CHICAGO, Nov. 22, 2021 /CNW/ - Venzee Technologies
Inc. (TSX-V:VENZ, OTCQB:VENZF) ("Venzee'' or the
"Company"), the artificial intelligence (AI) platform for
consumer retail product data, announced today financial results for
the third quarter ended September 30,
2021.
The unaudited condensed interim consolidated financial
statements and related Management's Discussion and Analysis
("MD&A") can be viewed at
https://investors.venzee.com/SEDAR-filings.
The Company will conduct a conference call discussing first
quarter results on Tuesday, November 23,
2021 at 8:30 A.M. EST
(5:30AM PST). Details for this call
can be found below.
"Manual processes continue to challenge the Consumer Retail
Supply Chain globally. As a result, our AI platform continued to
see traction in the quarter with large brands validating our unique
technical approach and are moving forward with sales contract
development," said Venzee CEO John
Abrams.
Continued Mr. Abrams, "Our productive sales effort in the third
quarter are generating results in Q4 that will help us achieve our
revenue goal for the year of $195,000
MRR."
Sales pipeline growth remains strong for Venzee, with more than
10,000 active sales opportunities — representing a 43% increase
from the end of Q2 2021. This quarter, following an upgrade to its
website that allows direct purchase of the Company's Mesh
Connector™ product, the Company significantly increased direct
sales leads generation and saw consistent month on month revenue
growth.
According to Joel Carstedt,
Senior Director of Sales at Venzee, "By expanding our sales team in
Q3, we have been able to convert sales pipeline opportunities more
quickly and move large clients into contract negotiation for
meaningful Mesh Connector™ purchases."
The number of retail channels available to clients remained at
412 from Q2 to Q3, as clients were able to find all their key
retail channels available in Venzee's current inventory. Retail
channels enable simple scalability for consumer brands and
manufacturers to connect to leading global retailers like Walmart,
Home Depot, and Amazon.
Churn, or the number of clients that have discontinued use of
the platform, remains at zero.
Previously, the Company disclosed it has entered contract
negotiation with at least two companies for purchase of a
significant number of Venzee's Mesh Connector™ product which, if
the contracts are secured, results in immediate revenue recognition
and suggests a combined sales opportunity well in excess of
both the Company's 2021 and 2022 revenue goals. There is no
certainty that these partnerships will close.
Third Quarter 2021 Financial Highlights
For the three and nine months ending September 30, 2021:
- Revenues from SaaS-based Mesh Connector™ sales were
$16,230, a 19% increase over Q2
2021.
- Net losses of $792,221 and
$2,382,210 respectively (Q3
2020 - net losses of $459,504 and
$1,304,564).
- Losses per share of $0.00 and
$0.01 respectively (Q3 2020 - losses
per share of $0.00 and $0.01).
Net losses increased during the three and nine months ended
September 30, 2021, as compared to
the prior year, primarily as a result of a general increase in
operations and staffing with additional expenditures in sales and
marketing as the Company focused on expanding its partnership and
Mesh Connector™ sales base. As well, the general and administrative
costs and stock-based compensation increased, and more emphasis was
placed on investor relations efforts with increased costs.
Third Quarter 2021 Business Highlights
- In August 2021, the Company
announced multiple Mesh Connector™ sales to a major US-based
specialty retailer serving the furniture and homeware market. The
partnership helped Venzee further scale its brand and retail client
base, immediately expanding the Company's services to more than 200
of the retailer's key brand suppliers. The new partnership was
established after one of Venzee's brand clients promoted the
Company's services to this retailer.
- In late August 2021, Venzee
announced a new partnership with a Product Information Management
(PIM) and Digital Asset Management (DAM) provider. The new partner
has a customer base of more than 700 global brands representing
leading Fortune 500 Consumer Product Brands in North America and the European Union. Venzee
has leveraged this partnership to further scale its client base,
grow revenue, and sell a higher volume of Mesh Connectors™ through
exposure to large global brands.
- In September 2021, the Company
announced multiple Mesh Connector™ sales to a major home
improvement brand. Venzee activated retail connections for the
brand to two of the largest North American home improvement
retailers. The Company also announced an 87% increase in product
data submissions from consumer brands since July 2021. This increase resulted from growing
Mesh Connector™ sales and the velocity with which the Company's AI
platform sends product data from brands to retailers.
Subsequent to Third Quarter 2021
- Entered a new upfront revenue-based contract with an enterprise
solution provider. Initial onboarding included the activation of a
set of multinational brands to several retail Mesh Connectors™,
which demonstrated Venzee's ability to offer rapid Mesh Connector™
deployment across a broad, global base of brands.
- Entered a new revenue-generating contract with a California-based children's bag and
accessories brand. The contract was initiated with a single Mesh
Connector purchase to a major North American retailer. Following
the initial purchase, the brand engaged Venzee and contracted for
the activation of additional Mesh Connectors™ in the home goods
retail sector over the next 12 months.
- Entered a new contract with a leading manufacturer of kitchen
and bath furniture products sold through major home improvement
retailers across North
America.
- Entered advanced contract negotiations with two additional
content service providers, which, if secured - with immediate
initial onboarding commitments - suggest a combined sales
opportunity well in excess of the company's ambitious 2022 revenue
goals. There is no certainty that these partnerships will
close.
With more than 400 major retail Mesh Connectors™ instantly
available to brands, Venzee has become an important tool in the
simplification and automation of syndication processes for brands
globally.
Details for Quarterly Conference Call on Tuesday, November 23, 2021
John Sexton Abrams, Chief
Executive Officer, and Darren
Battersby, Chief Financial Officer of Venzee Technologies,
will discuss the results in a conference call and live audio
webcast on Tuesday, November 23, 2021
at 8:30 A.M. EST (5:30 A.M. PST) followed by a presentation and
Q&A. The presentation will be recorded and available for
viewing after the live conference call.
Date: November 23, 2021
Time: 8:30AM EST (5:30AM PST)
Register to view the live audio webcast at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=0C8876CC-F6EC-49CA-A0B6-E3DACEBAA200
Conference ID: 4791827
Dial-in Number: 833 513-0552
Audience Webcast URL:
https://onlinexperiences.com/Launch/QReg/ShowUUID=0C8876CC-F6EC-49CA-A0B6-E3DACEBAA200
Contact Venzee's investor relations department directly or
through its investor relations team at Kin Communications in
Canada.
About Venzee Technologies, Inc.
Venzee (TSXV: VENZ) (OTCQB: VENZF) is the leading artificial
intelligence platform for product data used by global brands to
speed time to market and create competitive supply chain
advantages. Venzee's intelligent platform automates inefficient
last-mile retail processes with a frictionless, machine-driven
solution for sending and receiving product data.
Venzee believes intelligent supply chain functionality is
inevitable and will significantly benefit growers, makers, brands,
sellers, regulators, and consumers. Venzee is building the
foundation for a future where seamless, accurate, automated data
flow simplifies processes, removes friction, and creates value for
all those that rely on the myriad of data and information
surrounding any product, anywhere.
Venzee unlocks shareholder value by carrying out its mission to
create intelligent technology that removes friction from the global
supply chain. Its Mesh Connector™ product disrupts and displaces
inefficient manual processes in favor of integrated, machine-driven
solutions.
To learn more about the Venzee platform, visit venzee.com
Twitter: @usevenzee
LinkedIn: linkedin.com/company/venzee-inc/
Podcast: venzee.com/resources/podcast
On Behalf of the Board,
Peter Montross
Chief Operating Officer
Forward-Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation.
Forward-looking information includes, but is not limited to,
statements with respect to the terms of the Offering, the
completion of the Offering and the expected use of the net proceeds
received by the Company. Generally, forward-looking information can
be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: general business, economic, competitive, geopolitical
and social uncertainties; and regulatory risks. Additional
information about these assumptions and risks and uncertainties is
contained under "Risk Factors and Uncertainties" in the Company's
management's discussion and analysis for the year ended
December 31, 2018, and the quarter
ended August 29, 2019, which are
available under the Company's SEDAR profile at www.sedar.com, and
in other filings that the Company has made and may make with
applicable securities authorities in the future.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information
contained in this news release is expressly qualified in its
entirety by this cautionary statement.
The Company does not undertake to update any forward-looking
information, except as required by applicable securities laws.
Neither TSX-V nor its Regulation Services Provider (as that term
is defined in policies of the TSX-V) accepts responsibility for the
adequacy or accuracy of this release.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/venzee-technologies-announces-third-quarter-fiscal-2021-results-301430314.html
SOURCE Venzee Technologies Inc.
