Datable Signs $1 Million of Licenses in February 2020: Baseline contracted licenses & renewals point to 100%+ revenue growth over 2019
VANCOUVER, Feb. 26, 2020 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable"), a technology company whose core product PLATFORM³ is an integrated suite of digital marketing applications sold as Software-as-a-Service ("SaaS"), announces during February 2020 it has signed over $1 million in baseline contracted licenses.
Datable will end February 2020 with approximately $2.1 million of baseline contracted licenses for PLATFORM³, with a gross margin of about 70%. Baseline contracted licenses do not include transaction fees, which generate additional revenues in many of Datable's agreements. Approximately 64% of the baseline contracted licenses are expected to be recognized as revenue in 2020 with the balance recognized in future periods.
Datable previously announced $1.1 million in baseline contracted licenses at the end of January 2020 and provided guidance that revenue will grow by over 100% and expenses by about 10% in 2020, compared to 2019 (see press release dated Feb 5, 2020). Datable expects gross margin to remain at about 70% in 2020. Datable's progress in February has increased the Company's confidence in this guidance.
"February 2020 was a record month for Datable, driven by the renewal and upsizing of long-term licenses with customers who have purchased PLATFORM³ as a long-term solution to engage and reward consumers for extended periods of time. In February we also signed a number of short-term licenses with new and existing customers that use PLATFORM³ for product launches and seasonal marketing campaigns," said Rob Craig, CEO of Datable. "We expect to generate additional revenues from many of these agreements from transaction fees, and to expand the scope of our relationships with the customers that signed short-term licenses."
The Company expects to report revenues of approximately $1.5 million with gross margin of approximately 70% for the year ended December 31, 2019, representing modest revenue growth of approximately 10% compared with 2018. In 2019, Datable provided digital loyalty, rewards and consumer engagement applications to 24 leading consumer brands. These programs delivered incremental revenues and measurable ROI for some of the largest consumer brands in the world. Further, they have provided the sales team with compelling case studies and a growing list of repeat customers, resulting in shorter sales cycles and increasing dollar value contracts.
Datable's customers that signed license agreements in February all have large annual budgets for marketing including:
- one of the world's largest media and entertainment conglomerates;
- a leading global provider of solutions and equipment for turf maintenance, landscape, snow and ice management and irrigation;
- one of the world's largest manufacturers and distributors of consumer packaged goods;
- a leading North American provider of online movie tickets and related streaming content.
- one of the world's largest brewers that owns numerous leading beer brands; and,
- one of Canada's largest producers and distributors of packaged fresh bread and bakery products.
This agreement increases Datable's 2020 baseline contracted licenses for PLATFORM³ to approximately $2.1 million from $1.1 million announced in the February 5, 2020 press release. The current baseline contracted licenses are already more than total revenue expected to be recognized during FY2019. Management anticipates making further license renewal and new customer announcements shortly.
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 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 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.
Datable Technology Corporation, Robert Craig, Chief Executive Officer, (604) 639-5441, [email protected]
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