VANCOUVER, May 29, 2017 /CNW/ - 3tl Technologies Corp. (TSXV: TTM)(OTCQB: TTMZF) (the "Company" or "3tl") announced its financial results for the quarter ended March 31, 2017. The financial statements and management discussion and analysis for the year ended March 31, 2017 are available on SEDAR.
The Company's overall performance for the three months ended March 31, 2017:
- 3tl has signed 19 license agreements to provide PLATFORM3 with leading consumer packaged goods ("CPG") brands in 2017.
- Revenue increased by 36% to $202,737 compared to the three months ended March 31, 2016.
- Increased the average value of license agreements including, annual and multi-year agreements.
- Launched two new modules to PLATFORM3 based on market experience and feedback, Targeted Couponing and Shopper Messaging and Retargeting.
In 2017 year-to-date, 3tl has agreements that will generate approximately $850,000 in total revenues with approximately 85% of those revenues being recognized in 2017, compared to revenues of $665,728 for the year ended December 31, 2016:
- the agreements show a trend towards longer-term and larger agreements;
- many of the agreements signed in 2017 represent repeat business from leading U.S. based brands; and,
- 3tl has a number of annual agreements where PLATFORM³ hosts an ongoing digital loyalty and rewards program. 3tl is generally paid an annual license fee plus transaction fees based on the number of times consumers validate purchases using PLATFORM³.
"We are off to a great start in 2017, having signed deals that generate revenues greater than those for the full year of 2016. Our customers are leading CPG brands that use our technology to connect directly with consumers, reward them for purchasing and collect valuable consumer data," said Rob Craig, CEO of 3tl. "As brands sign longer term licences they are realizing the benefits of our modules that enable targeted offers based on purchasing behaviour."
RESULTS OF OPERATIONS
Revenue for the three months ended March 31, 2017 increased by 36% to $202,737, compared to $148,838 for the three months ended March 31, 2016. The Company shifted its business model with the launch of PLATFORM3 and during the fiscal year 2014 and Purchase Receipt Scanning in 2015, changing from custom development of digital advertising solutions with no recurring revenue to a Software as a Service (SaaS) model. The PLATFORM3 product is an integrated suite of digital marketing applications sold as SaaS for short-term promotions or on an annual subscriptions basis with recurring revenues. Revenue in the year reflected recognition of revenue from previous year contracts and new sales of the PLATFORM3 product offering.
In 2016, 3tl launched PLATFORM³ targeting Consumer Packaged Goods (CPG) companies in the U.S. The Company validated its value proposition with 38 digital shopper marketing promotions generating total revenues of $665,728 in 2016. Most of the 2016 promotions were short-term trials. In 2017 year-to-date, 3tl has 19 agreements that will generate approximately $850,000 in total revenues with approximately 85% of those revenues being recognized in 2017.
Gross profit for the three months ended March 31, 2017 increased to $148,581, compared to $118,406 for the three months ended March 31, 2016. Gross margin as a percentage of revenue for the three months ended March 31, 2017 was 73% and 80% for the three months ended March 31, 2016. Gross margins decreased slightly for the three months ended March 31, 2017 compared to the three months ended March 31, 2017 due some contracts for lower margin third party services.
In 2017, 3tl launched an API connection to third party digital rewards platforms. This service enables 3tl clients to offer digital rewards such as gift cards, movie tickets and virtual visas to incentivize purchase and purchase frequency. 3tl will purchase these rewards on behalf of the Company's clients and charge a 15% transaction fee for the total amount of rewards purchased.
General and administrative expenses for the three months ended March 31, 2017 increased slightly to $289,297, compared to $236,063 for the three months ended March 31, 2016. Sales and marketing expenses for the three months ended March 31, 2017 increased to $197,168, compared to $186,881 for the three months ended March 31, 2016.
Research and development expenditure for the three months ended March 31, 2017 decreased to $66,013, compared to $68,924 for the three months ended March 31, 2016.
Research and development expenses remained relatively the same for the three months ended March 31, 2017 compared to the three months ended March 31, 2016 as much of the development of PLATFORM3 was completed in 2015. The costs recorded in 2016 and 2017 relate to improvements to PLATFORM3. Research and development expenses may increase in the future as the Company seeks to evolve and improve PLATFORM3, as well as to invest in creating new technology and products that will enhance the Company's value proposition to customers and provide additional revenues. Research and development expenses include wages and salaries and consulting fees.
Share-based compensation for the three months ended March 31, 2017 was $13,240 compared to $13,881 for the three months ended March 31, 2016.
Net and comprehensive loss for the three months ended March 31, 2017 was $421,032 compared to $387,142 for the three months ended March 31, 2016. This increase was mainly due to the increase of operating expenses.
About 3tl Technologies Corp.
PLATFORM³ is a Software as a Service (SaaS) consumer marketing platform. It enables Consumer Packaged Goods (CPG) companies and consumer brands to engage shoppers through their mobile device and influence their purchasing decisions. PLATFORM³ encompasses proprietary consumer engagement strategies and technology modules including optical character recognition (purchase receipt scanning), digital promotions, purchase data mining, loyalty and rewards. CPG companies and major retail brands use PLATFORM³ to influence and incentivize shoppers to interact with their brand and make purchases in-store and online.
For more information, visit 3tltechcorp.com.
For additional information about the company please visit www.sedar.com. The TSX Venture Exchange Inc. has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds and the results of financing efforts, - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE 3tl Technologies Corp.
For further information: 3tl Technologies Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, firstname.lastname@example.org