Just days after announcing its annual earnings had soared 30 per cent, Ottawa’s Intouch Insight said Tuesday it has inked a three-year, $7-million extension to provide software and services to its largest customer through 2019.
Intouch Insight, which provides mobile-based market research and analytics for enterprise clients, said the unnamed auto industry firm has been a customer since 2006. The firm uses IntouchCapture software to collect data at marketing events around the world.
“The advancements in our software technology, and long history with this customer, allowed us to secure this agreement for the next three years,” Intouch CEO Cameron Watt said in a statement.
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“The length of the partnership we have maintained with this client is a great example of the recurring revenue model which we have in place and illustrates the potential lifetime value of our client base.”
The multimillion-dollar deal comes on the heels of a relatively strong earnings report for Intouch. Last week, the company announced its revenues for the fiscal year ending Dec. 31, 2016 were $13,349,391 – a 30 per cent increase over the previous year’s tally of $10,232,708. Total operating expenses also rose to $6,780,554 from $5,155,315 in 2015.
Intouch’s earnings before income taxes were $212,945, down from $313,543 a year earlier. The firm’s gross margin also dropped slightly to 53 per cent from 55 per cent, which Intouch attributed to higher sales of lower-margin product lines following its 2015 acquisition of Montreal-based Statopex.
The company’s adjusted EBITDA was $1,075,000, compared with $1,115,000 in 2015.
“We are extremely pleased with the overall performance of the company throughout 2016 as we were able to invest significantly in our software products and underlying technologies while delivering strong growth to recurring revenues and significant EBITDA,” said Mr. Watt.
“While our focus on increasing recurring revenue from software licence and user fees will continue, we will also focus on increasing our recurring revenue across the entire business.”