Intouch sees strong sales growth in Q1, raises expectations for 2022

Ottawa’s Intouch Insight announced positive first quarter results and raised its expectations going forward as it continues to recover from the pandemic and works to fully integrate the SeeLevel HX acquisition into its operations.

For the first quarter ended March 31, Intouch (TSX-V:INX) reported revenue of $5.2 million, up 63 percent from the same period last year. Loss from operating activities decreased to $93,999, from $261,108 in 2021. The quarter’s net loss was higher, at $266,439 compared to $140,135 in 2021, due to costs related to the SeeLevel acquisition.

EBITDA fell to $191,688, from $238,169 in 2021. Gross margin declined to 52.4 percent from 52.7 percent in the same period a year ago due to a shift in sales mix.

“We are pleased with the first quarter results, which reflect rapid growth and scale to fulfill existing contracts and prepare for future growth,” CEO Cameron Watt said in a press release this week. “By 2022, we expect to achieve more than 50 percent revenue growth by leveraging the recent acquisition, realizing new projects from existing customers, increasing new customer acquisition, and continuing SaaS revenue growth.”

Intouch makes software that allows customers to track customer satisfaction and collect data on things like employee health and safety issues. The company announced last month that it has signed a contract to provide “geolocation data capture services” in the US to a NASDAQ-100 customer, which it declined to name. The client has been a customer of SeeLevel for four years.

Intouch said the contract is worth $7 million over an initial five-month term.

“Intouch continues to exemplify its health and stability,” Watt added. “After a two-year pandemic, we continue to focus on our core businesses as we explore areas for new revenue growth, such as the new data capture project. We continue to improve our technology capabilities on a regular basis to ensure that we can not only maintain existing customer relationships, but also acquire additional contract opportunities.”

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