New Covid Work From Home EconomyThese Technology Stocks Could Thrive in the New COVID-19 Work-from-Home Economy 1.Datable Technology Corp. (DAC:TSX.V; TTMZF:USOTC) Datable is a small tech company that has flown under the radar for a while now.
PLATFORM3 is the company's proprietary, mobile-based, consumer marketing platform, which is sold as a software-as-a-service subscription to consumer packaged-goods companies.
Companies utilize PLATFORM3 as a marketing tool to engage consumers and reward them for making purchases, as well as collect valuable consumer data. Many of the world's largest and most successful consumer brands have incorporated Datable's PLATFORM3 into their marketing strategies. Leading brands that have used PLATFORM3 include Universal Pictures, Proctor & Gamble, Kroger, Jack Link's, Snickers, 7Up, Dr. Pepper, Doritos, Molson Coors, Unilever and Toro. Red Bull was just added to that list after Datable announced the signing of a
three-year master service agreement with the top energy drink maker.
Datable's business remains largely unaffected by the COVID-19 pandemic, which the company explained in detail in a
recent press release. In fact, Datable is actually in a unique position to thrive in the current economic environment. Most of the company's leading consumer-brand clients sell essential products such as food, beverages and household products. During times of crisis, the demand for essential products rises typically. In response to the coronavirus crisis, the company announced that it is expanding shop-from-home options on its PLATFORM3 rewards and loyalty platform.
Datable is the smallest tech play on our list, but due to the company's extremely low valuation, it has, by far, the most upside potential. The company anticipates that it will report revenue of approximately $1.5 million for 2019, and is
projecting its sales will more than double in 2020.
Datable is off to a terrific start in 2020, with the company announcing roughly
$2.1 million of baseline contracted licenses for PLATFORM3 in just the first two months of the year. The company expects to recognize approximately 64% of the $2.1 million as revenue in 2020, with a gross margin of around 70%. The remaining 36% is will likely be recognized the following year.
Rob Craig, CEO of Datable, commented on the company's bullish start to 2020: "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. 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."
With a market cap under $2 million and potential 2020 revenues of over $3 million, Datable's stock is a tremendous bargain at current levels. Investors should take full advantage of this opportunity while it lasts.