Venzee Technologies Announces Third Quarter Fiscal 2021 Results
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™ 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™ 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™ 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™ 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™ 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™ 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™ through exposure to large global brands.
- In September 2021, the Company announced multiple Mesh Connector™ 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™ 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™, which demonstrated Venzee's ability to offer rapid Mesh Connector™ 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™ 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™ 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™ 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
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the terms of the Offering, the completion of the Offering and the expected use of the net proceeds received by the Company. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; and regulatory risks. Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors and Uncertainties" in the Company's management's discussion and analysis for the year ended December 31, 2018, and the quarter ended August 29, 2019, which are available under the Company's SEDAR profile at www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
The Company does not undertake to update any forward-looking information, except as required by applicable securities laws.
Neither TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Venzee Technologies Inc.
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