Ottawa-based Ackroo last week reported a slight increase in 2014 revenues, the result of what CEO Steve Levely called “key strategic changes to position us for growth.”
The gift card, loyalty and rewards technology and services provider posted revenue of $1.33 million in the last fiscal year, up three per cent from the $1.28 million reported in 2013. Subscription and service revenue came in at $986,511, an increase of 12 per cent from the $876,880 of the previous year. The company’s gross margin was up six per cent compared with 2013.
“We focused on continuous development of our product, customers and partners while driving our overall operating costs down,” Mr. Levely said in a statement.
Ackroo’s operating expenses for the year were down 52 per cent to $1.3 million, resulting in a loss from operations of $1.6 million, a drop of 36 per cent from 2013.
Mr. Levely said a shift to a more channel-focused model reduced costs and positioned the company for scale. Ackroo (TSXV: AKR) also began exploring M&A opportunities to help remove competition from the market, he said.
“We look forward to carrying the momentum into a very prosperous 2015,” Mr. Levely said.
The company said it plans to grow locations by at least 75 per cent in 2015. Ackroo also said it will pursue at least one more M&A and further develop its channel partnership.
Consolidated revenue is projected to exceed $2 million in 2015 with gross margins above 70 per cent. The company’s break-even point is budgeted at $2.25 million.