
Intouch’s shares started to climb in midday trading and were up 11 per cent to 80 cents at 3:30 p.m. on the TSX Venture Exchange.