VANCOUVER, Aug. 29, 2017 /CNW/ - 3tl Technologies
Corp. (TSXV: TTM)(OTCQB: TTMZF) (the "Company" or "3tl")
announced its financial results for the quarter and six month
period ended June 30, 2017. The
financial statements, management discussion and analysis are
available on SEDAR.
The Company's overall performance for the six months ended
June 30, 2017:
- Revenue for the quarter increased by 84% to $356,520, and revenue for the six month period
increased by 63% to $559,256,
compared with the same periods in 2016.
- Increased the average value of license agreements including,
the multi-year agreement with NBC Universal owned Fandango
Rewards.
- Launched two new artificial intelligence modules to
PLATFORM3 based on market experience and feedback,
Targeted Couponing and Shopper Messaging and Retargeting.
In 2017 year-to-date, 3tl has 27 agreements that will generate
approximately $1,200,000 in total
revenues with approximately 81% of those revenues to be recognized
in 2017, compared with revenues of $665,728 for the year ended December 31, 2016:
- 75% of the Company's 2016 customers, mostly leading U.S. based
brands, have renewed or signed new agreements in 2017;
- 2017 agreements show a trend to longer-term and larger
agreements; and,
- 3tl has a number of annual agreements where PLATFORM³ hosts an
ongoing digital loyalty and rewards programs. 3tl is generally paid
an annual license fee plus transactions fees based on the number of
times consumers validate purchases using PLATFORM³.
"Repeat business and the trend to longer term commitments is
validation that our cloud-based platform is delivering results,"
said Rob Craig, CEO of 3tl.
PLATFORM³ enables brands to connect directly with consumers on
mobile devices, rewarding them for purchasing, interacting with the
brand and sharing content via social networks, all the while
collecting valuable consumer data. During longer term
agreements, leading brands are building consumer databases, which
can be monetized using PLATFORM³'s artificial intelligence modules
to retarget consumers using the data."
RESULTS OF OPERATIONS
Revenue for the three months ended June
30, 2017 increased by 84% to $356,520, and revenue for the six months ended
June 30, 2017 increased by 63% to
$559,256, compared with the same
periods in 2016.
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 27 agreements that will generate
approximately $1,200,000 in total
revenues with approximately 81% of those revenues being recognized
in 2017:
Gross margin as a percentage of revenue for the three and six
months ended June 30, 2017 was 64%
and 68%, respectively, compared to 83% and 82% for the three and
six months ended June 30, 2016. The
decrease in gross margin as a percentage of revenue was due to 3tl
providing some customers with a total solution comprised of
PLATFORM3, the Company's proprietary
Software-as-a-Service product, combined with some 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 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 includes the cost of servers to host PLATFORM3,
and project management and customer support staff.
General and administrative expenses for the three and six months
ended June 30, 2017 increased by 37%
and 30% to $372,418 and $661,716, respectively, for the three and six
months ended June 30, 2016.
Sales and marketing expenses for the three and six months ended
June 30, 2017 increased by 65% and
31% to $239,059 and $436,227, respectively, for the three and six
months ended June 30, 2016. The
increase was mainly due to increased salaries and wages, and
consulting fees paid in connection with sales and marketing
activities.
Research and development expenditure for the three and six
months ended June 30, 2017 increased
by 64% and 35% to $148,464 and
$214,476, respectively, for the three
and six months ended June 30,
2016.
Research and development expenses increased for the three and
six months ended June 30, 2017
compared to the three and six months ended June 30, 2016 as improvements were made to
improve PLATFORM3. The costs recorded in 2016 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, salaries and consulting
fees.
Net and comprehensive loss for the three and six months ended
June 30, 2017 increased by 7% and 8%
to $513,611 and $934,643, respectively, for the three and six
months ended June 30, 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.