Poynt Corporation

Poynt Corporation

December 07, 2011 06:00 ET

On-Device Offerings and Advertising Monetization Drive Poynt Corp. Into 2012

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2011) - Poynt Corporation (TSX VENTURE:PYN) ("Poynt Corp." or the "Company"), a global leader in mobile local search and advertising, today announced a 50% increase in user activations for its mobile local search and advertising platform, Poynt (or the "Platform"), on Black Friday (November 25th 2011), an increase that is believed to be directly attributed to Android on-device offerings in the United States. This unprecedented increase in user uptake provides support to the Company's belief that on-device offerings directly influence user discoverability of the Poynt platform. Poynt usage on Black Friday also increased with more existing Poynt users returning to utilize Poynt to find daily deals in their local areas.

The Company continued to see higher than average on-device offering activation rates in the days following Black Friday shopping as potential users selected Poynt as their intuitive location based service platform to assist them in holiday shopping and beyond. The Company believes that this increase in user activation highlights the value of on-device offerings to increase user numbers in the Platform.

On December 1, 2011 the Company reported its latest on-device offering on select new and existing select Samsung Android devices, including the popular GALAXY devices. The on-device offering features apps, such as Poynt, that are specially designed and carefully selected for Samsung smart devices. Poynt's engaging location-based search features and deep device integration create an immersive user experience that showcases the powerful capabilities of Samsung's Android devices.

The Company has continued to grow its advertising and sales teams with the addition of five direct sales and advertising operations personnel in the last six months. The increase in sales efforts has contributed to recent third quarter 2011 financial results, which reported 188% growth in revenues year-over-year, and will continue to drive new revenue opportunities for Poynt in direct advertising. Advertising fill rates continue to increase month-over-month with proportionately more revenue being generated through premium advertising.

Through increased direct sales, Poynt expects to continue to drive higher cost per thousand impressions, or CPM, rates, based on its demonstrated ability to deliver superior user engagement results through effective targeting. In its last fiscal quarter, numerous premium campaigns were placed from both national and small-to-medium business brands across multiple sectors including automotive, quick serve restaurant, retail, hospitality, and entertainment. User engagement results continued to deliver more than 10 times the industry standard. The Company plans to accelerate sales efforts in 2012 by leveraging the Platform's growing user base to capitalize on increasing industry demand for highly targeted and relevant advertising opportunities.

"The expansion of our sales and advertising team, along with further geographic expansion, new user-centric feature enhancement, and additional on-device opportunities have contributed to the Company's most successful quarter to date," said Andrew Osis, CEO, Poynt Corp. "I am confident that our business plan for the remainder of 2011 and into 2012 will build on this growth in meaningful ways."

"The Company feels that its current share valuation undervalues the Poynt Platform," continued Mr.Osis. "With almost twelve million users, a broad global footprint, hyper-relevant advertising abilities and portfolio of patents, the Company is strongly positioned to compete with all the major players such as Yelp and foursquare in the location-based search and advertising space."

About the Poynt Platform

Poynt is a convenient and timesaving GPS-enabled mobile local search and advertising platform that connects consumers to local offers, businesses, events, restaurants, movie theatres, gas prices and weather information at the moment they are looking to buy or acquire products or services. Poynt provides consumers with the ability to move beyond discovery of their local area to view movie trailers and reviews, buy movie tickets, click-to-call businesses, get directions, browse listing websites, read reviews and book dining reservations or find and interact with local coupons and offers.

Poynt provides contextual and relevant advertising to users performing local queries and its revenue model is based on user queries, page views, advertising and transactions within the platform. Each user query generates several page views, which are monetized through display advertising and sponsored listings paid for by advertisers. These advertising placements generate revenues on a cost per thousand impressions (CPM) basis or on a cost per click (CPC) basis. Transactions, such as ticket sales and restaurant reservations, also contribute to revenues on a fee for service basis.

Poynt is available as a free download for users in India, Canada, the United States, the United Kingdom, Germany, France, Italy, Spain and Australia on Android, iPhone, Windows Phone and Nokia devices, BlackBerry smartphones and BlackBerry Playbook tablets from the respective App Stores. Poynt is also available via Over the Air download at m.poynt.com.

About Poynt Corporation

Poynt Corp. (about.poynt.com) is a global leader in the mobile local advertising space. Its Location Based Search (LBS) and advertising platform, Poynt (www.poynt.com), enhances a user's ability to connect with the people, businesses and events most important to them. Poynt is available on Android, iPhone, Windows Phone and Nokia devices, along with BlackBerry smartphones and BlackBerry PlayBook Tablets in Canada, the United States, Europe, India and Australia. Poynt Corp. entered the mobile publishing space with the recent acquisition of an advertising publishing platform in January 2011. Key contracts on both the supply and demand sides are in place to provide inventory into the platform and publishers to display the inventory. Whether through the Poynt Local Search App or the Ad Publishing Platform, Poynt Corp. simplifies connecting consumers with businesses, retailers and events. Headquartered in Calgary, AB, Canada, Poynt Corp. trades on the TSX Venture Exchange under the symbol PYN.

Important Cautions Regarding Forward-looking Statements

This news release contains forward-looking statements relating to: anticipated user uptake, anticipated revenues associated with the preload distribution agreement, anticipated revenues associated with Poynt Corp.'s portfolio of patents and other statements that are not historical facts. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicated in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.

These forward-looking statements are based on certain key assumptions regarding, among other things: the risk that Poynt will not be virtually preloaded or made available as a preload on the anticipated number of devices; the expected increase in CPM rates; future technological developments; the cost of expanding product lines; the impact of increasing competition; the continuity of existing business relationships; the continued successful development, implementation and execution of the Poynt platform; continued growth in number of active users of the Poynt platform; conditions in general economic and financial markets; the ability to complete previously announced transactions; ability to obtain all necessary regulatory approvals; and our ability to obtain financing on acceptable terms. Material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to: the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products; the success of the Company's brand development efforts; risks associated with strategic alliances; failure of counterparties to perform on contracts; failure to successfully negotiate contracts; failure to successfully negotiate additional preload agreements; risk that the Platform may not be included in Q4 media buy budgets; reliance on distribution channels; product concentration; need to develop new and enhanced products; failure to obtain necessary regulatory approvals; potential product defects; our ability to hire and retain qualified employees and key management personnel; risks associated with changes in domestic and international market conditions and the entry into and development of new markets for the Company's products; and the risks described under "risk factors" in our Annual Information Form for the year ended December 31, 2010 which is available on our SEDAR profile (www.sedar.com).

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on expectations of, or statements made by, third parties in respect of the forward-looking statements identified above.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. Apple App Store and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. Windows is a registered trademark of Microsoft Corporation in the United States and other countries. Android is a registered trademark of Google Inc. Nokia is a registered trademark of Nokia Corporation.

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.

Contact Information

  • Poynt Corporation
    Andrew Osis
    President & CEO

    FortyThree PR, Inc.
    Evie Carter
    North American Public Relations Contact

    Liolios Group, Inc.
    Scott Liolios or Matt Glover
    Investor Relations Contact