VANCOUVER, BC, Aug. 29,
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 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.
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.