Intouch Insight Ltd. (INXSF) research, news, and more from GeoInvesting

Company description

Fri, 24 Jan 2020 12:56:32 GMT

Intouch Insight Ltd. develops managed mobile software applications and software-as-a-service platforms, and delivers services for private businesses, governments, and regulators in Canada and the United States. It develops customer experience management software for retailers, restaurants, and hotels; survey software; mobile forms software; and event data capture software, as well as offers data collection services, including mystery shopping, third party audit, and customer experience measurement programs. The company's software platforms include IntouchCapture, IntouchCheck, IntouchSurvey, and LiaCX that facilitate the development of data collection programs comprising event lead capture, customer satisfaction surveys, and mobile forms, checklist, and audits. The company was formerly known as In-Touch Survey Systems Ltd. and changed its name to Intouch Insight Ltd. in July 2016. Intouch Insight Ltd. was founded in 1992 and is based in Ottawa, Canada.

Research

Wed, 08 Apr 2026 21:42:46 GMT

Intouch Insight Ltd. (OTC:INXSF) (TSX:INX) ($0.25; $6.3M market cap) announced Q4 and FY 2025 results:

Q4 2025 sales of $5,944,306 vs $6,368,164 in the prior year
Q4 2025 non-GAAP EPS: of $0.00 vs $0.00 in the prior year
FY 2025 sales of $25,394,364 vs. $28,224,202 in the prior year
FY 2025 non-GAAP EPS: of $0.01 vs. $0.01 in the prior year

Management Commentary:

"2025 was a transitional year for Intouch as we took deliberate steps to reposition our revenue base and begin investing in future growth initiatives. The improvement in gross margin dollars, despite revenues that were lower by $2.8M following the exit of the Ardent business model, reflects a continued focus on operational efficiency and the quality of the remaining revenue. During the year, we made targeted investments to support future growth including hiring additional sales and marketing personnel, adding additional product development resources, and rebuilding our merchandising business. We believe these ongoing investments including those in artificial intelligence will position the Company to deliver improved performance."

"The Company has established a strategic direction focused on long-term growth, supported by key operational and technology initiatives. In 2026, we expect to continue advancing these efforts while working towards sustained revenue growth, including contributions from our merchandising activities.”

Outlook from annual report:

“In 2026, management anticipates:

Double-digit organic revenue growth by year end

An operating loss as investment continues

Merchandising revenue exceeding $1 million

Continued SaaS growth

In 2027, management anticipates the Company will achieve higher levels of growth and return to profitability.

By 2028, management believes the Company will achieve continued growth and improved profitability as operating leverage increases.

Funding the Growth Plan

The Company anticipates these strategic investments will be funded through operating cash flow and existing credit facilities. Management does not anticipate that shareholder dilution will be required to support organic growth. As the business scales, management believes operating leverage will improve the Company’s earnings profile and support long-term shareholder value.”

–

Our Quick Take:

Intouch Insight has been in turnaround mode for quite some time, as COVID materially altered the industry landscape, and there is still meaningful work ahead. Despite gross margin improving from 44.5% in FY2024 to 50.3% in FY2025, operating income turned negative due to higher SG&A expenses, although the company did post a slight profit in Q4 2025.

Management now expects to generate an operating loss in 2026 as these investments continue. In theory, both growth and profitability should improve through 2027–2028, but looking at the post-COVID track record, management has yet to demonstrate consistent profitability.

While we are somewhat frustrated with the time it has taken the company to rebuild since COVID, this could be an attractive setup for investors willing to wait. If the plan plays out, it is worth noting that, with an enterprise value to sales multiple of 0.33x, the stock appears incredibly cheap.

Intouch Insight Ltd. provides customer experience management solutions and SaaS for businesses to monitor and improve brand performance across multiple locations, serving industries like retail, hospitality, and automotive worldwide.

Research

Fri, 21 Nov 2025 15:34:09 GMT

Intouch Insight Ltd. (TSXV:INX) (OTC:INXSF) (C$0.35; C$8.8M market cap) announced Q3 2025 results:

Q3 2025 sales of C$6,626,856 vs. C$6,656,664 in the prior year
Q3 2025 loss per share: (C$0.00) vs. EPS of C$0.01 in the prior year
Gross margin increased to 48.4% from 48.2%
SaaS revenues grew 3% organically
Operating expenses rose 11% year-over-year
Acquisition of ClearPoint Solutions US completed

Management Commentary:

"The third quarter reflected solid operational progress with SaaS revenue growth, an improved revenue mix, and a 20 basis point expansion in gross margin. We also completed the acquisition of ClearPoint, expanding our addressable market leveraging our strong, existing in-store presence. These results alongside our investments for growth position Intouch well as we begin executing our three-year plan to double the business and reach $50 million in annual revenue by the end of 2028." – Cameron Watt, President & CEO

"We have established a clear strategic direction for the company, setting the goal of doubling the business over the next three years. We are targeting $50 million in annual revenue by the end of 2028, driven by a multi-faceted strategy which includes organic growth, SaaS growth, merchandising growth and potential acquisitions."

"As anticipated, this planned investment cycle will temporarily impact profitability, as reflected in the recent quarter and particularly through 2026 and into 2027. However, we expect to gain clear momentum along the way, driven by sustained revenue growth, expanding customer adoption, and steady progress toward key performance milestones. As we advance toward our 2028 revenue target, we anticipate meaningful operating leverage and robust profitability."

Research

Thu, 28 Aug 2025 04:00:00 GMT

Intouch Insight Ltd. (TSXV:INX) (OTC:INXSF) (C$0.39; C$9.87M market cap) announced Q2 2025 results:

Q2 sales of C$6.5 million vs. C$7.4 million in the prior year
Q2 2025 EPS: Q2 Nong-GAAP EPS of $0.00 vs. $0.00 in the prior year

"We are pleased to have been able to replace the revenues lost from acquired customers through organic growth. Looking forward we expect sales and marketing expenses to continue to increase, SaaS growth to return and accelerate, and increased opportunities across the business," said Cameron Watt, President & Chief Executive Officer of the Company.

"We remain steadfast in our commitment to carefully manage our resources and are currently exploring options to improve our efficiency, contain our costs, and create a sustainable competitive advantage through the use of AI and other technology," said Watt.

Research

Tue, 17 Jun 2025 15:04:25 GMT

Intouch Insight Ltd. (TSXV:INX) (OTC:INXSF) ($0.42; $10.9M market cap) announced the signing of a definitive agreement to acquire the assets of ClearPoint Solutions US, LLC:

"This acquisition represents an exciting opportunity to accelerate and de-risk our continued expansion into the merchandising market," stated Cameron Watt, President & Chief Executive Officer of Intouch.”

Key highlights:

Executed a definitive agreement to acquire all assets of ClearPoint Solutions US, LLC, a merchandising company based in Atlanta.
Initial cash payment of USD $250,000, funded from existing reserves, plus contingent earnouts over four years.
No finder's fees will be paid; the transaction is with an arm’s length party.
Acquisition expected to close on July 3, 2025, pending customary conditions.
ClearPoint President Sam Hersey will join Intouch and lead the merchandising division.

Research

Fri, 23 May 2025 20:06:18 GMT

Intouch Insight Ltd. (TSXV:INX) (OTC:INXSF) ($0.47; $12.20M market cap) announced Q1 2025 results:

Q1 2025 sales of $6.3 million vs. $7.8 million in the prior year
Q1 2025 EPS of $0.01 vs. $0.00 in the prior year

Our Quick Take:

It’s good to see that the company has continued its quarterly string of “slightly-moving-over-to-making-money” trend.

We think the company is set up for some really good earnings growth once its plan to resume revenue growth begins. As noted before, the company has been pulling back on revenue growth to concentrate on more profitable revenue growth.

The stock currently resides in our Focus Model Portfolio, and has the chance to be a top selection from that portfolio if this CEO’s plan starts coming together more aggressively. During MS Microcaps’ March 2025 Virtual Conference, the CEO talked about the profitability goals moving forward.

Management commentary from the earnings report:

"We are thrilled with the strong results from our strategic decision to exit low-margin revenue streams from Q1 2024. This move led to an 11% improvement in gross margins, and we generated 4% more margin dollars than the previous year, even with lower overall revenue. Thanks to these gains and further cost efficiencies, we achieved over four times the profit," said Cameron Watt, President & Chief Executive Officer of the Company.

"Looking ahead, we are energized by the opportunities to drive growth, regardless of external uncertainties. We continue to actively pursue new avenues for expansion in both recurring services and SaaS offerings as well as in the utilization of AI to create differentiation, automation, and cost improvements. Additionally, we are exploring opportunities to re-enter the merchandising business with a clear focus on delivering sustainable and profitable growth," said Watt.

The SEDAR filing gives a little more color on the company’s outlook:

“Our commitment to innovation is unwavering. Through targeted investments in sales, marketing, and the latest AI technologies, we are enhancing our capabilities and identifying high-impact areas for automation and efficiency gains. These AI-driven initiatives, once implemented, are poised to reduce operating costs and differentiate our product offerings, giving us a competitive edge. While these forward-looking investments may create some short-term financial pressures, they will be executed with careful consideration to ensure we remain self-funded and consistently profitable. With this strategy, we maintain our goal of surpassing the $25M in core revenues achieved in 2024, while continuing to deliver strong, robust gross margins.”

Research

Fri, 04 Apr 2025 20:16:51 GMT

Intouch Insight Ltd (OTC:INXSF) (INX.V) ($0.34; $8.6M market cap), announced Q4 2024 results:

Q4 sales of $6.3 million vs $9.0 million in the prior year
Q4 2024 Non-GAAP EPS of $0.01 vs $0.00 in the prior year
Full year sales of $28.2 million vs $25.4 million in the prior year
Full year non-GAAP EPS of $0.03 vs $0.01 in the prior year

"We are pleased with the financial results in 2024 having delivered the strongest year in the company's history with record profits. 82% of our revenues came from the United States and we do not expect to be impacted directly by the current government actions as we operate in the United States through a US corporation," said Cameron Watt, President & Chief Executive Officer of the Company.

"Looking forward we remain committed to sustainable, profitable revenue while ensuring that the organization is able to generate the resources it requires," said Watt.

Research

Fri, 22 Nov 2024 05:00:00 GMT

Intouch Insight Ltd (OTC:INXSF) (INX.V) ($0.26; $9.5M market cap), announced Q3 2024 results:

Q3 sales of $6.6 million vs $5.6 million in the prior year
Q3 2024 Non-GAAP EPS of $0.01 vs $0.01 in the prior year
Net income of $366,763 vs $258,531 in the prior year

"Our financials illustrate that Intouch is a growing, profitable and financially self-sufficient business. Sales and marketing efforts are building on our thought leadership and improving brand recognition, particularly in the key target market segments of Quick Serve Restaurants and Petro Convenience, as evidenced by recent mainstage speaking invitations for four industry events," said Cameron Watt, President & Chief Executive Officer of the Company.

"This year will mark the second year in a row with revenues over $25 Million and we expect growth to continue well beyond this level into the future," said Watt.

As is often the case with INXSF, there is more information available in the sedar filing regarding outlook. Here are the key takeaways from this quarterly filing:

Shift to slower more profitable growth is working
“As we look through the financials it is evident that there is a growing, profitable business and management expects this to continue.”
Sales pipeline healthier than it has been in years
Re-setting Ardent business model and expect growth with higher margins in 2025
Expects business to remain profitable and will be self sufficient, and ensures that there will be no dilution

Recall that in our 11/14/2024 email that we closed our LegacyTop 5 Model Portfolio to focus on our new high conviction Open Forum Focus Model Portfolio, stating this about INXSF:

“Closing INXSF from the Top Five Favorites Model Portfolio at $0.27 with a final return of -1.97% and high return of 42.62%. (the stock still resides in our Run To One Model Portfolio).

In the case of INXSF, management has decided to shift away from aggressively growing revenues at the expense of profitability (remaining around breakeven)... to dialing back revenue growth to achieve profitability. Investors are in a holding period as they wait to see if management can fully execute this strategy and how much revenue growth will need to be reduced to reach profitability. There’s also concern that the company's customer experience management services are facing a softer demand environment. We are confident that management will eventually get back on track to achieving aggressive revenue growth once profitability is attained. The stock is selling at a very low price-to-sales multiple.”

INXSF Q3 quarter has alleviated our near-term uncertainty on the timing of when their strategy to reach consistent profitability would occur. At an EV/S of 0.54x and run-rate P/E of 9 we see significant upside from current prices.

Below is a full outlook section from the related SEDAR filing (SEDAR is the Canada’s equivalent of the SEC filings database).

“We started 2024 with plans for investment into aggressive growth and modified those plans in the spring based on market expectations. Specifically, we shifted towards slower, more profitable growth. As part of this adjustment, we discontinued the then-current Ardent business model. With three quarters now reported, we are in the middle of the adaptations being made to the business, and the impacts are apparent throughout the reported financials. For example: Q3 delivered 18% revenue growth over the prior year, while year-to-date growth is 33%.Gross margins in Q3 were up to 48.2%, compared to a year-to-date gross margin of 42.8%.

As we look through the financials, it is evident that there is a growing, profitable business, and management expects this to continue. Sales and marketing efforts are improving our brand recognition, particularly in the key target market segments of Quick Serve Restaurants and Petro Convenience. In addition to the publication of our studies and resulting media attention, we were also invited to the main stage to speak at four industry events in 2024. Looking forward, we expect to build on this success, expand our overall thought leadership in the industries we serve, and continue to improve our sales pipeline, which is healthier than it has been in years.

We are also in the middle of re-setting the Ardent business model and expect that it will be revenue-generating in 2025, with higher margins in line with our focus on profitable growth. In addition, with almost three quarters of our revenue coming from the United States, and with the election behind us, we are optimistic that business will be back to normal behavior for 2025.This year will mark the second year in a row with revenues over $25 million, and we expect growth to continue well beyond this level into the future.

While we have already indicated that we expect the business to remain profitable, it is worth stating explicitly that we are self-sufficient with our cash needs and remain committed to ensuring dilution is not required for the successful operation of the existing business.

One caveat investors could take away from this is that the revenues of over $25 million statement implies a possible down Q4 in revenue terms (to around $4 million),given last year’s big outlier Q4 of $9 million (low margin) revenue performance.. However, as we said before, we are more focused on profitable growth, and all indications are that Q4, despite lower revenues, should have an improved bottom line. And lastly, comments suggest that 2025 and beyond should continue to improve and show a profitable growing business.

Call to Action

Thu, 14 Nov 2024 05:00:00 GMT

Portfolio Action: Removing INXSF from Top 5 Favorite Model Portfolio

Closing from the Top Five Favorites Model Portfolio at $0.27 with a final return of -1.97% and high return of 42.62%.

In the case of INXSF, management has decided to shift away from aggressively growing revenues at the expense of profitability (remaining around breakeven)... to dialing back revenue growth to achieve profitability. Investors are in a holding period as they wait to see if management can fully execute this strategy and how much revenue growth will need to be reduced to reach profitability. There’s also concern that the company's customer experience management services are facing a softer demand environment. We are confident that management will eventually get back on track to achieving aggressive revenue growth once profitability is attained. The stock is selling at a very low price-to-sales multiple.

Research

Thu, 22 Aug 2024 19:47:32 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.37; $9.5M market cap), announced Q2 2024 results:

Q2 sales of $7.3 million vs $5.6 million in the prior year
Q2 2024 Non-GAAP EPS of $0.00 vs $0.01 in the prior year
EBITDA of $296,515 vs $633,599 in the prior year

"Sales and marketing efforts have been well received throughout the year and we continue to make advancements towards industry leadership in gas & convenience as well as quick serve restaurants. While we have been invited to participate in more proposals than ever before, we continue to be disappointed by the slowing pace of the US economy, causing some new account revenue to be pushed out to 2025, " said Cameron Watt, President & Chief Executive Officer of the Company.

"2024 should deliver full year growth as well as improved gross margin percentages through the back half of the year. We remain committed to remaining cash flow positive despite short term economic challenges and expect new account acquisition to accelerate in 2025," said Watt.

Excerpt from the company’s Discussion and Analysis:

“The business remains focused on securing additional accounts and improving overall profitability. We expect the outcome of the current proposals to become known in the coming months which may set up 2025 for a strong January start.”

In the Q1 report, the company announced that it would start to dial back revenue growth to focus more on profitability, especially pertaining to investing less capital into its late 2023 acquisition of Alta which has lower margins. It appears that this move will begin to inflect over the next few quarters.

It’s become apparent that investors are not going to place an aggressive multiple on sales for the company, despite the company’s demonstration of strong sales growth, and staying around breakeven, while accomplishing this.

We think management’s focus on profitability will eventually pay off, in terms of allowing valuation multiples to expand.

As you know, since mid-2022, we’ve been pounding the table that the days of investors broadly paying nosebleed valuations on revenue growth are over (unlike the preceding decade), and that quality and profitable companies will be where investors will deploy capital, especially in the microcap space.

INXSF offers a complete portfolio of customer experience management products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance.

Research

Fri, 17 May 2024 04:00:00 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.31; $7.9M market cap), announced Q1 2024 results:

Q1 sales of $7.8 million vs $5.1 million in the prior year
Q1 2024 EPS of $0.00 (net income of $69,804) vs. a net loss of $0.01 (net income of -$184,514)
EBITDA of $343,843 vs $22,088 in the prior year

“The use of mystery shopping and customer experience measurement programs appears to be increasing as companies seek information to help them bridge the gap between customer expectations and current levels of customer service. In fact, customer service levels have been a topic of concern since service-based industries came out of the pandemic into a difficult labor market. We are focused on taking advantage of the evolving environment and capturing future organic growth as we work with prospective clients to launch major programs in 2025," said Cameron Watt, President & Chief Executive Officer of the Company.

"We have shifted some of our focus away from previously announced growth and towards EBITDA and profitability in response to market conditions and expectations. There will be short-term financial pressures as we integrate Alta, adjust the Ardent delivery model, and continue investing to prepare the organization for future growth. We remain committed to managing the business carefully, balancing growth and fiscal diligence," said Watt.

In general, we are happy that the company is finally focusing on profitability, even if it comes at the expense of lower revenue growth. This is a suggestion we had offered the company for the last couple of years. It would have been nice if management was more specific on what it meant by its “backing off growth” statement in terms of revenue growth expectations.

Research

Fri, 05 Apr 2024 15:23:26 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.31; $7.9M market cap), announced Q4 and full year 2023 results:

Q4 sales of $9.0 million vs $5.5 million in the prior year
Q4 net loss of $0.00 vs EPS of $0.01
Full year sales of $25.4 million vs $23.3 million in the prior year
Full year Non-GAAP EPS of $0.01 vs EPS of $0.02

"We are proud to have delivered on the goals and expectations we set for 2023. At the outset, we knew that 2023 would be challenging due to the uncertain economic times and the need to replace two million dollars of non-recurring revenue from 2022. This challenge was met, and we were able to grow not only recurring revenues but overall revenues while increasing our investment in future growth, delivering significant EBITDA, and successfully integrating our latest acquisitions," said Cameron Watt, President & Chief Executive Officer of the Company.

"We expect our revenues from traditional business lines to exceed the $23 million from 2023 and Ardent revenues to be incremental to this core growth. Therefore, we are forecasting total revenue growth of between 25% and 40% in 2024. The amount of the final revenue for the corporation will be dependent upon the general market conditions, the timing of new revenue acquisition, and the ability of Ardent to deliver on its business plan," said Watt.

Important note from filing not mentioned in release:

“As we continue to focus on product and growth initiatives, we expect profit pressure to continue. We are committed to ensuring that we remain EBITDA positive and do not require any additional outside funding or dilution to maintain the current business trajectory.”

Research

Mon, 27 Nov 2023 15:40:57 GMT

Greetings. I have a few things to talk about this morning. I wanted to start off by disclosing that we are now adding Intouch Insight Ltd (OOTC:INXSF) to our Buy on Pullback Model Portfolio (BOP) #11 that we launched in September 2023. The portfolio is off to a pretty good start with a current return of 11.5% and a high return of 23.2% Even though INXSF is up about 30% from the third quarter press release last Wednesday, the stock is still down significantly from its highs of $0.69 in 2021.

INXSF had fallen 45% from March 2023 to November 2023, trading near its 3-year low.

The dip is attributed to a temporary deceleration in customer orders. While its customers were still engaging with the company, many of them pulled back the pace of their order flow because of some uncertainty regarding the economy.

While demand was still somewhat strong, it wasn’t as strong as it was in the past as customers were taking a wait-and-see attitude on the direction of the economy.

Well, our chat with the CEO of the company confirmed the statements he made in the filing that industry conditions have bottomed, and that the company is back in the high growth mode they were about to enter before COVID-19 severely hurt the business because many of its clients are in the retail and hospitality business. But, now it looks like it’s game on!

I find it ridiculous that this profitable company with high recurring revenue and a low customer abandonment rate is trading at a price to sales and enterprise value to sales of around 0.5x. To put this in perspective, from our experience, companies with these types of characteristics would typically minimally sell at a price to sales multiple of between 2x to 4x.

Now that we have information that the industry trends are turning positive for the company, and that the acquisition has totally transformed them, the case is even stronger that the shares should gravitate towards this valuation range.

Including the revenues from the recent acquisition, this would translate into a price performance target range of 362% to 824%.

Research

Wed, 22 Nov 2023 05:00:00 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.26; $6.6M market cap), a company that manages mobile software applications and software-as-a-service platforms announced Q3 2023 results:

Sales of $5.6 million vs $5.4 million in the prior year
EPS of $0.00 vs EPS of $0.01

“We believe the growth in Q3 2023 revenues over the prior year represents a turning point in the underlying economic conditions so many of our clients have been facing," said Cameron Watt, President and Chief Executive Officer.

"We have just completed the acquisition of Alta360 Research, Inc (Alta) and its sister company, a new venture, Ardent Retail Services Inc (Ardent). The Alta revenues will bolster existing recurring services revenues, and Ardent is expected to bring significant revenue opportunities through new business segments with our existing clients. These opportunities, combined with our increased investments in sales and marketing, are expected to drive stronger growth as we look forward," said Watt.

SEDAR outlook section offers additional color, including:

Ardent already contributing to revenue
Ardent contract size will be much larger than INXSF current business
Getting back into growth mode

Shares are currently trading at a price to sales ratio and EV to sales ratio of 0.4. We continue to believe that the stock should minimally trade at a price to sales ratio of between 2 and 4, given that the company is growing its recurring software revenue, and is actually profitable. As long as the company stays around breakeven on an EPS basis and continues to telegraph that it doesn’t have to raise money, we think shares should gravitate towards that valuation range, offering significant upside for shareholders.

Again, please join us today at 11AM EST (details above), as we discuss the quarterly results and comments from INXSF’s SEDAR filing with CEO Cameron Watt.

Research

Tue, 03 Oct 2023 16:14:49 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.28; $7.2M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced it has closed the acquisition of Alta360 research. The definitive agreement was signed on September 15, 2023

Research

Tue, 06 Jun 2023 19:00:49 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.26; $6.6M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced a letter of intent to acquire a customer experience measurement company.

The Vendor has approximately USD $5M in annual revenues and EBITDA of approximately 15%.
The purchase price is USD $1.5M in cash upon closing, a USD $500,000 promissory note repayable over three years with interest, and additional contingency payments expected to be approximately USD $400,000 per year

"The proposed Acquisition is synergistic with our current business. We expect a smooth and efficient integration of the new clients who represent some exciting new brands for Intouch to work with. This transaction will increase our portfolio of clients to whom we can sell our entire suite of products, including our SaaS offerings.”

The targeted closing date is September 1, 2023.

The $5 million in annual revenues equates to roughly a quarter's worth of additional sales. We will watch for the closing and proforma 8K.

Research

Tue, 30 May 2023 17:22:55 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.28; $7.3M market cap), a company that manages mobile software applications and software-as-a-service platforms announced Q1 2023 results:

Sales of $5.1 million vs $5.2 million in the prior year
Net loss of $0.00 vs net loss of $0.01

"There was a slight decline in revenues due to the overlap of a non-recurring project - however, we are pleased with the continued pace of growth in our SaaS product lines and with achieving growth in recurring revenue despite the current economic climate…

…Margins were lower, driven by initial costs around a new client with strong long-term potential. Although Q2 revenues will decrease from last year due to the one-time low margin contract in 2022, we expect non-recurring revenues and margins to improve. We remain focused on overall growth as well as ensuring the Company is EBITDA positive, allowing us to continue to self-finance the growth of our SaaS-based software business from within,"

The company also provided some additional details on its outlook in its quarterly report it published yesterday. It appears that the company is expressing a message that it will be able to post some growth in 2023, not including some non-recurring revenue that occurred in Q2 of 2022, mainly driven by software business.

“Looking specifically at Q2, it is important to remember that the Company successfully delivered a large non-recurring data capture services contract in Q2 2022. As a result, we expect revenues to be lower in Q2, 2023, but that recurring revenue will remain stable. In addition, due to the lower margin on the one-time project in 2022, we do expect margins in Q2 2023 to be higher than they were in 2022. We expect margins to return to normal levels in Q2 and be significantly higher than in Q1, 2023.

With the momentum of our SaaS business, organic growth to our recurring revenues, and new client acquisition, we are excited to see 2023 evolve. We are committed to remaining EBITDA positive and self-funding as we continue to build the business.”

The results are in line with what management communicated to us at the Planet MicroCap Conference in Vegas.

Research

Thu, 06 Apr 2023 17:14:01 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.40; $10.4M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q4 and full year 2022 results:

Full year sales of $23.4 million vs $16.0 million in the prior year
Full year EPS of $0.02 vs net loss of $0.01
Q4 sales of $5.5 million vs $5.5 million in the prior year
Q4 EPS of $0.00 vs $0.00

“We are proud to announce our best year ever of revenues. The Company's strategy of product innovation and opportunistic acquisition was critical to our success in 2022. We also expect our SaaS business to continue its growth in line with our ongoing investment...

...Given the broader economic marketplace 2023 is going to present challenges and we are ready to tackle them head on. The Company is pleased with its sales pipeline and is confident in its ability to continue to secure new clients. Investments will continue and we expect to remain EBITDA positive in 2023 allowing us to continue to self-finance the development of our SaaS based software business from within the company,"

2022 Revenue was near the high end of the company’s guidance range of 40% to 50% growth. However, management provided no guidance for 2023, likely due to the challenging economic environment for its customers.

Reading between the lines, it appears that the growth of its survey and mystery shopping business for 2023 will be muted, while the software business will continue to grow.

Research

Tue, 22 Nov 2022 14:22:37 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.36; $9.6M market cap), a company that manages mobile software applications and software-as-a-service platforms announced Q3 2022 results:

Sales of $5.4 million vs $3.9 million in the prior year
EPS of $0.01 vs net loss of $0.00

“Our strong third-quarter results reflect ongoing stable execution by our dedicated teams to win new business and restart recovering customers while delivering the high-quality service we pride ourselves on. As previously forecasted, we expect to deliver full-year revenue growth between 40 and 50% and are excited to have this momentum as we head into 2023 with expectations for additional growth,”

“Throughout the last two and a half years of pandemic and recovery, Intouch has proven its value proposition and financial stability. Despite economic shut-down, inflation, and a difficult labor market, Intouch has persevered and advanced its capabilities and market position. Looking forward, we have a strong pipeline of services opportunities and a repositioned and improved SaaS suite, which promises to make 2023 another successful chapter for Intouch,”

While the full year growth forecast of 40% to 50% for 2022 is very strong, the guidance range for Q4 implies revenues of $4.5 to $6.1 million. With $5.5 million in Q4 2021 the comp will not be easy. Specific 2023 growth outlook verbiage will be important when the Q4 report is filed. However, the company did comment that it expects to grow in 2023 as shown above.

Research

Wed, 24 Aug 2022 14:32:58 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.45; $11.4M market cap), a company that manages mobile software applications and software-as-a-service platforms announced Q2 2022 results:

Sales of $7.2 million vs $3.4 million in the prior year
EPS of $0.02 vs net loss of $0.00

"Our strong second quarter results reflect solid execution by our sales team to capture new customers including a large data capture program. As previously forecasted we expect to deliver strong revenue growth in 2022. Growth will come from our powerful new client acquisition programs, our SaaS software, delivering on new projects from existing clients and leveraging the capabilities and customer base of recent acquisitions," said Cameron Watt, President & Chief Executive Officer of the Company.

"Intouch continues to illustrate its health and stability. Two years of pandemic, inflation, labor and supply issues were challenging. We are proud of our significant revenue growth and financial strength. We continue to expand our unique technological capabilities and are well positioned and continue to explore areas for new revenue growth,"

This marks the highest revenue quarter in the company’s history. We were also presently surprised to see that the company reached profitability in the quarter. This is a great quarter, but we will need to see more like this before declaring victory before concluding that the stock will experience meaningful valuation multiple expansion

At current price shares are trading at the following valuations multiples:

P/E at current EPS run rate = 6.2
Trailing 12 month EV/Sales = 0.73

Interviews

Thu, 02 Jun 2022 16:13:20 GMT

6-1-2022 INXSF Mgmt Morning Briefing with Cameron Watt, Pres. & CEO

Research

Fri, 20 May 2022 20:30:09 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.42; $10.8M market cap), a company that manages mobile software applications and software-as-a-service platforms announced Q1 2022 results:

Sales of $5.2 million vs $3.2 million in the prior year
Net loss of $0.01 vs net loss of $0.01

“We are pleased with the first quarter results which reflect the rapid growth and scaling underway to deliver on existing contracts as well as preparing for future growth. In 2022, we expect to deliver over 50% revenue growth through leveraging the recent acquisition, delivering on new projects from existing clients, increasing new client acquisition, and continuing SaaS revenue growth,"

While it's nice to see the strong revenue growth and the increased 2022 sales guidance, we’d like the company to focus on driving bottom line improvement. In our opinion, this is the key for INXSF shares to really gain traction in this new stock market environment.

To achieve meaningful profitability, we believe that the company has to continue growing its high margin software side of the business due to the labor-intensive nature of the company's data collection business, where a lot of those activities are done in the field by company employees.

Furthermore, even though revenue guidance is strong, we need to be aware that a prolonged economic downturn could result in a contraction of its retail client business services..

Shares are currently selling at a very low price to sales of around 0.6 on the new guidance. We continue to see significant upside to this multiple as the company continues to grow revenue, especially if it achieves consistent probability.

We plan to speak with the CEO through a Geoinvesting event next week.

Research

Fri, 29 Apr 2022 16:05:07 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.59; $14.8M market cap), a company that manages mobile software applications and software-as-a-service platforms announced a data capture contract worth 7 million (CAD) for a 5 month project expected to start immediately.

"This contract is a new project from an existing client who has been purchasing data capture services from SeeLevelHX for the past four years. Intouch will use its expertise and network of North American resources to rapidly and accurately collect data in the various locations required by this client to optimize a global augmented reality mobile game product.

What makes this opportunity particularly exciting, besides its size, is that it illustrates how our core capabilities can extend beyond our current service offerings. This project involves scanning and validating LIDAR remote sensing range measurement which opens even greater opportunities as we look outside our traditional focus to areas such as geospatial data capture. More and more companies are looking to have the real world represented accurately in their virtual world and we have the capabilities to help them make this happen,"

This contract equates to a half year’s worth of revenue and is expected to be completed over the next 5 months. It is interesting to note that the press release says for an initial 5 month term, potentially implying there could be follow-on contracts.

We will probably be addressing this contract and what it really means for the company when Maj sits down with the company’s CEO, Cameron Watt, next week at Bobby Kraft’s conference in Vegas.

However, the contract win validates some of our initial bullish thesis points on the company, including getting more contracts from current customers across company divisions, new accretive revenue opportunities from acquired company clients and offering more data capture and analytic services due to the launch of its software platform. Increasing emphasis on software revenue should, in our opinion, lead to higher valuation multiples over time.

More specifically, the current price to sales multiple of the stock is 1.0x

When you take into account the revenue guidance that the company issued in its 2021 year end report that number becomes 0.7x and we are assuming that this new contract was probably not in that guidance. To put it in more perspective, we believe the price to sales multiple should conservatively rise to be in a 2x to 4x range and potentially well above that.

Research

Fri, 01 Apr 2022 15:21:10 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.38; $9.5M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q4 2021 results:

Sales of $5.4 million vs $3.6 million in the prior year
EPS of $0.00 vs EPS of $0.00
Adjusted EBITDA of $661,000 vs $315,000

"We are pleased with the renewed trajectory of the business both in terms of revenue and technological capabilities and overall financial health. In 2022, we expect 40% growth and to deliver over $22.5 Million in revenue through leveraging the recent acquisition, securing new projects from existing clients, increasing the sales pipeline, and continuing SaaS revenue growth," said Cameron Watt, President & Chief Executive Officer of the Company.

"The business continues to illustrate its health and stability. In October 2021, we completed the SeeLevel acquisition utilizing cash on hand, our operating line of credit, and future contingent payments. In 2022, we expect to again deliver increased EBITDA. We will continue to leverage our strengths and invest where appropriate to accelerate growth including technology and potential accretive acquisitions,"

This marks the strongest quarterly revenue in the company’s history. The pandemic was a major setback, but it seems as if INXSF is back on a path to reporting steady growth.

Using the company’s $22.5 million revenue guidance for 2022, the stock is currently trading at a P/S of less than 0.5. We would like to see the bottom line start to improve as we move through 2022 and see if there is an inflection point for EPS at a certain level of quarterly revenues.

However, given the strong revenue growth and the company being near break-even, we think the it should trade on an EV/Sales ratio much higher than the current 0.7, possibly within a range of 2 to 4.

We also can’t rule out the possibility that the company consummates more acquisitions in 2022, providing even more upside to the revenue guidance.

Research

Tue, 07 Dec 2021 16:17:25 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.55; $13.5M market cap), a company that manages mobile software applications and software-as-a-service platforms recently did an interview with Bobby Kraft of Stock News Now. We encourage you to listen to the video to hear from the CEO on many of the recent highlights we have been covering. The video covers how it managed to navigate through the Covid shutdowns, how the company is on the trajectory to build upon its 2019 levels of nearly $20 million in revenues, its recent acquisition and the stock’s valuation.

You can see our full coverage on INXSF here. INXSF could be shaping up to be one of our higher conviction plays for 2022.

Research

Fri, 26 Nov 2021 15:29:41 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.61; $15.1M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q3 2021 results:

Sales of $3.9 million vs $2.9 million in the prior year
EPS of $0.00 vs EPS of $0.02

"We expect double-digit revenue growth in 2022 due to the increasing sales pipeline, the recent acquisition, and positively trending recurring software sales. Client programs are returning, new programs are starting and we are investing in our growth. As we look towards a post-pandemic future we are very excited at the opportunities that lay ahead for Intouch in terms of technological advancement and the resulting growth in recurring revenues," said Cameron Watt, President & Chief Executive Officer of the Company.

"While we continue to invest in long term competitive advantages and differentiation through technology, we remain mindful of the overall financial health of the company and expect to continue to deliver EBITDA positive quarters"

The SEDAR filing brings us some information arbitrage in the form of a slightly more bullish tone vs. the press release with respect to the company's i outlook for 2022:

We expect double-digit revenue growth and positive EBITDA in 2021 and in 2022 we expect to significantly surpass our pre-pandemic revenue levels while delivering operating profits and strong EBITDA.

Revenues prior to the pandemic were near $20 million in 2019, so significantly passing that level in 2022 should lead to really nice growth for 2022 vs 2021. We think it will come in at around $14 to $15 million vs. $12.7 million in 2020.

Now that we have some guidance from management, we can start to more comfortably take a look at some valuation scenarios to develop some opinions on what we think the stock is worth.

Remember, when we are looking at companies that...

Have a high recurring revenue model, or
Are moving to that type of model
Are exhibiting high revenue growth rates
Are at or near profitability

... we are comfortable setting a base enterprise value to revenue valuation of between 4 × 6. To put that in perspective in terms of INXSF, the company is currently selling at an EV/S of 0.8xon 2021 expectations. Now, if we conservatively assume that the only extra revenue the company will attain in 2022 is from acquisitions that it recently made, we can assume a minimum base revenue of 25 million which will work out to an EV/S of 0.5x at the current share price. We obviously think that the company will also be generating organic growth, so that we believe revenues will far exceed 25 million.

Anyway you slice it, when you look at our expectations at where a company like INXSF should be trading at, we believe that the stock is grossly undervalued, and the market will eventually find this name.

The obvious caveat is that we cannot predict how further protracted the COVID-19 recovery will be, leading to shutdowns in North America where the company generates its revenue.

Research

Mon, 27 Sep 2021 14:30:27 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.51; $11.6M market cap), a company that manages mobile software applications and software-as-a-service platforms announced a definitive agreement to acquire Mystery Researchers, LLC dba SeeLevel HX.

“SeeLevel had calendar 2019 annual recurring revenues of US$5,048,485, gross margin of 39%, compared to Intouch historical margins of 52%, and the transaction is arm's length from Intouch. The purchase price for the Acquisition is a combination of cash and Intouch shares. The purchase price is US$2,725,000 in cash of which, US$1,600,000 is payable at closing and US$1,125,000 is payable over the next two years based on achievement of revenue targets. The share component is the issuance of 1,500,000 Intouch common shares. The common shares issued will have a statutory hold period of four months and one day from the date of issuance. Intouch plans to finance the Acquisition with a five-year term bank loan for US$1,600,000, and from its existing cash resources.”

With current quarterly sales around $3.4 million, the $5 million in annual revenue would represent a strong contribution to the company’s topline. However, it is important to note that the disclosed financials of the acquired company are from 2019, which leads us to believe that revenues were negatively affected in 2020 due to COVID, as were INXSF’s.

Research

Wed, 25 Aug 2021 04:00:00 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.52; $12.0M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q2 2021 results:

Sales of $3.4 million vs $1.4 million in the prior year
Loss per share of $0.00 vs loss of $0.01

"Financial results in Q2 show a significant improvement compared to prior year and a clear indication that recovery from the ongoing pandemic is underway. We continue to be pleased with the strength of the underlying business, in particular our EBITDA and operating performance...

...We continue to ramp up our sales and marketing investments as the recovery continues and are ready to leverage opportunities and surpass pre-pandemic revenues as we look forward. While growth will be a renewed focus, we will also ensure that we maintain financial stability and retain the resources necessary. For 2021 we expect double-digit revenue growth and positive EBITDA, and in 2022 we expect to surpass our pre-pandemic revenue levels. We look forward to meeting the challenges ahead”

The filing had some additional forward looking comments:

“Quickly surpassing our pre-pandemic revenues as we head into 2022 is a key focus of the company. In addition to the return of customer programs that have been paused or reduced, there are three expected growth drivers; additional programs through existing clients, additional SaaS revenues, and revenues through acquisition. We believe that customers will need new programs to measure areas like curbside pick-up, third-party delivery, and web-based order fulfilment. New SaaS capabilities continue to launch alongside and are expected to drive additional awareness and revenues. Finally, our previously announced pending acquisition will bring significant revenues beginning in the last quarter of 2021. As always, we will remain ready to react to changes as they unfold”

Revenues prior to the pandemic were near $20 million in 2019, so the company has a little more ground to cover to get back to that run-rate. Regardless, the guidance for 2021 of double digit growth should lead to modest improvements over the next two quarters, while 2022 should start to show significant growth.

Research

Fri, 21 May 2021 17:21:31 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.59; $14.0M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q1 2021 results:

Sales of $3.2 million vs $4.7 million in the prior year
Loss per share of $0.01 vs loss of $0.01

“Financial results in Q1 were solid despite the impact on revenue from the ongoing pandemic, and we are very pleased that the strength of the underlying business is shining through as we continue to recover with the economy and plan for future growth. Investment in sales and marketing increased in Q1 and will accelerate as the year progresses. With a light at the end of the tunnel in the form of vaccines, Intouch is ready to take advantage of opportunities as 2021 unfolds,"

The SEDAR filing offered a little more commentary on the company’s outlook:

"Looking towards the future, we have begun to return our focus to investment and growth. Intouch is positioned to not only recapture its previous revenue streams but also create new ones. In addition to simply re-starting programs currently on pause, there are three expected growth drivers:Additional programs through existing clients, additionalSaaS revenues, and revenues through acquisition. Existing customers will need programs to measure areas like curbside pick-up, third-party delivery, and web-based order fulfilment.New self-serve SaaS capabilities continue to launch alongside the enterprise SaaS offerings and are expected to drive additional awareness and revenues. Finally,we have announced a pending acquisition which is expected to bring significant revenues starting in September. As always, we will remain ready to react to changes as they unfold.

We will continue to search for opportunities to accelerate our recovery and look forward to assisting our clients with their resumption.As we do so, we will continue to ensure we operate the business to maintain financial stability and retain the resources necessary to return to and exceed the pre-pandemic trajectory quickly. In 2021 we expect double digit revenue growth and positive EBITDA. We look forward to the challenging but exciting journey ahead"

While the U.S economy has been fast tracking back to normal, Canada has been slower in its pace of reopening ( 75%/ 25% U.S / Canada revenue split). As the company heads into Q2 2021 the year over year comps become more favorable and the recent acquisition will also begin to generate revenue starting in September. Furthermore, we would not be surprised to see the company to more aggressively pursue its acquisition strategy in an environment where competitors have been weakened by the pandemic.

Research

Mon, 05 Apr 2021 16:50:19 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.62; $13.7M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q4 2020 results:

Sales of $3.6 million vs $4.75 million in the prior year, up sequentially from $2.9 million in Q3
EPS of $0.00 vs $0.00 in the prior year

“2020 started with Intouch poised for investment and significant growth. The pandemic caused a dramatic shift in priorities towards revenue retention and cost containment. Fortunately, the strength of the underlying business was evident. It allowed us to make decisions throughout the year focusing on both employee and customer retention while delivering 8% more EBITDA in 2020 than in 2019 despite significant revenue losses. As a result, the company finished the year with key employees and customer contracts intact. This combined with a strong balance sheet will allow us to emerge from the pandemic with strength,” said Cameron Watt, President, and Chief Executive Officer.

“I remain incredibly proud of how our employees have handled the difficult year behind us, and we all look forward to working closely with our long-standing client base as the North American economy continues to recover. Intouch will remain strong throughout 2021 while taking advantage of the opportunities that will inevitably come our way as the year unfolds,” said Watt.

The annual report provides a little more color on the company’s outlook.

“Expectations are for the pace of recovery to improve in Q2, 2021. With the warmer weather coming and vaccine programs accelerating we expect to welcome most of our customers back on recurring programs by June. The actual timing of the recovery will depend on decisions made by the various governments across North America. 2021 will be a year of rebuilding while seeking opportunities to accelerate our growth and return to the trajectory of a year ago. To support these efforts, discretionary spending was increased in Q1 to support product development, marketing, and sales efforts. Given the externalities associated with the pandemic, it is difficult to predict what will unfold in 2021 with confidence. However, we expect to continue to increase sales and marketing efforts and deliver double digit growth. There will be a continued focus on recurring SaaS revenue which was the one growth area in 2020 having grown by 27% during the year.

At the same time, we will maintain a focus on financial stability and expect the business to remain EBITDA positive in 2021 ensuring Intouch has the capital required. We remain optimistic about the journey awaiting us in 2021 and beyond.”

We think the company will have another tough comp in Q1 2021 then start to show strong growth once again as it heads into Q2 2021. Here is a link to the annual report which offers greater details than the press release.

Research

Fri, 27 Nov 2020 05:00:00 GMT

**Call To Action - INXSF

We remain bullish on Intouch Insight Ltd (OTC:INXSF), a company that sells customer experience management and compliance services through mobile software applications, software-as-a-service platforms and on-site visits, and intend to add shares at current levels now that Q3 has given us some more clarity on how the business is performing amid COVID-19.

In fact, even though Q3 quarterly sales were down, year over year, we are starting to get really excited about Intouch Insight Ltd (OOTC:INXSF) for three reasons:

Q3 sales were up 98% from Q2 2020 and sales are forecast to continue to improve throughout 2021. This is important because we wanted confirmation that sales had bottomed in Q2. Remember, over 50% of Intouch's customers are in the hospitality industry which got decimated from COVID-19.
With a vaccine around the corner, the hospitality industry should start to see a gradual recovery. We are extremely confident now, more than ever, that the hospitality industry companies are going to want to know more about their customers' experience with them.
Some of the new cost structure that the company has implemented in response to COVID-19 will probably remain intact, leading to the company being more profitable when they were at pre-COVID-19 revenue levels.

The company’s Q3 2020 results:

Sales of $2.9 million vs $4.9 million in the prior year
EPS of $0.02 vs $0.01 in the prior year

Q3 Press release comments:

"I am incredibly proud of the results and how the team at Intouch has met the challenge 2020 has thrust upon the world. Given our performance, and our technology strength, including the LiaCXTM SaaS platform, Intouch is in a unique position to grow as markets continue to recover. In Q3, the business was able to produce a strong net income while adding significantly to EBITDA, which is now at $1.35M on a year to date basis. This was all achieved while retaining the key employees required to ensure we can look positively towards future growth

Measuring customer experience, gathering actionable intelligence around how your customers feel, and consistently monitoring operational execution are more important today than ever before. Intouch has the personnel, skills and SaaS tools to help, and we have continued to sign on new customers throughout 2020. Our latest software, including LiaCX, as well as our leading service offerings create a critical feedback loop in implementing required changes and measuring the success of execution and impact on brand reputation”

InfoArb In 10Q

The 10-Q offered more color on its outlook than the press release including a sequentially higher Q4 forecast although still down from the prior year period, but also that it would remain EBITDA positive and have sufficient capital to return to the company’s previous growth trajectory.

“Management exceeded the goal of remaining EBITDA positive by delivering operating income in Q3, despite a 40% drop in revenues compared to Q3, 2019. This is due in large part to effective cost containment measures combined with utilization of available government programs. Intouch intends to weather the global crisis and emerge on solid footing thanks to its resilient customer base and engaged workforce. There will be pressure on EBITDA in Q4 as spending on sales and marketing activities increase while assistance from government programs decrease. Management, however, does expect to deliver positive EBITDA contributions in Q4 and ensure that Intouch has the capital required to return to its previous trajectory as quickly as possible.”

Looking out to 2021:

“Looking out towards 2021 Management anticipates that for much of the year the challenges created by the pandemic will remain, creating pressure on revenue growth and EBITDA contributions. Revenue is expected to have a double digit increase over 2020. Management expects to maintain its investment into its SaaS products while continuing to ramp up sales and marketing spend. Available cash flow will be utilized to ensure that the company is positioned well to capture growth as the opportunities become available.”

Research

Tue, 06 Oct 2020 16:35:16 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.36; $8.0M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced it has granted restricted stock units to directors and officers of the company. The board granted the units on October 5th, when the underlying share price was $0.48 CAD ($0.36 USD). The units vest on October 4th, 2021.

"The granting of the RSU pool today is in line with the plan approved by shareholders earlier this year and is designed to achieve several objectives. First, to compensate the individuals who contributed financially to Intouch, ensuring that we remain strong through the global pandemic. Only individuals who have contributed financially are receiving RSUs, and individuals receive them proportionately to what they have contributed compared to others who are sharing the pool. Second, to reward those contributors for staying committed to the Company and its success for the next 12 months. Lastly, it creates a culture of ownership where employees will have equity in the Company and be truly invested in creating additional shareholder value, " said Cameron Watt, President and CEO.

I am incredibly proud of our dedicated and hardworking team at Intouch.. The Company had to undertake many challenging cost containment activities this year, and we are pleased to be able to position the Company to emerge stronger than ever while allowing the entire team to benefit from our collective efforts. We thank our shareholders for their support in these efforts," said Watt.

We view this development and comments from the CEO as a hint that things are progressing nicely as the company adjusted to the Covid pandemic impact.

Research

Fri, 21 Aug 2020 18:15:09 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.30; $5.4M market cap), a company that manages mobile software applications and software-as-a-service platforms, announced Q2 2020 results.

We may add to our long position if shared dip, especially under $0.30.

The company braced investors for a weak quarter due COVID-19. Recall that a majority of the company's customers are in the retail and hospitality business.

Sticker Shock!

However, seeing how bad the Q3 results were could spook investors who are unfamiliar with INXSF's growth story and a huge tailwind that COVID-19 has created for their business. That is why we would view any sharp pullback as an opportunity to add to our long position because our long-term view for the company has only strengthened over the last several months based on interviews with management. You can see Maj’s recent virtual panel discussion from early August held by the Stock News Now network where the CEO stressed that Q3 was going to be a really bad quarter. We are actually quite impressed that the company was able to remain close to break even, despite the huge decrease in revenues for the quarter.

MoWe are assuming that the weak Q2 results will be the low point for the company.

Q2 2020 results:

Sales of $1.46 million vs $5.0 million in the prior year
Loss of $0.01 vs $0.00 in the prior year

"Despite the very challenging quarter, I am incredibly pleased that the business was able to produce positive EBITDA, thanks to aggressive cost containment and effective use of government relief programs in Canada and the USA. I am also happy with the resilience shown in our recurring software revenue stream through the quarter. Since the very start of the crisis, swift actions have been taken, and we have worked cooperatively with our clients and our employees to ensure that we can deliver the best outcomes for everyone involved... Looking forward we will continue to mitigate the impacts of COVID-19 and ensure the business is poised to rebuild rapidly as the economy returns to pre-COVID levels

While the North American economy has started to reopen through the summer, it is doing so in a slow and measured fashion causing many businesses to re-think their approach to customer service. The simple truth is that Intouch has products and services which can play a key role in measuring the new and evolving requirements regarding the health and safety of both employees and customers. Our software and services are a critical feedback loop in implementing required changes and measuring the success of their execution and impact on brand reputation. We look forward to helping our clients throughout their economic recovery. We will take every step necessary to ensure overall corporate stability while leveraging our strengths to remain in an industry-leading position when the current crisis abates”

Research

Thu, 04 Jun 2020 16:18:52 GMT

Added To Our Long INXSF Position

We recently added Intouch Insight Ltd (OTC:INXSF) to our 8th Buy on Pullback Model Portfolio as shares have come down due to business disruptions from COVID-19. Yesterday, we added to our long position as we feel the impact will be temporary and are very bullish on the long term prospects for the Company. We are also adding the stock to our Favorite Model Portfolio.

We have been tracking and researching INXSF since February 2020 when we added the stock to our Run to One Model Portfolio and disclosed a long position in the stock at around $0.49.

The company sells mobile software applications and software-as-a-service platforms to measure customer experience, monitor regulatory compliance and monitor field operations. A good deal of the company’s customers are retailers and from the hospitality industry - obviously, many of which had to shut down or limit operations due to COVID-19. Thus, the stock has fallen sharply since the onset of COVID-19.

However, we see only a remote risk of its customers going out of business since most of them are large, well established firms as opposed to small “mom and pop” businesses. Ironically, moving forward, retailers and restaurants are probably going to be more motivated to track the consumer behavior of their customers, as well as make sure that locations adhere to social distancing rules. The company is also increasing its on-line customer experience survey activities.

Our main concern had been that the COVID-19 lockdown would last several months, putting stress on the company’s balance sheet and customer operations. However, with states slowly re-opening, and a stronger financial outing for Q1 2020 than we anticipated, we think the company’s financials could bottom in Q2 and then gradually improve. Although INXSF’s recovery could take time, we believe that the current price is the right bet at the right price, something we echoed in a recent virtual presentation pitch we gave in April 2020. We could see ourselves continuing to add shares at current prices.

You can see our full coverage on INXSF here, including a video breakdown of how COVID-19 could impact the business,

Research

Fri, 22 May 2020 18:47:16 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.30; $5.4M market cap), manages mobile software applications and software-as-a-service platforms announced Q1 2020 results:

Sales of $4.7 million vs $4.5 million in the prior year
Loss of $0.01 vs $0.00 in the prior year

“I am very pleased that the business was able to show growth in both revenues, operating income and EBITDA despite the COVID-19 impacts which began in March. As evidenced by these results, we were positioned for a solid quarter before the global pandemic took the wind out of our sails...

...As we start to see sectors of the economy reopen, it is clear that positive customer experience is going to be created not only by courteous and smiling employees but by the execution against new and evolving requirements regarding the health and safety of both employees and customers. Our software and services can help companies not only implement required changes but also measure the success of their execution against them and how they impact their customers and brand perception. Therefore, we are confident that the strength of our technology and our long history of customer stability will serve us well as we work towards a full economic recovery. We continue to take every step necessary to ensure overall corporate stability while leveraging our strengths to remain in a leadership position when current crisis abates,"

To reiterate, we’ve been tracking and researching INXSF, a company that sells mobile software applications and software-as-a-service platforms to measure customer experience, monitor regulatory compliance and monitor field operations since February 2020. The stock was traded around $0.40 when we began thoroughly researching it, then the market got hit with the coronavirus-induced market selloff. We also add the stock to our Run to One Model Portfolio.

More recently, after the stock pulled back, we added it to our 8th Buy on Pullback Model Portfolio that we introduced in our weekly email this past Sunday.

INXSF suffered the same fate that most stocks had to endure, and declined to a low of $0.18 on April 1, before inching back up to its current price of $0.30.

Given that a good deal of the company's customers are in the hospitality and retail businesses, we are impressed that the INXSF was able to maintain a decent level of revenue during the 1st quarter. However, Q2 2020 will be an interesting test for the company since that's when shutdowns in the U.S. really start taking place. Still, the Q1 2020 performance continues to build our confidence that management is going to be able to weather the COVID-19 crisis and come out of it even stronger.

For more on the INXSF story, you can see a presentation Maj gave at the inaugural Contrarian Investment Virtual Conference made possible by ValueWalk & The Contrarian Investor Podcast.

The presentation is viewable by signing in and viewing the video on this post. The slide deck is also downloadable (link provided under the video).

You can also view a short video presentation where we discuss how COVID 19 is impacting the company and our thoughts on how the company will be able to eventually grow through the crisis.

Research

Wed, 22 Apr 2020 15:18:53 GMT

We’ve updated our post highlighting an Intouch Insight Ltd (OTC:INXSF) ($0.27; $6.1M market cap) presentation Maj gave at the inaugural Contrarian Investment Virtual Conference made possible by ValueWalk & The Contrarian Investor Podcast. It now shows the virtual slide deck as Maj discusses the company in detail, aided by dialogue with ValueWalk’s Nathaniel Baker during the pitch.

The presentation is viewable by signing in and viewing the video on this post. The slide deck is also downloadable (link provided under the video).

To reiterate, we’ve been tracking and researching INXSF, a company that manages mobile software applications and software-as-a-service platforms, since February 2020 when the stock was trading around $0.40, before the market got hit with the coronavirus-induced market selloff. INXSF suffered the same fate that most stocks had to endure, and declined to a low of $0.18 on April 1, before inching back up to its current price of $0.27.

Shortly before the stock reached that low, on March 26 Maj discussed near-term growth prospects, risks and opportunities for INXSF in light of the coronavirus' impact on the market. You can view that video update here.

Again, thanks for your patience in receiving this, and we look forward to bringing you more updates on the INXSF front, as well as on other stocks in our coverage universe as they arise.

Research

Fri, 03 Apr 2020 13:21:35 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.19; $4.5M market cap), manages mobile software applications and software-as-a-service platforms.

On March 24, 2020, the company issued a press release talking about the steps they were taking to mitigate the negative effects of the coronavirus outbreak on their business. Since we recently began our coverage on the company, we immediately performed more due diligence to see if we should be concerned and to provide you with an update.

Last night, INXSF announced its full year 2019 results, which highlight our belief that the company had reached a major growth inflection point.

Q4 sales of $4.7 million vs $3.5 million in the prior year
Q4 EPS of $0.00 vs a loss of $0.04 in the prior year

"2019 finished the way it started, exceeding management's initial expectations for revenue, earnings and EBITDA. We are incredibly pleased with the progress the Company has been able to make over the last several years and believe that the Company has the products and capabilities to continue its progress well into the future. 2020 will be a challenging year for businesses in our industry due to the widespread temporary shutdown of companies in the retail, foodservice and hospitality industries. Intouch began 2020 as one of the largest and fastest growing companies in our industry and has taken swift and decisive action to ensure that we emerge from the crisis in a strong position to continuing our revenue growth and acquisition activity," said Cameron Watt, President and Chief Executive Officer.

These results continue to give us confidence that once the coronavirus is behind us, there's a good chance that the company can resume its favorable growth trend, potentially offering a great opportunity to add to our long position after the recent sharp decline in price.

For those of you that are new to GeoInvesting, or if you haven’t watched it yet, please see our March 26, 2020 video update on INXSF where Maj offers clarity on the company’s business model, near-term risks and opportunities, with an emphasis on what the coronavirus crisis might mean for them going forward.

Video Outline

Clarity on business model – earn revenue 3 different ways

Per transaction (collecting data from customer transaction that occur at retail locations)
Volume of transaction (fee based on volume of transactions)
Recurring monthly fees

The balance sheet and cost cutting efforts the company made in response to the virus outbreak puts the company in a good position to avoid racing money for a lengthy period of time.

Near term risks

Less revenue due to reduced activity to drive transaction and volume fees.
Unclear how much recurring monthly revenue they will collect.
The longer the economic shutdown, the harder it may be to maintain its current customer base. However, many of the customers are big brand names that can likely weather the storm better than smaller businesses.
Some customers may possibly abandon brick and mortar and focus on more online platforms.
The longer the shutdown continues, that greater the chance of a reduced labor force which may lead to increased training costs.

Opportunities

Its compliance services business could benefit if customers have to implement new safety standards relating to retrofitting its stores.
The market is very fragmented and includes many smaller players. If these competitors/peers go out of business, it should bode well for market leaders such as INXSF.

Our take

If the crisis is contained within 6 months, we think the company can recoup a good amount of lost business as well as capitalize on new growth opportunities created by the crisis.

Our full coverage on INXSF can be reviewed here. Please check it out!

Research

Tue, 24 Mar 2020 16:22:26 GMT

Intouch Insight Ltd (OTC:INXSF) ($0.25; $5.6M market cap), a company that manages mobile software applications and software-as-a-service platforms, provided a business update discussing the impact the coronavirus is having on the company:

"The widespread shut down of North American companies in the retail, foodservice and hospitality industries will negatively impact Intouch's recurring service revenues. It is unknown at this time, the extent of the impact, but the expectation is significant until stores across North America can re-open their doors. The Company continues to market and has available to its customers its recurring revenue software products, including its customer experience management platform; LiaCXtm and its forms and checklist automation product; IntouchCheck."

"As one of the largest and fastest-growing companies in our industry, we are taking immediate actions to ensure that, when this crisis is over, the Company emerges in a strong position to service our customers and acquire new relationships," said Cameron Watt , President and CEO.

"Intouch needs to remain financially lean and robust during this uncertain time, and the Company has temporarily laid off approximately 50% of its employees. Additional cost-cutting measures include temporary pay cuts across most of its remaining employee base and more substantial voluntary pay cuts by its executive team and CEO. The Board of Directors is waiving its fees for the upcoming quarter. Due to travel restrictions and the need to focus on its current business, the Company has also had to put the process around its previously announced non-binding Letter of Intent to acquire a North American customer experience measurement company (the "Vendor") on hold. Both parties expect that they will be able to re-start the acquisition process when suitable business conditions arrive."

"Despite our ability to immediately implement work from home capabilities to protect the health and safety of our staff, we are unable to isolate our workforce from the crippling disruption our customers are experiencing. During this unprecedented period, we remain focused on delivering on the needs of our customers, which in many cases today means allowing for a temporary suspension of services that we provide. We are operational in all departments and will ensure that the business can deliver on its remaining customer commitments as well as be fully capable of resuming operations as soon as the service industry starts to re-open its doors," said Watt.

We will be interviewing the CEO later this morning to get a better picture of what is going on. However, from our prior interview with management, we believe that they can weather the storm. We want to gain more clarity on how many of the customers may not come back and the amount of "time buffer" the current balance sheet provides the company.

We will likely view the drop in shares as a great opportunity that could reward us handsomely in the mid to long term.

Research

Fri, 21 Feb 2020 05:00:00 GMT

Adding to Our Long Position in INXSF

On February 13, 2020 we disclosed our long position and added $INXSF to our Run to One Portfolio. This mobile SaaS survey/risk management company has recently announced two acquisitions after posting strong Q3 2019 results which initially caught our attention.

We'd like to add that we believe the stock has multibagger potential, with the potential ability to increase several times over the current price.

On February 3, 2020, we disclosed our cliff notes from an interview we had with company management, which can be found here.

In light of the above, we feel it’s important to highlight a Seeking Alpha article titled, “Intouch Insight Ltd: A Profitable, Growing SAAS Business Trading At A Fraction Of Its Competitors”. We encourage you to read the full article as we believe it is a great summary of the story. Below is a part of the author’s valuation section:

“By any metric, Intouch is very cheap; it is a larger business than ProntoForms, but profitable and at 1/10th the valuation. It can be argued that SurveyMonkey is substantially larger, though it is also a cautionary tale that even at $300 million+ USD in revenue, it has still not reached scale yet. Even putting ½ of ProntoForms’ multiple on Intouch would give the latter a projected valuation of $77 million, a 5x increase from today’s levels.”

Research

Thu, 13 Feb 2020 17:16:07 GMT

Adding INXSF to Our Run to One Portfolio and Disclosing A Starter Long Position

On February 3, 2020 we highlighted the key points from our recent interview with Intouch Insight Ltd (OTC:INXSF) management and mentioned we were considering adding the stock to our Run to One Portfolio. On the heels of what is the company’s second acquisition in 2020, we are now adding the stock to the portfolio and disclosing a long position. We will look to build our position further in the coming weeks. As a reminder, INXSF develops managed mobile software applications and software-as-a-service platforms, and delivers services for private businesses, governments, and regulators in Canada and the United States.

Today, INXSF announced the acquisition of a customer experience measurement company with $5 million in annual revenues. The company expects the acquisition to be immediately accretive. It should be noted that it is a non-binding letter of intent.

Research

Mon, 03 Feb 2020 18:30:13 GMT

Intouch Insight Ltd (OOTC:INXSF) (INX.V) (Data Collection) - This mobile SaaS company announced accretive acquisition last week. Strong revenue growth, profitable & recurring revenue angle led us to interview management. Per our interview with management during the week, we are considering adding INXSF to our Run to One portfolio, but we are still reviewing our interview notes before we do so.

The company helps its customers deploy field surveys and employee risk assessment audits. The key points that we will soon write about include:

Prior management failed to pivot to on-line and mobile survey solutions
Almost went bankrupt
New CEO revived the business by modernizing the business and improving the departmental structure..
New recurring revenue element to the story
Very little customer churn on legacy revenue
Plenty of untapped cross-selling opportunities between business segments
Revenue has begun to grow nicely and profitability has been attained

Big caveat: Although we do believe that significant upside exists for the shares over the long-haul, we do not think we can automatically assume that the company can currently maintain the 25% revenue growth achieved in Q3 2019. Their are still some short-term changes going on that could negatively impact sales (but boost margins). We will need a couple more quarters to sort this out.