Mr. Jonathan Hoyles reports
PERK LABS PROVIDES CORPORATE UPDATE
Perk Labs Inc. has provided a corporate update on its product traction, sales and growth plans, product road map, marketing and rebranding, cost reductions and financing initiatives, and investor relations activities.
Perk Labs' business has evolved dramatically in the past year, as it changed its business model from a transaction-based business-to-consumer marketplace to a business-to-business software-as-a-service subscription-based model. In the second and third quarters of the year the company recruited its first few subscription-based paying customers -- this was critical work as these customers helped Perk Labs validate and refine its product, improve its product positioning, and provide it with important social proof.
Perk Labs is continuing to sign up new paying customers and continues to see increases in the number of orders through its platform.
Sales and growth plans
With much of the heavy research and development work now completed to get the company's platform robust and scalable and building upon Perk Labs' early successes in signing new customers, the company is now moving to a sales-first organization; the company recently engaged a consultant with deep domain knowledge in the hospitality software space to work with its sales team, completed a review of the state of its sales program, and made several improvements on how to increase its execution in lead generation, market positioning and partnership opportunities.
Perk Labs has recruited a new director of sales who will be focused on signing up larger customers and enterprise accounts. The company plans to make a further announcement about this within the next two weeks. It has also recently added to its sales team by engaging Allenton Deazle as a sales executive, and aims to add three sales representatives across Canada. As part of Mr. Deazle's compensation, he will be compensated in shares of the company.
Perk Labs also has continuing discussions with a group in the United States which it plans to partner with to grow the company's presence in the U.S. The company expects to make an announcement in the next 30 days.
As part of its growth plan, Perk Labs is 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 it is pursuing a partnership with a well-known hospitality equipment provider. The company believes that forming partnerships with the right incentives in place, such as mutual referral programs, is the way that Perk Labs can significantly scale customer growth through a much broader distribution of its products.
Perk Labs will provide further updates on these partnerships as they develop and progress.
Product road map update
Providing an update on the company's product road map, Gary Zhang, chief technology officer 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 five 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 (non-fungible token) 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.
To better reflect its new direction, Perk Labs is currently working with a branding expert and plans to unveil its new brand in October with updates to its website, messaging and marketing materials.
Cost reductions and financing initiatives
The company has taken several steps to reduce its 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 Perk Labs' digital gift card offering for which it currently incurs a minimum monthly fee.
As previously announced, to increase its cash position, the company recently sold over $600,000 in Hero Innovation Group stock. Perk Labs is also exploring other ways to increase its cash position, including potential equity, debt financing and special bank loan programs that are available as part of government of Canada programs for start-ups.
Investor relations activities
Perk Labs also plans to ramp up its 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 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.
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