Datable Technology Corp. (TSXV: DAC) (OTCQB: TTMZF) is a technology company whose core product, PLATFORM3, is an integrated suite of digital marketing applications sold as Software-as-a-Service (SaaS). Datable 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.
The company continues to innovate and add value to its growing client base of top international brands with the development of its unique Flexxi Rewards Network.
PLATFORM3 launched in 2016 with revenue of C$600,000 that quickly grew to over C$1.4 million in 2018. The service has been battle tested by millions of consumers and some of the largest brands in the world, including Universal Pictures (which just renewed for a third year with Datable), Monster Energy, Kroger, Jack Link’s, Snickers, 7up, Dr. Pepper, Doritos, Huggies, Rubbermaid, Toro, Molson Coors, Unilever and 20th Century Fox, to reward consumers for buying products, watching videos, completing surveys, sharing content via social media and referring friends. 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.
After validating its value proposition, scalability and security with major consumer brands and consumers in 2018, Datable is positioned for a breakthrough year in 2019. Year-to-date, Datable has close to $1.4 in contracted revenues for SaaS licenses on PLATFORM3.
This includes 60% from returning customers including Universal. With contracted revenues equal to 2018 annual revenues after 4 months, the Company is showing strong growth.
The company makes great margins and their major clients are getting great ROI, resulting in repeat business, but the sales cycle to sell software to major corps is too long. With Flexxi Rewards, Datable will be selling access to a consumer database on a transaction basis.
In addition to its SaaS license business, Datable has developed a complementary new business model where the Company owns the consumer’s data, sells access to the data to major CPG brands and shares revenues with opt-in consumers. This model and new applications for PLATFORM3P3, are expected to create new transaction-based revenue streams and accelerate growth:
- Flexxi Network: Ready to launch consumer loyalty portals where Datable will own the consumer data and generate revenues via a transaction-based model. Many of Datable’s current customers, comprised mostly of major U.S. consumer brands, have told the company they will pay for access to the consumer database. They know that Datable collects big data on their consumers, including purchasing behaviour. The company will share revenues with opt-in consumers, who will earn rewards for purchasing products, viewing content (videos, press releases, ads), sharing content via social media networks, completing surveys and referring friends.
- eSports sector: Datable is currently in discussions with some industry leaders in eSports who want to use P3 as a mobile loyalty and rewards platform on a revenue share basis. They also want access to the company’s customers, such as Universal and other major brands, that have large budgets to target the eSports demographic.
- Shareholder loyalty: Datable has developed a portal for shareholder loyalty, to enable public companies to provide rewards to investors and shareholders for their support. Shareholders and investors can earn rewards for viewing press releases, presentations and videos, for sharing content via social media, referring a friend, and other actions. Datable has a number of cannabis companies and investor relations groups who want to participate.
What sets PLATFORM3 apart from competitors is that it collects purchasing data from verified consumer purchases along with demographic data, all with opt-in consumers that are rewarded for their purchases, data, and engagement. PLATFORM3 has richer individual identifying information from consumers and makes the opt-in consumer a partner. In addition, PLATFORM3 includes tools that can be used to automatically retarget individuals and groups based on their purchasing behaviour and demographics.
Datable brings an impressive executive team to its partnerships, guiding strategy and performance with decades of leadership experience in marketing technology. CEO Robert Craig is an award-winning executive who co-founded Stratford Internet and ActiveStream. Chief Technology Officer Carlos Yong was Craig’s co-founder at those companies and also served as lead architect for Bingo.com, Virtually Dating, Web of Care, and icollector PLC, among other CTO and project management roles. He has worked with a range of clients, including Honda Motors, GM, Hyundai Motors, 7 Eleven, Starbucks, Red Bull, and McDonald’s Restaurants. Yong and Craig’s history of collaboration yields synergies in management that help propel Datable forward.
Roland Sartorius is Datable’s CFO, a CPA, and CGA with over 25 years of proven senior CFO experience with both North American and European high-growth public & private technology companies and private equity. His recent public CFO tenures include Carmanah Technologies Corp. and Infosat Communications, Inc. (Bell Canada). He is an investor and strategic & financial advisor to several Canadian & US early-stage technology companies and spent several years at KPMG.
Executive Chairman Kim Oishi has more than two decades of experience in financing and advising growth companies, having served in senior management and board positions on a number of public and private companies. Kim is Founder and President of Grand Rock Capital Inc., a company that invests in growth companies and provides consulting services for investor relations, corporate finance, business development, mergers, and acquisitions.
Partnership and Business Development
Datable’s 2018 agreements include licenses and promotions with over 20 leading consumer packaged goods companies and brands. The total agreements signed in 2018 were comprised of 50% returned customers and 50% new customers, compared with 42% of returned customers in 2017. Partners include such dominant brands as Universal Pictures, Unilever, Kellogg’s, Danone, Bridgestone, and 20th Century Fox. At Universal, Datable has driven close to $10 million in revenue and has full data sets on 500,000 members who have earned rewards for buying products, watching videos, sharing Universal content on social media, filling in surveys and completing other brand supporting actions.
Datable brought in approximately $1.9 million in agreements signed and incurred for the year ended December 31, 2018, an increase of 27% compared with the same period in 2017. The average signed contract value in 2018 increased by approximately 18% compared to those signed in 2017, showing the increased confidence of Datable’s customers in the return on investment delivered by the company’s platforms. Year-to-date, Datable has close to $1.4 million in signed SaaS agreements all with major consumer brands for delivery in 2019 and 2020, including the recent renewal with Universal Pictures.
PLATFORM³: a Unique Consumer Engagement Technology
Datable has invested nearly US $5 million to build PLATFORM³, a consumer marketing platform to engage consumers on mobile, drive purchases and collect consumer data for global consumer brands. PLATFORM³ leverages today’s most powerful technologies: SaaS-based software, artificial intelligence, cryptography, and the blockchain, providing brands with access to a central database of target consumers to launch promotions and offers. This means that brands don’t have to spend money on technology, advertising, and marketing to build consumer databases. They also avoid stress about managing consumer communications, hosting consumer data and ensuring its secure storage and use.
Flexxi Rewards Network
The Flexxi Rewards Network delivers cash or rewards that can be used with any of Datable’s 300 partners, with points stored in a way that is totally secure and never downloaded by brands–only accessed as needed. Brands access Flexxi as needed so they can drive sales, educate consumers and investors, and research consumer and shareholder opinions and behaviors to keep their messages dynamic and engaging. Consumers will find value in Flexxi Rewards because it enables them to save time and hassle by registering only once to earn cash and rewards from multiple brands. They can get paid for brand activities including day-to-day purchases, videos, polls and sharing on social media. Market research shows that consumers will volunteer their data to earn cash or points for purchases, but they leave $100 billion in loyalty points unclaimed. Loyalty programs are growing in popularity and number, with 77% of US households enrolled in between 19 and 29 loyalty programs. In just two years from 2012 to 2014, loyalty program memberships jumped by more than 25% to 3.3 billion, and the uptrend is expected to continue.
flexxiNVEST (Coming Soon)
Datable plans to launch its new investor loyalty platform flexxiNVEST in the coming months. flexxiNVEST is described as an investor relations and loyalty portal that engages investors and rewards them for interacting with publicly traded companies.
The platform will help public companies increase their exposure to the market, build investor databases and help them retain and reward shareholders for their loyalty. We can expect to learn more about this revolutionary rewards and loyalty platform in the very near future.
Competitive Advantage and Strategy
Datable’s sales pipeline for 2019 is stronger than ever and it looks like 2019 is going to be another year of major growth for the company. Management’s focus in 2019 is on accelerating growth based on the company’s proven platform and its customer base of leading global brands. The trend to longer-term agreements with returning customers is to achieve their goal of building consumer databases that can be monetized to maximize lifetime values. As these consumer databases hosted by PLATFORM³ grow in size and richness of data, CPG companies can leverage Datable’s proprietary artificial intelligence modules to retarget consumers with offers aimed at increasing purchase size and frequency.
The Flexxi Rewards Network enables Datable to build its own database of consumers and collect big data from consumers. Access to the database will be sold to major consumer brands, including the Datable’s existing customers. The consumers are incentivized because Datable shares revenue with consumers every time they interact with the brands. The major brands Datable works with love this transaction-based model because they pay based on consumer buying and deep engagement.
Datable knows this model works based on the management team’s discussions with major brands and a comparable company.
Datable Technology Corp. (TSXV: DAC) is currently trading at $0.09 per share and has roughly 41 million shares outstanding. DAC currently sports a market cap of roughly $3.5 million which means the stock is trading at about 1x 2019 sales based on the contracted revenues year to date. Based on this information alone one could come to the conclusion that Datable’s stock is undervalued. Investors are encouraged to do their due diligence on Datable to learn more about the company and the investment opportunity it presents.
Stay tuned for follow up articles on DAC as additional information becomes available and the story unfolds.
Best of luck to you all and happy trading.
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Datable Technology Corp. is a paid client of The Wealthy Venture Capitalist.
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