Venzee Technologies Announces Third Quarter Fiscal 2021 Results
PR Newswire
CHICAGO, Nov. 22, 2021
CHICAGO, Nov. 22, 2021 /PRNewswire/ - Venzee Technologies Inc. (TSX-V:VENZ, OTCQB:VENZF) ("Venzee" or the "Company"), the artificial intelligence (AI) platform for consumer retail product data, announced today financial results for the third quarter ended September 30, 2021.
The unaudited condensed interim consolidated financial statements and related Management's Discussion and Analysis ("MD&A") can be viewed at https://investors.venzee.com/SEDAR-filings.
The Company will conduct a conference call discussing first quarter results on Tuesday, November 23, 2021 at 8:30 A.M. EST (5:30AM PST). Details for this call can be found below.
"Manual processes continue to challenge the Consumer Retail Supply Chain globally. As a result, our AI platform continued to see traction in the quarter with large brands validating our unique technical approach and are moving forward with sales contract development," said Venzee CEO John Abrams.
Continued Mr. Abrams, "Our productive sales effort in the third quarter are generating results in Q4 that will help us achieve our revenue goal for the year of $195,000 MRR."
Sales pipeline growth remains strong for Venzee, with more than 10,000 active sales opportunities -- representing a 43% increase from the end of Q2 2021. This quarter, following an upgrade to its website that allows direct purchase of the Company's Mesh Connector(TM) product, the Company significantly increased direct sales leads generation and saw consistent month on month revenue growth.
According to Joel Carstedt, Senior Director of Sales at Venzee, "By expanding our sales team in Q3, we have been able to convert sales pipeline opportunities more quickly and move large clients into contract negotiation for meaningful Mesh Connector(TM) purchases."
The number of retail channels available to clients remained at 412 from Q2 to Q3, as clients were able to find all their key retail channels available in Venzee's current inventory. Retail channels enable simple scalability for consumer brands and manufacturers to connect to leading global retailers like Walmart, Home Depot, and Amazon.
Churn, or the number of clients that have discontinued use of the platform, remains at zero.
Previously, the Company disclosed it has entered contract negotiation with at least two companies for purchase of a significant number of Venzee's Mesh Connector(TM) product which, if the contracts are secured, results in immediate revenue recognition and suggests a combined sales opportunity well in excess of both the Company's 2021 and 2022 revenue goals. There is no certainty that these partnerships will close.
Third Quarter 2021 Financial Highlights
For the three and nine months ending September 30, 2021:
-- Revenues from SaaS-based Mesh Connector(TM) sales were $16,230, a 19%
increase over Q2 2021.
-- Net losses of $792,221 and $2,382,210 respectively (Q3 2020 - net
losses of $459,504 and $1,304,564).
-- Losses per share of $0.00 and $0.01 respectively (Q3 2020 - losses per
share of $0.00 and $0.01).
Net losses increased during the three and nine months ended September 30, 2021, as compared to the prior year, primarily as a result of a general increase in operations and staffing with additional expenditures in sales and marketing as the Company focused on expanding its partnership and Mesh Connector(TM) sales base. As well, the general and administrative costs and stock-based compensation increased, and more emphasis was placed on investor relations efforts with increased costs.
Third Quarter 2021 Business Highlights
-- In August 2021, the Company announced multiple Mesh Connector(TM) sales
to a major US-based specialty retailer serving the furniture and homeware
market. The partnership helped Venzee further scale its brand and retail
client base, immediately expanding the Company's services to more than
200 of the retailer's key brand suppliers. The new partnership was
established after one of Venzee's brand clients promoted the Company's
services to this retailer.
-- In late August 2021, Venzee announced a new partnership with a Product
Information Management (PIM) and Digital Asset Management (DAM) provider.
The new partner has a customer base of more than 700 global brands
representing leading Fortune 500 Consumer Product Brands in North America
and the European Union. Venzee has leveraged this partnership to further
scale its client base, grow revenue, and sell a higher volume of Mesh
Connectors(TM) through exposure to large global brands.
-- In September 2021, the Company announced multiple Mesh Connector(TM)
sales to a major home improvement brand. Venzee activated retail
connections for the brand to two of the largest North American home
improvement retailers. The Company also announced an 87% increase in
product data submissions from consumer brands since July 2021. This
increase resulted from growing Mesh Connector(TM) sales and the velocity
with which the Company's AI platform sends product data from brands to
retailers.
Subsequent to Third Quarter 2021
-- Entered a new upfront revenue-based contract with an enterprise solution
provider. Initial onboarding included the activation of a set of
multinational brands to several retail Mesh Connectors(TM), which
demonstrated Venzee's ability to offer rapid Mesh Connector(TM)
deployment across a broad, global base of brands.
-- Entered a new revenue-generating contract with a California-based
children's bag and accessories brand. The contract was initiated with a
single Mesh Connector purchase to a major North American retailer.
Following the initial purchase, the brand engaged Venzee and contracted
for the activation of additional Mesh Connectors(TM) in the home goods
retail sector over the next 12 months.
-- Entered a new contract with a leading manufacturer of kitchen and bath
furniture products sold through major home improvement retailers across
North America.
-- Entered advanced contract negotiations with two additional content
service providers, which, if secured - with immediate initial onboarding
commitments - suggest a combined sales opportunity well in excess of the
company's ambitious 2022 revenue goals. There is no certainty that these
partnerships will close.
With more than 400 major retail Mesh Connectors(TM) instantly available to brands, Venzee has become an important tool in the simplification and automation of syndication processes for brands globally.
Details for Quarterly Conference Call on Tuesday, November 23, 2021
John Sexton Abrams, Chief Executive Officer, and Darren Battersby, Chief Financial Officer of Venzee Technologies, will discuss the results in a conference call and live audio webcast on Tuesday, November 23, 2021 at 8:30 A.M. EST (5:30 A.M. PST) followed by a presentation and Q&A. The presentation will be recorded and available for viewing after the live conference call.
Date: November 23, 2021
Time: 8:30AM EST (5:30AM PST)
Register to view the live audio webcast at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=0C8876CC-F6EC-49CA-A0B6-E3DACEBAA200
Conference ID: 4791827
Dial-in Number: 833 513-0552
Audience Webcast URL: https://onlinexperiences.com/Launch/QReg/ShowUUID=0C8876CC-F6EC-49CA-A0B6-E3DACEBAA200
Contact Venzee's investor relations department directly or through its investor relations team at Kin Communications in Canada.
About Venzee Technologies, Inc.
Venzee (TSXV: VENZ) (OTCQB: VENZF) is the leading artificial intelligence platform for product data used by global brands to speed time to market and create competitive supply chain advantages. Venzee's intelligent platform automates inefficient last-mile retail processes with a frictionless, machine-driven solution for sending and receiving product data.
Venzee believes intelligent supply chain functionality is inevitable and will significantly benefit growers, makers, brands, sellers, regulators, and consumers. Venzee is building the foundation for a future where seamless, accurate, automated data flow simplifies processes, removes friction, and creates value for all those that rely on the myriad of data and information surrounding any product, anywhere.
Venzee unlocks shareholder value by carrying out its mission to create intelligent technology that removes friction from the global supply chain. Its Mesh Connector(TM) product disrupts and displaces inefficient manual processes in favor of integrated, machine-driven solutions.
To learn more about the Venzee platform, visit venzee.com
Twitter: @usevenzee
LinkedIn: linkedin.com/company/venzee-inc/
Podcast: venzee.com/resources/podcast
On Behalf of the Board,
Peter Montross
Chief Operating Officer
Forward-Looking Information
