VANCOUVER, BC, Nov. 16,
2022 /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 ended
September 30, 2022 ("Q3 2022").
For the periods three and nine months ended September 30, 2022, the Company achieved the
following milestones:
- Revenue for three months ended September
30, 2022 decreased by 18% to $678,357 and revenue for the nine months ended
September 30, 2022 increased by 12%
to $2,407,471, compared with the same
periods in 2021. The expected revenue growth was dampened due to
the delayed implementation of some contracted programs.
- Signed 37 agreements (September 30,
2021 – 20 agreements) to provide
PLATFORM3 to leading brands, which
increased the total contracted revenue for 2022 and future periods
to approximately $5.1 million
including approximately $400,000 in
expected program fees from customers under contract. Datable
expects gross margin to be between 40 per cent and 50 per cent in
2022, depending on the product mix. Total contracted revenue
includes agreements signed in the year and multi-year agreements
carried forward from prior years. Of the total contracted revenue,
approximately 70% is estimated to be recognized in 2022.
- Total operating expenses for the three months and nine months
ended September 30, 2022 decreased by
32% and by 9.4% compared to the same periods in 2021 due to
cost-cutting in general and administrative and sales and marketing
and the completion of certain product development programs under
research and development.
- Datable Technology Corp. signed an LOI (Letter of Intent) to
acquire 100-per-cent ownership of Local Marketing Solutions Group
Inc. (LMSG) on Sept. 23, 2022. Under
the LOI, Datable will also enter into a partnership with
MoneyMailerUSA Inc. (Money Mailer), a company affiliated with LMSG,
to cross-sell current products and develop a version of
PLATFORM3 for the United States small- and medium-sized
business (SMB) market. LMSG's management estimates revenues of over
$14 million and positive EBITDA
(Earnings before interest, taxes, depreciation and amortization) in
2022 and has commenced an audit of its financial results pursuant
to the acquisition. The combined company is expected to have pro
forma 2022 consolidated revenues of over $18
million and be positioned for strong growth and positive
EBITDA in 2023.
The Company is also pleased to provide the following 2022
updates:
- As of the date of this news release, Datable has signed 40 new
agreements (same period in 2021 – 33 new agreements), which
together with license agreements signed in prior periods amount to
approximately $5.6 million in revenue
under contract for 2022 and future periods, of which 60% is
expected to be recognized as revenue in 2022. This includes
approximately $5.2 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 an 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
holiday and new year promotions, and as long-term loyalty
programs.
- Completed a non-brokered private placement, which consisted of
18.5 million units of the company at a price of two cents per unit, for gross proceeds of
approximately $370,000, and announced
that it is proceeding with a non-brokered private placement (the
"New Offering") of up to 59,140,456 units (the "New Offering
Units") at a price of $0.02 per New
Offering Unit for gross proceeds of up to $1,182,809.12. The net proceeds from the New
Offering will be used for general working capital and expenses
pursuant to the acquisition of 100% ownership of LMSG. See press
release dated October 19, 2022.
"We are encouraged with our continued revenue growth of over 10%
for the first nine months 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. While of
some the contracted programs were delayed based on the economic
environment, we are also encouraged by our sales pipeline and
contracts that provide strong revenue into 2023. We expect
continued revenue growth in 2023 from upselling current customers
and onboarding new customers" said Robert
Craig, Datable's CEO. "The acquisition of LMSG is a
game-changer for Datable, adding $14
million in revenues, a highly talented sales team, and
access to new customers in the U.S., both national brands and
thousands of SMBs."
Results of Operations:
Revenue for three months ended September 30, 2022 decreased by 18% to
$678,357 and revenue for the nine
months ended September 30, 2022
increased by 12% to $2,407,471,
compared with the same periods in 2021. The expected revenue growth
was dampened due to the delayed implementation of some contracted
programs. 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 nine months ended September 30, 2022 and 2021 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 nine months ended
September 30, 2022 decreased by 33%
to $243,075 and 8% to $960,847 respectively, compared to the same
periods in 2021. The Company's cost of sales for the three months
and nine months ended September 30,
2022 decreased by 6% to $435,282 and increased by 31% to $1,446,624 respectively, compared to the same
periods in 2021 due to change in product mix and increase in
delivery resources during nine months in 2022.
Gross margin as a percentage of revenue for the three and
nine months ended September 30, 2022
was 36% and 40% respectively, compared to 44% and 48% for the three
and nine months ended September 30,
2021. The decrease for the nine months ended September 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
nine months ended September 30, 2022
were decreased by 27% to $330,569 and
by 12% to $1,133,788 respectively,
compared to $454,138 and $1,283,865 for the three and nine months ended
September 30, 2021. The decrease for
the nine months ended September 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 nine months ended
September 30, 2022 decreased by 67%
to $163,706 and by 36% to
$632,767 respectively compared to
$488,847 and $991,581 for the three and nine months ended
September 30, 2021. The decrease for
the nine months ended September 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
nine months ended September 30, 2022
was $449,341 and $1,473,929 respectively compared to $515,709 and $1,241,027 for the three and nine months ended
September 30, 2021. The increase in
research and development expenses for the nine months ended
September 30, 2022 was related to
enhancement to PLATFORM3, developing
platform flexxi and increased staff resources.
The decrease in research and development expenses in the three
months period ended September
30th was due to the completion of enhancements to
PLATFORM3.
Net and comprehensive loss for the three months and nine
months ended September 30, 2022 was
$1,050,634 and $3,213,134 respectively, compared to $1,346,342 and $3,324,999 for the three and nine months ended
September 30, 2021. The decrease in
net loss for the nine months ended September
30, 2022 was mainly due to the delay of sales and marketing
expenses, reduction of general and administrative spendings, and
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.
