VANCOUVER, BC, June 28,
2023 /CNW/ - Datable Technology Corporation (TSXV:
DAC) (OTC Pink: 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 ("Q4
2022" and the year ended December 31,
2022 ("Fiscal 2022").
In 2022, the Company achieved the following
milestones:
- Revenue increased by 12% to $3,944,911 compared to $3,532,318 in 2021 due to the increase in
contracted project deliveries and transactional orders completed in
the year.
- One hundred precent of annual and multi-year SaaS licenses
renewed, all with leading U.S. based large enterprises.
- Had agreements to provide PLATFORM3 to
leading Brands, accounting for total contracted revenue of
approximately $6.2 million, including
over $2.2 million of revenue expected
to be recognized in 2023 and future periods. Total contracted
revenue includes agreements signed in the year and multi-year
agreements carried forward from prior years.
- Total operating expenses decreased by 12% compared to 2021 due
to cost-cutting implemented in the second half of 2022.
The Company is also pleased to provide the following 2023
updates:
- Datable has implemented significant cost-cutting such that
operating expenses are expected to be reduced by approximately
fifty percent in 2023 compared to 2022.
- As of the date of this news release, Datable has license
agreements that amount to approximately $3.6
million in revenue under contract for 2023 and future
periods, of which 56% is expected to be recognized as revenue in
2023. This includes approximately $3.2
million in contracted revenues and close to $0.4 million in expected program fees from
customers. Datable expects gross margin to increase to between 40%
and 50% in 2023, due to a change in product mix to a higher
percentage of high-margin SaaS licenses and improvements in
operational efficiency.
- On June 16, 2023, the Company
announced that it has entered into a non-binding letter of intent
with LMSG to sell its software-as-a-service business in exchange
for a 15% interest in LMSG.
"We are encouraged by our revenue growth in 2022 despite a
challenging environment. All of our core customers renewed their
licenses in 2022. Long-term licensees of
PLATFORM3 have built valuable first-party
consumer databases hosted on our platform and use the tools it
provides to drive incremental sales and enhance consumer
engagement. While it was difficult to secure new customers in 2022,
and some of the contracted programs were delayed based on the
economic environment, we signed a new major customer in late 20222
and are re-building our sales pipeline in 2023," said Robert Craig, Datable's CEO. "We have proven
that PLATFORM3 drives strong ROI and
meets the scalability and security needs of Fortune 500 companies.
We believe that the sale of our business to LMSG will provide
the resources needed to scale PLATFORM3
and unlock value for Datable's shareholders, debenture holders and
customers."
Results of Operations:
Revenue for year ended December
31, 2022 increased by 12% to $3,944,911, compared with $3,532,318 in 2021 due to overall increase in
average contract value, 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 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 year ended December 31, 2022 decreased by 12% to
$1,217,892, compared to $1,378,877 in 2021. The Company's cost of sales
for the year ended December 31, 2022
increased by 27% to $2,727,019,
compared to $2,153,441 in 2021 due to
change in product mix and increase in delivery resources in
2022.
Gross margin as a percentage of revenue for the year
ended December 31, 2022 was 31%,
compared to 39% in 2021. The decrease for the year ended
December 31, 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 2023, compared
to 2022, 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 year ended
December 31, 2022 decreased by 15% to
$1,637,584, compared to $1,928,978 in 2021. The decrease for the year
ended December 31, 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 year ended December 31, 2022 decreased by 44% to
$803,716, compared to $1,443,503 in 2021. The decrease for the year
ended December 31, 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 year ended
December 31, 2022 increased by 5% to
$1,827,444, compared to $1,740,083 in 2021. The increase in research and
development expenses for the year ended December 31, 2022 was related to enhancement to
PLATFORM3, developing platform
flexxi and increased staff resources. Research and
development expenses in 2023 are expected to decrease due to the
completion of enhancements to
PLATFORM3.
Net and comprehensive loss for the year ended
December 31, 2022 decreased by 1% to
$4,520,444, compared to $4,587,712 in 2021. The slight decrease in net
loss for year ended December 31, 2022
was mainly due to the delay of sales and marketing expenses,
reduction of general and administrative spendings, partially offset
by the growth in revenue. Datable expects a decrease in net and
comprehensive loss in 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.