In a news release, Datable Technology Corp. (DAC:TSX.V; TTMZF:USOTC) signed the largest agreement in its history. It was with an advertising agency to deliver services to a global provider of household and industrial products.
According to the agreement, Datable will give this new customer a license to the modules of PLATFORM³, its core product sold as software as a service. PLATFORM allows companies selling essential goods to reward consumers for purchases, both online and in store, while amassing data on those buyers.
Datable also will provide digital rewards, allowing the customer's consumers to be rewarded for buying a qualifying dollar amount of the customer's family care products from participating U.S. retailers. The customer sells most of its merchandise through grocery and convenience stories, which are expected to stay open during the COVID-19 pandemic.
The program is slated to be in effect from June 1, 2020 through Dec. 31, 2021. In 2020, Datable will be paid US$776,677 (approximately CA$1,087,000) for this contract. Its budget for 2021 is an estimated US$3 million, or CA$4.2 million.
As of April 28, 2020, Datable had about $3.1 million in baseline contracted license revenues, generating an estimated gross margin of 55%, plus transaction fee revenues. About 70% of these contracted licenses is expected to be recognized as revenue this year.
"Signing the largest agreement in Datable's history during these challenging times is a great validation of the ROI we are providing to leading consumer brands. PLATFORM³ enables companies selling household products, food, beverages and other essential goods to connect directly with consumers and reward them for in-store and online purchasing, while collecting valuable consumer data. One of the main drivers for our growth has been the modules we added in 2019 that help consumer brands manage and use the purchasing and demographic data collected during marketing programs," said Rob Craig, CEO of Datable. "Like many of our customers, this Customer sells most of its family care products through grocery and convenience stores, which are expected to remain open during the COVID-19 crisis."
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