Ackroo Inc. TSX Venture: AKR OTC Pink: AKRFF - JUNE 2020
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Ackroo Inc.
TSX Venture: AKR
OTC Pink: AKRFF
JUNE 2020
Copyright 2020 Ackroo Inc. All rights reserved.
ACKROO INC. DISCLAIMER
Certain written and oral statements included in this presentation may constitute “forward-looking information” which reflect the
current expectations of Ackroo. This information reflects Ackroo’s current beliefs with respect to future events and are based on
information currently available to management. Forward-looking information involves significant known and unknown risks,
uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different
from any future results, performance or achievements that may be expressed or implied by such forward-looking information.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied
by the forward-looking information contained in this presentation. Although forward-looking information contained in this
presentation is based upon what Ackroo believes to be reasonable assumptions, management cannot assure Users that actual
results, performance or achievements will be consistent with this forward-looking information and cautions that undue reliance
should not be placed on the forward-looking information. The forward-looking information is made as of the date of this
presentation and Ackroo does not assume any obligation to update or revise it to reflect new events or circumstances, except as
required by law.
Copyright 2020 Ackroo Inc. All rights reserved. 2
What we do
Our Vision
To simplify, consolidate and improve the merchant marketing and payments landscape
Our Mission
To help Automotive, Petroleum, Hospitality and Retail merchants of all sizes
attract, retain and grow their customers and their revenues
Loyalty Marketing Gift Cards Payments
Our Solution
▪ An easy to use, self-serve marketing platform that manages important currencies
including loyalty, gift card, promotions and payment.
▪ An open solution that integrates seamlessly into a merchants point-of-sale environment
or customer engagement application
▪ A product that provides merchants with key insights and tools to help shift, lift, retain,
and engage their customers
▪ An in-store and online solution that will continue to evolve through product and
industry consolidation
Copyright 2020 Ackroo Inc. All rights reserved. 3
Our Results – Revenue
Annual Revenue Revenue Data
$7,000,000 Fiscal Year Amount +/-%
$6,000,000 2012 $681,142 N/A
2013 $1,284,016 89%
$5,000,000
2014 $1,328,166 3%
$4,000,000
2015 $1,822,224 37%
$3,000,000
2016 $2,224,165 22%
$2,000,000
2017 $2,737,830 23%
$1,000,000
2018 $4,435,019 62%
$0 2019 $5,233,227 18%
2012 2013 2014 2015 2016 2017 2018 2019 2020*
2020* TBD X%
Note: 2020* #’s are based on annualizing YTD announced results
Copyright 2020 Ackroo Inc. All rights reserved. 4Our Results - EBITDA
Annual adjusted EBITDA EBITDA Data
$1,500,000 Fiscal Year Amount +/-%
$1,000,000
2012 - $3,421,920 N/A
$500,000
$0 2013 - $2,509,484 27%
2012 2013 2014 2015 2016 2017 2018 2019 2020*
-$500,000 2014 - $1,608,162 36%
-$1,000,000
2015 - $853,021 47%
-$1,500,000
2016 - $607,466 29%
-$2,000,000
-$2,500,000 2017 - $502,315 17%
-$3,000,000
2018 + $406,427 N/A
-$3,500,000
2019 +$614,034 51%
-$4,000,000
2020*(TBD) +$X X
Note: 2020* #’s are based on annualizing YTD announced results
Copyright 2020 Ackroo Inc. All rights reserved. 5Financial Highlights
Proven Execution
36% Revenue EBITDA Positive 51% EBITDA
✓ CAGR Since ✓ as of 2018 ✓ CAGR since 2018
Founded
86% + Gross Closed 9 M&A 96% + Retention
✓ Margins
✓ deals ✓ Rate
9-1 Organic CAC 4-1 Inorganic CAC $200k + Revenue
✓ to LTV Ratio ✓ to LTV Ratio ✓ per employee
17% net Cash Flow
✓ margin/EBITDA ✓ Positive as of Q2 ✓ 79% + of Revenue
Recurring
and growing 2019
Copyright 2020 Ackroo Inc. All rights reserved. 6Our Story – Major Milestones
•Specialization into
Auto, Petro, Hosp •Acquired WinWin
& Retail Marketing & BNA
•Steve Levely •Acquired OnTab, D1 •First EBITDA Smart Payments
•Founded & becomes CEO Mobile & Loyalint positive year
began trading on •Added 2nd Channel •Added 3rd Channel
TSX-V
•Added 1st
Partner
•10-1 Share
Partner 2020
Primary Channel consolidation 2018
Partner
2016
2014
2012
2019
2017
•Acquired IQ 724
2015 •Integrated many POS •Launched 1st self serve
2013 solutions signup product w/ Clover
•Added AckrooPAY & BI
•Acquired PhotoGIFTCARD & •Acquired KESM/LoyalMark
Dealer Rewards
•Rebuilt Ackroo technology
•Defined commercial model
Copyright 2020 Ackroo Inc. All rights reserved. 7Share Structure & Ownership
Shares
• 77 million Insiders &
Outstanding1 • Approx. 50%
Management
Options
• 7.2 million
Granted 2
Top 15 Shareholders • Approx. 70%
Warrants3 • 10.4million
Options Pool • 10 % of i/o
Market Cap4 • C$10 million
1. As of June 10th 2020
2. Average weighted options strike price is $0.14
3. Strike is $0.10 for 10,375,364 warrants expiring July 2022
4. As of June 10th 2020
Copyright 2020 Ackroo Inc. All rights reserved. 8Industry Comparables
Market Cap Trending Annualized Revenues
$3,500M $140M $121M
$3,000M
$3,000M $120M
$2,500M $100M
$2,000M $80M
$1,500M $60M
$1,000M $40M
$500M $51M $20M $6M $3M $7M
$10M $28M
$0M $0M
AKR.V ALY.V OSS.V LSPD.TO AKR.V ALY.V OSS.V LSPD.TO
Revenue Multiple Trending Annualized EBITDA
30x $5M
25x $1M $1M
25x
$0M
20x AKR.V ALY.V OSS.V LSPD.TO
-$5M -$2M
15x
9x -$10M
10x 7x
5x 2x -$15M
0x -$20M
AKR.V ALY.V OSS.V LSPD.TO
-$25M -$22M
AKR = Ackroo ALY = Analytix Insight OSS = One Soft Solutions LSPD = Lightspeed POS
(Data as of June 10th 2020) Ackroo is growth stock @ a 36% CAGR since founded
Copyright 2020 Ackroo Inc. All rights reserved. 9Market Positioning
Industry Ecosystem Ackroo Today Ackroo Future
Gift/Loyalty Payment Gift/Loyalty Marketing Gift/Loyalty Marketing
Marketing P.O.S. TBD Payments
Payments
Companies within all 4 areas are Ackroo is differentiated today by Ackroo will continue to differentiate
partnering, competing and providing expanded marketing in the future by expanding into other
consolidating and payments services aspects of the industry’s ecosystem
Copyright 2020 Ackroo Inc. All rights reserved. 10Addressable Market
The North American Gift Card & Loyalty market is estimated at $180B
Estimated 20% CAGR
Ackroo’s current % penetration of the CDN & US Market
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Automotive Petroleum Hospitality Retail
CDN Market US Market
SIGNIFICANT ROOM FOR GROWTH
Copyright 2020 Ackroo Inc. All rights reserved. 11How we do it
We provide a closed loop in-store and online automated marketing solution
Process gift card, loyalty & Provide merchants with Allow consumers to access
promotional transactions at important administrative and manage their gift card &
the point-of-sale and marketing data loyalty accounts
We also provide additional services to help our clients grow
Distribution Marketing Email Marketing Payments
Help merchants sell Digital and physical Credit & Debit
their gift cards at marketing services Transaction
Gift Card Mall
other retailers to maximize results processing
Direct Mail
Copyright 2020 Ackroo Inc. All rights reserved. 12Client Benefits
Other Ackroo platform benefits for merchants
Loyalty protects margin,
attracts customers, creates
lift and drives behavior ✓ Removes manual labor, fraud and theft from paper
based options
Marketing platforms provide
key insights and actionable
✓ Centralizes data and reporting for gift card and
tools to drive results
loyalty programs
✓ Enhances their customers experience
Gift cards increase merchant
revenues and cash flow ✓ Provides a self-serve platform allowing for swift
changes to marketing strategy & admin setup
Payment Processing is a ✓ Provides a centralized solution for all primary
necessary service needed for
all merchant types
merchant currencies
✓ Provides significant cost savings for debit and credit
card processing
Copyright 2020 Ackroo Inc. All rights reserved. 13Some of our Clients
Large/Enterprise Merchants:
Medium Sized Merchants:
Small Sized Merchants:
ACKROO SUPPORTS OVER 4,800 CLIENT LOCATIONS AND GROWING
Copyright 2020 Ackroo Inc. All rights reserved. 14Some of our Partners Copyright 2020 Ackroo Inc. All rights reserved. 15
Business Model
Monthly Other One Time Marketing
Subscription Subscription Services Revenue Services Revenue
Revenue (MRR) Revenue (MRR) (OTR) (OTR)
•Platform access, •Payment & •Platform setup, •Cards + collateral
development & specialty services design & custom •E-mail & direct Mail
support commissions development marketing
Company Business Metrics 2020 Description
MRR to OTR Ratio 79% | 21 % Fixed vs. Variable Revenue
Average MRR per location per month $81 Monthly Recurring Revenue
Average OTR per location per month $23 Monthly One Time Revenue
Average TR per location per month $104 Monthly Total Revenue
Gross Margin 86% Revenues less COGS
Approximate LTV (7 year min) $8,735 TR x 84 months
Average CAC (Organic) $975 Sales, Marketing and Channel costs % added locs
RPE (29 staff) $200,000 + Revenue Per Employee
Retention 95%+ Lost locations % by total locations
Organic Closing Ratio 35% Inbound & Channel leads
Locations 4,800 + Active customer locations
Copyright 2020 Ackroo Inc. All rights reserved. 16Organic Growth
Approach Product Geography
Cross Sell
Customers
Specialization Expand Increase
Product # of POS
CDN US
Expansion Expansion
Product
Sales Channel
Partners
Expand
Services
PS
MS Product = Self Serve SMB + Business Via new partners + offerings
Loyalty Intelligence (BI) Advancement
Promo Services = Marketing + Payment
E-Gift
Gift
Copyright 2020 Ackroo Inc. All rights reserved. 17Inorganic Growth Strategy
Past Inorganic Growth
Photo Dealer OnTab D1 Loyalint KESM IQ 724 WinWin BNA
GIFTCARD Rewards Mobile LoyalMark Marketing
Rev Mult 2.5x 2x N/A 1x 2x 1.5x 1.5x 1.5x 1.5x
Paid
Structure 100% stock 80% cash | Cons Ag 100% 80% cash | 10% cash | 100% 100% cash 100%
20% stock stock 20% stock 90% stock cash cash
Customer 900 + 107 None 100 + 138 2,400 + 400 + 40+ 120+
loc adds locations
Annual $60k $900k None $100k $230k $1.8M $1.9M $75k $450k
Revenues
Integration 3 months 24 months 6 months 5 months 8 months 18 months TBD TBD TBD
Time
Go forward strategy
Acquire 1 -2 Per Focus on Add customers, 40%+ of rev adds Expand solution
Year cash/Earn-outs tech + talent to EBITDA & reach
Copyright 2020 Ackroo Inc. All rights reserved. 18Direct Competition
Merchants Gift Card Loyalty
Large
SMB
• North American
• Many small and large players with specific niches
• Ackroo covers all 4 quadrants
• Ackroo is helping to consolidate this marketplace
Copyright 2020 Ackroo Inc. All rights reserved. 19How we differentiate today
Focus: Loyalty marketing, gift card and payments for all merchant sizes
Partnerships: Deeply integrated selected strategic partners
Platform: Latest technology, open architecture and self-serve
Affordability: Priced for all merchant sizes
Go to market: Channel & Direct sales approach + tech first – services second
Specialization: Petroleum, Automotive, Hospitality & Retail
Geography: Based in Hamilton, ON, Canada with North American focus
Other services: Distribution, marketing and payment services
Public Currency: Access to growth capital & liquidity draws interest for M&A
Copyright 2020 Ackroo Inc. All rights reserved. 20Additional Investor Checklist
Market Leadership: Vendor consolidator for merchants + Industry consolidator
Cloud SaaS provider: Highly scalable technology infrastructure and approach
E-commerce & in-store: Omni-channel platform
Payments: New and emerging payment options – contactless etc.
Big Data: Multi-channel business intelligence tools
Digital/Mobile Marketing: Expanded product and services offerings
Proven M&A Results: 9 accretive deals and counting
Large TAM: Multi-billion dollar market growing at 20% + per annum
Strong Revenue Growth: 36% CAGR since founding in 2012
Earnings Positive: 9 consecutive positive earnings quarters
Attractive Valuation: Trading well below peers
Copyright 2020 Ackroo Inc. All rights reserved. 20Our Team
Senior Management
▪ Steve Levely | CEO
Sales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo
▪ Derek Schaaf | CFO
Finance & Executive leadership expertise; CMC Distribution, Great Blue Resorts and Ackroo
▪ Ihab Kazem | Director R&D
Engineering & Product Management expertise; Bridgewater Systems and Ackroo
Board of Directors
▪ Steve Levely | Director
Sales, Marketing and Executive leadership expertise; Pitney Bowes, Maritz, and Ackroo
▪ Sam Cole | Director
Corporate securities law expertise; ASKD Law and Cassels Brock & Blackwell LLP
▪ Wayne O’Connell | Director
Public and Private accounting expertise; Jones & O’Connell LLP
▪ Kristaps Ronka | Director
Technology founder, investor and executive; AdParlour and Namesilo
▪ Jason Donville | Director
Capital markets research and investment expertise; Cormark Securities and DKAM
Copyright 2020 Ackroo Inc. All rights reserved. 21Contact Information
Ackroo Inc.
Steve Levely
(416) 360-5619 x730
slevely@ackroo.com
HAMILTON OFFICE
1250 South Service Road, A3-1
Hamilton, Ontario L8E 5R9
Simplify, Consolidate & Improve!
Copyright 2020 Ackroo Inc. All rights reserved. 22You can also read
