VANCOUVER, BC, May 25, 2022
/CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF)
(the "Company" or "Datable" or "DTC"), the developer of a
proprietary, SaaS-based Consumer Lifecycle and Data Management
Platform called PLATFORM3, is pleased to
announce its financial results for the quarter ended March 31, 2022 ("Q1 2022").
For the three months ended March 31,
2022, the Company achieved the following milestones:
- Revenue increased by 28% to $860,586 compared to $674,557 in the same period of 2021 due to the
increase in average contract value, project deliveries and
transactional orders in the product mix of both licensing and
reward businesses.
- Signed 7 agreements (2021 – 9 agreements) to provide
PLATFORM3 to leading brands, which
increased the total contracted revenue for 2022 and future periods
to approximately $3.1 million. Total
contracted revenue includes agreements signed in the year and
multi-year agreements carried forward from prior years. Of the
total contracted revenue, approximately 90% is estimated to be
recognized in 2022.
- Deferred revenue increased by 18% to $1,868,637 compared to $1,583,940 as of December
31, 2021. Deferred revenue accounts for services that have
been contracted and paid for by customers that will be delivered
and recognized as revenues in subsequent periods.
- In 2021 DTC began work on building the next generation of
PLATFORM3 6.0. This version was designed
to incorporate new infrastructure, back-end and front-end
technologies that automate the integration, delivery, and testing
of our services. The goal was to significantly reduce the time it
takes the Company to deploy new solutions for its clients. The
objective in redesigning PLATFORM3 was to
incorporate key learnings and requirements gathered from the
leading brands that have been DTC clients for several years.
Additional enhancements address recent critical changes to consumer
privacy laws regarding how Brands can communicate and engage with
consumers on web and mobile applications.
The Company is also pleased to provide the following 2022
updates:
- Year-to-date, Datable has signed 13 new agreements (same period
in 2021 – 13 new agreements), which together with license
agreements signed in prior periods amount to approximately
$3.3 million in revenue under
contract for 2022 and future periods, of which over $3 million is expected to be recognized as
revenue in 2022. This includes approximately $2.9 million in contracted revenues and close to
$400,000 in expected program fees
from customers. Datable expects gross margin to be between
40% and 50% in 2022, depending on product mix and increase and
expected improvements in operational efficiency.
- Signed a Partnership Agreement (the "Agreement") with
GetintheLoop Marketing Ltd. ("GITL") to share revenues
resulting from Datable's customers placing offers and activities
into the GITL Network. Datable's customers are leading
consumer goods companies that own some of the world's most valuable
brands. Datable will earn an estimated 40% of the revenue
from offers it brings to the GITL Network. Under the
Agreement, Datable will generate a new revenue stream by amplifying
offers from leading brands that license
PLATFORM3 on the GITL Network in
Canada and the U.S.
- Most of Datable's large customers are leading CPG companies
that provide staples including food, beverages, and household
products, which are expected to remain in demand during the COVID
19 crisis. In addition, many of Datable's license agreements and
marketing programs extend into late 2022 for the summer and
back-to-school promotions, and as long-term loyalty programs.
"We are encouraged that our revenue growth continued in the
first quarter of 2022 after growing by 79% in 2021 despite the
challenging environment. Our core customers have renewed
their licenses for PLATFORM3 due to the
tools it provides to drive incremental sales and enhance consumer
engagement," said Robert Craig,
Datable's CEO. "The changes in regulations and practices
restricting the use of consumer data are increasing interest in our
solutions which enable the collection, analysis, and monetization
of opt-in consumer data. We expect continued revenue growth
in 2022 from upselling current customers and onboarding new
customers. In addition, we are looking at opportunities to
scale through partnerships that leverage our customer relationships
and platform, such as the Agreement we signed with GITL."
Results of Operations:
Revenue for the three months ended March 31, 2022 increased by 28% to $860,586 compared with $674,557 in the same period in 2021 due to
overall increase in project deliveries and transactional orders
compared to 2021. DTC'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 current year reflected
recognition of revenue from previous year contracts and new sales
of the PLATFORM3 product offering.
Revenue growth for the year of 2021 and the three months ended
March 31, 2022 was partly due to
improvements in the functionality of
PLATFORM3. In late 2020, DTC
launched version 5.0 of PLATFORM3 which
included new modules that extended and deepened its differentiation
in the market by launching a break-through feature on
PLATFORM3 - Dynamic Messaging and Rewards
(DMR). This feature empowers brands to deploy omnichannel
communications, retargeting and contextual rewards to induce
consumer purchases based on their previous and ongoing purchase
behavior and Brand engagement. DMR transforms
PLATFORM3 into a self-regulating
continuous feedback loop for ongoing sales.
Gross profit for the three months ended March 31, 2022 increased by 3% to $368,620 compared to $357,111 in the same period in 2021. The
Company's cost of sales for three months ended March 31, 2022 increased by 55% to $491,966 compared to $317,446 in the same period in 2021 due to change
in product mix and increase in delivery resources during the
period.
Gross margin as a percentage of revenue for the three
months ended March 31, 2022 was 43%
compared to 53% in the same period in 2021 and 39% for the year
ended December 31, 2021. Gross
margin 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
Software as a Service product, and reward service combined with
some lower margin third party services. The Company's gross
margin as a percentage of revenue is expected to improve in 2022,
compared to 2021, due to product mix and investments in our
technology to automate the integration, delivery, and testing of
our services.
Cost of sales includes an API connection to third party digital
rewards platforms. 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 charges 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 three
months ended March 31, 2022 increased
by 33% to $402,792 compared to
$302,273 in the same period in 2021.
The increase for the three months ended March 31, 2022 was mainly due to an increase in
corporate consultancy fees, and general administration.
Sales and marketing expenses include wages and
salaries, consulting fees, travel expenses, and advertising and
licenses. Sales and marketing expenses for the three months ended
March 31, 2022 was $261,279 compared to $186,794 in the same period in 2021. The increase
for the three months ended March 31,
2022 was mainly due to increased staff resources and
consultants paid in connection with advertising, sales and
marketing activities.
Research and development expenditures for the three
months ended March 31, 2022 was
$527,844 compared to $309,255 in the same period in 2021. The increase
in research and development expenses for the three months ended
March 31, 2022 was related to
enhancement to PLATFORM3, and
increased staff resources.
Research and development expenses may continue to 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
revenue. Research and development expenses include wages and
salaries and consulting fees.
Net and comprehensive loss for the three months ended
March 31, 2022 was $1,225,745, compared to $905,017 in the same period in 2021. This
increase in net loss for the three months ended March 31, 2022 was mainly due to the increase of
sales and marketing, research and development expenses, net of the
growth in revenue.
About Datable Technology
Corporation
Datable has developed PLATFORM3 a
proprietary Consumer Lifecycle and Data Management Platform that is
sold to global consumer brands.
PLATFORM3 is delivered as a
subscription service (Software as a Service model) and used by some
of the worlds' most valuable consumer brands to access new consumer
communities and engage them while collecting, analyzing, and
managing their first-party data.
PLATFORM3 incorporates
proprietary technology 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.