A growing U.S. customer base helped propel Ottawa software firm Intouch Insight to record revenues in the first quarter of 2019, the company reported Friday.
Intouch (TSX-V:INX), which makes software that helps its clients track customer satisfaction and engagement, reported revenues of $4.6 million for the three-month period ending March 31. That’s the highest quarterly total in the firm’s history and a 29 per cent increase over the $3.9 million in revenues it booked a year earlier.
The company’s net loss fell dramatically, from $614,000 in the first quarter of 2018 to about $21,000 this year. Intouch said rising revenues and cuts in sales and marketing expenses helped push the firm closer to the black.
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“We are very pleased to see such strong financial results so early in 2019,” CEO Cameron Watt said in a statement. “Q1 2019 EBITDA is a $925,000 improvement over Q4 2018. This rapid one-quarter improvement comes from a combination of significant revenue growth and cost management initiatives. The speed and magnitude of this change speaks to the strength and flexibility of the company and taking advantage of our recent investments in new products.”
Much of the turnaround in Intouch’s bottom line is the result of dramatic growth in its U.S. revenues.
While revenue from Canadian customers grew four per cent year-over-year to $1.6 million, Intouch generated more than $2.9 million in sales from clients south of the border in Q1 – a 48 per cent jump over last year’s total of just under $2 million. The company said nearly $650,000 of that total came from a new customer in the audit compliance space.
Intouch also touted its new product line that uses artificial intelligence to discover “gaps” in the customer journey. Watt said the company continues to focus on creating “new and innovative technology,” noting Intouch recently filed another patent for its AI solutions.
In financial documents filed Friday, the firm said it remains “confident” it will hit its 2019 revenue target of $17 million, which would represent a 15 per cent increase over 2018.
Intouch shares were up 13 per cent to 38 cents in late-morning trading on the TSX Venture Exchange.