In 2022, the Company achieved the following milestones:
- Revenue increased by 12% to
$3,944,911 compared to$3,532,318 in 2021 due to the increase in contracted project deliveries and transactional orders completed in the year. - One hundred precent of annual and multi-year SaaS licenses renewed, all with leading
U.S. based large enterprises. - Had agreements to provide PLATFORM3 to leading Brands, accounting for total contracted revenue of approximately
$6.2 million , including over$2.2 million of revenue expected to be recognized in 2023 and future periods. Total contracted revenue includes agreements signed in the year and multi-year agreements carried forward from prior years. - Total operating expenses decreased by 12% compared to 2021 due to cost-cutting implemented in the second half of 2022.
The Company is also pleased to provide the following 2023 updates:
- Datable has implemented significant cost-cutting such that operating expenses are expected to be reduced by approximately fifty percent in 2023 compared to 2022.
- As of the date of this news release, Datable has license agreements that amount to approximately
$3.6 million in revenue under contract for 2023 and future periods, of which 56% is expected to be recognized as revenue in 2023. This includes approximately$3.2 million in contracted revenues and close to$0.4 million in expected program fees from customers. Datable expects gross margin to increase to between 40% and 50% in 2023, due to a change in product mix to a higher percentage of high-margin SaaS licenses and improvements in operational efficiency. - On
June 16, 2023 , the Company announced that it has entered into a non-binding letter of intent with LMSG to sell its software-as-a-service business in exchange for a 15% interest in LMSG.
"We are encouraged by our revenue growth in 2022 despite a challenging environment. All of our core customers renewed their licenses in 2022. Long-term licensees of PLATFORM3 have built valuable first-party consumer databases hosted on our platform and use the tools it provides to drive incremental sales and enhance consumer engagement. While it was difficult to secure new customers in 2022, and some of the contracted programs were delayed based on the economic environment, we signed a new major customer in late 20222 and are re-building our sales pipeline in 2023," said
Results of Operations:
Revenue for year ended
Revenue growth for the year of 2022 was partly due to improvements in the functionality of PLATFORM3. In late 2020, DTC launched version 5.0 of PLATFORM3 which included new modules that extended and deepened its differentiation in the market by launching a break-through feature on PLATFORM3 - Dynamic Messaging and Rewards (DMR). This feature empowers brands to deploy omnichannel communications, retargeting and contextual rewards to induce consumer purchases based on their previous and ongoing purchase behavior and Brand engagement. DMR transforms PLATFORM3 into a self-regulating continuous feedback loop for ongoing sales.
Gross profit for the year ended
Gross margin as a percentage of revenue for the year ended
Cost of sales includes an API connection to third party digital rewards platforms. This service enables DTC clients to offer digital rewards such as gift cards, movie tickets and virtual visas to incentivize purchase and purchase frequency. DTC purchases these rewards on behalf of the Company's clients and charges a transaction fee for the total amount of rewards purchased. Cost of sales also includes the cost of servers to host PLATFORM3, and project management and customer support staff.
General and administrative expenses for the year ended
Sales and marketing expenses include wages and salaries, consulting fees, travel expenses, and advertising and licenses. Sales and marketing expenses for the year ended
Research and development expenditures for the year ended
Net and comprehensive loss for the year ended
About
Datable has developed PLATFORM3 a proprietary Consumer Lifecycle and Data Management Platform that is sold to global consumer brands. PLATFORM3 is delivered as a subscription service (Software as a Service model) and used by some of the worlds' most valuable consumer brands to access new consumer communities and engage them while collecting, analyzing, and managing their first-party 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.
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