Ackroo’s revenue up 10 per cent in “traditionally” slower Q2: CEO

Ottawa-based Ackroo is poised for a very successful second half of 2015, CEO Steve Levely said Friday, and another merger or acquisition is expected before the end of the year.

“I am very happy with the accomplishments the company has made this quarter and I look forward to a very exciting second half of the year,” Mr. Levely said in a statement.

Mr. Levely said a traditionally slower second quarter allowed the company the opportunity to do some internal reorganization. The reorganization was due to recent acquisitions that Mr. Levely said will play “key roles in our long-term success.”

Revenue for the quarter was $315,562, up 10 per cent from the same period in 2014. Software and subscription revenue, at $272,715, was up 14 per cent year-over-year.

The gift card and loyalty solutions provider’s gross margin for the quarter was 71 per cent, up from 69 per cent from the second quarter of last year.

Ackroo (TSX-V: AKR) posted a loss from operations of $290,246, down from $368,926 for the second quarter of 2014.

For the year, Ackroo is projecting consolidated revenues of more than $2 million and a gross margin remaining over 70 per cent. It is planning to pull the trigger on at least one more merger or acquisition, to retain at least 90 per cent of its customer base and to grow locations by 75 per cent.

Mr. Levely conceded the company didn’t see the organic growth through its resellers that it expected.

“We learned there is a much greater support required,” he said. “This has resulted in the company pausing on this initiative until we better define the right model to scale through this channel, and instead we continue to focus on both our direct sales via our channel partners and our M&A initiatives.”