Mr. Steve Levely reports

ACKROO RELEASES Q2 2023 FINANCIAL RESULTS

Ackroo Inc. has filed its financial results for the period ended June 30, 2023. The results for the period ended June 30, 2023, reflect 9-per-cent year-to-date year-over-year revenue growth and 2-per-cent year-over-year quarterly growth. The company achieved a 5-per-cent increase in subscription revenue growth over the same period last year, which now has year-to-date subscription revenue growth at 12 per cent. The company delivered $241,838 of positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) during the quarter, which now has year-to-date adjusted EBITDA at $693,263 representing 20 per cent of total revenues. The company is very encouraged by these positive trends and expects continued success in the quarters ahead.

The complete financial results for Ackroo, along with the management discussion and analysis, for the quarter ended June 30, 2023, are available under the profile for the company on SEDAR. Highlights are shown in the attached tables.

"We are very happy with the continued growth and our strong adjusted EBITDA and general business management we are delivering," said Steve Levely, chief executive officer of Ackroo. "To start the year, we had a goal of double-digit growth while maintaining a 20-per-cent-plus adjusted EBITDA business, so it is great to see us halfway through the year and on track to deliver. We also had aggressive goals to clear various debts and liabilities in the business to further improve the balance sheet where we were happy to have fully paid off a large debt settlement agreement at the end of June while also paying off the full balance of payments owed to our acquisition of Simpliconnect. Those two payments total more than $1-million of debt/liability paid off during the period, leaving us with just our loan from BDC as the only material debt that Ackroo has to service. On the Simpliconnect front, we took significant steps forward in the normalization of that new business with many operational changes and the advancement of the technology in areas like brand loyalty, which is an exciting new area for Ackroo. We also made sure to advance our core AckrooMKTG platform with more data being provided and advancing tools within the Ackroo self-serve program console used by our merchants. We took our first steps into artificial intelligence (AI) into our product with the introduction of code completion and code generation tools. These tools allow us to drastically increase our speed by automatically completing certain code writing tasks in order to enhance various functionalities in our technology. In the future we foresee us implementing AI tools to provide predictive insights for merchants to help guide them with their loyalty marketing efforts so an exciting next step for Ackroo. We did all this while still managing a strong EBITDA as a percentage of revenue and growing our recurring and total revenues. We finished the quarter with a continued focus on capital allocation, wherein, looking at our growing M&A funnel, we realized the best opportunity for our next acquisition is actually our own stock. As we continue to generate cash for the business, we recognized buying back our own stock right now would be a wise use of capital and so for the first time we initiated an NCIB [normal course issuer bid]. We are very pleased with our first half of 2023 results and are looking forward to a very strong second half of the year."

About Ackroo Inc.

Through vendor and industry consolidation, Ackroo provides marketing, payment and point-of-sale solutions for merchants of all sizes. Ackroo's self-serve, data-driven, cloud-based marketing platform helps merchants in-store and on-line process and manage loyalty, gift card and promotional transactions at the point-of-sale. Ackroo's payment services provide merchants with low-cost payment processing options through some of the world's largest payment technology and service providers. Ackroo's hybrid management and point-of-sale solutions help manage and optimize the general operations for niche industries, including automotive dealers and more. All solutions are focused on helping to consolidate, simplify and improve the merchant marketing, payments and point-of sale ecosystem for their clients. Ackroo is headquartered in Hamilton, Ont., Canada.

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