In times of COVID, this Venture Capital Co. grew 83%

(Image via DGTL Holdings Inc.)



This current economic downturn that we are experiencing has provided an opportunity for new and emerging businesses to capitalize on the changes caused by the spread of the COVID-19 pandemic.

One such business is DGTL Holdings Inc. (TSX-V: DGTL, Forum).

The venture capital investment Company has charted some impressive growth recently, having just released its fiscal Q1 2021 financials, highlighting $1,162,469 in revenue for the three months ended August 31st, 2020. The Company noted that its CaaS (content-as-a-service) platform Hashoff gathered $634,593 of revenue for the same quarter in 2019, which represents more than 83% growth in revenue in the first quarter post-acquisition.

In a news release with full details for investors, DGTL Holdings’ Chief Executive Officer, Mike Racic stated that this first quarterly financial report since its initial acquisition meets the leadership team’s expectations.

“Hashoff has performed well while managing integration, corporate development and day-to-day operations, during a global pandemic. Our team is dedicated to driving long-term shareholder value via solid revenue growth, sustainable gross margins and new accretive acquisitions.”

Born out of astute analysis of the Artificial Intelligence (AI) technology space, the Company attributed Hashoff’s growth to its three-year revenue growth plan, as well as positive campaign results from its key accounts, as well as growing demand for enterprise level CaaS platforms, which allow global brands to operate large-scale digital and social media marketing campaigns cost-efficiently and remotely.

Let’s take a look at five such deals that Hashoff signed recently, as it secured new accounts and built solid revenue streams within underserved growth categories. DGTL Holdings chose to be protective of announcing these major customer names (for competitive reasons), which is evidence of their size and importance.

It is important to note that all of these five new major accounts were announced after the August 31st cutoff date for the Q1 financials filed, so the additional revenues from these five significant new accounts will be reflected in future financial filings, starting with the Q2 financials due in January 2021.

Hashoff’s newest client is an international leader in the online retail of consumer apparel brands, with whom it has signed a new 12-month SaaS licensing agreement. The one-year service agreement was executed directly with this new client and includes monthly software licensing fees with a minimum accumulative value of more than $500,000 (USD).

This adds to an earlier 24-month SaaS licensing agreement Hashoff signed with a global leader in online fantasy sports gambling. The service agreement was executed directly with the premier online fantasy sports contest brand listed on the Nasdaq exchange (with a current market capital over $16 Billion (CAD)).

Just a week earlier, the company secured a new client service agreement with a global leader in the e-marketing services sector. The 12-month contract is valued at $1 million (USD) and will leverage Hashoff's IAM and Create Marketplace products for marketing to the e-sports sector.

Under this new channel partnership program, two top-ranked digital media publishers who actively sell enterprise level CaaS and social media software solutions to their global customer base of Fortune 100 (F100) brands have turned to Hashoff. They are a leading QSR delivery (quick-service-restaurant) mobile application company and an established online EDU (education) brand. Both accounts lead rapid growth sectors within the new digital gig economy.

From humble beginnings since re-branding as DGTL four months ago, its share price has more than doubled in value and is still a bargain for entry-level investors into the lucrative digital marketing and advertising environment with the uniquely transformative AI element.


(DGTL Holdings Stock chart – Aug 2020 – Nov 2020. Click to enlarge.)

Powered by AI, the Company’s name stands for Digital Growth Technologies and Licensing. DGTL Holdings is in the business of acquiring innovative and disruptive digital media and advertising technology companies. It specifically specializes in accelerating fully commercialized enterprise level SaaS (software-as-a-service) companies via a blend of unique capitalization structures, including investment, merger and acquisition (M&A), earn outs and licensing structures.

In a world where more than $12 billion (USD) a year is generated from social media influencers and gig-content marketing, this creative advertising ecosystem is on track to grow to $200 billion (USD) a year. First-party user data is like gold to a mining company, but it is becoming universally accessible through this market and anyone with the right skill and tolls can create and monetize scalable and persistent open networks.

This will no doubt lead to added growth for the Company. Growth which has been exasperated by a surge in e-commerce transactions and media consumption since the COVID-19 pandemic began to take hold, creating a “new normal” that the current digital duopoly maintained by corporate giants have struggled to adapt to.

Even so, through its distributed workforce focused on targeted direct-to-consumer (DTC) engagement and conversion, DGTL Holdings Inc. is performing extremely well with its first acquisition, and one can only speculate what the future potential of acquisitions may do for the company. Only time will tell.

To find out more information on DGTL Holdings Inc. and its subsidiaries, visit dgtlinc.com.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.