For the three months ended
- Revenue increased by 28% to
$860,586 compared to$674,557 in the same period of 2021 due to the increase in average contract value, project deliveries and transactional orders in the product mix of both licensing and reward businesses. - Signed 7 agreements (2021 – 9 agreements) to provide PLATFORM3 to leading brands, which increased the total contracted revenue for 2022 and future periods to approximately
$3.1 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 increased by 18% to
$1,868,637 compared to$1,583,940 as ofDecember 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. - In 2021 DTC began work on building the next generation of PLATFORM3 6.0. This version was designed to incorporate new infrastructure, back-end and front-end technologies that automate the integration, delivery, and testing of our services. The goal was to significantly reduce the time it takes the Company to deploy new solutions for its clients. The objective in redesigning PLATFORM3 was to incorporate key learnings and requirements gathered from the leading brands that have been DTC clients for several years. Additional enhancements address recent critical changes to consumer privacy laws regarding how Brands can communicate and engage with consumers on web and mobile applications.
The Company is also pleased to provide the following 2022 updates:
- Year-to-date, Datable has signed 13 new agreements (same period in 2021 – 13 new agreements), which together with license agreements signed in prior periods amount to approximately
$3.3 million in revenue under contract for 2022 and future periods, of which over$3 million is expected to be recognized as revenue in 2022. This includes approximately$2.9 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. - Signed a Partnership Agreement (the "Agreement") with GetintheLoop Marketing Ltd. ("GITL") to share revenues resulting from Datable's customers placing offers and activities into the GITL Network. Datable's customers are leading consumer goods companies that own some of the world's most valuable brands. Datable will earn an estimated 40% of the revenue from offers it brings to the GITL Network. Under the Agreement, Datable will generate a new revenue stream by amplifying offers from leading brands that license PLATFORM3 on the GITL Network in
Canada and the U.S. - 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 for the summer and back-to-school promotions, and as long-term loyalty programs.
"We are encouraged that our revenue growth continued in the first quarter of 2022 after growing by 79% in 2021 despite the 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
Results of Operations:
Revenue for the three months ended
Revenue growth for the year of 2021 and the three months ended
Gross profit for the three months ended
Gross margin as a percentage of revenue for the three 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 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 months ended
Research and development expenditures for the three months ended
Research and development expenses may continue to increase in the future as the Company seeks to evolve and improve PLATFORM3, as well as to invest in creating new technology and products that will enhance the Company's value proposition to customers and provide additional revenue. Research and development expenses include wages and salaries and consulting fees.
Net and comprehensive loss for the three 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
SOURCE
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