VANCOUVER, April 25, 2018 /CNW/ - 3tl Technologies Corp. (TSXV: TTM) (OTCQB: TTMZF) (the "Company" or "3tl"), a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS) for short-term promotions or on an annual subscriptions basis, is pleased to announce its financial results for Q4 2017 and the year ended December 31, 2017 ("Fiscal 2017").
For Q4 2017 and Fiscal 2017, the Company achieved the following milestones:
- 3tl signed 37 license agreements to provide PLATFORM³ to leading Consumer Packaged Goods (CPG) brands, representing close tp $1.6 million in contracted revenues, with approximately 74% recognized as revenue in 2017. More than 50% of the license agreements where from returning clients.
- Revenue for Fiscal 2017 increased by 79% to $1,192,725, compared to revenue for the year ended December 31, 2016 ("Fiscal 2016").
- Revenue for Q4 2017 increased by 390% to $270,951, compared to Q4 2016.
- The agreements signed during Fiscal 2017 show a trend towards longer-term and larger agreements averaging over $43,000.
- Many of the agreements signed during Fiscal 2017 represent a growing trend of repeat business from leading U.S based CPG brands for 3tl.
- 3tl launched version 3.0 of PLATFORM³ which included two new modules - Targeted Couponing, and Retargeting and Automated Messaging, powered by the Artificial Intelligence and Machine Learning capabilities of PLATFORM³.
- 3tl boosted existing modules of PLATFORM³ and made significant improvements to PLATFORM³'s code-set and infrastructure. These improvements were the result of experience and feedback aggregated from CPG companies and consumers.
The Company is also pleased to provide the following 2018 updates:
- As of April 23, 2018, 3tl has signed 18 license agreements this year, which togther with license agrements signed in prior periods represent contracted revenues of close to $1.5 million, with approximately 75% expected to recognized in 2018. About 36% of the licence agreements are with returing customers.
- 3tl has several annual agreements where PLATFORM³ hosts an ongoing digital loyalty and rewards program. 3tl is generally paid an annual license fee plus transactions fees based on the number of times consumers validate purchases using PLATFORM³. The $1.5 million in contracted revenues noted above only accounts for license and service fees, and does not include any transaction fees.
"In 2017, a growing number of leading U.S. brands recognized our value proposition with repeat business and longer-term agreements driving revenue growth of 79% - we were rewarded for listening to our customers and adding new modules that improve their ROI. We are off to a great start in 2018 with a good mix of repeat business and new customers. With some $1.5 million in signed deals, a growiing sales pipeline and further value-adding innovations under development, 2018 is expected to be a breakthrough year" said Robert Craig, 3tl's CEO. "We are achieving stronger results than ever because of repeat business from our current clients who can see how focused we are on helping them establish a stronger connection with their consumers. We continue to leverage multiple modules of PLATFORM³ including Contests & Promotions, Purchase Receipt Validation, Loyalty, Rewards & Gamification, Data Capture & Analytics, and Retargeting & Automated Messaging, as well as its Artificial Intelligence technology to drive initial purchase, purchase frequency and customer loyalty."
Results of Operations:
Revenue for Fiscal 2017 increased by 79% to $1,192,725, compared with the Fiscal 2016. PLATFORM³ 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 the previous year's contracts and new sales of the PLATFORM³ product offering.
Gross profit for Fiscal 2017 increased by 62% to $731,432, compared to Fiscal 2016.
Gross margin as a percentage of revenue for Fiscal 2017 was 61%, compared to 68% in the Fiscal 2016. Gross margin as a percentage of revenue depends on the product mix for the reporting period. Revenues are comprised of a combination of higher margin sales of PLATFORM³, the Company's proprietary Software as a Service product combined with some lower margin third party services.
In 2016, 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 purchases these rewards on behalf of the Company's clients and charges a 15% transaction fee for the total amount of rewards purchased. Cost of sales also includes the cost of servers to host PLATFORM³, project management and customer support staff.
General and administrative expenses for Fiscal 2017 increased by 29% to $1,418,565, compared to Fiscal 2016. General and administrative expenses include salaries and benefits, accounting, legal, investor relations, travel, rent, office, and other administrative costs. For Fiscal 2017, general and administrative expenses consisted primarily of $1,044,271 in office and other overhead expenses that include investor relations, corporate advisory fees, and regulatory filing fees, $275,115 in wages and salaries, $66,042 in consulting fees, and $33,139 in professional fees.
Research and development expenses for Fiscal 2017 increased by 37% to $501,873 compared to Fiscal 2016. The increase was mainly due to efforts made to improve PLATFORM. Research and development expenses may increase in the future as 3tl seeks to continue to improve PLATFORM, as well as to invest in creating new technology and products that will enhance the Company's value proposition to its clients and provide additional revenues.
Net and comprehensive loss for Fiscal 2017 was $2,039,546 compared to $1,767,075 for Fiscal 2016. This increase was mainly due to the increase of revenue and corresponding cost of sales and increase of operating expenses.
About 3tl Technologies Corp.
3tl has developed a proprietary, mobile-based consumer marketing platform – PLATFORM³ – that is sold to global Consumer Packaged Goods (CPG) companies and consumer brands. PLATFORM³ is delivered as a subscription service (Software as a Service model) and used by CPG companies to engage consumers, reward purchases and collect valuable consumer data. PLATFORM³ incorporates Artificial Intelligence and Machine Learning to monetize the consumer data, including demographics and purchasing behaviour, by sending consumers targeted offers by email and text messages. 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, [email protected]