VANCOUVER, Sept. 1, 2015 /CNW/ - 3TL Technologies Corp. (TSXV: TTM) ("3TL" or the "Company"), is pleased to announce its financial results for the three months ended June 30, 2015.
3TL's core product is Platform³, a Software as a Service (SaaS) consumer marketing platform which enables consumer packaged goods companies and consumer brands (together "brands") to engage consumers and influence purchasing decisions through their mobile devices and online.
Platform³ consists of proprietary technology modules including Snap3 (purchase receipt scanning), Social Portal, Rewards and Loyalty and Customer Relationship Management. The modules work together to engage consumers, provide rewards and aggregate valuable consumer data including demographics and purchasing behaviour. Platform³'s contest, event, sales and promotion microsites enable brands to engage and activate consumers through mobile or web interfaces. Consumers are able to participate in a brand promotion, launched on Platform³'s web and mobile-based engagement microsites, by connecting through Facebook, Twitter, Instagram or a standard registration form. Consumers use Snap3 to scan their purchase receipts to validate purchases and obtain rewards.
When the Company was founded in 2008 it established a profitable business by providing custom digital marketing solutions to major brands and shopping mall operators including Abercrombie & Fitch, Anthony Robbins, Best Buy, Hollister, MGM Resorts International, Monster Beverage Corporation, Oakley, Pennsylvania Real Estate Investment Trust, Ralph Lauren, Red Bull, St. Louis Rams and Universal Music. In 2012, 3TL commenced development of Platform³ with the goal of providing a scalable, software as a service ("SaaS"), digital marketing platform that offers a compelling value proposition to major consumer brands and retailers. In 2014, the Company launched Platform³ and ceased selling custom development services not related to implementation of the platform.
Highlights for the three and six months ended June 30, 2015:
- Signed a major regional shopping mall to a renewal for an annual subscription to Platform³, validating the 3TL's SaaS model. The customer used Platform³ as part of a marketing campaign that lead to significant increases in foot traffic, sales per square foot and gift card sales. Signed an agreement to provide Snap³ to a leading US based baby care products company. Snap³, the mobile shopper marketing and receipt processing module of Platform³, will be used by the client at the point of purchase in thousands of retail stores throughout the United States to motivate consumers with rewards to make larger and more frequent purchase transactions.
- Signed over $333,404 in contracts for Platform³ and Snap³ products and services for the first two quarters of fiscal year 2015, compared to $310,250 of revenue recognized for the full fiscal year of 2014.
- Signed an agreement with a large USA based fashion retailer to use Platform³ to accelerate e-commerce transactions. This agreement included the development of a new Style Board and Outfit module of Platform³ that will enable consumers to create their own virtual outfits using the retailer's merchandise and share this content on Facebook, Twitter and Instagram. (See press release dated February 23, 2015)
- Signed a major regional shopping mall to a renewal for an annual subscription to Platform³, validating the 3TL's SaaS model. The customer used Platform³ as part of a marketing campaign that lead to significant increases in foot traffic, sales per square foot and gift card sales. (See press release dated April 15, 2015)
- Signed one of the largest baby care products manufacturers in the U.S. Snap3, the mobile shopper marketing and receipt processing module of Platform³, will be used by the client at the point-of-purchase in thousands of retail stores throughout the United States to motivate consumers with rewards to make larger and more frequent purchase transactions. (See press release dated April 20, 2015)
- Launched Snap3 as a module of Platform³, a mobile shopper marketing technology that encompasses proprietary technology and modules including Optical Character Recognition ("OCR"), Image Processing, Security and Fraud Detection, Rules Engine and Management Dashboard. Brands use Snap3 to run shopper marketing promotions in-store at retail locations designed to engage consumers, influence their purchasing decisions and track their purchasing behaviour.
Subsequent to the period ending June 30, 2015 the Company licensed 3TL's Snap3 OCR mobile shopper marketing technology to CausePlay, a Los Angeles-based digital/mobile agency, for a major promotion with Food4Less stores and it's DigitalFood App, Nestle Waters, Kellogg's Pop-Tarts, and Hormel Foods' Farmer John brand in support of Demi Lovato's Lovato Treatment Scholarship. (See press release dated August 27, 2015)
"In the first half of 2015 we closed a number of key reference accounts in three key verticals namely, e-commerce, promotions and loyalty and in-store shopper marketing. The launch of Snap³ as a module of Platform³ allows us to offer an integrated mobile point-of-sale rewards solution, providing a compelling value proposition for consumer packaged goods companies seeking a mobile digital solution for in-store shopper marketing promotions", said Rob Craig, CEO of 3TL Technologies Corp. "Consumer packaged goods companies have budgets for in-store shopper promotions and are looking for ways to improve returns on those budgets and attract consumers who are increasingly moving to mobile. We believe that 3TL is now well positioned to grow sales significantly into 2016 by focusing our resources on the shopper marketing vertical through direct sales and working with aligned advertising agencies to provide Snap³ to major consumer packaged goods companies."
Revenue for the three and six months ended June 30, 2015 increased by 236% to $151,233 and by 90% to $235,944, respectively, compared to the same periods in 2014. Since 3TL delivers many of its products and services over annual and quarterly periods through a SaaS model, some of the revenues from contracts signed in the first and second quarters will be recognized in subsequent quarters.
Gross profit for the three and six months ended June 30, 2015 increased to $100,477 and $144,984, respectively, compared to $13,924 and $54,954 for the three and six months ended June 30, 2014. The Company expects gross margin to increase in future quarters due to growth in revenues of Platform³ and Snap³.
Gross margins as a percentage of sales for the three and six months ended June 30, 2015 increased to 66% and 61%, respectively, compared to 31% and 44% for three and six months ended June 30, 2014. Gross margin as a percentage of sales is also expected to increase due to economies of scale and higher margins on SaaS renewals.
Net and comprehensive loss for the three and six months ended June 30, 2015 was $671,858 and $1,580,188 compared to $503,075 and $948,160 for the three and six months ended June 30, 2014. This increase is due to overall increase in general and administrative, sales and marketing, and research and development related to additional headcounts for growth of the Company's operations as well as public company costs related to the Company's listing on the TSXV in October 2014.
About 3TL Technologies Corp.
3TL's core product is Platform³, a Software as a Service (SaaS) consumer marketing platform which enables consumer packaged goods companies and consumer brands to engage consumers and influence purchasing decisions through their mobile devices and online. Platform³ encompasses proprietary consumer engagement strategies and technology modules including Snap³ (purchase receipt scanning), digital promotions, purchase data mining, loyalty and rewards. 3 Tier Logic has provided marketing technology solutions to Abercrombie & Fitch, Anthony Robbins, Best Buy, Hollister, EA Sports, Food4Less, Fandango, MGM Resorts International, Maestro Dobel Tequila, Monster Beverage Corporation, Oakley, Playtex, Pennsylvania Real Estate Investment Trust, Ralph Lauren, Red Bull, St. Louis Rams, Universal Music, US Performing Arts Camps, and dozens of other companies. 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: 3 Tier Logic, Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]