VANCOUVER, BC, May 25, 2022 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable" or "DTC"), the developer of a proprietary, SaaS-based Consumer Lifecycle and Data Management Platform called PLATFORM3, is pleased to announce its financial results for the quarter ended March 31, 2022 ("Q1 2022").
For the three months ended March 31, 2022, the Company achieved the following milestones:
The Company is also pleased to provide the following 2022 updates:
"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 Robert Craig, Datable's CEO. "The changes in regulations and practices restricting the use of consumer data are increasing interest in our solutions which enable the collection, analysis, and monetization of opt-in consumer data. We expect continued revenue growth in 2022 from upselling current customers and onboarding new customers. In addition, we are looking at opportunities to scale through partnerships that leverage our customer relationships and platform, such as the Agreement we signed with GITL."
Results of Operations:
Revenue for the three months ended March 31, 2022 increased by 28% to $860,586 compared with $674,557 in the same period in 2021 due to overall increase in project deliveries and transactional orders compared to 2021. DTC's PLATFORM3 product is an integrated suite of digital marketing applications sold as SaaS for short-term promotions or on an annual subscription basis with recurring revenues. Revenue in the current year reflected recognition of revenue from previous year contracts and new sales of the PLATFORM3 product offering.
Revenue growth for the year of 2021 and the three months ended March 31, 2022 was partly due to improvements in the functionality of PLATFORM3. In late 2020, DTC launched version 5.0 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.
Gross profit for the three months ended March 31, 2022 increased by 3% to $368,620 compared to $357,111 in the same period in 2021. The Company's cost of sales for three months ended March 31, 2022 increased by 55% to $491,966 compared to $317,446 in the same period in 2021 due to change in product mix and increase in delivery resources during the period.
Gross margin as a percentage of revenue for the three months ended March 31, 2022 was 43% compared to 53% in the same period in 2021 and 39% for the year ended December 31, 2021. Gross margin depends on the product mix for the reporting period. Revenues are comprised of a combination of higher margin sales of PLATFORM3, the Company's proprietary Software as a Service product, and reward service combined with some lower margin third party services. The Company's gross margin as a percentage of revenue is expected to improve in 2022, compared to 2021, due to product mix and investments in our technology to automate the integration, delivery, and testing of our services.
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 March 31, 2022 increased by 33% to $402,792 compared to $302,273 in the same period in 2021. The increase for the three months ended March 31, 2022 was mainly due to an increase in corporate consultancy fees, and general administration.
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 March 31, 2022 was $261,279 compared to $186,794 in the same period in 2021. The increase for the three months ended March 31, 2022 was mainly due to increased staff resources and consultants paid in connection with advertising, sales and marketing activities.
Research and development expenditures for the three months ended March 31, 2022 was $527,844 compared to $309,255 in the same period in 2021. The increase in research and development expenses for the three months ended March 31, 2022 was related to enhancement to PLATFORM3, and increased staff resources.
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 March 31, 2022 was $1,225,745, compared to $905,017 in the same period in 2021. This increase in net loss for the three months ended March 31, 2022 was mainly due to the increase of sales and marketing, research and development expenses, net of the growth in revenue.
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 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.
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