Ackroo (TSX-V:AKR), an Ottawa firm that provides loyalty and gift card technologies for retailers, finished its 2016 fiscal year with significant revenue growth and cash on hand heading into 2017.
The company increased revenues by 22 per cent over 2015, hitting $2.2 million for the year ending Dec. 31, 2016.
Higher revenues for the year coincided with higher expenses and costs of sales, including a plan announced in the firm’s third quarter that saw employees compensated through stock options in lieu of monetary raises.
Overall, the company’s net loss increased to $1.8 million from $1.6 million a year earlier. However, EBITDA losses, which do not include stock compensation, were reduced by 29 per cent year-over-year, coming in at about $600,000.
The company also has a better standing in regards to cash on hand, raising $1 million in a private placement last November. As of Dec. 31, Ackroo had $643,000 in cash and cash equivalents, compared with $151,000 at the start of the previous year.
“2016 was an important year as we continued to further validate and refine our business model,” said CEO Steve Levely in a statement. “We finished the year closing an important financing that allowed us to add key staff in order to better position us for scale. It was a great year on many fronts and so we are excited to see what lies ahead in 2017.”