An Ottawa-based tech company that makes customer engagement software for brands such as General Motors and the Beer Store has renewed a contract with a pharmacy chain that could be worth more than $2 million over the next three years.
Intouch Insight (TSXV: INX) said Wednesday the agreement with “one of the most trusted Canadian drugstore brands” is expected to be valued at “well over $700,000” annually. The deal also includes an option for a fourth year that would extend it through 2022.
“Having solid partnerships with leading brands as we rapidly develop new features and functionality provides us with a stable revenue base and opportunities to continue to expand the adoption of our newer product lines,” Intouch CEO Cameron Watt said in a statement.
Founded in 1992, Intouch makes subscription-based software that uses artificial intelligence to help retailers and other business track how well they’re interacting with their customers and offer insights into where the relationship is falling short.
Intouch reported revenues of $3.9 million in the quarter that ended June 30, a two per cent increase over the previous year. The firm posted a net loss of $669,605 for the quarter, compared with a profit of $82,319 in the same period in 2017, but Watt said the loss was expected because the company had increased its spending on sales, marketing and R&D with the launch of its new customer engagement platform, LiaCX.
Intouch shares were trading at 45 cents on the TSX Venture Exchange on Wednesday afternoon, a gain of two cents.