Second Quarter Fiscal 2021 Results Venzee strongly positioned to achieve annual sales and revenue objectives with 792 Mesh Connectors™ sold and over 7,000 active sales opportunities in the pipeline
CHICAGO, Aug. 30, 2021 /CNW/ - Venzee Technologies Inc. (TSX: VENZ), (OTCQB: VENZF) ("Venzee" or the "Company"), the artificial intelligence platform for product data, announced today financial results for the second quarter ended June 30, 2021. The unaudited condensed interim consolidated financial statements and related Management's Discussion and Analysis ("MD&A") can be viewed at https://investors.venzee.com/SEDAR-filings.
The Company will conduct a conference call discussing first quarter results on Tuesday, August 31, 2021 at 8:30 A.M. EST (5:30AM PST). Details for this call can be found below.
"We made strong progress this quarter, reaching 792 total Mesh Connectors™ sold in Q2, an increase of 117 from the 675 Mesh Connectors™ sold as of the end of Q1 2021. We also saw a 55% increase in revenue from the previous quarter as previously sold Mesh Connectors™ were activated and promotional periods for Mesh Connectors™ sold in the first half of the year came to an end," said John Sexton Abrams, CEO of Venzee Technologies.
Mr. Abrams continued, "Venzee expanded its sales staff in Q2 to keep up with the significant number of inbound sales opportunities we've been seeing. New talent has strengthened our team and will continue to bolster our ability to increase revenue and gain traction over the coming quarters as we strive to hit our targets by the end of the year."
Sales pipeline growth remains strong for Venzee, with more than 7,000 active sales opportunities — representing a 40% increase from the end of Q1 2021. This quarter, the Company increased direct sales leads after seeing consistent month on month revenue growth. This growth was derived by one sales person selling to partners who generated 7,000 opportunities and nearly half of Venzee's full year target of 2,000 sold Mesh Connectors™.
As more brands use Mesh Connectors™ in their retail networks, the Company has observed a growing number of retailers promoting Venzee to other brands in their supplier network. This development is reflective of what economists call the Network Effect, where an increasing number of users correlates with the increasing value of a platform, therefore drawing in more users and further increasing a platform's value over time.
Venzee continued to increase its retail channels available to clients, which enable simple scalability for consumer brands and manufacturers to connect to leading global retailers like Walmart, Home Depot and Amazon. The Company expanded its inventory from 405 retail channels in Q1 to 412 available retail channels in Q2.
Churn, or the number of clients that have discontinued use of the platform, remains at zero.
Second Quarter 2021 Financial Highlights
For the three months ending June 30, 2021:
- Revenues from SaaS-based Mesh Connector™ sales were $13,595, a 55% increase over Q1 2021 respectively.
- A net loss of $932,917 and $1,589,989 (Q2 2020 - $397,252 and $845,060).
- A loss per share of $0.00 and $0.01 (Q2 2020 - $0.00 and $0.01).
The prior year's results had $803 and $26,590 USD in revenue for three and six months ended June 30, 2020. Revenue from last year was not generated from Venzee's current SaaS model, rather, it was holdovers from a previous sales model before the Company pivoted in 2019.
Second Quarter 2021 Business Highlights
- Entered into a new partnership with a major United States-based specialty retailer serving the furniture and homeware market. The partnership will help Venzee further scale its brand and retail client base, immediately expanding the company's services to greater than 200 of the retailer's key brand suppliers.
- Upgraded the Company's Mesh Connector™ technology to version 2.11 which enabled the creation of "Sub-Accounts," or segregated accounts nested under a larger "Tenant" account. Tenants can create and oversee Sub-Accounts to manage specific product data, processes, and other useful information. Venzee's platform upgrades position the Company to continue to accelerate customer acquisition.
- Appointed Dr. John Sviokla, a leading voice on the power of utilizing artificial intelligence (AI) to transform business processes, to the board of directors. Mr. Sviokla has served clients in a variety of industries around the globe and holds BA, MBA, and DBA degrees from Harvard University.
- Commenced trading on the OTC Markets under the symbol "VENZF"
- Won a larger enterprise client, a leading manufacturer and distributor of thermoelectric and refrigeration products that has an extensive global presence, selling to major retailers across North America and over 30 countries worldwide.
Subsequent to Second Quarter 2021
- Entered into a new partnership with a leading global product information management (PIM) / digital asset management (DAM) provider to over 700 influential brands. In addition to unlocking additional value for clients, the partnership provides Venzee's sales team with opportunities to leverage the partner's installed customer base and grow Mesh Connector™ sales.
- Appointed a Senior Director of Sales, added additional sales staff to strengthen the Company's efforts to convert consumer brands and retailers into customers and accelerate the sales cycle from inbound sales leads.
Radically simpler than alternatives, Venzee's Mesh Connectors™ are unique in the market, system agnostic and infinitely scalable. Venzee's intelligent platform offers partners and brands a reliable, machine-to-machine interface that accelerates the distribution of product information to any retail or e-commerce destination.
With more than 400 major retail Mesh Connectors™ instantly available to brands, Venzee has become an important tool in the simplification and automation of syndication processes for brands globally.
Conference Call Details
Date: August 31, 2021
Time: 8:30 A.M. EST (5:30 A.M. PST)
Register to view the live audio webcast at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=CF2B0B0C-C59F-4CED-9FC2-B60209EF214E
Conference ID: 3297645
Dial-in Number: 833-513-0552
Audience Webcast URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=CF2B0B0C-C59F-4CED-9FC2-B60209EF214E
Contact Venzee directly or through our investor relations team at Kin Communications in Vancouver or Stonegate Capital Partners in Dallas. View Stonegate's recent research report on Venzee here.