Perk Labs Provides Corporate Update
Perk Labs Inc. (OTCQB: PKLBF) provides a comprehensive corporate update on September 14, 2022. The company has shifted its focus from a B2C marketplace to a B2B subscription-based model, successfully onboarding initial paying customers. A new sales-first strategy has been initiated, with new hires to enhance customer acquisition. Cost reductions have been implemented, including workforce reductions and a phased exit from the digital gift card business. To bolster cash reserves, the company sold $600,000 in stock and is exploring various financing options.
- Transitioning to a B2B subscription model has attracted initial paying customers, validating the new approach.
- Implemented a sales-first strategy with new senior hires to enhance customer acquisition and partnerships.
- Ongoing discussions to expand into the U.S. market, potentially increasing revenue sources.
- Recent workforce reductions indicate potential operational challenges and increased cash burn.
- Phasing out the digital gift card offering may lead to reduced revenue streams.
VANCOUVER, BC / ACCESSWIRE / September 14, 2022 / Perk Labs Inc. (CSE:PERK)(OTCQB:PKLBF)(FKT:PKLB) ("Perk" or the "Company"), the company helping businesses transition to the digital economy, is pleased to provide a corporate update on its product traction, sales and growth plans, product roadmap, marketing and rebranding, cost reductions and financing initiatives, and investor relations activities.
Product Traction
Our business has evolved dramatically in the past year, as we changed our business model from a transaction based B2C marketplace to a B2B software-as-a-service subscription based model. In the second and third quarters of the year we recruited our first few subscription-based paying customers - this was critical work as these customers helped us validate and refine our product, improve our product positioning, and provide us with important social proof.
We are continuing to sign up new paying customers and continue to see increases in the number of orders through our platform.
Sales and Growth Plans
With much of the heavy R&D work now completed to get our platform robust and scalable and building upon our early successes in signing new customers, we are now moving to a "sales-first organization": We recently engaged a consultant with deep domain knowledge in the hospitality software space to work with our sales team, completed a review of the state of our sales program and made several improvements on how to increase our execution in lead generation, market positioning and partnership opportunities.
We've recruited a new Director of Sales who will be focused on signing up larger customers and enterprise accounts. We plan to make a further announcement about this within the next two weeks. We've also recently added to our sales team by engaging Allenton Deazle as a sales executive, and aim to add three sales representatives across Canada. As part of Mr. Deazle's compensation, he will be compensated in shares of the Company.
We also have ongoing discussions with a group in the United States whom we plan to partner with to grow our presence in the U.S. We expect to make an announcement in the next 30 days.
As part of our growth plan, we are also developing partnerships with several distribution channel partners, including partnerships with a large reseller of digital services, a major point-of-sales provider, a nationwide payment processing and loyalty provider, and we are pursuing a partnership with a well-known hospitality equipment provider. We believe that forming partnerships with the right incentives in place such as mutual referral programs is the way that we can significantly scale customer growth through a much broader distribution of our products.
We will provide further updates on these partnerships as they develop and progress.
Product Roadmap Update
Providing an update on the Company's product roadmap, Gary Zhang, CTO of Perk said "Omnichannel order management is the foundation of our next-generation membership-based sales and marketing solution. Our product team is working on the top 5 sales order channels: QR-based on-site orders, pickup orders, neighbourhood delivery orders, reservation orders and subscription orders. Our team plans to complete work on reservations and subscriptions by the end of October 2022. In the last quarter of 2022, our product team will deliver more advanced functions such as an advanced reward system, white-label customization, notification-driven omnichannel marketing and branded token."
By adding subscription orders, the Company believes it will open up additional revenue opportunities by being able to support many other types of businesses that require recurring subscription-based payments such as club and gym memberships, fitness studios, services and product subscriptions.
With respect to blockchain and NFT technology, the Company believes that while much of the hype and excitement that captured the market's attention surrounding blockchain and NFT technologies in the earlier part of the year has cooled, there still exists very practical uses of blockchain in the loyalty space and that NFTs can be a tool to provide access to things like club memberships or executing a subscription to a service. The Company plans to further develop its loyalty token on the Solana blockchain to provide a white-label loyalty platform to brands that will also include NFTs as a mechanism for unlocking memberships, subscriptions, events, and special benefits. As validation of this business opportunity, Starbucks recently announced that it is launching its own NFT marketplace with exclusive Web3 benefits for its members:
Rebranding
To better reflect our new direction, we are currently working with a branding expert and plan to unveil our new brand in October with updates to our website, messaging and marketing materials.
Cost Reductions and Financing Initiatives
We've taken several steps to reduce our monthly cash burn and, unfortunately, over the past few months, had to let go of a few team members. Another planned cost reduction measure is to phase out our digital gift card offering for which we currently incur a minimum monthly fee.
As previously announced, to increase our cash position, we recently sold over
Investor Relations Activities
We also plan to ramp up our investor relations activities to help build Company awareness and increase exposure within the global investment community. As previously announced, the Company has engaged MarketOne, Stockhouse and Proactive Investors, and plans to ramp up its activities through those partners, including attending investor conferences and videos and articles on media platforms such as the Financial Post and Business News Network (BNN Bloomberg).
About Perk Labs Inc.
Perk Labs Inc. (CSE: PERK) (OTCQB: PKLBF) (FKT: PKLB) is the owner of Perk Hero, the mobile commerce platform on a mission to empower business owners with the digital tools to provide their customers with experiences that are more engaging, convenient and rewarding. Perk Hero is growing through a unique community-driven digital franchise business that is available to entrepreneurs at an attractive start-up price.
For more information contact:
Jonathan Hoyles
CEO
Perk Labs Inc.
(833) 338-0299
investors@perklabs.io
Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "may", "believe", "thinks", "expect", "exploring", "expand", "could", "anticipate", "intend", "estimate", "plan", "pursue", "potentially", "projected", "should", "will" and similar expressions, or are those, which, by their nature, refer to future events. These forward-looking statements, which involve risks and uncertainties, relate to, among other things, the discussion of the Company's business strategies and its expectations concerning future operations, including statements regarding the Company effectively generating high-margin revenue reliably, that we will be adding three sales representatives across Canada, that by adding subscription payments, it will open up additional revenue opportunities. Although the Company considers these forward-looking statements to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties, and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance and that actual results may differ materially from those in forward-looking statements. Undue reliance should not be placed on such forward-looking information, as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur.
SOURCE: Perk Labs Inc.
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