Overall, a pretty good year. They need to generate cash and pay down debt and the future looks bright. Q4 was a monster quarter and if they can continue that momentum in 2024 then we should see another record breaking year.
2023 year end results
Net income : $843,370
Fcf (excluding ncwc and taxes payable) : $864,350
market cap : ~ $11,320,000
subscription revenue: $6,086,981
revenue : $6,977,597
Adjusted ebitda : $1,722,102
Ebitda is approximately 25% of revenues with y/y growth of 23%. Subscription revenue and gross margins is ~ 87% and 89% of overall sales respectively.
Balance sheet
important note: the company was not in compliant with its covenants with BDC including a requirement to maintain a working capital ratio of 1.2 to 1
The company has a revolving facility with nil used and a maximum borrowing potential of $1.6m. As of year end, Ackroo has total debt of $ 2,991,973 and free cash flow going forward in excess of $1m which is within most debt covenant ratios.