Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the “Company” or “Datable”), announces it signed an agreement (the “Agreement”) with a leading advertising agency to provide a license for PLATFORM³ and digital rewards to a leading global provider of hygiene, health and home products (the “Customer”). Datable Technology Corporation provides an integrated suite of digital marketing applications sold as Software-as-a-Service (“SaaS”), its core product being PLATFORM³.
Under the Agreement:
- Datable will provide software modules of PLATFORM³ and digital rewards to enable a program where consumers will be rewarded for purchasing a qualifying dollar amount of the Customer’s baby formula products at a national retailer in the Canada.
- The program is set to be launched on at a date to be determined in 2020 and will end one year later, unless extended.
- Datable will be paid $145,000, plus transaction and service fees based on reaching certain thresholds.
“This agreement adds another global consumer goods company to our growing customer base of companies using PLATFORM³ to enable rewards and engagement to create consumer loyalty. These global consumer goods companies have very large annual marketing budgets. Our accelerated growth in revenues has been largely due to our customers allocating a larger budget to connect directly with consumers using PLATFORM³,” said Rob Craig, CEO of Datable. “Like many of our customers, this Customer sells most of its consumer products through grocery and convenience stores, which are expected to remain open during the COVID-19 crisis.”
Datable previously provided guidance that revenue will grow by over 100% in 2020 with expenses increasing by about 10%, compared to 2019 (see press release dated February 5, 2020). Datable expects gross margin to be about 55% in 2020. Datable’s progress in year-to-date 2020 has increased the Company’s confidence in this guidance.
Year-to-date in 2020, Datable has signed 17 new agreements, which together with existing license agreements signed in prior periods represent contracted revenues of over $3.3 million of which approximately 70% expected to be recognized in 2020. This includes the largest the largest agreement in Datable’s history under which a leading provider of household products has contracted for approximately $1,000,000 in license fees and rewards in 2020 with a projected increase to over $4 million in 2021. (See press release dated April 28, 2020)
Datable has several annual agreements where PLATFORM³ hosts an ongoing digital loyalty and rewards program. Datable is generally paid an annual license fee, service fees and transaction fees based on the number of times consumers validate purchases using PLATFORM³. The over $3.3 million in contracted revenues noted above only accounts for license and service fees and does not include any transaction fees.