VANCOUVER, Aug. 24, 2018 /CNW/ - Datable Technology Corp. ( TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "DTC"), formerly 3tl Technologies Corp., a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS), announces its financial results for the quarter ended June 30, 2018 ("Q2 2018").
For six months ended June 30, 2018, the Company achieved the following milestones:
- DTC signed 24 new license agreements to provide PLATFORM³ to leading Consumer Packaged Goods (CPG) brands.
- Revenue increased by 40% to $781,027 compared to revenue for the six months ended June 30, 2017.
- The average dollar value of license agreements has increased by approximately 33% to $53,000 compared to 2017, including short-term targeted shopper marketing promotions and annual/multi-year SaaS licenses.
- Many of these agreements represent a growing trend of repeat business from leading U.S based consumer brands.
Subsequent to the end of Q2 2018, the Company completed a non-brokered private placement of 13,569,865 units of the Company at $0.105 per Unit for gross proceeds of approximately $1,424,835 (see press release dated August 8, 2018).
The Company is also pleased to provide the following 2018 updates:
- In 2018 year to date, DTC has 38 signed agreements which account for approximately $1,640,000 in total contract value, of which approximately 77% is expected to be recognized as revenue in 2018.
- 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 $1,640,000 in contracted revenues noted above only accounts for license and service fees and does not include any transaction fees.
- The Company shared its plans for P³Consumer, a consumer data platform that will enable consumers to secure, control and monetize their data. P³Consumer will leverage blockchain technology and protocols for performing secure multiparty computation to provide a secure, transparent, efficient and scalable platform. Both of these technologies use distributed cryptography to remove the need to entrust a third party to execute a transaction (see press release dated May 29, 2018).
"We continue to see increased interest in our platform from repeat customers who return to sign longer-term agreements with us," said Robert Craig, DTC's CEO. "We are very proud of our progress and growth in customer retention rates in this second quarter. It is further confirmation of PLATFORM³'s ability to drive ROI for our customers with its various modules such as: Contests & Promotions, Purchase Receipt Validation, Loyalty, Rewards & Gamification, Data Capture & Analytics, and Retargeting & Automated Messaging. We would also like to thank investors for their continued financial support in the financing completed after the second quarter, and note that, as disclosed previously, management participated in this round."
Results of Operations:
Revenue for the three months ended June 30, 2018 increased by 10% to $392,767 and revenue for the six months ended June 30, 2018 increased by 40% to $781,027, compared with the same period in 2017.
Gross margin as a percentage of revenue for the three and six months ended June 30, 2018 was 58% and 65% respectively, compared to 64% and 68% for the three and six months ended June 30, 2017. Gross margin as a percentage of revenue depends on the product mix for the reporting period. Revenues are comprised of a combination of higher margin sales of PLATFORM³, the Company's proprietary SaaS product, combined with some lower margin third party services.
The decrease in gross margin as a percentage of revenue for the three months ending June 30, 2018 compared to the same period ended June 30, 2017 was mainly due to series of trial promotions run with one of the significant customers. The Company waived the standard transactions fee for rewards on these programs. This in combination with a high volume of consumer participation and rewards payout in the form of gift cards required the Company to purchase an exceptional amount of 3rd party gift cards for rewards with low profit margin during the program period. These short-term programs were onetime events and the Company anticipates gross profit margins to return to previous percentage level.
General and administrative expenses for the three and six months ended June 30, 2018 decreased to $220,211 and $479,299 respectively, compared to $372,418 and $661,716 for the three and six months ended June 30, 2017, mainly due to decreased investor relations expenses. General and administrative expenses include salaries and benefits, accounting, legal, investor relations, travel, rent, office, other administrative costs.
Research and development expenditures for the three and six months ended June 30, 2018 was $161,739 and $301,116 respectively compared to $148,464 and $214,476 for the three and six months ended June 30, 2017. Research and development expenses may increase in the future as the Company seeks to evolve and improve PLATFORM³, 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 three months and six months ended June 30, 2018 was $448,767 and $1,161,146 respectively, compared to $513,611 and $934,643 for the three and six months ended June 30, 2017. This increase was mainly due to the increase of share-based compensation expenses, net of increase of revenue and corresponding gross profit.
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: please contact: Datable Technology Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]