Intouch Insight Announces Q3 2017 Financial Results

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Intouch Insight (TSXV:INX) has announced its operating and financial results for Q3 ended September 30, 2017. As quoted in the press release: Revenue for the third quarter was $3,669,461, which was 15% higher than revenue of $3,187,766 in the same quarter 2016. Recurring software revenue increased 4% during the third quarter at $618,217 compared to $592,915 in third quarter 2016. Recurring services …

Intouch Insight (TSXV:INX) has announced its operating and financial results for Q3 ended September 30, 2017.
As quoted in the press release:

Revenue for the third quarter was $3,669,461, which was 15% higher than revenue of $3,187,766 in the same quarter 2016. Recurring software revenue increased 4% during the third quarter at $618,217 compared to $592,915 in third quarter 2016. Recurring services revenue increased 17% over the same time period from $2,533,519 to $2,960,759. One-time set-up and technical services revenue made up 3% of total services revenue and was up 48% to $90,485.
Earnings from operating activities increased for Q3 2017 to $50,807 an increase of $69,805 compared to a loss of $18,998 in Q3 2016. Net earnings before income taxes for the third quarter was $33,383 compared to a net loss before income taxes of $34,101 in the same quarter 2016. Gross Margin increased to 54% in the third quarter compared to 50% for the same quarter in 2016. The increase in gross margin is attributed to operational improvements & revenue increases.
Company-defined adjusted EBITDA increased 55% to approximately $268,000 for the third quarter, compared to an EBITDA of approximately $173,000 for the same quarter in 2016.
“Management is very pleased with the revenue, earnings and EBITDA obtained in Q3. Spending started to ramp up in Q3 as the company began to accelerate its strategy towards developing recurring software revenue streams. Q3 Revenue was strong and kept pace with the increased spending levels allowing the company to both have strong growth and significant improvements in the operating margin. These financial results are a strong signal regarding the technological improvements that have been made against the company’s core product lines including the ongoing transition of its client base to its new technologies”, said Cameron Watt, President & Chief Executive Officer.
“We will continue our investments in recurring revenue products as well our accelerated sales and marketing plans to enter the Customer Experience Management (“CEM”) software market in 2018. The CEM Market is large, it is growing, and Intouch already has products which become inputs to a CEM solution. Initially we will be targeting our current industries and customer base which is an estimated $700 million greenfield market. We are very optimistic about the future direction of the company and look forward to accelerating our software vision”, said Watt.