VANCOUVER, B.C. (August 29. 2023) – 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 ended June 30, 2023 (“Q2 2023”).
For the period three months ended June 30, 2023, the Company achieved the following milestones:
- Decreased total operating expenses by 50% to $596,955 compared to $1,192,273 in the same period in 2022 mainly due to implementation of cost-cutting and improved operational efficiencies, resulting in a 61% reduction of net loss to $362,954, compared to $936,754 for the same period in 2022.
- Revenue decreased to $498,297 compared to $868,528 in the same period in 2022 due to a reduction in new annual and long-term licenses signed in 2023 due to reduced sales and marketing activities in line with cost-cutting.
- Gross Margin as a percentage of sales increased to 65% compared to 40% in the same period in 2022 due to the product mix including a larger percentage of high-margin software-as-a-service products.
- On June 16, 2023, the Company announced that it has entered into a non-binding letter of intent (“LOI”) with LMSG to sell its software-as-a-service business in exchange for a 15% interest in LMSG.
The Company is also pleased to provide the following 2023 updates:
- The Company made progress on reaching a definitive agreement with LMSG pursuant to the LOI, such that the deadline of July 31, 2023 was waived by mutual agreement. LMSG has agreed to provide bridge loans to Datable as the parties work to reach a definitive agreement such the transaction can close before December 31, 2023, starting with an unsecured loan of US$130,000 advanced on August 15, 2023 with a one-year term with accruing interest of 10% per annum.
- Due to the continued cost-cutting and improved operational total operating expenses are expected to be reduced by more than 50% for the year ended December 31, 2023, compared to the same period in 2022.
- As of the date of this news release, Datable has agreements, which together with license agreements signed in prior periods amount to approximately $3.3 million in revenue under contract for 2023 and future periods, of which 61% is expected to be recognized as revenue in 2023. Datable expects gross margin of approximately 50% in 2023, depending on product mix and expected improvements in operational efficiency.
“We have reduced expenses by 50% and improved gross margin as a percentage of revenue as restructure Datable with the goal of achieving profitability in 2024 as part of LMSG. We are exploring other verticals where our technology can be monetized after we complete the sale of our current SaaS business,” said Robert Craig, Datable’s CEO. “We are working with LMSG to leverage their sales team and products to drive growth into 2024, as we work towards a definitive agreement to sell our business to LMSG and scale up as part of a larger and better capitalized company.”
Results of Operations:
Revenue for the three months ended June 30, 2023 decreased by 43% to $498,297 compared with $868,528 in the same period in 2022 due to a reduction in new annual and long-term licenses signed in 2023 due to reduced sales and marketing activities in line with cost-cutting. 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 the previous year’s contracts and new sales of the PLATFORM3 product offering.
Gross profit for the three months ended June 30, 2023 decreased by 8% to $322,164, compared to $349,153 in the same period in 2022.
Gross margin as a percentage of revenue for the three months ended June 30, 2023 increased to 65%, compared to 40% in the same period in 2022. The 63% increase for the three months ended June 30, 2023 was due to an increased percentage of sales from high margin software-as-a-service products. 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.
General and administrative expenses for the three months ended June 30, 2023 decreased by 41% to $234,684, compared to $400,428 in the same period in 2022. The decrease for the three months ended June 30, 2023 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 months ended June 30, 2023 decreased by 49% to $106,914, compared to $207,782 in the same period in 2022. The decrease for the three months ended June 30, 2023 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 months ended June 30, 2023 decreased by 55% to $223,076, compared to $496,744 in the same period in 2022. The decrease in research and development expenses for the three months ended June 30, 2023 was related to reduction in staff and consulting resources while maintaining the quality enhancement to PLATFORM3. Research and development expense is expected to be significantly lower in 2023 compared to 2022 since the development of the next generation of PLATFORM3 is completed. The enhanced version of PLATFORM3 delivers improved efficiency and reduced implementation cost along with new tools to further monetize first-party consumer data customers.
Net and comprehensive loss for the three months ended June 30, 2023 decreased by 61% to $362,954, compared to $936,754 in the same period in 2022. The decrease in net loss for the three months ended June 30, 2023 was mainly due to the reduction of sales and marketing expenses, general and administrative expenses and research and development expenses.
For further information, please contact:
Datable Technology Corp.
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.