Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF) is seeing early signs of success from the signing of new monthly subscribing customers and the increased use of its Perk Hero platform.
“We signed a number of annual contracts and are tremendously encouraged to see our annual recurring software-as-a-subscription revenue increase by 61.6%,” Perk CEO Jonathan Hoyles said in a results statement.
The technology company’s platform enables businesses to offer QR-code-powered ordering and payment, digital loyalty rewards and mobile marketing.
READ: Perk Labs boosts sales team with new director of sales Manon Roy
Hoyles said Perk Labs will focus on demonstrating its execution capabilities, revenue growth and a clear path of profitability moving forward.
“That is what our team is laser-focused on as we've reduced our expenses and concentrated on the fundamental areas where we believe we can most effectively generate high-margin revenue reliably,” he added.
Perk Labs said deferred revenue from the cash received from new annual software contracts signed in the third quarter encompassed 6,400 of the total 14,500, which will be recognized as revenue on a monthly basis. These new contracts increased its annual recurring software-as-a-subscription revenue by 61.6%, the company said.
The company made a net loss of $2.8 million in the three months to August 31, 2022, compared to a loss of $839,000 in the year-ago period. This is primarily driven by the reduction in the valuation of marketable securities due to the decrease in the stock price and the liquidation of its shares in Hero Innovation Group (CSE:HRO) Inc (formerly Euro Asia Pay Holdings Inc), which generated an unrealized loss of $1 million, the company said.
Working capital in the third quarter fell to $600,000 from $2.5 million a year ago and $2.0 million in the fourth quarter of 2021.
General and administrative expenses increased 7% to $941,000 as the company prioritized investor relations through its market awareness campaign, it added.
"In this fiscal quarter, the company has started to see an increase in demand for our products, confirmed by the signing of new annual contracts" said Vanessa Altamirano, Perk Labs’ interim CFO.
"The completion of the Deliverect POS integration will allow us to escalate revenue and growth by being able to support enterprise customers. The company's focus for the coming quarters will be to increase sales initiatives, and we have started doing so, by recruiting a new director of sales, who has over 15 years of experience. We are also entering new verticals to increase our total addressable market by being able to support not only restaurants but also other businesses such as salons, health and wellness, fitness and studios,” she added.
Perk Labs Inc. (CSE:PERK, OTCQB:PKLBF)is a technology company on a mission to empower business owners with digital tools to provide their customers with experiences that are more engaging, convenient and rewarding.
Contact the author at jon.hopkins@proactiveinvestors.com