Calgary, Canada – January 21, 2019 – DeepMarkit Corp., (“DeepMarkit” or the “Company”) (TSX-V:MKT OTCQB:MKTDF) provides the following business update.
During 2018, DeepMarkit repositioned its game-based marketing software from a very comprehensive, highly customizable DYI platform to a more simplified app style offering to be distributed through an easy install procedure directly from ecommerce platform app stores.
The initial app product was rolled out in the Shopify app store early in the year. The DeepMarkit app was subsequently developed for the WordPress, BigCommerce, Weebly, SquareSpace and Wix platforms and was made available directly from DeepMarkit for installation on any website. The DeepMarkit app was offered as a free product in order to gain market acceptance. In May, a custom version of the product was developed for marketing and sale by ITN International, specific to tradeshow usage. A significantly expanded version of our app was released in October under a paid subscription model.
DeepMarkit’s key differentiator has always been its heavy focus on and investment in games and the tools for in-depth customization of games to suit individual brands. Our current app included pop-ups and banners without games and a simplified game customization process to try to fit the market for smaller merchants or less technical users.
Throughout the year, over 2,000 merchants have installed the app through the various channels, with Shopify being by far the largest base. Late in the year, we developed and released an app for the PrestaShop ecommerce platform focused on the European market. Over the three months from the release of our latest product version, we have averaged 75 installations per month however our conversion rate to paid subscriptions is less than 10%.
Although we have achieved a significant number of installations and continue to generate installations, to date we have been unsuccessful in converting any meaningful number of users to paid subscribers. ITN International has not generated any sales of the tradeshow product. An abundance of free products from many much larger competitors has made our attempt to transition from a free product to paid subscriptions very difficult.
Through the expenditure of very significant effort, time and capital we have created and modified our products to achieve what we believed to be the most unique product and the best fit for our market. Despite our marketing and sales efforts, to date we have not been able to achieve any substantial paid user base.
To date our revenues have been insignificant and accordingly, the business as presently conducted is not sustainable over the long term without change. Management has taken steps to reduce operating expenses to the minimum which will allow us to continue to pursue our current business while we assess our options and develop a strategy to go forward. We will continue to market our product, support our customers and try to grow our revenue base.
In addition to Management’s efforts to develop a strategy for the Company’s ecommerce software, the Board of Directors has determined it to be appropriate to begin a search for new business opportunities which may be within the ecommerce space or may be in entirely new areas of business.
DeepMarkit is an ecommerce technology company inventing new ways to engage consumers and other audiences. The Company’s proprietary platform enables online merchants to create a wide variety of branded marketing displays and promotional campaigns that incentivize customers, thus driving sales, capturing data and generating leads.
DeepMarkit’s shares are listed on the TSX Venture Exchange, symbol MKT and on the OTCQB, symbol MKTDF. To try out our games and see the power of the platform, please visit www.deepmarkit.com
For more information, please contact:
President & CEO
Darold H. Parken
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Statements in this press release may contain forward-looking information including, statements regarding the potential for sales of the Company’s products, the successful development and implementation of new business strategies and the success of finding new business opportunities. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of DeepMarkit. Factors that could cause the actual results to differ materially from those in forward-looking statements include, failure to achieve sufficient paid subscriptions, failure to obtain market acceptance of the Company’s products, inability to complete further development of the products or business, the failure to identify or acquire new business opportunities, the failure to raise required additional capital, and general economic, market or business conditions. The reader is cautioned not to place undue reliance on any forward-looking information.
The forward-looking statements contained in this press release are made as of the date of this press release and DeepMarkit does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.