VANCOUVER, Nov. 22, 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 September 30, 2018 ("Q3 2018").
For the nine months ended September 30, 2018, the Company achieved the following milestones:
- DTC signed 26 new license agreements to provide PLATFORM3 to leading Consumer Packaged Goods (CPG) brands.
- Revenue increased by 31% to $1,203,634 compared to revenue for the nine months ended September 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.
The Company is also pleased to provide the following 2018 updates:
- In 2018 year to date, DTC has 29 signed agreements which account for approximately $1,802,000 in total contract value, of which approximately 75% 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 $1,802,000 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 Flexxi Rewards Network (Flexxi), a consumer data platform that will empower consumers to collect, store and secure data about their lives and purchase behaviors in the form of a digital asset/profile (Data Wallet). Brands will be given pseudonymous access to these profiles to search for consumers that meet their target demographics. Brands will be able to publish simple tasks (Jobs) for consumers to complete and provide financial incentives for completing these tasks. Flexxi will compel consumers (rather than data brokers and ad tech companies) to aggregate, control and package their personal data assets to gain financial rewards while providing brands and agencies access to the highest quality consumer data available anywhere. The first version, Flexxi 1.0, is expected to be launched in Q4 2018 and will leverage foundational technology from DTC's proprietary SaaS platform - PLATFORM3.
"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 third quarter. It is further confirmation of PLATFORM3's ability to drive ROI for our customers with its various modules including Artificial Intelligence and Data and Analytics modules which enable brands to monetize consumer data while using cryptography-based security features to protect this data in the process. We would also like to thank investors for their continued financial support in the financing completed after the third quarter, and note that as disclosed previously, management participated in this round."
Results of Operations:
Revenue for the three months ended September 30, 2018 increased by 17% to $422,607 and revenue for the nine months ended September 30, 2018 increased by 31% to $1,203,634, compared with the same period in 2017.
Gross margin as a percentage of revenue for the three and nine months ended September 30, 2018 was 50% and 60% respectively, compared to 70% and 68% for the three and nine months ended September 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 September 30, 2018 compared to the same period ended September 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 one-time events and the Company anticipates gross profit margins to return to previous percentage level.
General and administrative expenses for the three and nine months ended September 30, 2018 increased to $293,645 and decreased to $772,944 respectively, compared to $227,877 and $889,592 for the three and nine months ended September 30, 2017, The increase for the three month period and the decrease for the nine month period were mainly due to increases in new corporate finance service contracts engaged in the third quarter and the decrease in investor relations and general office expenses for 2018 year-to-date. General and administrative expenses include salaries and benefits, accounting, legal, corporate finance services, travel, rent, office, and other administrative costs.
Research and development expenditures for the three and nine months ended September 30, 2018 was $169,336 and $470,452 respectively compared to $89,618 and $304,094 for the three and nine months ended September 30, 2017. Research and development expenses may increase in the future as the Company seeks to evolve and improve PLATFORM3 and Flexxi, 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. Research and development expenses include wages, salaries and consulting fees.
Net and comprehensive loss for the three months and nine months ended September 30, 2018 was $403,266 and $1,564,412 respectively, compared to $325,166 and $1,259,803 for the three and nine months ended September 30, 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.
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]