VANCOUVER, May 1, 2017 /CNW/ - 3tl Technologies Corp. (TSXV: TTM)(OTCQB: TTMZF) (the "Company" or "3tl") announced its financial results for the year ended December 31, 2016. The financial statements and management discussion and analysis for the year ended December 31, 2016 are available on SEDAR.
The Company's overall performance for the year ended December 31, 2016:
- 3tl signed license agreements to provide PLATFORM3 for 38 shopper marketing promotions with leading consumer packaged goods ("CPG") brands in 2016.
- Revenue increased by 109% to $665,728 compared to the year ended December 31, 2015.
- Gross margin as a percentage of revenue increased to 68% compared to 22% in the year ended December 31, 2015.
- General and administrative expenses for the year ended December 31, 2016 decreased significantly to $1,100,505, compared to $1,502,417 for the year ended December 31, 2015.
- Signed the Company's first multi-year agreement with NBC Universal owned Fandango Rewards.
- Launched two new modules to PLATFORM3 based on market experience and feedback: Targeted Couponing and Shopper Messaging and Retargeting.
Subsequent to the year ended December 31, 2016:
Year-to-date 2017 3tl has agreements that will generate over $880,000 in revenues, more than the entire year of 2016, of which approximately 85% is expected to be recognized in 2017:
- Most of the 2016 agreements were short-term trials, the 2017 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 ongoing digital loyalty and rewards programs. 3tl is generally paid an annual license fee plus transactions fees based on the number of times consumers validate purchases using PLATFORM³.
"In 2016 we re-launched PLATFORM3 with additional modules that improved our value proposition for CPG brands, enabling them to connect directly with consumers in retail locations via mobile devices and influence purchasing decisions through digital rewards," said Rob Craig, CEO of 3tl. "These modules provide tools for brands to use the valuable data collected by PLATFORM3 to provide more meaningful rewards and retarget consumers based on purchasing behaviour and preferences. Our success in 2016 is leading to strong growth in 2017."
Results of Operations
Revenue for the year ended December 31, 2016 increased by 109% to $665,728, compared to $319,163 for the year ended December 31, 2015. The Company shifted its business model with the launch of PLATFORM3 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.
Gross profit for the year ended December 31, 2016 increased to $452,715, compared to $69,229 for the year ended December 31, 2015. Gross margins for the year ended December 31, 2016 was 68% and 22% for year ended December 31, 2015. The increase in gross profit and gross margins was largely due to economies of scale.
In 2017, 3tl launched an API connection to 3rd party digital rewards platforms. This service enables 3tl's 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 year ended December 31, 2016 decreased significantly to $1,100,505, compared to $1,502,417 for the year ended December 31, 2015. The decrease was mainly due to decrease of wages and salaries and professional fees.
Sales and marketing expenses for the year ended December 31, 2016 decreased to $562,525, compared to $709,024 for the year ended December 31, 2015. The decrease was mainly due to reduction in consulting fees paid in connection with sales and marketing activities.
Research and development expenditure for the year ended December 31, 2016 decreased to $366,754, compared to $586,103 for the year ended December 31, 2015. Research and development expenses were lower for the fiscal year 2016 compared to the fiscal year 2015 as much of the development of PLATFORM3 was completed in 2015. 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. Expenses include wages and salaries, consulting fees and SR&ED tax credit or expense.
Net and comprehensive loss for the year ended December 31, 2016 was $1,767,075 compared to $2,853,152 for the year ended December 31, 2015. This decrease was mainly due to the increase of revenue and reduction 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, [email protected]