Tech group RESAAS Services Inc (CVE:RSS, OTCMKTS:RSASF) said it reported record quarterly revenue in its first quarter to end March thanks to winning new clients.
In the three months to March 31, the group, which has developed a cloud-based social business software platform for the real estate sector, posted revenue of C$139,421, which was 20% higher than in the same period of 2017 (C$116,093).
The firm put the growth mainly down to services provided to new real estate association clients.
The company also said it expects that revenue will continue to increase with the further commercialization of its platform.
The net loss however widened to around C$2.75mln in the three months from C$1.272mln in the same three months of 2017, mainly attributable to the increase in share-based compensation paid out between the quarters this year and last.
Earlier this month, the company said it would focus on increasing sales in fiscal 2018.
Chief executive Tom Rossiter said the company would focus particularly on midsize real-estate brokerages with the goal of driving further revenue growth and maintaining the current level of revenue derived from recurring income.
Resaas acquired Real-Block Inc, a Toronto-based company holding a real estate blockchain application in 2017.
The group plans to integrate Real-Block Inc's technology into its existing platform, with the goal of enhancing and expanding referral services.
Among 2017's achievements, Rossiter had said, was increasing revenue by 50% in fiscal 2017 compared to 2016, 90% of which was, by the fourth quarter, revenue derived from recurring income (compared to 50% in the first quarter of fiscal 2017).
The company has also reduced the cash burn rate in each month of fiscal 2017 and securing a team of experienced sales personnel to provide new sales and marketing strategies to RESAAS, as well as to begin targeting and selling to the commercial real estate sector.
After period end, Resaas took steps to reduce its operating costs.
It reduced the headcount by around 18% and took steps which, once realized fully will result in general monthly operating costs reducing by around 40%.
As a result, a one-time charge of $37,306.51 will be recorded in its second quarter financial results, it added.