Hapbee Provides Update on Product Subscription Growth

Rhea-AI Summary

Hapbee Technologies (HAPBF) reported significant growth in its Q1 2022 performance. The company shipped 1,253 units, a 60% increase from the prior year, and registered 2,941 subscribers, up 246%. Retention rates improved dramatically, with 65% of subscribers maintaining their subscriptions after six months. Users engaged in 220,000 hours of Blend playtime, a 350% rise, with notable use of sleep-related blends. Hapbee is focusing on scaling B2C and B2B sales strategies with new sleep product launches planned for later in 2022.

Positive

• 60% increase in unit shipments (1,253 units) in Q1 2022 vs. Q1 2021.
• 246% increase in subscribers, reaching 2,941 in Q1 2022.
• Retention rate improved from 22% to 65% after six months.
• 350% increase in Blend playtime to 220,000 hours.
• User engagement doubled with an increase in blends played per user.

Negative

• None.

MONTRÉAL, May 12, 2022 /PRNewswire/ - Hapbee Technologies, Inc. (TSXV: HAPB) (OTCQB: HAPBF) (FSE: HA1) ("Hapbee" or the "Company"), a leading provider of wellness wearables and biostreaming technology, is pleased to provide the following update on its Hapbee Neckband subscription growth.

Key Highlights 

• Hapbee shipped 1,253 units during Q1 2022, an increase of 60% over Q1 2021
• Hapbee registered 2,941 subscribers at end of Q1 2022, an increase of 246% over Q1 2021
• Paid subscriber retention after six months increased from 22% in September 2021 to 65% in March 2022, driven by significant improvements to customers' in-app experience, expansion of blends, and investment in an automated back-end billing system
• Over 220,000 hours of Blend playtime in Q1 2022 was consumed by Hapbee subscribers, an increase of 350% over Q1 2021, demonstrating improved engagement in the digital wellness platform. The number of blends played per user per month increased by 100% from 15 in Q1 2021 to 31 in Q1 2022
• 6.1 different blends during the month of March were consumed by Hapbee subscribers, as compared to 3.5 in August 2021 prior to the launch of Lifestyle Blends. This indicates stronger engagement and utility on Hapbee's platform

The Company is also pleased to report that roughly 60% of Hapbee users played the Deep Sleep Blend in March 2022, highlighting one of Hapbee's top use cases: Sleep. Refer to Hapbee's top five blends ranked by percentage of users in March 2022 below:

• Deep Sleep - 59%
• Bedtime - 46%
• Wake Up - 38%
• Master Your Attention - 32%
• Morning Coffee - 32%

As part of its comprehensive growth strategy, Hapbee is focused on scaling cost-effective product sales and customer acquisition through ongoing testing and optimization of its business-to-consumer (B2C) strategy. Additionally, Hapbee is pursuing the development of business-to-business (B2B) sales and marketing initiatives, enabling the Company to further expand the delivery of its products, increase its subscribers and grow its overall brand profile.

"The first quarter of 2021 saw Hapbee grow its subscriber base substantially year-over-year, while increasing customer retention and engagement," said Yona Shtern, CEO of Hapbee. "The improvements our team made to the in-app experience and payment system, and the new blends we introduced, significantly increased customer usage and retention, as highlighted by the 220,000 hours of Blend playtime in Q1. During the second and third quarters of 2022, we intend to continue advancing both B2C and B2B distribution channels to increase Hapbee sales while preparing for the successful launches of our two new sleep-related products currently in development."

About Hapbee

Hapbee is a leading wearable wellness technology platform with a mission to help people improve their wellbeing and enhance how they feel. The Company is the creator of the Hapbee Neckband, the Sleepbee Sleep Mask, and the Sleepbee Bed Topper, which are all powered by the Hapbee App - a patented biostreaming platform that delivers ultra low-power electro-magnetic blends designed to help users optimize their sleep, productivity, recovery, and downtime.

Hapbee products are available for purchase at Hapbee.com and through a growing network of authorized Hapbee dealers.

For more information about Hapbee, please visit Hapbee.com.

Forward-Looking Information

Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws (also known as forward-looking statements). Forward-looking information involves known and unknown risks, uncertainties and other factors, and may cause actual results, performance or achievements or industry results, or results on certain individuals to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions.

Forward-looking information is based on a number of key expectations and assumptions made by Hapbee, including, without limitation: the growth of the worldwide sleep and wellness market; the suitability of the Hapbee Neckband and blends for users; no change to laws or regulations that negatively affect Hapbee's business; the ability of Hapbee to source supplies required to manufacture its products; there will be a demand for Hapbee's services and products in the future; all necessary approvals will be received and all conditions will be satisfied or waived; and Hapbee will be able to operate its business as planned. Hapbee is not a medical device and is not to be used for medical purposes. Although the forward-looking information contained in this news release is based upon what Hapbee believes to be reasonable assumptions, it cannot assure investors that actual results will be consistent with such information.

Forward-looking information is provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information involves significant risks and uncertainties and should not be read as a guarantee of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking information. Management believes that the expectations reflected in the forward-looking information contained herein are based upon reasonable assumptions and information currently available; however, management can give no assurance that actual results will be consistent with such forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Hapbee Technologies Inc.

FAQ

What are Hapbee Technologies' Q1 2022 performance highlights?

Hapbee reported a 60% increase in unit shipments, 246% growth in subscribers, and improved retention rates in Q1 2022.

How many subscribers did Hapbee have at the end of Q1 2022?

Hapbee had 2,941 subscribers at the end of Q1 2022.

What percentage of Hapbee users engaged with the Deep Sleep Blend in March 2022?

59% of Hapbee users engaged with the Deep Sleep Blend in March 2022.

What is Hapbee Technologies' stock symbol?

Hapbee Technologies is traded under the stock symbol HAPBF.

What growth strategies is Hapbee pursuing?

Hapbee is focusing on B2C and B2B sales strategies and is preparing to launch new sleep-related products.