VANCOUVER, BC, April 26, 2021 /CNW/ – Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) (the “Company” or “Datable” or “DTC”), a software company that provides a marketing automation platform called PLATFORM3 to global consumer brands, is pleased to announce its financial results for the quarter (“Q4 2020”) and the year ended December 31, 2020 (“Fiscal 2020”).
In 2020, the Company achieved the following milestones:
- Signed 38 agreements to provide PLATFORM3 to leading Consumer Packaged Goods (CPG) brands, representing close to 100% growth in total contracted revenue to $5 million, compared to 27 agreements and approximately $2.6 million in 2019. Total contracted revenue includes agreements signed in the year and multi-year agreements carried forward from prior years. Approximately 39% of the $5 million in 2020 contracted revenue was recognized as revenue in 2020.
- Revenue increased by 26% to $1,969,193 compared with $1,560,970 in 2019 due to increases in average contract value, project deliveries and transactional revenue from both new and returning customers.
- Deferred revenue increased by more than 200% to $1,568,508 compared to $506,183 in 2019. 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.
- Continued development of flexxi Rewards Network – a web portal that enables opt-in consumers to earn rewards completing activities such as purchasing consumer products, viewing valuable content posted by consumer brands, sharing content on social media and referring friends. Leading consumer goods companies will pay Datable for access to the consumers. The flexxi Rewards Network is built using Datable’s PLATFORM³ technology.
The Company is also pleased to provide the following 2021 updates:
- Year-to-date, Datable has signed 9 new agreements, which together with license agreements signed in prior periods amount to contracted revenues of approximately $4 million. Approximately 77% of the contracted revenues are expected to be recognized in 2021 with the balance to be recognized in subsequent periods.
- Most of Datable’s large customers are leading consumer goods 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 2021 for the summer and back-to-school promotions, and into 2022 as long-term loyalty programs.
- Raised gross proceeds of $3,417,000 pursuant to an offering of units (see press release dated March 29, 2021) and an offering of convertible debentures (see press release dated April 22, 2021) providing capital to accelerate growth.
- Uplisted from the OTC Pink Sheets to the OTCQB Venture Market debentures (see press release dated April 22, 2021) with the goal of enhancing liquidity and access to institutional and retail investors.
“In 2020 we continued to grow our core SaaS licencing and digital marketing business signing multiple Fortune 500 companies as new customers during the Covid-19 pandemic. We expanded the scope and scale of our license and service agreements with leading brands that have been customers since 2018, and added new global brands as customers. Our customers have large and growing budgets for digital marketing, and we are getting a larger share as we continue delivering measurable ROI by adding tools that enable the use of opt-in consumer data to drive incremental revenues,” said Robert Craig, Datable’s CEO. “The Company also continued work to develop its own Consumer Loyalty and Rewards Portal – the flexxi Rewards Network. This Portal will provide opt-in registered consumers with valuable rewards for purchasing products and engaging with leading consumer goods companies to complete activities that support their brands. The flexxi Rewards Network will enable Datable to begin collecting opt-in consumer data and expand its business model to include data and transactional revenue. We expect that building communities of consumers and owning the relationships and consumer data will be a big driver of revenue in the coming years. The flexxi Rewards Network is built on top of Datable’s proprietary PLATFORM³ technology which dramatically reduces costs and time to market.”
Results of Operations:
Revenue for year ended December 31, 2020 increased by 26% to $1,969,193 compared with $1,560,970 in 2019 due to increases in average contract value, project deliveries and transactional revenue. The Company’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.
The growth in contracted revenues in 2020 was due to larger renewals and new licenses driven by improvements in PLATFORM³, and an established track record of delivering ROI to customers. In late 2019, DTC launched version 4.0 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, 2020 increased by 10% to $1,164,125 compared to $1,055,827 in 2019. The Company’s cost of sales for the year ended December 31, 2020 increased by 59% to $805,068 compared to $505,143 in 2019 due to change in product mix and increases in delivery resources during the year.
Gross margin as a percentage of revenue for the year ended December 31, 2020 was 59% compared to 68% for the same period in 2019. 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, combined with some lower margin products and services. While Datable expects strong revenue growth of high-margin PLATFORM³ licenses, revenues from lower-margin services and rewards products are expected to grow faster, which will reduce consolidated gross margin to as a percentage of revenue.
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, 2020 increased by 6% to $1,549,012 compared to $1,462,359 in 2019. The increase for the year ended December 31, 2020 was mainly due to an increase in corporate consultancy fees and corporate finance service contracts engaged in 2020 compared to the prior year.
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, 2020 were $836,879 compared to $550,010 in 2019. The increase for the year ended December 31, 2020 was mainly due to increased consultancy paid in connection with advertising, sales and marketing activities.
Research and development expenditures for the year ended December 31, 2020 were $1,019,608 compared to $879,534 in 2019. The increase in research and development expenses for the year ended December 31, 2020 was related to enhancement to PLATFORM³ and developing platform flexxi Rewards Network. Research and development expenses may continue to increase in the future as the Company seeks to evolve and improve PLATFORM³ and flexxi, as well as to invest in creating new technology and products that will enhance the Company’s value proposition to customers and provide additional revenues. Research and development expenses include wages and salaries and consulting fees.
Net and comprehensive loss for the year ended December 31, 2020 was $2,456,986 compared to $2,214,142 in 2019. This increase in net loss for the year ended December 31, 2020 was mainly due to the increase of sales and marketing and research and development expenses, net of the increase in gross profit and the growth in revenue.
About Datable Technology Corporation
Datable has developed a proprietary, mobile-based consumer marketing platform – PLATFORM3 – that is sold to global Consumer Packaged Goods (CPG) companies and consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by CPG companies to engage consumers, reward purchases and collect valuable consumer 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.
For further information: Datable Technology Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, rcraig@3tl.com