MPHASE SEES CONTINUED IMPROVEMENT IN KEY BUSINESS UNITS; PAYS OFF CONVERTIBLE NOTES DURING AUGUST 2020
Gaithersburg, MD, Sept. 11, 2020 (GLOBE NEWSWIRE) -- mPhase Technologies, Inc. (OTCQB: XDSL) (“mPhase” or the “Company”) is providing the following update to highlight notable improvements in its travel and customer engagement divisions. The Company’s Travel Buddhi division is progressing with its white label travel solution, which provides travel agents with a turnkey portal to create and monitor their customers’ travel plans. Travel Buddhi is using a measured roll-out as it completes its technology, gaining valuable insight from initial customers. With 60 travel agent customers already onboard during the early sign-up period and new agent customers signing each week, this marks the beginning of the software as a service (SaaS) revenue cycle for Travel Buddhi. This is a major milestone in the division’s goal to develop multiple revenue streams, beginning with core recurring monthly subscription revenue and eventually adding transaction-based revenue.
Early adopters have said that vacation-related queries have increased over the last month, with many travelers seeking assistance in planning around pandemic-related travel challenges. This has created a tremendous opportunity for the Travel Buddhi platform, which gives a travel agent the ability to replicate traditional in-person interaction. To accelerate adoption, Travel Buddhi is currently working to integrate a customer relationship management (CRM) solution into the platform. In its completed form, the platform will enable a travel agent to manage the entire life cycle of a customer’s travel – via a complete set of tools – including a website, mobile app, chatbot, itinerary planner, secure payment gateway, and growing collection of content.
“Travel Buddhi gives travel agents the ability to have a customized white-label solution and online presence the same day they sign up for the program,” explained mPhase CEO Anshu Bhatnagar. “A travel agent with no online skills can seamlessly create a web-based presence, enhancing their existing business. We have created a service that can bring back the kind of one-on-one interaction that once was the hallmark of travel, and in the process, help travel agents regain relevance in this space. We encourage any travel agent considering an online presence to look into the advantages that the new Travel Buddhi platform can offer.”
The Company’s new customer engagement division, CloseComms, has re-packaged and re-priced its platform in order to expand its footprint with brands seeking to emerge more quickly from the global pandemic. Subway successfully used the CloseComms platform to achieve results of up to a 43% conversion rate on offer redemptions wih a key Subway franchise group in the LA market, proving the effectiveness of the technology. These are exceptional results for any kind of retail coupon or promotion, particularly in the Quick Service Restaurant (“QSR”) space, which is the key target for the division.
CloseComms is expanding its global sales strategy by focusing on building key partnerships with brands such as Meraki, IBM, Cisco, NCR, Coca-Cola, and other international QSR partners. CloseComms is also continuing to work internationally with brands such as McDonalds after piloting the technology at McDonalds restaurants in South Africa. In the U.S., the division has most recently been implementing its technology with Nathan’s Famous across U.S. locations. The Company is optimistic about future sales trends, as discussions with potential new customers that were put on hold during the pandemic are beginning to resume. CloseComms prices on a per location basis, which is expected to create an additional recurring revenue stream for mPhase in the future.
mPhase is pleased to report that it has paid off the outstanding principal and interest on both of its most recent convertible notes due during August 2020, with such payments totaling approximately $169,000 for the convertible notes dated February 24, 2020 and March 3, 2020. The Company’s capital structure continues to improve, and the current plan is to pay off all remaining convertible notes prior to their conversion dates to avoid future dilution. The next convertible note is not eligible for conversion until the end of November 2020. mPhase turned profitable during Q3 2020, with a majority of its revenue from recurring programs tied to its core learning business. The Company expects to file financial results for its fiscal year 2020 later this month.
“We are pleased to emerge from the pandemic period with our existing revenue streams intact and real progress in developing what we think could be significant income streams in the future,” said CEO Bhatnagar. “We are already beginning to see business conditions improve, so programs and conversations that were put on hold during the pandemic are resuming. Turning profitable last quarter was a major milestone, but the strength of our core business is enabling us to fund a large portion of our growth through our own resources. We have guided to annual revenue of more than $30 million and we see the potential for organic growth over the next year. We are making great progress on our product development programs and look forward to sharing more details in coming weeks.”
About mPhase Technologies
mPhase is a technology driven, innovative development company that creates and commercializes products and applications that impact everyday people. The Company is assembling industry-leading teams specializing in artificial intelligence, machine learning, software, consumer engagement, and other advanced technologies. Additional information can be found at the mPhase website, www.mphasetech.com. Please follow us on twitter: @mPhase_Tech for the latest updates.
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