VANCOUVER, April 25, 2018 /CNW/ - 3tl Technologies Corp.
(TSXV: TTM) (OTCQB: TTMZF) (the "Company" or "3tl"), a technology
company whose core product PLATFORM³ is an integrated
suite of digital marketing applications sold as
Software-as-a-Service (SaaS) for short-term promotions or on an
annual subscriptions basis, is pleased to announce its financial
results for Q4 2017 and the year ended December 31, 2017 ("Fiscal 2017").
For Q4 2017 and Fiscal 2017, the Company achieved the
following milestones:
- 3tl signed 37 license agreements to provide
PLATFORM³ to leading Consumer Packaged Goods (CPG)
brands, representing close tp $1.6
million in contracted revenues, with approximately 74%
recognized as revenue in 2017. More than 50% of the license
agreements where from returning clients.
- Revenue for Fiscal 2017 increased by 79% to $1,192,725, compared to revenue for the year
ended December 31, 2016 ("Fiscal
2016").
- Revenue for Q4 2017 increased by 390% to $270,951, compared to Q4 2016.
- The agreements signed during Fiscal 2017 show a trend towards
longer-term and larger agreements averaging over $43,000.
- Many of the agreements signed during Fiscal 2017 represent a
growing trend of repeat business from leading U.S based CPG brands
for 3tl.
- 3tl launched version 3.0 of PLATFORM³ which
included two new modules - Targeted Couponing, and Retargeting and
Automated Messaging, powered by the Artificial Intelligence and
Machine Learning capabilities of PLATFORM³.
- 3tl boosted existing modules of PLATFORM³ and
made significant improvements to PLATFORM³'s code-set
and infrastructure. These improvements were the result of
experience and feedback aggregated from CPG companies and
consumers.
The Company is also pleased to provide the following 2018
updates:
- As of April 23, 2018, 3tl has
signed 18 license agreements this year, which togther with license
agrements signed in prior periods represent contracted revenues of
close to $1.5 million, with
approximately 75% expected to recognized in
2018. About 36% of the licence agreements are with
returing customers.
- 3tl has several annual agreements where PLATFORM³
hosts an ongoing digital loyalty and rewards program. 3tl is
generally paid an annual license fee plus transactions fees based
on the number of times consumers validate purchases using
PLATFORM³. The $1.5
million in contracted revenues noted above only accounts for
license and service fees, and does not include any transaction
fees.
"In 2017, a growing number of leading U.S. brands recognized our
value proposition with repeat business and longer-term agreements
driving revenue growth of 79% - we were rewarded for listening to
our customers and adding new modules that improve their ROI.
We are off to a great start in 2018 with a good mix of repeat
business and new customers. With some $1.5 million in signed deals, a growiing sales
pipeline and further value-adding innovations under development,
2018 is expected to be a breakthrough year" said Robert Craig, 3tl's CEO. "We are achieving
stronger results than ever because of repeat business from our
current clients who can see how focused we are on helping them
establish a stronger connection with their consumers. We continue
to leverage multiple modules of PLATFORM³ including
Contests & Promotions, Purchase Receipt Validation, Loyalty,
Rewards & Gamification, Data Capture & Analytics, and
Retargeting & Automated Messaging, as well as its Artificial
Intelligence technology to drive initial purchase, purchase
frequency and customer loyalty."
Results of Operations:
Revenue for Fiscal 2017 increased by 79% to $1,192,725, compared with the Fiscal 2016.
PLATFORM³ 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 the previous year's contracts
and new sales of the PLATFORM³ product offering.
Gross profit for Fiscal 2017 increased by 62% to
$731,432, compared to Fiscal
2016.
Gross margin as a percentage of revenue for Fiscal 2017
was 61%, compared to 68% in the Fiscal 2016. Gross margin as a
percentage of revenue 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 combined with some lower margin third
party services.
In 2016, 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 purchases these
rewards on behalf of the Company's clients and charges a 15%
transaction fee for the total amount of rewards purchased. Cost of
sales also includes the cost of servers to host
PLATFORM³, project management and customer support
staff.
General and administrative expenses for Fiscal 2017
increased by 29% to $1,418,565,
compared to Fiscal 2016. General and administrative expenses
include salaries and benefits, accounting, legal, investor
relations, travel, rent, office, and other administrative costs.
For Fiscal 2017, general and administrative expenses consisted
primarily of $1,044,271 in office and
other overhead expenses that include investor relations, corporate
advisory fees, and regulatory filing fees, $275,115 in wages and salaries, $66,042 in consulting fees, and $33,139 in professional fees.
Research and development expenses for Fiscal 2017
increased by 37% to $501,873 compared
to Fiscal 2016. The increase was mainly due to efforts made to
improve PLATFORM. Research and development expenses
may increase in the future as 3tl seeks to continue to improve
PLATFORM, as well as to invest in creating new
technology and products that will enhance the Company's value
proposition to its clients and provide additional revenues.
Net and comprehensive loss for Fiscal 2017 was
$2,039,546 compared to $1,767,075 for Fiscal 2016. This increase was
mainly due to the increase of revenue and corresponding cost of
sales and increase of operating expenses.
About 3tl Technologies Corp.
3tl has developed a proprietary, mobile-based consumer marketing
platform – PLATFORM³ – that is sold to global
Consumer Packaged Goods (CPG) companies and consumer brands.
PLATFORM³ is delivered as a subscription service
(Software as a Service model) and used by CPG companies to engage
consumers, reward purchases and collect valuable consumer data.
PLATFORM³ incorporates Artificial Intelligence and
Machine Learning to monetize the consumer data, including
demographics and purchasing behaviour, by sending consumers
targeted offers by email and text messages. 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.