TORONTO, Aug. 29, 2019 /CNW/ - Freckle Ltd. (TSXV:
FRKL) (the "Company"), a leader in privacy-compliant data
and offline attribution, announces its financial results for the
three and six months ended June 30,
2019 ("Q2 2019"). Please refer to the interim unaudited
condensed Consolidated Financial Statements and Management's
Discussion and Analysis ("MD&A") for the three and six months
ended June 30, 2019 filed on SEDAR at
www.sedar.com for more information. Unless otherwise stated, all
dollar amounts are expressed in Canadian dollars.
HIGHLIGHTS FROM Q2 F2019
- Completed go public transaction and brokered private placement
raising gross proceeds of $6,529,000;
- Strong increases across the board in quarter over quarter key
financial drivers for the Killi application. The Company is
focused on initiatives to continue to drive these metrics going
forward.
-
- Increased active user base of 44%
- Growth in total download base of 38%
- Increase in user retention of 19%
- Increase of consumer lifetime value (LTV) of 22%; and
- Exited the quarter with $6.3
million in cash and cash equivalents, no debt, and
$6.3 million in working capital.
MANAGEMENT COMMENTARY
"The second quarter of fiscal 2019 was a transformation quarter
for Freckle," said Neil Sweeney, CEO
of Freckle. "Not only did we bring the Company public after a
successful capital raise and scale our recurring revenues 68%
year-over-year, but we also began building our privacy compliant
identity layer through Killi, a mobile application that is
available in the USA and CAN for
iOS and Android. Privacy compliant data is what brands and
platforms crave to advertise to their target audiences, and we plan
to expand identity compliance as well as offer transactional data
to brands so they can evaluate the effectiveness of their media
campaigns in advance of new privacy regulation that will require
them to do so. Our balance sheet is solid; our team is
enthusiastic; and I look forward to providing further updates as we
continue to build the advertising industry's only data privacy
compliant solution that addresses existing laws in Europe and the evolving regulatory environment
across 50 U.S. states."
HIGHLIGHTS SUBSEQUENT TO Q2 F2019
- Integrated Dynata, a third-party survey company, into Killi
that allows users to earn more money which is expected to increase
average revenue per user, life time value and retention;
- Announced partnership with Neustar a global data management
platform (DMP) to provide its customers with compliant first party
consumer data;
- Announced partnership with Giant Media, a video-based
media firm based in USA, to provide actionable offline measurement
to video campaigns.
BUSINESS OUTLOOK
The Company's overall objective is to grow Freckle's business
with stable recurring revenue while also focusing on continuing to
improve key Killi metrics to drive the cost of acquisition down
while increasing the average revenue per user per month.
Key Goals for the Second Half of Fiscal 2019
- Continue to grow overall revenue higher than 2018 levels, while
sustaining or improving upon current proportion that's
recurring;
- Expand global presence of Killi beyond North America organically and through
continued integrations with global platforms;
- Introduce an additional third-party research engine to Killi to
continue to drive higher revenue per user;
- Secure and announce an international data distribution deal in
Q3;
- Secure and announce another significant recurring revenue deal
in Q3;
- Incorporate credit card data in the Killi application by Q4
enabling users to not only take back control of this data but also
increase revenue per user;
- Key Hires to include a Director of Engineering to Freckle, a
Vice President of Sales to USA and
a Product Director of Data & Analytics on Killi.
OPTIONS ISSUED
The Company also announces that it has granted 50,000 stock
options (the "Director Options") to each of Neil Sweeney, Michael
Atkinson, John Farlinger,
Robert Fernicola and Kevin Shea and 1,570,000 stock options (the
"Employee Options" and together with the Director Options, the
"Options") to employees of the Company, exercisable for a total of
1,820,000 common shares of the Company. The Options are
exercisable at C$0.20 per common
share and will expire on August 28,
2024. The Director Options vest immediately and the Employee
Options vest (i) 33% on the first anniversary of employment, (ii)
33% on the second anniversary and (iii) 34% on the third
anniversary. The Options are governed by the terms and conditions
of the Company's stock option plan, unless otherwise determined by
the Board and subject to TSX Venture Exchange approval.
Following this grant of stock options, the Company has a total
of 7,881,519 stock options outstanding, representing approximately
3.6% of the 216,521,977 common shares currently issued and
outstanding.
FRECKLE LTD.
Neither the 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 news release.
The Exchange has in
no way passed upon the merits of the proposed Transaction and has
neither approved nor disapproved the contents of this news
release.
DISCLAIMER FOR FORWARD-LOOKING INFORMATION
Certain
statements in this press release are forward-looking statements and
are prospective in nature. Forward-looking statements are not based
on historical facts, but rather on current expectations and
projections about future events, and are therefore subject to risks
and uncertainties which could cause actual results to differ
materially from the future results expressed or implied by the
forward-looking statements, including: the receipt of all necessary
regulatory approvals, capital expenditures and other costs, and
financing and additional capital requirements. These statements
generally can be identified by the use of forward-looking words
such as "may", "should", "will", "could", "intend", "estimate",
"plan", "anticipate", "expect", "believe'' or "continue", or the
negative thereof or similar variations. Forward-looking statements
in this news release include statements regarding expansion of
identity compliance and offering transactional data to brands;
increasing average revenue per user, life time value and retention;
growth of Freckle's business; growth of revenue levels; expansion
of global presence for Killi; introduction of additional third
party research engines into Killi; securing international data
distribution deals; securing recurring revenue deals; incorporating
credit card data into the Killi application; and hiring key
position. Although management of the Corporation has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements or forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements and forward-looking information. The Corporation assumed
no obligation to update any forward-looking statements or
forward-looking information that are incorporated by reference
herein, except as required by applicable securities laws.
The securities of the Corporation have not been and will not be
registered under the United States Securities Act of 1933, as
amended and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirement. This press
release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of the securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful.
SOURCE Freckle Ltd.