VANCOUVER, May 29, 2015 /CNW/ - 3TL Technologies Corp. (TSXV:TTM) ("3TL" or the "Company"), is pleased to announce its financial results for the three months ended March 31, 2015.
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, Ivanhoe Cambridge, 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 2013, the Company committed to focusing all its resources on building and launching Platform³ and ceased selling custom development services not related to implementation of the platform.
Platform³ is a consumer-to-consumer content marketing, data mining, loyalty and rewards platform used by consumer brands and retailers to engage consumers and facilitate the distribution of relevant brand content through consumer-to-consumer sharing via social media such as Facebook, Twitter and Instagram. Platform³ collects and analyzes data, including demographics and level of social media brand engagement, to determine which consumers are most valuable to a brand. Consumer brands and retailers can use that data to offer rewards through Platform³ to motivate and incentivize consumers to accelerate their sharing and purchasing. Platform³ is easy to use and implement, allowing major brands and retailers access to the major social media channels and to manage consumer data on a common user interface and consumer database.
Highlights for the three months ended March 31, 2015:
- Signed over $333,404 in contracts under the Company's new business model that includes Platform³ and Snap³ products and services for the first quarter 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)
Subsequent to the quarter ended March 31, 2015, 3TL 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. (See press release dated April 20, 2015)
Revenue for the three months ended March 31, 2015 increased to $84,711, compared to $79,000 for the three months ended March 31, 2014. The Company's revenue was slightly higher in the first quarter of 2015 due to larger contracts signed in early 2015 and timing of projects delivered as compared to the first quarter in 2014. Since 3TL delivers its 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 quarter will be recognized in subsequent quarters.
Gross profit for the three months ended March 31, 2015 increased to $44,507, compared to $41,030 for the three months ended March 31, 2014. The Company's cost of sales for the three months ended March 31, 2015 increased to $40,204, compared to $37,970 for the three months ended March 31, 2014. Gross margin for the three months ended March 31, 2015 was 53% compared to 52% for three months ended March 31, 2014. The Company expects gross margin to increase in future quarters due to growth in revenues of Platform³ and Snap³. Gross margin as a percentage of sales is also expected to increase due to economies of scale and higher margins on SaaS renewals.
"In the first quarter of 2015 and year to date, we closed a number of key reference accounts and established a strong sales pipeline of major consumer packaged goods companies, retailers and shopping malls. We all know that the most trusted form of advertising is referrals and recommendations from other consumers. Platform³ is enabling our customers to leverage the major social media channels to accelerate consumer-to-consumer sharing of content that promotes a brand or product," said Rob Craig, CEO of 3TL Technologies Corp. "The launch of Snap³ as a module of Platform³ allows us to offer an integrated mobile point-of-sale rewards solution, providing a great entry point for consumer packaged goods companies. We worked with our customer to develop our Style Board and Outfit sharing module to provide online merchants a unique way to increase traffic and engagement on their websites with the goal of generating increased e-commerce revenues".
About 3TL Technologies Corp.
The Company's core product Platform³, launched in early 2014, is a consumer-to-consumer content marketing, data mining, loyalty and rewards platform used by brands to engage consumers on the web or mobile phone through digital and social channels. Platform³ enables brands to facilitate the distribution of relevant brand content through friend-to-friend sharing via social media. Platform³ collects and analyzes data to determine which consumers are most valuable to a brand based on their level of social media brand engagement. The platform also incentivizes and rewards consumers for sharing brand content on their personal social channels. Customers access Platform³ through a cloud-based subscription service. 3 Tier Logic has provided marketing technology solutions to Abercrombie & Fitch, Anthony Robbins, Best Buy, Hollister, Ivanhoe Cambridge, MGM Resorts International, Maestro Dobel Tequila, Monster Beverage Corporation, Oakley, 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 www.3tierlogic.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]