Lift & Co. Corp. announced results for the second quarter ended September 30, 2019. All amounts are in Canadian dollars unless otherwise specified. Additional details may be found in the Company’s financial statements and MD&A filed on SEDAR.
The Company is pleased to report strong financial results for the first half of fiscal 2020. Total revenue increased by 52% to $3.7 million for the six-month period, compared to the same period last year, and loss from operations decreased by 23% to $2.8 million. These improvements were driven by revenue growth across all segments and a focus on improved operational efficiency. During the quarter, the Company launched its new data insights platform, Cohesion, which supports brands in understanding, segmenting and targeting cannabis consumers. On November 21, 2019 the Company announced a strategic relationship with Nielsen, a leading global measurement and data analytics company.
“With an emerging data insights product, we are proud to announce fiscal 2020 is off to a strong start with year over year growth, increased operational efficiencies, and the launch of our flagship data-as-a-service platform, Cohesion,” said Matei Olaru, CEO of Lift & Co. “As a leader in providing information across the cannabis value chain, Cohesion and specifically our strategic relationship with Nielsen signal our capabilities to modernize consumer insights in the cannabis industry. Cohesion Segmentation – powered by Nielsen is a first-of-its-kind tool that combines transactional and behavioural consumer data into prescriptive consumer insights.”
Cohesion Segmentation – powered by Nielsen combines the transactional and behaviour data collected by the Company through user profiles, reviews and purchase receipts on Lift.co with Nielsen’s data which is widely adopted across both brands and agencies for independent and trusted insights into the media consumption and purchasing behavior of real people. Using this tool, Cohesion clients will be able to accurately create custom consumer segments, predict their likely purchases and dollars spent, and digitally-activate these consumers with advertising through cross-channel targeting. The Company estimates that this tool can reduce digital customer acquisition costs by as much as 30% and increase click-through-rates by over 20%.
“Unlike our competitors in data insights which focus on point-of-sale data analytics, Cohesion and Segmentation – powered by Nielsen is truly unique in the market for the ability to predict person and segment specific product purchases and behaviour across Canada,” continued Matei Olaru. “There is no other product like this in the market today.”
With the launch of Cohesion and a strategic relationship with Nielsen, the Company now has a differentiated and trusted commercial insights platform powered by data collected from its wholly-owned, trusted and established consumer (Lift.co) and retailer (CannSell) platforms. Management believes that Cohesion will become increasingly fundamental to the market and to incumbent CPG companies looking to understand and enter the cannabis industry.
SECOND QUARTER 2020 FINANCIAL HIGHLIGHTS
- Total revenues increased 40% to $331,848 for the three-month period ended September 30, 2019 and increased 52% to $3.7 million for the six-month period, compared to the same periods in the prior year.
- Trade Marketing revenue decreased 20% to $119,099 for the three-month period and increased 51% to $224,591 for the six-month period.
- Data Insights revenue increased 141% to $212,749 for the three-month period and increased 150% to $388,150 for the six-month period.
- Events Marketing revenue increased 44% to $3.1 million for the six-month period.
- Loss from operations decreased 15% to $2.3 million for the three-month period and decreased 23% to $2.8 million for the six-month period.
SECOND QUARTER 2020 OPERATIONAL HIGHLIGHTS
- Cohesion, the Company’s flagship data‐as‐a‐service platform, launched September 10th, 2019 with nationwide coverage for consumer insights to support brands in understanding, segmenting and targeting cannabis consumers.
- Lift & Co. announced the development of a new powerful consumer profiling and segmentation tool with Nielsen, ‘Cohesion Segmentation ‐ powered by Nielsen’, that promises to lower the cost of customer acquisition for cannabis brands. The product is expected to launch early next year on the Company’s Cohesion platform.
- The Company has experienced continuous growth around the CannSell platform with over 700 licenses being sold this quarter and a total of 12 branded modules being sold to date, including modules for Organigram Holdings Inc. and The Green Organic Dutchman Holdings Ltd. which launched this year.
- Lift & Co. has an exclusive mandate from the Alcohol and Gaming Commission of Ontario to provide CannSell to the additional 68 stores that currently have license applications in progress and are expected to open in Ontario. This mandate will continue to be exclusive for several years during which Ontario is expected to remove the cap on cannabis retail stores.