Datable Signs Two Agreements with Bedding Company
VANCOUVER, BC, May 6, 2021 /CNW/ - Datable Technology Corporation (TSXV: DAC) (OTCQB: TTMZF) (the "Company" or "Datable"), a software company that provides a marketing automation platform called PLATFORM3 to global consumer brands, announces that it has signed two short-term license and rewards agreements (the "Agreements") for approximately total $833,000 in contracted revenue with a leading bedding company (the "Customer").
The Customer is headquartered in the U.S. and sells its products under 4 major brands in about 150 countries. In 2020 the Customer used PLATFORM3 for a trial program, before allocating a larger budget pursuant to the Agreements in 2021. The Agreements provide the Customer with a license to use PLATFORM3 to implement a digital loyalty and rewards program in the U.S. for two of its leading brands.
Under the Agreements the programs start in June 2021 and run for about one month ending in July 2021:
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Datable will use PLATFORM3 to configure two microsite portals for consumers of the Customer's products under two of its brands. The portal will host various modules of PLATFORM3 including Contests and Promotions, Purchase Receipt Validation, Consumer/Transaction Data Capture & Analytics. Consumers will be asked to purchase participating products from retailers nationwide in the U.S. After the purchase has been validated by PLATFORM3, the consumer will receive a reward based on the value of their purchase.
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The Agreements include license fees and rewards for a total of approximately $833,000. The mix of products and services in the Agreements is expected to generate gross margins lower than Datable's estimated gross margin of 55% for year ended December 31, 2021, due to a higher percentage of lower margin services.
"We are very pleased that this customer has the confidence to allocate a significant budget to a program hosted by PLATFORM3, after signing on for a trial program last year," said Robert Craig, Datable's CEO. "In 2021, we are seeing a trend to larger short-term and annual agreements with new and existing customers. Most of our customers are leading consumer goods companies, which are all seeking to drive incremental sales and enhance consumer loyalty with real-time, meaningful digital rewards."
Datable now has close to $4.5 million in contracted revenue for 2021 and future periods, of which approximately $3.9 million is expected to be recognized as revenue in 2021. The expected recognized revenue of $3.9 million in 2021 is already equal to revenue growth of 98% compared to 2020 with eight months left in 2021 to further increase revenue. Datable expects gross margin to be about 55% in 2021. As recently announced (see press release dated April 26, 2021), Datable grew revenue by 26% to approximately $1.97 million for the year ended December 31, 2020, compared to the same period in 2019, with gross margins of 59%.
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 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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