VANCOUVER, May 29, 2017 /CNW/ - 3tl Technologies Corp.
(TSXV: TTM)(OTCQB: TTMZF) (the "Company" or "3tl") announced its
financial results for the quarter ended March 31, 2017. The financial statements
and management discussion and analysis for the year ended
March 31, 2017 are available on
SEDAR.
The Company's overall performance for the three months ended
March 31, 2017:
- 3tl has signed 19 license agreements to provide
PLATFORM3 with leading consumer packaged goods ("CPG")
brands in 2017.
- Revenue increased by 36% to $202,737 compared to the three months ended
March 31, 2016.
- Increased the average value of license agreements including,
annual and multi-year agreements.
- Launched two new modules to PLATFORM3 based on
market experience and feedback, Targeted Couponing and Shopper
Messaging and Retargeting.
In 2017 year-to-date, 3tl has agreements that will generate
approximately $850,000 in total
revenues with approximately 85% of those revenues being recognized
in 2017, compared to revenues of $665,728 for the year ended December
31, 2016:
- the agreements show a trend towards longer-term and larger
agreements;
- many of the agreements signed in 2017 represent repeat business
from leading U.S. based brands; and,
- 3tl has a number of annual agreements where PLATFORM³ hosts an
ongoing digital loyalty and rewards program. 3tl is generally paid
an annual license fee plus transaction fees based on the number of
times consumers validate purchases using PLATFORM³.
"We are off to a great start in 2017, having signed deals that
generate revenues greater than those for the full year of
2016. Our customers are leading CPG brands that use our
technology to connect directly with consumers, reward them for
purchasing and collect valuable consumer data," said Rob Craig, CEO of 3tl. "As brands sign
longer term licences they are realizing the benefits of our modules
that enable targeted offers based on purchasing behaviour."
RESULTS OF OPERATIONS
Revenue for the three months ended March
31, 2017 increased by 36% to $202,737, compared to $148,838 for the three months ended March 31, 2016. The Company shifted its business
model with the launch of PLATFORM3 and during the fiscal
year 2014 and Purchase Receipt Scanning in 2015, changing from
custom development of digital advertising solutions with no
recurring revenue to a Software as a Service (SaaS) model. The
PLATFORM3 product is an integrated suite of digital
marketing applications sold as SaaS for short-term promotions or on
an annual subscriptions basis with recurring revenues. Revenue in
the year reflected recognition of revenue from previous year
contracts and new sales of the PLATFORM3 product
offering.
In 2016, 3tl launched PLATFORM³ targeting Consumer Packaged
Goods (CPG) companies in the U.S. The Company validated its
value proposition with 38 digital shopper marketing promotions
generating total revenues of $665,728
in 2016. Most of the 2016 promotions were short-term trials.
In 2017 year-to-date, 3tl has 19 agreements that will generate
approximately $850,000 in total
revenues with approximately 85% of those revenues being recognized
in 2017.
Gross profit for the three months ended March 31, 2017 increased to $148,581, compared to $118,406 for the three months ended March 31, 2016. Gross margin as a percentage of
revenue for the three months ended March 31,
2017 was 73% and 80% for the three months ended March 31, 2016. Gross margins decreased slightly
for the three months ended March 31,
2017 compared to the three months ended March 31, 2017 due some contracts for lower
margin third party services.
In 2017, 3tl launched an API connection to third party digital
rewards platforms. This service enables 3tl clients to offer
digital rewards such as gift cards, movie tickets and virtual visas
to incentivize purchase and purchase frequency. 3tl will purchase
these rewards on behalf of the Company's clients and charge a 15%
transaction fee for the total amount of rewards purchased.
General and administrative expenses for the three months ended
March 31, 2017 increased slightly to
$289,297, compared to $236,063 for the three months ended March 31, 2016. Sales and marketing expenses for
the three months ended March 31, 2017
increased to $197,168, compared to
$186,881 for the three months ended
March 31, 2016.
Research and development expenditure for the three months ended
March 31, 2017 decreased to
$66,013, compared to $68,924 for the three months ended March 31, 2016.
Research and development expenses remained relatively the same
for the three months ended March 31,
2017 compared to the three months ended March 31, 2016 as much of the development of
PLATFORM3 was completed in 2015. The costs recorded in
2016 and 2017 relate to improvements to PLATFORM3.
Research and development expenses may increase in the future as the
Company seeks to evolve and improve PLATFORM3, as well
as to invest in creating new technology and products that will
enhance the Company's value proposition to customers and provide
additional revenues. Research and development expenses include
wages and salaries and consulting fees.
Share-based compensation for the three months ended March 31, 2017 was $13,240 compared to $13,881 for the three months ended March 31, 2016.
Net and comprehensive loss for the three months ended
March 31, 2017 was $421,032 compared to $387,142 for the three months ended March 31, 2016. This increase was mainly due to
the increase of operating expenses.
About 3tl Technologies Corp.
PLATFORM³ is a Software
as a Service (SaaS) consumer marketing platform. It enables
Consumer Packaged Goods (CPG) companies and consumer brands to
engage shoppers through their mobile device and influence their
purchasing decisions. PLATFORM³ encompasses proprietary consumer
engagement strategies and technology modules including optical
character recognition (purchase receipt scanning), digital
promotions, purchase data mining, loyalty and rewards. CPG
companies and major retail brands use PLATFORM³ to influence and
incentivize shoppers to interact with their brand and make
purchases in-store and online.
For more information, visit 3tltechcorp.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 3tl Technologies Corp.