VANCOUVER, British Columbia (January 27, 2021) – Datable Technology Corporation (TSXV: DAC) (OTC Pink: 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 provide an update regarding the Company’s operations and growth strategy.
Datable had a breakthrough year in 2020, signing leading consumer goods companies to record amount of contracted revenues, establishing a track record of delivering an enterprise level marketing automation platform, and introducing new modules that enabled the monetization of consumer purchasing data in real-time:
• On January 1, 2021, Datable started the year with close to $3.2 million in contracted revenue of future periods, an increase of over 350% compared with approximately $700,000 in contracted revenues as of January 1, 2020:
• Of the $3.2 million in contracted revenue signed as of January 1, 2021, approximately $2.8 million is projected to be recognized as revenue in the year ended December 31, 2021, with the balance to be recognized in subsequent periods;
• In 2020, Datable signed 38 new agreements with 24 consumer goods brands, representing over $4.3 million in contracted revenue. Together with license agreements signed in prior periods Datable ended 2020 with contracted revenue of over $5 million, representing an increase of about 100% compared to contracted revenue in the same period in 2019;
• Approximately 38% of the over $5 million in contracted revenue is expected to be recognized in 2020, accounting for estimated revenue of $1.9 million for the year ended December 31, 2020, an increase 22% compared to 2019. Gross margin as a percentage of revenue was 67% for the nine months ended September 30, 2020, but is expected to decrease in future periods as Datable introduces lower margin products and services that complement its higher margin software-as-a-service licensing revenue from PLATFORM³;
• Sales growth continues to be driven by proprietary technology developed by Datable, including Dynamic Messaging and Rewards (DMR), a module of PLATFORM³ that empowers consumer goods companies to deploy omnichannel communications, retargeting and contextual rewards to induce consumer purchases based on their previous and ongoing purchase behaviour and brand engagement. DMR transforms PLATFORM³ into a self-regulating continuous feedback loop driving incremental consumer purchasing; and,
• Most of Datable’s customers are leading consumer goods companies that provide staples including food, beverages, and household products, which are expected to remain in demand during the COVID 19 crisis.
Growth Strategy Update
After a breakthrough year in 2020, Datable expects continued strong growth of revenue from upside renewals and new customers. Datable also plans to improve its solution by launching new products and services based on its core technology and by collaborating with industry partners with the goal of maintaining low customer churn and increasing the size and scope on its relationships with leading consumer goods companies:
• Accelerate revenue growth starting with close to $3.2 million of forward contracted revenues as of January 1, 2021, including $2.8 million projected to be recognized revenues in 2021. Datable is positioned for strong revenue growth in 2021, with approximately 47% growth of contracted projection as of January 1, 2021, compared with $1.9 million of estimated revenues for 2020. Gross margin as a percentage of revenues is expected to be approximately 55% in 2021;
• Increase scope and scale of contracts with current customers. All 24 customers that signed contracts in 2020 (including a number of Fortune 500 consumer goods companies) have room for significant upsizing;
• Leverage relationships with leading advertising and marketing agencies to add key customers with a focus on leading consumer goods companies. Agencies worked with Datable on over 60% of the $4.3 million in new contracted revenue signed during 2020. These channel partners, including some of the world’s largest agencies, have long term relationships with leading consumer goods companies and provide advice on how to allocate large annual budgets;
• Continue to enhance the PLATFORM³ value proposition via development and by collaborating with industry partners. Datable has identified a number of industry players with complementary products that could enhance the PLATFORM³ value proposition; and,
• Launch the flexxi Rewards Network to connect leading consumer brands with consumer communities and commence building Datable’s proprietary opt-in consumer database. The flexxi Rewards Network, built using Datable’s PLATFORM³ technology, is a web portal that enables opt-in consumers to earn rewards completing activities such as purchasing consumer products, viewing valuable content posted by consumer brands, sharing content on social media and referring friends. Leading consumer goods companies will pay Datable for access to the consumers via the flexxi Rewards Network.
“In 2020, we had a record year, signing over $4.3 million in new contracts. We are positioned for accelerated revenue growth, starting the year with over $3 million in forward contracted revenues, with the entire year to build on that base. We have a growing number of leading consumer brands as customers that have large and growing budgets for digital marketing. Consumer brands are allocating more spend to PLATFORM³ because we deliver measurable ROI by providing tools that enable the use of opt-in consumer data to drive incremental revenues,” said Robert Craig, Datable’s CEO. “We are also excited by the potential for new sources of revenue derived from our consumer data monetization tools, by leveraging PLATFORM³ technology with the launch of the flexxi Rewards Network. We are also exploring the potential to increase the scope and scale of our relationships by working with industry partners who have complementary products and services.”
For further information, please contact:
Datable Technology Corp.
Chief Executive Officer
About Datable Technology Corporation
Datable 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 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.