Baseline contracted licenses & renewals point to 100%+ revenue growth over 2019
VANCOUVER, Feb. 5, 2020 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable"), a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service ("SaaS"), announces a sales and customer update.
Datable ended January 2020 with approximately $1.1 million of baseline contracted licenses for PLATFORM³. This is an increase of over 61% of baseline contracted licenses compared to the same period in 2019. Approximately 83% of the baseline contracted licenses are expected to be recognized as revenue in 2020 with the balance recognized in future periods. (Baseline contracted licenses do not include transaction fees, which generate additional revenues in many of Datable's agreements.)
"We expect strong revenue growth this year driven by long-term license agreements for PLATFORM³. These results are from our increased focus on selling PLATFORM³ as a long-term solution for brands wanting to engage consumers for extended periods of time," said Rob Craig, CEO of Datable. "Consumers today are fickle and jump from brand to brand. PLATFORM³ provides consumer brands with a solution to increase purchase frequency and extend consumer relationships in today's challenging consumer market".
The Company expects to report revenues of approximately $1.5 million with gross margin of approximately 70% for the year ended December 31, 2019, representing modest revenue growth of approximately 10% compared with 2018. In 2019, Datable provided digital loyalty, rewards and consumer engagement applications to 24 leading consumer brands. These programs delivered incremental revenues and measureable ROI for some of the largest consumer brands in the world. Further, they have provided the sales team with compelling case studies and a growing list of repeat customers, resulting in shorter sales cycles and increasing dollar value contracts.
Datable expects 2020 revenue to grow by over 100% and expenses to increase by approximately 10% compared to 2019 due to the following:
- Baseline contracted licenses valued at $1.1 million as at the end of January 2020. This is an increase of over 61% of baseline contracted licenses over the same period in 2019.
- Incremental transaction revenue in addition to the contracted baseline licenses.
- Existing customer license renewals with budget increases for PLATFORM³. All 24 existing brands intend to renew licenses and several are negotiating budget increases for both short-term product promotions as well as annual and multi-year licenses.
- Datable has a pipeline of potential new customers, comprised mostly of leading consumer brands in the USA and Canada. Due to the Company's track record of delivering value over the last two years, new customers are expected to start with larger dollar value agreements than the initial agreements signed in 2018 and 2019.
- Datable added functional modules to PLATFORM³ based on requests from large customers. These modules include Dynamic Messaging for retargeting consumers based on purchase behaviour, and Anti-Fraud for improved security. Customer uptake for both modules is robust.
Datable's customers with annual and multi-year licenses include:
- the home video distribution division of one of the world's largest media and entertainment conglomerates;
- a leading global provider of solutions and equipment for turf maintenance, landscape, snow and ice management and irrigation; and,
- a leading North American provider of online movie tickets and related streaming content.
Customers that have contracted for multiple short-term product promotions include:
- one of the world's largest brewers that owns numerous leading beer brands; and,
- one of Canada's largest producers and distributors of packaged fresh bread and bakery products.
In addition to the strong revenue growth from its' PLATFORM³ software licensing business, Datable expects to launch the flexxi Rewards Network for the consumer packaged goods and entertainment industries. The Company also plans to launch a shareholder loyalty platform for public companies on the flexxi Rewards Network. Under both of these new business lines, Datable will use PLATFORM³ to build opt-in databases, and share revenues generated from transaction fees with users. As discussed in the press release dated December 12, 2019, negotiations are ongoing with launch partners for both of these new business lines. The Company has identified launch partners for the shareholder loyalty platform, including an agreement with The Circadian Group to post offers to shareholders on the investment website The Cannabis Investor www.thecannabisinvestor.ca
Datable also announces that it has settled debts by issuing common shares as follows:
$15,750 by issuing an aggregate of 315,000 shares at $0.05 per share to an arm's length creditor for services under an advisory agreement. The shares issued under the debt settlement are subject to a statutory hold period of four months plus a day from the date of issuance.
$125,000 by issuing an aggregate of 2,500,000 shares at $0.05 per share pursuant the terms of a shareholder approved debt settlement agreement between the Company and Mr. Yong. Refer to the Company's news releases of November 21, 2019 and December 12, 2019 for details of the debt settlement with Mr. Yong.
About Datable Technology Corporation
Datable 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 datablecorp.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 Datable Technology Corp.
Datable Technology Corporation, Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]
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