Intouch Insight Announces Q2 2020 Results
By: Sarah Beckett August 20, 2020
OTTAWA, Canada (August 20, 2020) – Intouch Insight Ltd. (the "Company") (TSXV: INX) (OTCQB: INXSF) today announced its operating and financial results for the quarter ended June 30, 2020.
Revenue from Q2 2020 was $1,460,149, a decrease of 71% from $5,037,491 in Q2 2019 due to the impact of the COVID-19 pandemic. Loss from operating activities increased to $90,733 in Q2 2020 compared to $11,545 in Q2 2019. The quarter’s net loss was $247,259 compared to a loss of $34,822 in Q2 2019. Company-defined adjusted EBITDA was $176,921 compared to $248,407 in Q2 2019. Gross Margin increased to 62.0% in Q2 2020 from 52.3% the prior year due to the higher concentration of high-margin software sales.
“Despite the very challenging quarter, I am incredibly pleased that the business was able to produce positive EBITDA, thanks to aggressive cost containment and effective use of government relief programs in Canada and the USA. I am also happy with the resilience shown in our recurring software revenue stream through the quarter. Since the very start of the crisis, swift actions have been taken, and we have worked cooperatively with our clients and our employees to ensure that we can deliver the best outcomes for everyone involved. I remain extremely proud of how the Intouch team has dealt with ongoing uncertainty, and their continued resilience. Looking forward we will continue to mitigate the impacts of COVID-19 and ensure the business is poised to rebuild rapidly as the economy returns to pre-COVID levels,” said Cameron Watt, President and Chief Executive Officer.
“While the North American economy has started to reopen through the summer, it is doing so in a slow and measured fashion causing many businesses to re-think their approach to customer service. The simple truth is that Intouch has products and services which can play a key role in measuring the new and evolving requirements regarding the health and safety of both employees and customers. Our software and services are a critical feedback loop in implementing required changes and measuring the success of their execution and impact on brand reputation. We look forward to helping our clients throughout their economic recovery. We will take every step necessary to ensure overall corporate stability while leveraging our strengths to remain in an industry-leading position when the current crisis abates,” said Watt.
Consolidated Statements of Operations
|Q2 2020||Q2 2019|
|Revenue||$ 1,460,149||$ 5,037,491|
|Cost of services||$ 554,840||$ 2,401470|
|Gross profit||$ 905,309||$ 2,636,021|
|Total operating expenses||$ 996,042||$ 2,647,566|
|Income (loss) from operating activities||$ (90,733)||$ (11,545)|
|Other earnings (expense)||$ (156,526)||$ (23,277)|
|Net loss||$ (247,259)||$ (34,822)|
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.
About Intouch Insight
Intouch Insight (TSXV: INX) (OTCQB: INXSF) offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Through its flagship SaaS product, LiaCXTM, Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions. For more information, visit intouchinsight.com.
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