Software-as-a-Service company 3tl Technologies (TSX-V: TTM)(OTCQB: TTMZF) said Thursday morning that 2018 has started strong, including inking a new multi-year contract with an anonymous major in the U.S. for its integrated suite of marketing applications branded PLATFORM3. The latest deal adds to a growing pile of contracted revenues during the first four months of the year that outstrips all of 2017.
The “leading American multinational media and entertainment company” is a flagship customer of 3tl, signing the first long-term license deal in 3tl’s history a few years ago. It’s not uncommon for names of major companies to be withheld for confidentiality purposes.
Per the contract, the media and entertainment company is licensing PLATFORM3 for a three-year period, starting next month. 3tl will receive a licensing fee plus transaction and service fees based upon the number and results of promotions run by the client. PLATFORM3 is used to engage consumers on their mobile devices, and reward purchases. Using artificial intelligence and machine learning, the data is processed to better target consumers based upon their purchasing behavior and demographics.
The contract is expected to generate about $200,000 annually for 3tl as gauged by the current transaction activity of the client.
3tl disclosed that it has signed 18 agreements so far this year. When combined with existing contracts coming into 2018, contract revenue totals nearly $1.5 million, with about $1.13 million of that expected to be realized during this year. In the full year 2017, contract revenue was $1.19 million, which was up 79 percent from 2016.
Gross margin in 2017 weighed in at 61%.
Toronto-Venture-listed shares of TTM printed an all-time low at 9 cents this week, but have rebounded some following the news, rising by 16.7% to 10.5 cents in morning action.
