TrackX Holdings Reports 144% Year-over-Year Revenue Growth

TrackX Holdings (TSXV:TKX), a software-as-a-service (SaaS) announced its financial results for its third quarter ended June 30, 2018 with the company reporting 144 percent year-over-year growth.

The company said that its revenue for the quarter were CS$2.145 million as compared to CS$0.878 million in the same period last year.

As quoted in the press release:

Financial Highlights for the 3 Months Ended June 30, 2018 (“Q3/F18”)

• Q3/F18 recurring revenue increased 37.0% year-over-year to $0.556 million from $ 0.406 million in Q3/F17, primarily due to the expanding base of SaaS customers;
• Q3/F18 services revenue was up 151.5% year-over-year to $0.860 million versus $0.342 million in Q3/F17, due to an increase in billable hours for implementation and delivery of TrackX solutions.
• Gross margin during Q3/F18 was 57.0% versus 32.6% in Q3/F17. Gross margin increased due to growth in both software license and SaaS revenue without a proportionate increase in operating expenses.
• Adjusted EBITDA in Q3/F18 was $0.071 million compared to a loss of $1.070 million in Q3/F17, due to continued focus on operational efficiency, streamlined implementation processes and successful consolidation of the broTECH acquisition.
• TrackX ended the quarter with a cash balance of $0.316 million, down from $0.672 million at March 31, 2018. Subsequent to the quarter end, the Company secured a loan facility of up to $5.2 million of which $2.6 million has been drawn down for use in operational expansion.

“TrackX accomplished several milestones during the quarter,” said TrackX Chairman and CEO Tim Harvie. “Our high margin, recurring revenue continues to increase; our gross margin increased more than 25% year-over-year, and we had our second successive positive adjusted EBITDA quarter. Post quarter end, the secured loan facilities strengthen our balance sheet, enabling us to accelerate the execution of our business plan, hire ahead of the implementations we anticipate from new customer contracts and to close on additional pipeline opportunities with enterprise accounts.”

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