Slyce Inc.
TSX VENTURE : SLC
FRANKFURT : 06O1

Slyce Inc.

June 29, 2015 07:30 ET

Slyce Reports Second Quarter 2015 Results

Slyce Experiences 265%+ Growth in the Quarter on $391,147 in Revenue, and Increases its Commercial User Base from 8 Million to over 12.7 Million.

TORONTO, ONTARIO--(Marketwired - June 29, 2015) - Visual search platform Slyce Inc. (TSX VENTURE:SLC) ("Slyce" or the "Company") today announced its financial results for the second quarter ended April 30, 2015.

"This past quarter has seen Slyce continue to perform as the leading presence in the visual search industry," said Mark Elfenbein, President and CEO of Slyce. "We are taking advantage of a highly engaged market of major brands seeking to capitalize on - and monetize - image-based mobile search. Slyce has demonstrated another impressive quarter in terms of contracting additional globally recognized brands, such as the largest global toys and baby products retailer, Toys"R"Us. Increasing revenue in the quarter reflects progress in the process of onboarding initial clients and commencing image-recognition services.

In addition to significant revenue growth, Slyce completed an $8.7 million equity financing, strengthening the company's ability to execute on all business development opportunities and to develop and refine its visual search platform in order to continue delivering a market-leading product. The Company's previously announced contract with a Fortune 50 retail customer has just launched on both iTunes and the Google Play store. Management anticipates a steady pipeline of new customer contracts during the remainder of 2015, generating increasing monthly recurring licensing revenues."

Client Acquisition

Currently announced Slyce customers include Toys"R"Us, Neiman Marcus, JCPenney, Tilly's and a Fortune 50 company with an inventory of over 1.3 million products.

During Q2, Slyce also finalized a contract with Photon, the world's leading digital innovator for corporations. The agreement established Slyce as Photon's provider of mobile visual product search technology enabling Photon to rapidly and seamlessly deploy Slyce's real world, 'snap to purchase', image recognition platform into digital experiences created for Photon's client roster of Fortune 500 brands and retailers.

Platform Growth

During the quarter, with deployments of its technology entering the marketplace through major retailer app launches and escalating user growth of its direct-to-consumer apps SnipSnap & Pounce, Slyce generated a significant increase in user numbers with the company's platform now servicing over 12.7 Million, up 58% quarter on the quarter.

Revenue Generation

A combination of monthly recurring software licensing fees and fees associated with purchase transactions contributed to Slyce's revenue growth to $391,147 during the second quarter.

Slyce's business model is based on multiple revenue streams arising from its visual search and corresponding data services, including software licensing fees, integration fees, purchase transaction fees, promotion program fees, and data sales.

Q2 2015 Business Highlights

During the three month period ended April 30, 2015 and up to date, the Company achieved the following business highlights:

  • On February 13, 2015, Slyce acquired SnipSnap App Limited Liability Company for an aggregate purchase price of up to US$6,500,000 payable in a combination of cash, common shares and conditional shares.

  • On April 2, 2015, Slyce announced that SnipSnap expanded its relationship with Bazaarvoice - the network connecting brands and retailers to the authentic voices of consumers wherever they shop ‐ to offer its mobile coupon creation platform across the Bazaarvoice Media Network. The expanded collaboration will help retailers open a powerful shopper marketing channel through advertising opportunities that enable brands to engage with millions of in‐market, active shoppers via targeted, location‐based coupon campaigns.

  • On April 17, 2015, Slyce announced that SnipSnap expanded its relationship through an exclusive partnership with leading proximity-marketing company, Signal360. As part of this agreement, the Signal360 SDK will be the exclusive proximity marketing SDK integrated in the SnipSnap mobile application, which has over 4 million active users. As part of the agreement, Signal360 will exclusively utilize SnipSnap's proprietary Coupon Author platform to run all of its future, coupon-based client campaigns.

  • On May 5, 2015, Slyce finalized a contract with Toys"R"Us, Inc., the world's leading dedicated toy and baby products retailer, to power visual search for mobile commerce. Slyce will derive revenues from the contract through monthly recurring software licensing and service fees, in line with its current pricing model, over the term of the contract.

  • May 14, 2015, Slyce Inc. closed its over-subscribed $8.7 million equity financing, inclusive of the over-allotment option.

  • May 20, 2015, Slyce Inc. contracted with Photon - the leading digital innovation partner for Corporations - as its mobile visual search technology provider.

The financial statements for the quarter ended April 30, 2015 and Management Discussion & Analysis are available at www.SEDAR.com.

The company will be holding an investor conference call on Tuesday, June 30th at 4:30 pm ET. The live conference call will be available by calling 1.888.289.4573. The participant pass code is 9683834.

About Slyce Inc.

Slyce Inc. (TSX VENTURE:SLC)(FRANKFURT:06O1) delivers sophisticated 3D visual search technology that enables customer engagement applications for companies and consumers starting with simple snaps of products or photographs on mobile devices.

Based in Toronto, ON, the company delivers its technology as a white-label visual search platform allowing retailers to expand customer engagement and also through its family of consumer mobile apps. Slyce's technology is used by premier, large retail brands like Niemen Marcus and Tilly's.

For image download and additional company information please click for the Slyce Media Kit.

READER ADVISORY

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

Statements in this press release contain forward‐looking information including, without limitation, Slyce's business plan, strategy and related milestones, Slyce's suggestions of future outcomes, the future use and development of its technology, future customers and business partners. The words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Slyce.

Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Slyce.

Slyce does not undertake any obligation to update or revise any forward‐looking statements except as expressly required by applicable securities laws.

None of the information contained on, or connected to, Slyce's website is incorporated by reference herein.

Contact Information

  • For further information and interviews, please contact:
    Slyce Inc.
    Mark Elfenbein
    T. (587) 897-0993
    Mark@slyce.it

    Slyce Inc.
    Roy Roman
    T. (647) 464-6200
    Roy@slyce.it