Total revenues dipped at Ottawa-based Ackroo (TSX-V:AKR) in the first quarter of the year, but organic growth in the gift card and loyalty program provider’s subscription segment kept management confident in the firm’s future.
Ackroo reported total revenues of slightly more than $1 million for the three months ending March 31, down from $1.17 million last year. Meanwhile, subscription revenues from the company’s SaaS-based loyalty programs accounted for $833,656 in the first quarter of the year, an increase of five per cent year-over-year.
While Ackroo’s revenues were lower in Q1, the company improved its average customer acquisition costs and grew its gross margin to 84 per cent, up three per cent year-over-year. The firm said it secured lower operating costs through renegotiated agreements with suppliers and contractors.
Ackroo trimmed its net loss in the quarter to $193,425 from $258,408 a year ago.
In the company’s financial filings, Ackroo’s management said the firm spent Q1 positioning itself for growth throughout the year, including taking on $500,000 in debt to finance future acquisitions.