TIDMALB
RNS Number : 3507Y
Albert Technologies Ltd
05 December 2017
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
5 December 2017
Albert Technologies Ltd.
("Albert Technologies" or the "Company")
SaaS Business Update and Cessation of Indirect Business
In light of growing momentum and revenues in its core SaaS
business and following a review by the Board, Albert Technologies
(AIM: ALB) today provides an update on its SaaS business and
confirms its intention to cease trading of its Indirect business by
end of 2017.
Core channel - SaaS business update
Our SaaS business continues its rapid growth with new contract
wins and increased pipeline activity. We expect to generate SaaS
revenues of at least US$1.7m for the year ended 31 December 2017,
having achieved an annualised run-rate of over US$3m in the final
quarter to date. This revenue performance is ahead of our initial
expectations for 2017 and represents a 9x increase over the
previous year.
We continue to be highly encouraged by the growth trajectory of
our SaaS platform following significant new client wins during
2017, and growing revenue from our existing client base, as Albert
proves its value in delivering enhanced performance as well as
operating cost efficiencies. The Board believes that shareholder
value will be maximized by investing the Company's resource in its
SaaS channel which is well positioned to meet growing structural
demand for autonomous marketing solutions.
Rationale for ceasing the Indirect business
As previously announced, the ecosystem in which the Indirect
business operates has experienced severe and prolonged disruption
commencing in late 2015. Advertising exchanges reduced their
inventory levels, many exchanges consolidated or merged and, in
parallel, the market started to shift from using open exchanges to
private and self-serve exchanges. This disruption resulted in loss
of supply for major online advertising exchanges and a loss of
demand from major media buyers, the consequence of which was a
dramatic decrease in transaction volumes and significant pressure
on margins in the industry.
The Company has sought to minimise the impact of disruptions
described above, including working to diversify its partnerships
and customer base, however the Indirect business became
unprofitable in H1 2017 for the first time and the market in which
it operates remains extremely volatile. Conversely, the Company's
core SaaS business is gaining momentum and is not subject to the
pressures described above as revenues from this business are based
on tier levels of the software usage and not on utilising
opportunities for gains from trading activity.
The Board therefore believes it would be in the best interests
of shareholders to cease the Indirect business by the end of 2017
in order to focus its efforts and resources solely on its SaaS
business and reduce the losses of the Company. There are expected
to be no material net costs associated with the closure and the
intellectual property utilised by the Indirect business will remain
under the direct ownership of the Company.
Or Shani, Chief Executive Officer of Albert Technologies,
commented:
"Witnessing the changes in the past two years in the industry,
we are confident in the strategic change we are making. Having
positioned our AI platform at the forefront of the industry, we
will now be able to better support and focus on enhancing our
fast-scaling SaaS business."
For further information, please contact:
Albert Technologies Tel: +972
Ltd. 3537 7137
Or Shani, Chief Executive
Officer
Yoram Freund, Chief
Financial Officer
https://albert.ai/
Liberum (NOMAD and Tel: +44 20
Broker) 3100 2000
Neil Patel / Chris
Clarke / Jonathan
Wilkes-Green
About Albert Technologies Ltd.
Albert (AIM: ALB.L) is the first-ever fully autonomous
artificial intelligence marketing platform, driving digital
marketing campaigns from start to finish for some of the world's
leading brands. Albert's mission is to liberate businesses from the
complexities of digital marketing-not just by replicating their
existing efforts, but by executing them at a pace and scale not
previously possible. He serves as a highly intelligent and
sophisticated member of brands' marketing teams, wading through
mass amounts of data, converting this data into insights, and
autonomously acting on these insights, across channels, devices and
formats, in real time. This eliminates the manual and
time-consuming tasks that currently limit the effectiveness and
results of modern digital advertising and marketing. Brands such as
Harley Davidson, EVISU, The Big Red Group, and Dole Asia credit
Albert with significantly increased sales, an accelerated path to
revenue, the ability to make more informed investment decisions,
and reduced operational costs.
The Company's core focus is its SaaS Sales Channel, which offers
its artificial intelligence-based software, Albert, to brands using
a SaaS model. Albert Technologies Ltd. listed in 2015 to accelerate
both investment into and commercialisation of Albert.
The Company and Albert have received many awards in its short
existence, including two platinum MarCom awards and silver in the
Best in Biz awards 2016 for best new product of the year. Albert
was also named AI Application of the Year by The Global Annual
Achievement Awards for Artificial Intelligence.
About Albert
Albert replaces the human campaign manager in managing a brand's
online advertising campaigns. A brand provides Albert with access
to its Google, Facebook, Bing, Twitter and other online marketing
channels. When a brand manager wishes to launch a new online
advertising campaign, she simply logs into Albert and deploys that
new campaign, which is usually no more than a 15 minute task.
Albert autonomously creates hundreds of micro campaigns across
all relevant online marketing channels (Google, Facebook, Bing,
Twitter, Instagram, Display, Email, etc), then reviews these
hundreds of micro campaigns every few minutes and optimises each of
them as needed. Albert works in very much the same way that a human
campaign manager would, making correlation and cost/benefit based
decisions.
Where an experienced campaign manager could possibly make circa
100 decisions per day, Albert can make thousands per minute.
Albert's ability to launch hundreds of micro strategies and review
and amend them all every few minutes typically brings about a
significant increase in ROI. In addition, all learnings from the
decisions made remain in house, so the brand has full and instant
transparency and can easily scale up marketing activity through
larger budgets or application to new brands and new geographies
without hiring new expert campaign managers.
FORWARD LOOKING STATEMENT
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". By their nature,
forward-looking statements involve risk and uncertainty since they
relate to future events and circumstances. Actual results may, and
often do, differ materially from any forward-looking statements.
Any forward-looking statements in this announcement reflect Albert
Technologies' view with respect to future events as at the date of
this announcement. Save as required by law or by the AIM Rules for
Companies, Albert Technologies undertakes no obligation to publicly
revise any forward-looking statements in this announcement
following any change in its expectations or to reflect events or
circumstances after the date of this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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