MONTRÉAL, May 26, 2022
/CNW/ - Hapbee Technologies, Inc. (TSXV: HAPB) (OTCQB: HAPBF) (FSE:
HA1) ("Hapbee" or the "Company"), a leading provider of wellness
wearables and biostreaming technology, is pleased to provide the
following shareholder letter from Hapbee CEO Yona Shtern.
Dear shareholders,
I'd like to begin this update by thanking all of our
shareholders for your support and confidence in Hapbee. Although
the current volatile macro environment has hindered the capital
markets, we are full steam ahead in growing Hapbee's one-of-a-kind
wellness platform. Shareholders' support of our mission during
these volatile times has not gone unnoticed by our team. The best
way to show our appreciation is to continue accelerating
growth.
Our team remains deeply focused on the four pillars of growing
our business:
- Getting Hapbee into more customers' hands so they can
experience the wellness benefits for themselves
- Expanding our product pipeline - the Hapbee Sleep & Relief
Pillow just started selling on our website
- Increasing our subscriber base - the most significant long-term
value driver for Hapbee and our shareholders
- Accelerating market penetration through enterprise sales
Hapbee's platform - for both consumer and enterprise channels
- is built upon a recurring revenue model (subscription for
consumers and licensing for enterprise). This offers the most
attractive value proposition from an investment perspective because
of the long-term, predictable and repeatable nature of revenue
streams matched with higher revenue multiples typically afforded
ARR technology businesses. At the end of Q1, 2022 we had nearly
3,000 active subscribers on the platform, an increase of 246% over
Q1 2021. Paid subscriber retention after six months increased from
22% in September 2021 to 65% in
March 2022, driven by significant
improvements to our in-app experience, expansion of blends, and
investment in an automated back-end billing system. The monthly
subscription fee ranges from $12 to
$19 USD — a high-margin aspect of our
business. I like to reiterate that we are a software subscription
and licensing company first; hardware second.
Long story short, the platform is gaining traction and
demonstrating stickiness. We continue to invest in improving user
engagement and retention and will leverage critical customer
feedback to enhance the user experience.
Over the last six months, we have learned a ton from the
investments made in the marketing of our wellness platform. These
learnings include: effective platforms to market the Hapbee
Neckband; how to better educate prospective buyers before a call to
action; more cost-effective lead generation, and how we should
pursue our B2B strategy — which I believe will become a key driver
of sales for Hapbee in 2023. I anticipate making significant
progress on the B2B front in the nearer term and look forward to
sharing any material developments.
Diving Into the Sleep
Market
The sleep market has quickly become our most important sector,
which is why we are pursuing the launch of three new sleep-related
products this year: The Sleepbee Mattress Topper, Sleepbee Sleep
Mask, and the Hapbee Sleep & Relief Pillow (the "Pillow").
The Pillow, which launched on our website earlier this week,
is specially designed to be compatible with and enhance the
functionality of the Hapbee Neckband as a sleep and relief device.
It helps position Hapbee as a sleep solution and provides new and
existing Hapbee users with an affordable, product-enhancing
accessory. At the same time, the Pillow will be another high-margin
offering for our company. I anticipate the Sleepbee Mattress Topper
will be a premium offering, and the Sleepbee Sleep Mask will have a
mid-level price point.
The sleep-tech market is massive and anticipated to grow at a
rapid clip. In 2021, the Sleep Tech Devices Market was valued at
roughly $15 billion1, and
it is projected to reach $67 billion
by 2030. We want to be a major player in this space within 24
months. It is a market with extreme potential for our platform,
given the fact that over 60% of Hapbee customers primarily use
Hapbee to optimize their sleep routines.
Validating our Platform and
Direction
We conducted our first sleep-related user study/survey spanning
roughly five months to highlight our platform's advantage within
the sleep tech space. We now have quantifiable data that shows
Hapbee helped improve consumer wearable sleep tracker scores
(utilizing Oura Ring) for quality of
sleep, length of sleep, reduced restlessness, and the time it took
to fall asleep.
The results of our study amplified our motivation to focus on
this opportune sector. I encourage everyone to read our press
release dated May 9, 2022 to learn
more about these initial study results.
In March 2021, Hapbee entered into
agreements with two U.S. military non-profit groups to collect
feedback on the impact of Hapbee signals on users' stress and
productivity levels. The results after one year were inspiring and
edifying. In March of this year, The Hapbee Neckband was selected
as an integral and essential part of Grey Team's (U.S. veterans
support group) wellness solution for military veterans. Again, if
you haven't read our press release about this project from
March 22, 2022, I encourage you to do
so. This was a gratifying project that I think will open other
doors for Hapbee to help military veterans in the future.
This May, Hapbee was recognized in Fast Company's
2022 World Changing Ideas Awards as an honorable mention for our
innovative platform in the Wellness Category.
Onwards
When I meet with Hapbee customers, be it one-on-one or at
conferences and gatherings, their feedback from using the Hapbee
Neckband energizes me. I know from meeting with customers that we
are already having a profound impact on many. That inspires us to
continually advance our wellness platform while improving our
ability to educate new audiences on the potential benefits of this
one-of-a-kind technology.
There is a technology adoption curve for an innovative platform
like ours, and I can appreciate people's questions when first
learning about Hapbee. There's nothing else like it on the market
today. One strategy to encourage people to try our product,
especially if they have a healthy degree of skepticism, is the
recent implementation of our 90-day money-back guarantee. As I
stated near the onset of this update, we are focused on getting
Hapbee into as many people's hands as possible to help mainstream
our brand and transformative wellness platform.
I look forward to updating our shareholders over the coming
months. Thank you for your continued support.
Sincerely,
Yona Shtern
CEO & Chairman, Hapbee Technologies, Inc.
About Hapbee
Hapbee products are available for purchase at Hapbee.com and
through a growing network of authorized Hapbee dealers.
For more information about Hapbee, please visit Hapbee.com.
Hapbee is a leading wearable wellness technology platform with a
mission to help people improve their wellbeing and enhance how they
feel. The Company is the creator of the Hapbee Neckband, the
Sleepbee Sleep Mask, and the Sleepbee Bed Topper, which are all
powered by an ultra-low radio frequency energy (ulRFE®)
biostreaming platform that delivers low-power electro-magnetic
signals and blends designed to help optimize users' sleep,
productivity, recovery, and downtime.
Forward-Looking
Information
Certain statements in this news release may constitute
"forward-looking information" within the meaning of applicable
securities laws (also known as forward-looking statements).
Forward-looking information involves known and unknown risks,
uncertainties and other factors, and may cause actual results,
performance or achievements or industry results, or results on
certain individuals to be materially different from any future
results, performance or achievements or industry results expressed
or implied by such forward-looking information. Forward-looking
information generally can be identified by the use of terms and
phrases such as "anticipate", "believe", "could", "estimate",
"expect", "feel", "intend", "may", "plan", "predict", "project",
"subject to", "will", "would", and similar terms and phrases,
including references to assumptions.
Forward-looking information is based on a number of key
expectations and assumptions made by Hapbee, including, without
limitation: the growth of the worldwide sleep and wellness market;
the suitability of the Hapbee Neckband, Sleep products and blends
for users; no change to laws or regulations that negatively affect
Hapbee's business; the ability of Hapbee to source supplies
required to manufacture its products; all necessary approvals will
be received and all conditions will be satisfied or waived; and
Hapbee will be able to operate its business as planned. Hapbee is
not a medical device and is not to be used for medical purposes.
Although the forward-looking information contained in this news
release is based upon what Hapbee believes to be reasonable
assumptions and reasonable testing, it cannot assure investors and
or users that actual results will be consistent with such
information.
Forward-looking information is provided for the purpose of
presenting information about management's current expectations and
plans relating to the future and readers are cautioned that such
statements may not be appropriate for other purposes.
Forward-looking information involves significant risks and
uncertainties and should not be read as a guarantee of future
performance or results as actual results may differ materially from
those expressed or implied in such forward-looking information.
Management believes that the expectations reflected in the
forward-looking information contained herein are based upon
reasonable assumptions and information currently available;
however, management can give no assurance that actual results will
be consistent with such forward-looking information.
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 release.
-
https://www.gminsights.com/industry-analysis/sleep-tech-devices-market
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SOURCE Hapbee Technologies Inc.