Intouch Insight Ltd. Announces Q1 2018 Financial Results

OTTAWA, May 29, 2018 /CNW/ - Intouch Insight Ltd. ("Intouch") (TSXV: INX) today announced its operating and financial results for the quarter ended March 31, 2018.

Revenue for the first quarter was $3,567,328, which was 9% higher than revenue of $3,274,536 in the same quarter in 2017. Recurring SaaS revenue increased 5% during the first quarter at $567,904 compared to $539,890 in first quarter 2017. Services revenue increased 10% to $2,968,276 in Q1 2018 from $2,697,502 in Q1 2017.

Loss from operating activities in Q1 2018 was $610,974 compared to a loss of $135,249 in Q1 2017. Net loss and comprehensive loss for the first quarter was $614,487 compared to a net loss of $148,709 in the same quarter of 2017.  Gross Margin increased to 54% in the first quarter compared to 51% for the same quarter in 2017.

Because of the increased investments in sales, marketing and product development, the Company-defined adjusted EBITDA was approximately negative $404,000 for the first quarter, compared to a positive EBITDA of approximately $58,000 for the same quarter in 2017.

"The losses in Q1 were due to planned expenses for product development, sales and marketing for the launch of LiaCX^TM, which was officially launched on May 1, 2018.  We are pleased to have put our investments in to action in the marketplace and remain optimistic about the future of our products moving forward.  Due to anticipated sales cycles we do not expect significant revenue from the new product line to occur until 2019," said Cameron Watt, President & Chief Executive Officer.

"Our legacy business is strong and growing. Based on current sales information we are forecasting a 10% year over year sales growth with revenues exceeding $15.0M for FY 2018.  We remain committed to establishing Intouch as the leading provider of Artificial Intelligence (AI) software in the customer experience management space," said Watt.

Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Intouch Insight Ltd.