VANCOUVER, March 17, 2020 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable"), announces it signed a three-year Master Service Agreement ("MSA") with a global energy drink company in February 2020. Datable Technology Corporation provides an integrated suite of digital marketing applications sold as Software-as-a-Service ("SaaS"), its core product being PLATFORM³.
The MSA commenced in February 2020 and ends in February 2023, with an option for subsequent one-year renewals. Master Services Agreements (MSA's) are annual or multi-year contracts between Datable and its customers in which the parties agree to most of the terms that will govern future transactions or future agreements including legal, delivery of software, services and support. Datable has signed MSAs with a number of global consumer goods companies and their agencies. The process for securing a MSA with a global company includes a rigorous series of security, scalability and infrastructure compatibility audits.
Datable has signed its first marketing program under the MSA with this global energy drink company, comprised of a two-month promotion program to be offered exclusively in a major U.S. based grocery chain during March and April 2020. The budget for the initial program is approximately $20,000.
"The time and effort expended by this leading global energy drink company to assess and approve our technology validates the value proposition and unique services that Datable offers our growing client base. This three-year deal provides us the runway to build a long-term relationship as we support their brand with digital loyalty, rewards, and data-driven consumer engagement," said Rob Craig, CEO of Datable. "We expect this initial campaign to be the first of many promotions with this leading brand. Like many of our customers, the energy drink company sells most of its products through grocery and convenience stores, which are expected to remain open during the COVID-19 crisis."
Datable ended February 2020 with approximately $2.1 million of baseline contracted licenses for PLATFORM³, with a gross margin of about 70%. Baseline contracted licenses do not include transaction fees, which generate additional revenues in many of Datable's agreements. Approximately 64% of the baseline contracted licenses are expected to be recognized as revenue in 2020 with the balance recognized in future periods.
Datable previously provided guidance that revenue will grow by over 100% in 2020 with expenses increasing by about 10%, compared to 2019 (see press release dated February 5, 2020). Datable expects gross margin to remain at about 70% in 2020. Datable's progress in March 2020 has increased the Company's confidence in this guidance.
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.
For further information: Datable Technology Corporation, Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]