VANCOUVER, May 10, 2018 – 3tl Technologies Corp. (TSXV: TTM) (OTCQB: TTMZF) (the “Company” or “3tl”), announces that it has signed a three year licence agreement with the loyalty division of a leading American multinational media and entertainment company (the “Customer”), that delivers loyalty solutions to the world’s leading brands. The agreement signed on April 17, 2018 is a renewal and extension of a two-year licence that was signed in 2016.
“The renewal of the licence agreement and increase to a three-year term is further validation that we are delivering a compelling value proposition, that has the security, stability and scalability to satisfy the world’s leading consumer brands,” said Robert Craig, 3tl’s CEO. “This Customer signed our first long-term licence three years ago; the renewal is a credit to our relationship, technology and customer service.”
Under the agreement the Customer will licence 3tl’s core product, PLATFORM³, an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS), for a three year period starting in June, 2018. The Customer will pay 3tl annual licence fees plus transaction and service fees based on the number of promotions, purchases and consumer interactions enabled by PLATFORM³. Based on the current level of transactions, the agreement is expected to generate over $600,000 in revenues for 3tl during the three year period. As recently reported, 3tl’s gross margins were 61% in for the year ended December 31, 2017.
PLATFORM³ will be used to engage consumers via mobile devices, reward purchases and collect valuable consumer data. PLATFORM³’s Artificial Intelligence and Machine Learning modules will enable the Customer to monetize the consumer data by targeting offers based on consumers’ purchasing behaviour and demographics.
2018 Sales Update
The Company is off to a strong start this year, with contracted revenues that exceeded 2017 revenues after the first four months of 2018. The average size of licence agreements has increased significantly, existing customers are renewing licences and the Company’s track record of successful case studies is attracting new customers.
- After growing revenues by 79% to $1.19 million for the year ended December 31, 2017, 3tl has signed 18 agreements, which together with licence agreements signed in prior periods, represent contracted revenues of close to $1.5 million, with approximately 75% expected to be recognized in 2018. The $1.5 million in contracted revenues noted above only accounts for licence and service fees, and does not include any transaction fees. As recently reported, 3tl’s gross margins were 61% in for the year ended December 31, 2017.
- The average dollar value of licence agreements has increased by approximately 60% to $69,000 compared to 2017, including short-term targeted shopper marketing promotions and annual/multi-year SaaS licence.
“Our success in delivering results in 2017 is leading to renewals and longer-term licences,” said Craig. “Annual and multi-year licences allow our customers to maximize the value of the consumer data we collect by leveraging multiple modules of PLATFORM³, including Retargeting & Automated Messaging and our Artificial Intelligence technology, to drive initial purchase, purchase frequency and customer loyalty.”
About 3tl Technologies Corp.
3tl 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 3tltechcorp.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.
For further information: 3tl Technologies Corp., Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]