VANCOUVER, April 25, 2019 /CNW/ - Datable Technology Corp. (formerly 3tl Technologies Corp.) (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "DTC"), a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS) for short-term promotions or on an annual subscriptions basis, is pleased to announce its financial results for Q4 2018 and the year ended December 31, 2018 ("Fiscal 2018").
In 2018, the Company achieved the following milestones:
- 32 signed license agreements to provide PLATFORM³ to leading Consumer Packaged Goods (CPG) brands, representing close to $1.9 million in contracted revenues, with approximately 73% recognized as revenue in 2018. More than 50% of the license agreements were from returning clients.
- Revenue increased by 19% to $1,421,070, compared to revenue for the year ended December 31, 2017.
- DTC launched version 3.0 of PLATFORM³ which included two new modules - Targeted Couponing and Shopper Messaging and Retargeting, enhancements to existing Modules and significant improvements to PLATFORM³'s code-set and infrastructure. These developments were the result of experience and feedback aggregated from CPG companies and consumers.
- DTC commenced development of flexxi Rewards Network - a web portal that enables opt-in consumers to earn rewards completing activities such as purchasing CPG products, viewing valuable content posted by CPG brands, sharing content on Social media and referring friends. CPG brands will pay DTC for access to the the consumers. The flexxi Rewards Network is built using Datable's PLATFORM³ technology.
The Company is also pleased to provide the following 2019 updates:
- As of year-to-date in 2019, DTC has signed 10 license agreements this year, which together with existing license agreements signed in prior periods represent contracted revenues of approximately $1.3 million with 79% expected to be recognized in 2019. About 66% of the new license agreements are with returning customers.
- DTC has several annual agreements where PLATFORM³ hosts an ongoing digital loyalty and rewards program. DTC is generally paid an annual license fee plus transactions fees based on the number of times consumers validate purchases using PLATFORM³. The $1.3 million in contracted revenues noted above only accounts for license and service fees and does not include any transaction fees.
"In 2018 we continued to grow our core SaaS business signing multiple Fortune 500 companies as new customers and capturing more than 50% of revenue from returning clients. The Company also continued work to develop its own Consumer Loyalty and Rewards Portals - the flexxi Rewards Network. These Portals provide registered consumers with valuable rewards for engaging with brands and completing brand activities. The flexxi Rewards Network will enable Datable to begin collecting consumer data and expand its' business model to include data and transactional revenue." said Robert Craig, DTC's CEO. "Building communities of consumers and owning the relationships and subsequent data will be a big driver of revenue in the coming years. Portals on the flexxi Rewards Network are built on top of Datable's proprietary PLATFORM³ technology which dramatically reduces costs and time to market for these properties."
Results of Operations:
Revenue for year ended December 31, 2018 increased by 19% to $1,421,070 compared with the same period in 2017. The Company's PLATFORM³ product is an integrated suite of digital marketing applications sold as SaaS for short-term promotions or on an annual subscription 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 Fiscal 2018 increased by 15% to $837,750, compared to Fiscal 2017. Gross margin as a percentage of revenues was 59% in 2018, compared to 61% in the same period in 2017. Revenues are comprised of a combination of higher margin sales of PLATFORM³, the Company's proprietary Software as a Service product combined with some lower margin third party services.
DTC launched an API connection to third party digital rewards platforms in prior years. This service enables DTC clients to offer digital rewards such as gift cards, movie tickets and virtual visas to incentivize purchase and purchase frequency. DTC purchases these rewards on behalf of the Company's clients and charge a transaction fee for the total amount of rewards purchased. Cost of sales also includes the cost of servers to host PLATFORM³, and project management and customer support staff.
General and administrative expenses for the year ended December 31, 2018 decreased to $1,161,376 compared to $1,418,565 for the same period in 2017. The decrease was mainly due to a decrease in new corporate finance service contracts engaged in 2018 compare to the prior year. For the year ended December 31, 2018, general and administrative expenses consisted primarily of $776,543 in office and other overhead expenses that include investor relations, corporate service fees, and regulatory filing fees, $210,226 in wages and salaries, $138,975 in consulting fees, and $35,632 in professional fees.
Sales and marketing expenses for the year ended December 31, 2018 was $760,872 respectively compared to $826,112 for the same period in 2017. The decrease was mainly due to decreased wages and salaries paid in connection with advertising and marketing activities.
Research and development expenditures for the year ended December 31, 2018 was $635,558 compared to $501,873 for the same period in 2017. The increase in research and development expenses related to improving PLATFORM³ and developing the new platform flexxi Rewards Network. Research and development expenses may continue to increase in the future as the Company seeks to evolve and improve PLATFORM³ and flexxi Rewards Network, 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.
Net and comprehensive loss for the year ended December 31, 2018 was $2,178,847 compared to $2,039,546 for the same period in 2017. This increase in net loss was mainly due to the increase of research and development spending and share-based compensation expenses, net of increase of revenue and cost saving of general and administrative expenses and marketing spending.
About Datable Technology Corp.
DTC 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 Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]