After rising sharply throughout 2022, Intouch Insight’s revenues levelled off in the first quarter of 2023 as growing sales of its subscription-based software were offset by a decline in revenue from non-recurring contracts.
The Ottawa firm, which specializes in customer survey and data collection software, reported revenue of $5.1 million in the three-month period ending March 31, down three per cent from a year earlier.
While software-as-a-service revenue from subscription fees rose 20 per cent year-over-year and recurring services revenue remained relatively steady at nearly $4.2 million, Insight’s non-recurring revenues fell 75 per cent to about $65,000.
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The firm reported a net loss of $184,500, compared with a net loss of $266,400 in the second quarter of 2022.
“The first quarter presented some challenges for the company as we increased sales and marketing activities and dealt with the realities of the current economic environment,” the company said in financial documents filed this week.
Intouch said it expects software-as-a-service revenue to grow throughout the year as a result of higher spending on marketing and sales, adding that recurring revenue is also expected to rise as new programs are launched.
“We are pleased with the continued pace of growth in our SaaS product lines and with achieving growth in recurring revenue despite the current economic climate,” CEO Cameron Watt said in a news release.
However, the firm warned that second-quarter revenues will also likely be down from a year ago because 2022’s figures were boosted by a one-time data-capture contract that has ended.
At the same time, Insight said it expects recurring revenues to “remain stable” in the second quarter and is forecasting its margins will be “significantly higher” than in the first three months of the year.
“With the momentum of our SaaS business, organic growth to our recurring revenues, and new client acquisition, we are excited to see 2023 evolve,” the firm said. “We are committed to remaining EBITDA positive and self-funding as we continue to build the business.”
