NEW YORK, Could 15, 2020 (GLOBE NEWSWIRE) — Weyland Tech, Inc. (OTCQX: WEYL), a number one international supplier of mCommerce platform-as-a-service (PaaS), reported outcomes for the primary quarter ended March 31, 2020. All quarterly comparisons are to the identical year-ago interval until in any other case famous.
Q1 Monetary Highlights
- Income elevated 76% to a document $15.Zero million. The rise was resulting from a $3.Three million or 38% enhance in subscription income generated by the corporate’s CreateApp B2B mCommerce platform and $3.2 million contributed by its new Push Interactive subsidiary acquired on January 8, 2020.
- Consolidated gross revenue elevated 75% to $2.6 million or 17.7% of consolidated income.
- Money and money equivalents and restricted money totaled $4.Zero million at March 31, 2020.
Q1 2020 Operational Highlights
- Acquired the belongings and operations of Push Holdings to launch cell apps in North America leveraging Weyland’s mCommerce and cell fintech options, in addition to provide Push’s eCommerce services and products globally.
- Partnered with Indosat Ooredoo, Indonesia’s second largest telecom supplier, to launch a nationwide advertising marketing campaign for CreateApp in Indonesia.
- Launched CreateApp in Taiwan to succeed in the greater than 1.Three million small-and-medium sized companies (SMBs) throughout the nation and assist them simply set up a cell presence.
- Partnered with Medias-Com’S SA, a Swiss firm specializing in media and communication so as to launch its CreateApp cell commerce platform-as-a-service in Italy.
- Elevated adoption of CreateApp cell app resolution for small and medium-sized companies, which included present clients subscribing to extra options and modules. The CreateApp person base, comprised of companies throughout Southeast Asia, grew to greater than 390,000 through the quarter.
“Our document topline efficiency within the first quarter was primarily as a result of continued adoption of our CreateApp Platform-as-a-Service by SMBs, plus an almost full quarter of income generated from Push Interactive that we acquired on January eighth,” stated Weyland Tech CEO, Brent Suen. “CreateApp and Push each present ‘e-Commerce enablement,’ with these providers now turning into extra necessary than ever for companies and types in an more and more cell world.
“Key to our acquisition of Push is the way it offers manufacturers for which CreateApp can launch cell Apps globally. Push’s eCommerce platform can be synergistic to our m-Commerce applied sciences deployed in Indonesia, together with AtozGo, our hyper-local, ‘foot-powered’ meals supply service working in Jakarta.
“We lately reported that the variety of registered customers for AtozGo reached greater than 100,000. This main milestone was achieved inside solely eight months since AtozGo’s official launch. We nonetheless see AtozGo hitting 1 million registered customers by year-end regardless of the affect of COVID-19 on companies given the service’s current enlargement into the residential market. The residential launch was lengthy deliberate however was accelerated as a result of stay-at-home orders and shift to working from dwelling.
“As with CreateApp, our major focus with AtozGo has at all times been on person and transaction progress, and this technique has been extremely profitable. As anticipated, our distinctive strategy with AtozGo, powered by an modern cell app, has now attracted the eye of bigger supply service suppliers who historically use solely motorized supply. We at the moment are actively concerned in discussions with a possible purchaser or main accomplice for AtozGo.
“The valuations of app-based meals supply providers are extremely favorable. Whether or not it is an Uber Eats or GrubHub, and even comparable providers in Southeast Asia like GrabFood or Go-Meals, the common worth per person is pegged at round $330. For AtozGo, this might suggest a stand-alone valuation of round $33 million, and that’s simply as of in the present day. If we hit our purpose of 1 million customers by year-end, the valuation would are available in at 10 occasions that or almost $330 million.
“SMBs within the markets we serve have change into more and more conscious that promoting on-line is necessary and value a premium to make use of a service like CreateApp to promote extra. To raised serve our goal clients and optimize our worth factors, we realigned our CreateApp platform into 10 modules, decreasing it from 70. So, now inside every of those 10 modules are a number of features we beforehand supplied individually. We found that by providing a extra streamlined set of modules, with every having higher performance, it makes it simpler to promote subscriptions to the platform and cost an general increased worth. We see this additionally supporting higher gross margins on these subscription-based revenues.
“Nonetheless, over the close to time period, with the shutdowns persevering with in Southeast Asia resulting from COVID-19, we’ve begun to see the affect on small companies in a area that represents just about all of our present CreateApp clients. Like many subscriber-based companies are doing today, we’ve the pliability give our distributors, by means of whom we primarily promote CreateApp, the pliability to selectively lengthen CreateApp subscriptions from 30 to 90 days with out cost.
“As everyone knows, as soon as a buyer is misplaced, it’s far more troublesome to convey them again. So, we consider this isn’t solely good for purchasers but additionally for Weyland, as sustaining our buyer base is essential. Over the brief time period, we are going to incur some particular COVID-19 associated expenses associated to diminished service revenues. The total quantity we can’t decide till the tip of the quarter or 12 months. However over the long run, we consider supporting our clients and distributors on this approach will present a stronger basis for future progress.
“The affect of COVID-19 on our Push Interactive enterprise within the U.S. has been significantly lower than for CreateApp. Actually, we lately noticed two of Push’s bigger and better profile clients step up their enterprise exercise. These main clients additionally have a tendency be timelier with their funds, decreasing our accounts receivable.
“We’re persevering with to discover how we are able to leverage CreateApp to construct native cell apps for Push manufacturers and enterprise clients within the U.S., in addition to synergic methods we are able to drive progress throughout our international operations. We consider Push’s data-driven methods can assist us develop its enterprise and attain $13 million to $15 million in income in 2020, with margins bettering to roughly 20%.
“Our deliberate NASDAQ up-listing is progressing, however like many issues today, has been slowed by the distraction of the pandemic. At this level, we nonetheless have little indication of timing, however are additionally contemplating alternate options which have come to us unsolicited. We hope to offer extra particulars as these progress. Clearly, from a capital markets perspective, there may be a variety of unrealized or unrecognized worth in Weyland Tech.
“Wanting forward, we stay optimistic in regards to the continued demand for our services and products and sit up for Weyland hitting key milestones and turning into a extra commercially profitable, worthwhile enterprise. Whereas we count on Q2 to have its challenges as a result of persevering with international pandemic, we see the second half of the 12 months trending again up as Southeast Asia opens up, and as our new operations within the U.S. assist us transition to a extra worthwhile, data-driven group.”
Q1 2020 Monetary Abstract
Income elevated 76% to a document $15.Zero million within the first quarter of 2020, as in comparison with $8.5 million in Q1 2019. The rise was resulting from elevated service revenue and inclusion of $3.2 million from its new Push Interactive subsidiary acquired in January 2020.
Gross revenue elevated 75% to $2.6 million or 17.7% of income in Q1 2020 in comparison with $1.5 million or 17.7% of income in the identical 12 months in the past interval.
Whole working bills elevated 256% to $5.5 million in Q1 2020 from $1.5 million in the identical 12 months in the past interval. The rise was primarily resulting from inclusion of $1.Zero million in G&A bills from its new Push Interactive subsidiary, in addition to resulting from a rise in R&D, depreciation and amortization, and gross sales and advertising.
Internet loss was $2.Eight million or $(0.24) per primary and absolutely diluted share, in comparison with internet lack of $27,000 or $(0.00) per primary and absolutely diluted share in the identical year-ago interval.
At March 31, 2020, money and money equivalents totaled $3.Zero million, restricted money of $1 million, in comparison with money and money equivalents of $3.Zero million at December 31, 2019. The rise was primarily the results of more money because of the Push acquisition.
Weyland CEO Brent Suen will host a convention name later in the present day to debate the corporate’s first quarter 2020 outcomes, adopted by a query and reply interval. He might be joined by the corporate’s CFO Lionel Choong, in addition to Push Interactive CFO Rod Granero and Push Interactive Chief Expertise Officer Tom Furukawa.
Date: Friday, Could 15, 2020
Time: 11:00 a.m. Japanese time (8:00 a.m. Pacific time)
Toll-free dial-in quantity: 1-800-289-0438
Worldwide dial-in quantity: 1-323-794-2423
Convention ID: 1704393
Please name the convention phone quantity 5 minutes previous to the beginning time. An operator will register your title and group. You probably have any issue connecting with the convention name, please contact CMA at 1-949-432-7566.
A replay of the decision might be obtainable after 2:00 p.m. Japanese time on the identical day by means of Could 29, 2020, in addition to obtainable for replay through the Buyers part of the Weyland Tech web site at weyland-tech.com/ir/.
Toll-free replay quantity: 1-844-512-2921
Worldwide replay quantity: 1-412-317-6671
Replay ID: 1704393
About Weyland Tech
Weyland Tech is a developer and international supplier of cell enterprise software program purposes. The corporate operates its CreateApp™ platform-as-a-service (PaaS) throughout three continents and 10 nations, together with a number of the fastest-growing rising markets in Southeast Asia. The platform offers a cell presence for small-and-medium sized companies (SMBs) that’s supported domestically by distributor partnerships.
Provided in 14 languages with greater than 70 built-in modules, CreateApp permits SMBs to create and deploy native cell purposes for Apple iOS and Google Android with out technical data or background. The expertise empowers SMBs to extend gross sales, attain extra clients, handle logistics, and promote their services and products in a simple, reasonably priced and extremely environment friendly approach.
Earlier this 12 months, Weyland accomplished the acquisition of the Minneapolis-based eCommerce expertise firm, Push Interactive. Push offers an eCommerce advertising resolution for enterprises and main U.S. manufacturers. For extra info, go to weyland-tech.com.
About AtozPay™ and AtozGo™
By Weyland Tech’s minority-owned subsidiary, Weyland Indonesia Perkasa (WIP), the corporate operates AtozPay™ and AtozGo™. The AtozPay cell funds platform serves the burgeoning mCommerce and e-Cost markets in Indonesia, the world’s fourth most populous nation. AtozGo is a fast-growing supplier of short-distance meals supply and residential providers from native institutions operated in Jakarta, Indonesia. For extra info, go to atozpayindonesia.com.
About Push Interactive
The e-Commerce platform of Weyland’s Push Interactive subsidiary options complete buyer acquisition capabilities, extremely productive media and channel methods, well-tuned product promotion and messaging, and gross sales funnel improvement and optimization. The direct-to-consumer platform offers an end-to-end resolution for SMBs and main manufacturers, permitting these organizations to dramatically enhance on-line income whereas reducing the price of buyer acquisition and order achievement. Put up-sale, Push helps achievement, buyer relationship administration, and additional monetization by means of re-engagement and remarketing toolsets that improve buyer lifetime worth (LTV). For extra details about Push Interactive, go to www.pushint.com.
Concerning the Use of Non-GAAP Monetary Measures
Weyland administration believes the usage of adjusted EBITDA is useful to assessing the corporate’s monetary efficiency. The corporate defines adjusted EBITDA as revenue earlier than curiosity and financing expense, provision for revenue taxes, depreciation and amortization, stock-based compensation and acquisition expense.
Adjusted EBITDA isn’t a measurement of economic efficiency beneath usually accepted accounting rules in america or GAAP. Due to various obtainable valuation methodologies, subjective assumptions and the number of fairness devices that may affect an organization’s non-cash working bills, administration believes that offering a non-GAAP monetary measure that excludes non-cash and non-recurring bills permits for significant comparisons between the corporate’s core enterprise working outcomes and people of different corporations, in addition to offering an necessary software for monetary and operational choice making and for evaluating the corporate’s personal core enterprise working outcomes over completely different durations of time.
The corporate’s adjusted EBITDA measure might not present info that’s immediately akin to that supplied by different corporations in its business, as different corporations within the business might calculate non-GAAP monetary outcomes in a different way, significantly associated to non-recurring, or uncommon objects. The corporate’s adjusted EBITDA isn’t a measurement of economic efficiency beneath GAAP and shouldn’t be thought of as a substitute for working revenue or as a sign of working efficiency or another measure of efficiency derived in accordance with GAAP. The corporate doesn’t think about adjusted EBITDA to be an alternative choice to, or superior to, the data supplied by GAAP monetary outcomes.
The corporate has not supplied a reconciliation to nearest GAAP measure on this press launch because the precise quantity or vary has not but been decided, and it could require unreasonable efforts to report a reconciliation of this info to the closest GAAP measure.
Necessary Cautions Concerning Ahead Wanting Statements
This launch comprises sure “forward-looking statements” referring to the enterprise of the Firm. All statements, apart from statements of historic reality included herein are “forward-looking statements” together with statements concerning: the flexibility of the Firm to efficiently combine Push, the continued progress of the eCommerce section and the flexibility of the Firm to proceed its enlargement into that section; the flexibility of the Firm to draw clients and companions and generate revenues; the flexibility of the Firm to efficiently execute its marketing strategy; the enterprise technique, plans, and goals of the Firm; and another statements of non-historical info. These forward-looking statements are sometimes recognized by means of forward-looking terminology corresponding to “believes,” “expects” or comparable expressions and contain recognized and unknown dangers and uncertainties. Though the Firm believes that the expectations mirrored in these forward-looking statements are affordable, they do contain assumptions, dangers, and uncertainties, and these expectations might show to be incorrect. Buyers mustn’t place undue reliance on these forward-looking statements, which converse solely as of the date of this information launch. The Firm’s precise outcomes might differ materially from these anticipated in these forward-looking statements because of a wide range of elements, together with these mentioned within the Firm’s periodic reviews which can be filed with the Securities and Change Fee and obtainable on its web site (www.sec.gov). All forward-looking statements attributable to the Firm or individuals appearing on its behalf are expressly certified of their entirety by these elements. Aside from as required beneath the securities legal guidelines, the Firm doesn’t assume any obligation to replace these forward-looking statements.
Brent Suen, CEO
Weyland Tech Inc.
Media & Investor Contact
Ronald Each or Grant Stude
Tel (949) 432-7566
WEYLAND TECH, INC.
Consolidated Steadiness Sheets
|March 31||December 31|
|Intangible belongings, internet||8,423,615||611,598|
|Property and tools, internet||213,485||–|
|Whole non-current belongings||13,418,308||611,598|
|Quantity due from affiliate||3,750,700||2,825,700|
|Different quantity recoverable||49,550||549,550|
|Prepayment, deposit and different receivables||1,689,245||1,641,684|
|Monetary belongings held for resale||2,820,625||2,730,363|
|Money and money equivalents||2,996,667||2,972,649|
|Whole present belongings||13,591,923||10,719,946|
|Liabilities and Stockholders’ Fairness|
|Accruals and different payables||544,279||298,453|
|Deposits acquired for shares to be issued||1,407,506||–|
|Quantity resulting from director||77,500||77,500|
|Whole present liabilities||2,423,732||375,953|
|Financial institution Mortgage||1,990,000||500,000|
|Whole non-current liabilities||1,990,000||500,000|
|Frequent inventory, $0.0001 par worth, 250,000,000 shares approved, 12,353,630 and 111,304,253 shares issued and excellent as of March 31, 2020 and December 31, 2019 respectively||16,060||11,130|
|Further paid-in capital||58,725,046||58,058,118|
|Amassed deficit carried ahead||(50,426,750||)||(47,613,657||)|
|Whole stockholder’s fairness||22,596,499||10,455,591|
|Whole liabilities and stockholders’ fairness||$||27,010,231||$||11,331,544|
WEYLAND TECH, INC.
Consolidated Statements of Operations
|For the three months ended
|Value of Service||12,336,262||6,984,427|
|Normal and administrative||3,202,042||640,921|
|Analysis and improvement||1,757,351||867,715|
|Gross sales and advertising||53,015||–|
|Depreciation and amortization||449,624||25,483|
|Whole Working Bills||5,462,032||1,534,119|
|(Loss) from Operations||(2,813,092||)||(26,854||)|
|Internet (Loss) earlier than revenue tax||(2,813,092||)||(26,854||)|
|Earnings tax (Company tax)||–||–|
|Internet (loss) revenue per frequent share – primary and absolutely diluted||(0.2430||)||(0.0007||)|
|Weighted common variety of primary and absolutely diluted frequent share excellent||11,577,069||38,835,146|