Poynt Corporation

Poynt Corporation

July 26, 2011 06:00 ET

Poynt's Local Search App Nears 10 Million Users Worldwide

- Global Expansion and Strong Repeat Usage Driving Revenue Growth

- Preloading Deal Pipeline with Carriers Provides exposure to 50 Million Potential Users

- IP Portfolio Monetization Underway with Major Global Partner

- 700,000+ New Users added in June 2011, of which 500,000+ on Android platform

CALGARY, ALBERTA--(Marketwire - July 26, 2011) - Poynt Corporation's (TSX VENTURE:PYN) ("Poynt Corp." or the "Company") award winning Poynt mobile search application ("Poynt" or the "App") surpassed more than 8.5 million unique users at the end of June 2011 across North America, Western Europe and Australia, after reaching 3.2 million at the end of June 2010. Of the over 700,000+ new users added in June 2011, 500,000+ were on the Android platform. Existing preloads contributed to over 300,000+ of these Android users in the month of June. So far in July, the average number of new daily users added has exceeded 25,000, putting the Company on track for another record month. Currently, Poynt has over 9.0 million unique users.

"This dramatic increase in users demonstrates Poynt is quickly becoming one of the most widely-adopted mobile applications worldwide," said Andrew Osis, Poynt Corp.'s President and CEO. "This success reflects our focus on expanding the feature set with user-relevant capabilities and content that brings them back on a daily basis. We expect our increased user acquisition and retention will generate broadening revenue streams over time."

Poynt User Stats for the 12-Month Periods Ended June 2010 and 2011

Total Unique Users at End of Period Avg. Query / Active User Total Queries
(Month of June)
Total Interactions
June 2011 (millions) 8.5 Million 30 74 Million 1,58 Billion
June 2010 (millions) 3.2 Million 21 24 Million 413 Million
Year/Year Increase 165.6% 42.8% 208.3% 283%

"As these statistics illustrate, our position has become increasingly stronger, and we have incredible opportunities for growth ahead of us," continued Osis. "These improving user numbers are key to Poynt's expanding number of advertisers and strengthen the App's mobile commerce offerings like 'daily deals' and mobile couponing. As Poynt becomes available across more geographies and devices, we expect to see a significant acceleration in user numbers and associated revenues."

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 App. 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's increasing popularity is being driven by its convenient and timesaving ability to connect consumers to their surrounding area. The GPS-enabled mobile application's easy-to-use interface can instantly locate businesses, retailers, restaurants and movie theaters, or quickly obtain relevant local information, such as cheap gas prices, today's weather and details about local events.

Poynt extends beyond local area discovery to provide a highly engaging user experience, from click-to-call business telephone numbers, easy dining reservations, and point-to-point directions to buying movie tickets after viewing trailers and giving reviews on a mobile device.

Preloading and New Product Launch Expanding Global Reach

The preloading of the Poynt App on mobile devices facilitates user trials and continued usage, and has proven highly effective in narrowing the gap between general product awareness and actual user adoption. The Company signed preload agreements with Boost Mobile and Virgin Mobile USA in April, which represented the fourth and fifth preload agreements for Poynt with wireless operators worldwide. "We are working on signing new preload agreements with additional carriers in the U.S., Western Europe, and Asia, which together could add up to more than 50 million potential new users of Poynt," said Osis.

The Company's new timesPoynt app is in final beta testing and when the Company officially launches timesPoynt in India during Q3 2011, it will represent the single largest geographical app launch the Company has undertaken. India has more than 827 million wireless phone subscribers and timesPoynt is designed take advantage of India's rapidly growing feature phone and smartphone markets across multiple device platforms.

Patent Portfolio Protection and Monetization

Poynt Corp. recently underwent an extensive process to find a suitable partner to help it protect and monetize the increasing value of its patent portfolio. At the beginning of June, the company announced a partnership agreement with Gladios IP, a subsidiary of Wi-LAN Inc. for this purpose. Over the last several years, Wi-LAN has licensed intellectual property worth hundreds of millions of dollars from more than 250 companies around the world. "Wi-LAN's proven track record and strong financial position makes them the partner of choice for the Company," notes Osis. "Wi-LAN sees incredible opportunity to generate a significant return on the Company's investment in research and development and together we are aggressively pursuing strategies to license our patent portfolio."

Poynt Corp.'s patent portfolio includes two key U.S. patents, No. 7,941,430 and No. 7,870,229. As the company's fourth granted patent, Patent No. 7,941,430 provides protection for the delivery of multimode location based e-Directory services, enabling method, system and apparatus. This patent marks an important protective feature and barrier to entry for competitors of Poynt Corp.'s location-based search (LBS) model, allowing for the delivery of location-based, contextual and relevant data, sorted by proximity to users. The patent allows a method of returning proximity sorted directory results to a mobile device user, based on automatic location detection on a mobile communication device and a search query. At least one E-directory query result and one web query result are compared, results are sorted based on proximity to the location detected, duplicates are deleted, and the results are delivered to the users. In some instances, additional information related to the listing, like promotions or websites, are added to the results.

Patent No. 7,870,229 provides the Company with protection covering the delivery of mobile coupons and offers. This patent enhances Poynt's position in the mobile advertising and offer marketplace and further positions the company as an industry leader in LBS. Poynt's technology couples user-stated intention with relevant, local information − the key drivers in providing transactional capabilities within any pre-defined geographic area.

About Poynt Corporation

Poynt Corp. (about.poynt.com) is a global leader in the mobile local advertising space. Its Location Based Search (LBS) application, 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 iPhone and iPod Touch, Android, Nokia QT and Windows Phone 7 devices, BlackBerry® smartphones and BlackBerry PlayBook™ Tablets in Canada, the United States, Europe 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 and related disclosure contains forward-looking statements relating to, among others, the Company's expectations regarding user acquisition and retention on revenue streams; opportunities for growth; effect of user numbers on numbers of advertisers and mobile commerce offerings; effect on user numbers and associated revenues as Poynt becomes available across more geographies and devices; effect of preloading the App on mobile devices; expectations regarding the signing of new preload agreements and its effect on the number of potential new users; expected number of potential new users as a result of signing new preload agreement; timing of launch of timesPoynt; anticipated effect of timesPoynt on usage and revenues; expected benefits of agreement with WiLAN in respect of the Company's issued patents; the Company's and WiLAN's expected plans in respect of the Company's issued patents; and features and benefits of the Company's issued patents. . 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 ability of the Company to successfully uphold and defend the patent and market interest in the service offerings, 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 Company's Poynt application; continued growth in numbers of users; conditions in general economic and financial markets; the ability to complete previously announced transactions; ability to obtain all necessary regulatory approvals; ability to enter into additional preload agreements; 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: risks that the Company or WiLAN will not successfully be able to uphold and defend the Company's issued patents or continue to market interest in the Company's products; risks that the Company will not realize anticipated revenues; risk that the Company will not be able to enter in additional preload agreements; the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in the Company's 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 and fee structures; the success of the Company's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; the Company's 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 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 the Company's SEDAR profile at 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.

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

  • Company Contact:
    Poynt Corporation
    Andrew Osis
    President & CEO

    Public Relations Contact:
    FortyThree PR, Inc.
    Evie Carter