Canada NewsWire
VANCOUVER, April 24, 2020
VANCOUVER, April 24, 2020 /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 Q4 2019 and the year ended December 31, 2019 ("Fiscal 2019").
In 2019, the Company achieved the following milestones:
The Company is also pleased to provide the following 2020 updates:
"In 2019 we continued to grow our core SaaS business signing multiple Fortune 500 companies as new customers and capturing more than 70%, compared to only 50% in 2018, of revenue from returning clients. The Company also continued work to develop its own Consumer Loyalty and Rewards Portals - the flexxi Rewards Network. These Portals provide registered consumers with valuable rewards for engaging with brands and completing brand activities. The flexxi Rewards Network will enable Datable to begin collecting consumer data and expand its' business model to include data and transactional revenue." said Robert Craig, DTC's CEO. "Building communities of consumers and owning the relationships and subsequent data will be a big driver of revenue in the coming years. Portals on the flexxi Rewards Network are built on top of Datable's proprietary PLATFORM³ technology which dramatically reduces costs and time to market for these properties."
Results of Operations:
Revenue for year ended December 31, 2019 increased by 10% to $1,560,970 compared with the same period in 2018 due to increase in average contract value and transactional revenues compared to that incurred in 2018. 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 period reflected recognition of revenue from previous year contracts and new sales of the PLATFORM³ product offering.
Gross profit for Fiscal 2019 increased by 26% to $1,055,827, compared to Fiscal 2018. Gross margin as a percentage of revenues was 68% in 2019, compared to 59% in the same period in 2018. 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 third party services.
The increase in gross margin as a percentage of revenue for the year ended December 31, 2019 compared to the same period in 2018 was mainly due to improved resource allocation of product deliveries and margin of project design.
DTC launched an API connection to third party digital rewards platforms in prior years. 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 charge a service fee for receipt validation along with the 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 Fiscal 2019 increased to $1,462,359 and compared to $1,161,376 for Fiscal 2018. The increase for the year 2019 was mainly due to increase in one-off settlement of a resigned executive, professional services, corporate consultancy and corporate finance service contracts engaged in 2019 compare to the same period in prior year. For the year ended December 31, 2019, general and administrative expenses consisted primarily of $741,380 respectively in office and other overhead expenses that include investor relations, corporate advisory fees, and regulatory filing fees, $135,443 in wages and salaries, $438,608 in consulting fees, and $146,928 in professional fees.
Sales and marketing expenses for Fiscal 2019 was $550,010 respectively compared to $760,872 for Fiscal 2018. The decrease for year ended December 31, 2019 was mainly due to decreased wages and salaries and consultancy paid in connection with advertising and marketing activities.
Research and development expenditures for Fiscal 2019 was $879,534 compared to $635,558 for Fiscal 2018. The increase in research and development expenses for year ended December 31, 2019 was related to improving PLATFORM³ and developing new platform flexxi. 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 Fiscal 2019 was $2,214,142 compared to $2,178,847 for Fiscal 2018. This decrease in net loss for year ended December 31, 2019 was mainly due to the decrease of share-based compensation and sales and marketing expenses, net of the increase in research and development spending and general and administrative expenses.
About Datable Technology Corp.
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 Artificial Intelligence and Machine Learning 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.
View original content: http://www.newswire.ca/en/releases/archive/April2020/24/c4715.html
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