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DATABLE TECHNOLOGY CORPORATION ANNOUNCES FINANCIAL RESULTS FOR Q2 2022 AND UPDATE FOR YEAR-TO-DATE 2022

·9 min read

VANCOUVER, BC , Aug. 26, 2022 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable" or "DTC"), the developer of a proprietary, SaaS-based Consumer Lifecycle and Data Management Platform called PLATFORM3, is pleased to announce its financial results for the quarter ended June 30, 2022 ("Q2 2022").

For the periods three and six months ended June 30, 2022, the Company achieved the following milestones:

  • Revenue for the three months ended June 30, 2022 increased by 35% to $868,528 and revenue for the six months ended June 30, 2022 increased by 31% to $1,729,114, compared with the same periods in 2021 due to an increase in contracted project deliveries and variable transaction revenues for the licensing and reward businesses.

  • Signed 23 agreements (June 30, 2021 – 15 agreements) to provide PLATFORM3 to leading brands, which increased the total contracted revenue for 2022 and future periods to approximately $3.3 million. Total contracted revenue includes agreements signed in the year and multi-year agreements carried forward from prior years. Of the total contracted revenue, approximately 90% is estimated to be recognized in 2022.

  • Deferred revenue slightly decreased to $1,359,990 compared to $1,583,940 as of December 31, 2021. Deferred revenue accounts for services that have been contracted and paid for by customers that will be delivered and recognized as revenues in subsequent periods.

The Company is also pleased to provide the following 2022 updates:

  • Year-to-date, Datable has signed 28 new agreements (same period in 2021 – 18 new agreements), which together with license agreements signed in prior periods amount to approximately $4.4 million in revenue under contract for 2022 and future periods, of which over $3.75 million is expected to be recognized as revenue in 2022. This includes approximately $4 million in contracted revenues and close to $400,000 in expected program fees from customers. Datable expects gross margin to be between 40% and 50% in 2022, depending on product mix and increase and expected improvements in operational efficiency.

  • Most of Datable's large customers are leading CPG companies that provide staples including food, beverages, and household products, which are expected to remain in demand during the COVID 19 crisis. In addition, many of Datable's license agreements and marketing programs extend into late 2022 and early 2023 for the summer, back-to-school and the holiday promotions, and as long-term loyalty programs.

  • Completed the first tranche of its non-brokered private placement for gross proceeds of approximately $370,000 as disclosed in press releases dated Aug. 9, 2022 and August 19, 2022.

"We are encouraged with our continued revenue growth of over 30% for the first half of 2022 in this challenging environment. Our core customers have renewed their licenses for PLATFORM3 due to the tools it provides to drive incremental sales and enhance consumer engagement," said Robert Craig, Datable's CEO. "The changes in regulations and practices restricting the use of consumer data are increasing interest in our solutions which enable the collection, analysis, and monetization of opt-in consumer data.  We expect continued revenue growth in 2022 from upselling current customers and onboarding new customers.  In addition, we are looking at opportunities to scale through partnerships and M&A that leverage our enterprise-level technology platform and customer base including a growing number of the world's largest consumer goods companies."

Results of Operations:

Revenue for the three months ended June 30, 2022 increased by 35% to $868,528 and revenue for the six months ended June 30, 2022 increased by 31% to $1,729,114, compared with the same periods in 2021 due to an overall increase in contracted project deliveries and transactional orders compared to 2021. DTC'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 current year reflected recognition of revenue from previous year contracts and new sales of the PLATFORM3 product offering.

Revenue growth for the year of 2021 and the six months ended June 30, 2022 was partly due to improvements in the functionality of PLATFORM3.  In late 2020, DTC launched version 5.0 of PLATFORM3 which included new modules that extended and deepened its differentiation in the market by launching a break-through feature on PLATFORM3 - Dynamic Messaging and Rewards (DMR). This feature 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.

Gross profit for the three months and six months ended June 30, 2022 increased by 10% to $349,153 and 6% to $717,773 respectively, compared to the same periods in 2021. The Company's cost of sales for the three months and six months ended June 30, 2022 increased by 59% to $519,375 and 57% to $1,011,341 respectively, compared to the same periods in 2021 due to change in product mix and increase in delivery resources during the period.

Gross margin as a percentage of revenue for the three and six months ended June 30, 2022 was 40% and 42% respectively, compared to 49% and 51% for the three and six months ended June 30, 2021. The decrease for the six months ended June 30, 2022 was due to higher growth in lower margin services compared to the licensing and Software as a Service product.  Gross margin 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 Software as a Service product, and reward service combined with some lower margin third party services.  The Company's gross margin as a percentage of revenue is expected to improve in 2022, compared to 2021, due to product mix and investments in our technology to automate the integration, delivery, and testing of our services.

Cost of sales includes an API connection to third party digital rewards platforms. 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 and six months ended June 30, 2022 were decreased to $400,428 and $803,220 respectively, compared to $527,454 and $829,727 for the three and six months ended June 30, 2021. The decrease for the six months ended June 30, 2022 was mainly due to a decrease in corporate consultancy fees, professional fees, investor relations and general administration.

Sales and marketing expenses include wages and salaries, consulting fees, travel expenses, and advertising and licenses. Sales and marketing expenses for the three and six months ended June 30, 2022 was $207,782 and $469,061 respectively compared to $315,940 and $502,734 for the three and six months ended June 30, 2021. The decrease for the six months ended June 30, 2022 was mainly due to reduction in staff resources and consultants paid in connection with advertising, sales and marketing activities.

Research and development expenditures for the three and six months ended June 30, 2022 was $496,744 and $1,024,588 respectively compared to $416,063 and $725,318 for the three and six months ended June 30, 2021. The increase in research and development expenses for the six months ended June 30, 2022 was related to enhancement to PLATFORM3, and increased staff resources.

Net and comprehensive loss for the three months and six months ended June 30, 2022 was $936,754 and $2,162,499 respectively, compared to $1,073,640 and $1,978,658 for the three and six months ended June 30, 2021. This increase in net loss for the six months ended June 30, 2022 was mainly due to the increase of research and development expenses, net of the growth in revenue.  Datable expects a decrease in net and comprehensive loss in 2022 and 2023 due to increased revenues and gross margin, and a decrease in expenses.

About Datable Technology Corporation

Datable has developed PLATFORM3 a proprietary Consumer Lifecycle and Data Management Platform that is sold to global consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by some of the worlds' most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing, and managing their first-party data. PLATFORM3 incorporates proprietary technology 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.

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View original content: http://www.newswire.ca/en/releases/archive/August2022/26/c3157.html