VANCOUVER, BC , Aug. 26,
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
June 30, 2022 ("Q2 2022").
For the periods three and six
months ended June 30, 2022, the
Company achieved the following milestones:
- Revenue for the three months ended June
30, 2022 increased by 35% to $868,528 and revenue for the six months ended
June 30, 2022 increased by 31% to
$1,729,114, compared with the same
periods in 2021 due to an increase in contracted project deliveries
and variable transaction revenues for the licensing and reward
businesses.
- Signed 23 agreements (June 30,
2021 – 15 agreements) to provide
PLATFORM3 to leading brands, which
increased the total contracted revenue for 2022 and future periods
to approximately $3.3 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 slightly decreased to $1,359,990 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.
The Company is also pleased to
provide the following 2022 updates:
- Year-to-date, Datable has signed 28 new agreements (same period
in 2021 – 18 new agreements), which together with license
agreements signed in prior periods amount to approximately
$4.4 million in revenue under
contract for 2022 and future periods, of which over $3.75 million is expected to be recognized as
revenue in 2022. This includes approximately $4 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.
- 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 and early 2023 for the
summer, back-to-school and the holiday promotions, and as long-term
loyalty programs.
- Completed the first tranche of its non-brokered private
placement for gross proceeds of approximately $370,000 as disclosed in press releases dated
Aug. 9, 2022 and August 19, 2022.
"We are encouraged with our continued revenue growth of over 30%
for the first half of 2022 in this 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 and M&A that leverage our enterprise-level
technology platform and customer base including a growing number of
the world's largest consumer goods companies."
Results of Operations:
Revenue for the three months ended June 30, 2022 increased by 35% to $868,528 and revenue for the six months ended
June 30, 2022 increased by 31% to
$1,729,114, compared with the same
periods in 2021 due to an overall increase in contracted 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 six months ended
June 30, 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 and six months
ended June 30, 2022 increased by 10%
to $349,153 and 6% to $717,773 respectively, compared to the same
periods in 2021. The Company's cost of sales for the three months
and six months ended June 30, 2022
increased by 59% to $519,375 and 57%
to $1,011,341 respectively, compared
to the same periods 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 and
six months ended June 30, 2022 was
40% and 42% respectively, compared to 49% and 51% for the three and
six months ended June 30, 2021. The
decrease for the six months ended June 30,
2022 was due to higher growth in lower margin services
compared to the licensing and Software as a Service product.
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 and six
months ended June 30, 2022 were
decreased to $400,428 and
$803,220 respectively, compared to
$527,454 and $829,727 for the three and six months ended
June 30, 2021. The decrease for the
six months ended June 30, 2022 was
mainly due to a decrease in corporate consultancy fees,
professional fees, investor relations 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 and six months ended
June 30, 2022 was $207,782 and $469,061 respectively compared to $315,940 and $502,734 for the three and six months ended
June 30, 2021. The decrease for the
six months ended June 30, 2022 was
mainly due to reduction in staff resources and consultants paid in
connection with advertising, sales and marketing activities.
Research and development expenditures for the three and
six months ended June 30, 2022 was
$496,744 and $1,024,588 respectively compared to $416,063 and $725,318 for the three and six months ended
June 30, 2021. The increase in
research and development expenses for the six months ended
June 30, 2022 was related to
enhancement to PLATFORM3, and increased
staff resources.
Net and comprehensive loss for the three months and six
months ended June 30, 2022 was
$936,754 and $2,162,499 respectively, compared to $1,073,640 and $1,978,658 for the three and six months ended
June 30, 2021. This increase in net
loss for the six months ended June 30,
2022 was mainly due to the increase of research and
development expenses, net of the growth in revenue. Datable
expects a decrease in net and comprehensive loss in 2022 and 2023
due to increased revenues and gross margin, and a decrease in
expenses.
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.