In a news release, Datable Technology Corp. (DAC:TSX.V; TTMZF:OTCMKTS) reported that "it has signed three new agreements to provide licenses for PLATFORM³ and digital rewards to leading consumer goods companies." The firm offers an integrated product suite of digital marketing applications including its core product PLATFORM³, which are sold as Software-as-a-Service. The company advised that after meeting certain thresholds, the three agreements will pay Datable approximately $123,000 plus transaction fees.
The company noted that the agreement terms stipulate that Datable will provide software modules of PLATFORM³ and digital rewards in support of programs at retailers in the U.S. and Canada.
One of the agreements signed is for a sweepstakes promotion scheduled to be launched in Quebec and Ontario for a leading multinational brewing company. Beginning in October 2020, consumers who make a qualifying amount of purchases of its beer products will be entered to win vests with a professional sports league and team's logos.
Another agreement applies to Canadian consumers who starting September 2020 will be rewarded with a Mastercard gift card after they purchase a certain amount of a global consumer packaged goods (CPG) company's dental care products at participating retailers. The same CPG company will also launch a promotion in October 2020 where consumers who buy qualifying amounts of a baby care product will be rewarded with a virtual or physical Visa card.
The company's CEO Rob Craig stated, "These new agreements are with repeat customers who have had success using PLATFORM³ to drive incremental sales and reward consumers, while collecting valuable data...Our customers are leading consumer brands that are looking for ways to generate better returns on their marketing budget, our track record of delivering results is being rewarded by repeat business."
The firm stated that it previously issued forward guidance indicating that it expected revenue in 2020 to grow by more than 100% and expenses to increase by approximately 10%, compared to 2019. The company added that it expects gross margin in 2020 to come in around 55% and that its progress year-to-date 2020 has improved its confidence in the prior guidance provided.
Datable advised that it has already entered into 26 new agreements this year that when combined with existing license agreements signed in prior periods represents total contracted revenues of more than $3,700,000. The company highlighted that these revenues under contract include an agreement with a leading household products maker which in 2020 has contracted for around $1 million in license fees and rewards and in 2021 that total is projected to increase to more than $4 million.
The company explained that many of its agreements include annual fees where PLATFORM³ hosts an ongoing digital loyalty and rewards program. Datable stated that it is "generally paid an annual license fee, service fees and transaction fees based on the number of times consumers validate purchases using PLATFORM³."[NLINSERT]
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