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Datable Technology Corp. announces Q1 2020 resultsVANCOUVER, May 28, 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 the quarter ended March 31, 2020 ("Q1 2020"). For the three months ended March 31, 2020, the Company achieved the following milestones:
The Company is also pleased to provide the following 2020 updates:
Results of Operations: Revenue for Q1 2020 increased by 52% to $465,643 compared with the same period in 2019 due to increase in average contract value, project deliveries and transactional revenues compared to that incurred in 2019.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 Q1 reflected recognition of revenue from previous year contracts and new sales of the PLATFORM³ product offering. Revenue growth Q1 was partly due to improvements in the functionality of PLATFORM³. In late 2019, DTC launched version 3.0 of PLATFORM³ which included new modules that extended and deepened its differentiation in the market by launching a break-through features on PLATFORM3 - Dynamic Messaging and Rewards (DMR). This feature is built on an Artificial Intelligence (AI) framework and 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 (See press release dated Feb. 14, 2020). Gross margin as a percentage of revenue for Q1 2020 was 67%, compared to 72% in Q1 2019. Gross margin as a percentage of revenue 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 SaaS product, combined with some lower margin third party services. Datable 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 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 months ended March 31, 2020 were $249,683, unchanged compared to the same period in 2019. General and administrative expenses include salaries and benefits, accounting, legal, corporate finance services, travel, rent, office, other administrative costs. Sales and marketing expenses for the three months ended March 31, 2020 increased by 17% to $170,523 respectively compared to $145,561 for the same period in 2019. Research and development expenditures for the three months ended March 31, 2020 increased by 25% to $214,473 compared to the same period in 2019. The increase in research and development expenses was related to improving PLATFORM³ and developing 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 the three months ended March 31, 2020 was $520,376 compared to $389,650 for the same period in 2019. This increase in net loss was mainly due to the increase of share-based compensation and research and development expenses, net of the increase in gross profit and growth in revenue. About Datable Technology Corp. DTC 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. |