Datable Technology Announces Financial Results for Q3 2021 and Update for Year-to-Date 2021
For the periods three and nine months ended
- Revenue for three months ended
September 30, 2021, increased by 91% to $ 827,283and revenue for the nine months ended September 30, 2021increased by 73% to $ 2,147,543, compared with the same periods in 2020 due to overall increase in average contract value, project deliveries and transactional orders with higher demands in the quarter from both new and returning customers.
- Deferred revenue as at
September 30, 2021increased by 140% to $1,979,095compared to $816,495in the same period in 2020. 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.
- Signed a non-binding letter of intent to acquire 100 percent ownership of
Adjoy, Inc.(DBA Dabbl, "Dabbl"). See press release dated November 23, 2021, and Subsequent Event note. The combination of Datable-Dabbl is expected to generate 2021 pro-forma revenue of close to $6 millionand result in an integrated product that is a single source for consumer brands to access new consumer communities in conjunction with strategic services and infrastructure to engage consumers, build first-party data relationships, and provide data analytics and monetization strategies in an evolving and highly regulated environment.
- Commenced the process of reallocating development and sales resources from the continued development of flexxiRewards Network to the integration of the Dabbl consumer community with Datable's PLATFORM3,. Dabbl provides a similar product and business model to flexxi, a web portal that enables opt-in consumers to earn rewards for completing activities such as purchasing consumer products, viewing valuable content posted by consumer brands, sharing content on social media and referring friends. Datable and Dabbl have already collaborated on sales of the combined product to two leading consumer brands (see press release dated
November 3, 2021).
The Company is also pleased to provide the following 2021 updates:
- Datable currently has approximately
$5 millionin contracted revenue for 2021 and future periods, of which about 57% (approximately $3 million) is expected to be recognized as revenue in 2021. Some of Datable's customers have rescheduled rewards budgets to 2022 due to COVID 19 related logistics issues, such that about 43% of current contracted revenues of approximately $2 millionare expected to be recognized in 2022.
- Revenue growth in 2021 is expected to significantly exceed growth in 2020. Datable grew revenue by 26 per cent to approximately
$1.97 millionfor the year ended Dec. 31, 2020, compared with the same period in 2019, with gross margins of 59 per cent (see press release dated April 26, 2021). Revenue growth is trending significantly higher in 2021 based on the growth in the first nine months and contracted revenues year-to-date. Datable expects gross margin to be approximately 50 per cent in 2021.
- 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 2021, some of Datable's customers reduced or delayed budgets due to COVID related logistics issues.
- Datable is focused on completing the acquisition of Dabbl. The Company is also seeking partnerships with companies that offer complementary solutions to expand the scope and scale of its product to address the growing demand from leading consumer brands for first-party consumer data solutions that enable direct to consumer engagement.
"Our record growth and revenues for the first nine months of 2021 is a validation of that PLATFORM3 is driving incremental sales and enhanced consumer engagement. Our customers are allocating a larger budget to our solution due to our tools that enable the use of opt-in consumer data to target consumers with relevant offers and rewards," said
Results of Operations:
Revenue for three months ended
The growth in contracted revenues continued in 2021 was due to larger renewals and new licenses driven by improvements in PLATFORM³, and an established track record of delivering ROI to customers. In late 2019, DTC launched version 4.0 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. In 2020, Datable released PLATFORM³ 5.0 which included significant upgrades to each of the modules that make up the Platform including Dynamic Intelligence (Messaging and Rewards), Rewards Portal and Security.
Gross profit for the three months and nine months ended
Gross margin as a percentage of revenue for the three and nine months ended
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 nine months ended
Sales and marketing expenses include wages and salaries, consulting fees, travel expenses, and advertising and licenses. Sales and marketing expenses for the three and nine months ended
Research and development expenditures for the three and nine months ended
Research and development expenses may continue to increase in the future as the Company seeks to evolve and improve PLATFORM³ and integrate the Dabbl product, 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 and nine months ended
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