VANCOUVER, BC, Nov. 28,
2023 /CNW/ - Datable Technology Corporation (TSXV:
DAC) (OTC Pink: TTMZF) (the "Company" or "Datable" or "DTC"), the
developer of a proprietary, SaaS-based Consumer Lifecycle and Data
Management Platform called PLATFORM3, is
pleased to announce its financial results for the quarter ended
September 30, 2023 ("Q3 2023").
For the three-month and nine-month
periods ended September 30, 2023, the
Company achieved the following milestones:
- Total operating expenses decreased by 48% and 40% for the
nine-month and three-month periods, respectively, mainly due to the
implementation of cost-cutting and improved operational
efficiencies, resulting in a 57% reduction of net loss to
$1,378,833 for the nine-month period
and a 53% reduction of net loss to $494,094 for the three-month period, compared to
the same periods in 2022.
- Gross Margin as a percentage of sales increased to 49% and 56%
for the nine-month and three-month periods, respectively, to
compared to 40% and 36% in the same periods in 2022 due to the
product mix including a larger percentage of high-margin
software-as-a-service products.
- Revenue decreased by 26% to $1,787,294 and by 36% to $431,048 for the nine-month and three-month
periods compared to the same periods in 2022, respectively,
partially offset by strong increases in gross margin as a
percentage of sales such that total gross margin decreased by 9%
and less than 1% for the nine-month and three-month periods,
respectively, compared to the same periods in 2022. The revenue
decreases were partly due to the reduced sales and marketing
resources deployed in 2023.
The Company is also pleased to
provide the following 2023 updates:
- The Company made progress on reaching a definitive agreement
with LMSG pursuant to the letter of intent signed June 15, 2023 (see press release dated
June 16, 2023), such that the
deadline of July 31, 2023 was waived
by mutual agreement. LMSG has agreed to provide bridge loans to
Datable as the parties work to reach a definitive agreement such
the transaction can close before December
31, 2023. In addition to finalizing the terms of the
agreement and conducting mutual due diligence, LMSG and Datable
have been working to integrate Datable's products and services into
the LMSG offering, and exploring ways for Datable to monetize
PLATFORM3, that do not conflict with the
business that LMSG is acquiring from Datable.
- Due to the continued cost-cutting and improved operational
efficiency, total operating expenses are expected to be reduced by
more than 50% for the year ended December
31, 2023, compared to the same period in 2022.
- As of the date of this news release, Datable has agreements,
which together with license agreements signed in prior periods
amount to approximately $3.9 million
in revenue under contract for 2023 and future periods, of which 60%
is expected to be recognized as revenue in 2023. Datable expects
gross margin of approximately 50% in 2023, depending on product mix
and expected improvements in operational efficiency.
"We have worked with LMSG to restructure our business by
reducing costs and focusing on high-margin SaaS licenses such that
we are positioned to drive profitable growth under LMSG," said
Robert Craig, Datable's CEO. "The
final terms of the definitive agreement with LMSG are expected to
include a license for Datable use
PLATFORM3 in certain sectors that do
not conflict with LMSG, so we are exploring ways to monetize our
proven enterprise level software platform."
Results of Operations:
Revenue for the three months ended September 30, 2023 decreased by 36% to
$431,048, compared with $678,357 in the same period in 2022 due to a
reduction in new annual and long-term licenses signed in 2023 and
the corresponding reduced sales and marketing activities in line
with cost-cutting. DTC's PLATFORM3 product
is an integrated suite of digital marketing applications sold as
SaaS for short-term promotions or on an annual subscription basis
with recurring revenues. Revenue in the current year reflected
recognition of revenue from the previous year's contracts and new
sales of the PLATFORM3 product
offering.
Gross profit for the three months ended September 30, 2023 decreased by 1% to
$240,744, compared to $243,075 in the same period in 2022. Cost of
sales for the three months ended September
30, 2023 decreased by 56% to $190,304, compared to $435,282 in the same period in 2022.
Gross margin as a percentage of revenue for the three
months ended September 30, 2023
increased by 20% to 56%, compared to 36% in the same period in
2022. The 20% increase for the three months ended
September 30, 2023 was due to an
increased percentage of sales from high margin
software-as-a-service products. Gross margin depends on the product
mix for the reporting period. Revenues are comprised of a
combination of higher margin sales of
PLATFORM3, the Company's proprietary
Software as a Service product, and reward service combined with
some lower margin third party services.
General and administrative expenses for the three months
ended September 30, 2023 decreased by
14% to $283,393, compared to
$330,569 in the same period in 2022.
The decrease for the three months ended September 30, 2023 was mainly due to a decrease
in corporate consultancy fees, professional fees, investor
relations and general administration.
Sales and marketing expenses include wages and salaries,
consulting fees, travel expenses, and advertising and licenses.
Sales and marketing expenses for the three months ended
September 30, 2023 decreased by 47%
to $86,373, compared to $163,706 in the same period in 2022. The decrease
for the three months ended September 30,
2023 was mainly due to reduction in staff resources and
consultants paid in connection with advertising, sales and
marketing activities.
Research and development expenditures for the three
months ended September 30, 2023
decreased by 58% to $187,932,
compared to $449,341 in the same
period in 2022. The decrease in research and development expenses
for the three months ended September 30,
2023 was related to the reduction in staff and consulting
resources while maintaining the quality enhancement to
PLATFORM3. Research and development
expense is expected to be significantly lower in 2023 compared to
2022 since the development of the next generation of
PLATFORM3 is completed. The enhanced
version of PLATFORM3 delivers improved
efficiency and reduced implementation cost along with new tools to
further monetize first-party consumer data customers.
Net and comprehensive loss for the three months ended
September 30, 2023 decreased by 53%
to $494,094, compared to $1,050,634 in the same period in 2022. The
decrease in net loss for the three months ended September 30, 2023 was mainly due to the
reduction of sales and marketing expenses, general and
administrative expenses and research and development expenses.
Datable also announces that it has granted 11,275,000 restricted
share units ("RSUs") to management and board members under the
Company's share compensation plan, subject to approval by the
TSXV.
About Datable Technology
Corporation
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.
SOURCE Datable Technology Corp.