Perk Releases 2016 Holiday Shopping Season Perk IQ Study

AUSTIN, Texas–October 12, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces the results of a 2016 consumer holiday shopping study conducted through Perk IQ™, a built-in analytics solution which offers advanced audience targeting and insights capabilities.

The Perk IQ study collected opinions about holiday shopping plans through Perk’s panel of members. According to the study:

  • 89% of shoppers still do not know where they will do all their holiday shopping this year
  • Online research was the top source of holiday shopping influence in 2015, followed very closely by TV ads, word of mouth, and online ads.
  • 68% of shoppers claimed that online ads would be helpful to think of new gift ideas or shopping locations this year
  • 9 out of 10 people who plan to shop exclusively online said that a discount or promotion would convince them to shop in a store

Joe Tartaglia, VP of Sales and Strategic Partnerships, says, “The holidays are an important time for our brand and retail partners, and this year will be no exception. Our study shows that shoppers will be looking both online and on TV for holiday shopping ideas and deals this year, with online’s influence bigger than it ever has been before. We look forward to using the insights from this Perk IQ study to help our brand partners create and run successful campaigns in the upcoming holiday season and beyond.”

This Perk IQ study was conducted via an online survey of Perk users during Q3 2016. The full report on the results of this study can be accessed here.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Buys Back Entirety of Perk Securities From Function(X), Inc.

AUSTIN, Texas–September 29, 2016–Perk Inc. (TSX: PER) (“Perk” or the “Company”), the Rewarded Engagement Platform that connects brands with consumers, today announced that it has repurchased for cancellation certain Repurchased Securities (as defined below) from Function(X), Inc. (formerly Viggle Inc.) (“FNCX”) in exchange for payment to FNCX of aggregate cash proceeds of USD $1,300,000 (the “Transaction”). Perk and FNCX entered into a securities purchase agreement (the “Agreement”) earlier today in respect of the Transaction and the Transaction closed concurrently upon signing the Agreement.

The Repurchased Securities were issued to FNCX on February 8, 2016 in connection with the purchase by Perk of all of FNCX’s interests in the Viggle App (the “Viggle Acquisition”), including its rights to the Viggle name and brand and such Repurchased Securities consist of the following:

  • 1,012,968 Perk common shares, of which 562,500 shares were being held in escrow until February 8, 2017 as security for FNCX’s indemnification obligations pursuant to the Viggle Acquisition
  • 1,000,000 warrants to purchase Perk common shares exercisable at CDN $6.25 per share if the Perk common shares trade above CDN $12.50 for 20 consecutive trading days in the two year period following February 8, 2016
  • 1,000,000 warrants to purchase Perk common shares exercisable at CDN $6.25 per share if the Perk common shares trade above CDN$18.75 for 20 consecutive trading days in the two year period following February 8, 2016
  • FNCX’s right to be issued 2,000,000 Perk common shares if Perk’s total revenue exceeds USD $130,000,000 in 2016 or 2017

As of the date hereof, after taking into account the Transaction, FNCX no longer holds any securities or rights to acquire securities, in Perk and there are 18,564,408 common shares and 652,502 Class A restricted voting shares in the capital of Perk issued and outstanding. Since June 30, 2016, and after taking into account this Transaction and the completion of the purchase for cancellation of all shares of Perk held by Mr. Roj Niyogi on September 15, 2016, Perk’s outstanding shares (including its Class A restricted voting shares) has been reduced by 17.6%.

Management Commentary

Ted Hastings, Chief Executive Officer of Perk, stated: “We are very pleased to close this Transaction with FNCX, which serves as a mutually beneficial transaction for Perk and FNCX and their respective shareholders. FNCX has completed a liquidity event that it was seeking to complete and Perk is able to both simplify its capital structure and enhance earnings potential through the reduction of its outstanding shares. We believe our current share price does not accurately reflect the value of the Company and this Transaction allows us to buyback Perk securities at a fair discount to current market prices given our average daily trading volumes. This Transaction reflects management’s confidence in the value of the Company as we head into Q4, our seasonally best quarter of the year.”

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Two Perk Apps Rank in the Top Ten Most Addictive According to New Research

AUSTIN, Texas–September 21, 2016–Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces that two of its apps, Unlock and Win! and Viggle, have ranked in the top ten in a SurveyMonkey study of the 101 Most Addictive Apps on Mobile.

The 101 Most Addictive Apps on Mobile ranking was published by SurveyMonkey. The ranking was determined using data on the average number of days per week people used apps on iOS and Android in the U.S. as of mid-2016.

Perk’s Unlock and Win! App ranked as the #3 most addictive among the top 101, averaging 5.4 days of use per week. Perk’s Viggle App ranked as the #6 most addictive among the top 101, averaging 5.1 days of use per week. These surpassed large mobile players including Snapchat (#13) and Instagram (#30).

“Seeing two Perk apps at the top of the 101 Most Addictive Mobile Apps ranking validates our platform and apps as highly engaging experiences for our users,” says Ted Hastings, CEO of Perk. “The fact that Unlock and Win! and Viggle users interact more days per week than some of the biggest names in the mobile ecosystem proves that Perk provides valuable opportunities for our brand advertisers and is a valuable part of our users’ lives.”

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Reports Surojit Niyogi – Holdings in Perk Inc.

AUSTIN, Texas–September 20, 2016–Perk Inc. (TSX:PER) (“Perk” or “the Company”) today announced that on September 15, 2016, Mr. Surojit Niyogi, in a series of transactions pursuant to which he purchased all of the issued and outstanding shares of Corona Labs Inc. (“Corona”) from Perk disposed of all his shareholdings in Perk consisting of 1,879,532 Perk common shares and 1,505,972 Perk Class A Restricted Voting Shares. In connection with the transactions Mr. Niyogi was also paid USD$1,750,000 by Perk, and over the 12 month period following closing of the transactions, Perk will pay up to a maximum of USD$750,000 in services to help facilitate the transition of Corona’s operations to Mr. Niyogi.

As a result of the transactions, Mr. Niyogi no longer holds any shares in the capital of Perk.

A copy of the early warning report to be filed by Mr. Niyogi in connection with the transactions referred to in this press release is available as www.SEDAR.com or by calling Perk’s general counsel at (519) 827-1999 x2014.

Mr. Niyogi’s address is:

c/o Corona Labs Inc.
1900 Embarcadero Road, Suite 207
Palo Alto, California 94303

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Sells Corona Labs, Retains Exclusive Rewards Platform Relationship

AUSTIN, Texas–September 15, 2016–Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announced that pursuant to a series of transactions it has completed the sale of Corona Labs Inc. (“Corona”) to Roj Niyogi, Chief Executive Officer of Corona, and the purchase for cancellation of all of the shares of Perk held by Mr. Niyogi (collectively, the “Transaction”). Perk and Mr. Niyogi entered into a stock purchase agreement earlier today in respect of the Transaction (the “Agreement”) and the Transaction closed concurrently upon signing of the Agreement.

In connection with the completion of the Transaction, Mr. Niyogi returned to Perk for cancellation 1,879,532 common shares and 1,505,972 Class A restricted voting shares in the capital of Perk representing all of the shares held by Mr. Niyogi in Perk and Perk paid to Mr. Niyogi aggregate cash proceeds of USD$1,750,000. Additionally, over the 12 month period following closing of the Transaction, Perk will pay up to a maximum of USD$750,000 in services to help facilitate the transition of Corona’s operations to Mr. Niyogi.

Mr. Niyogi has further announced that he has stepped down from his roles as President and Board Member of Perk effective today to focus on leading Corona. In connection with his resignation, the 410,000 options to acquire common shares in the capital of Perk held by Mr. Niyogi pursuant to Perk’s employee stock option plan have been cancelled.

As of the date hereof, after taking into account the Transaction, there are 19,475,349 common shares and 652,502 Class A restricted voting shares in the capital of Perk issued and outstanding.

Ted Hastings, Chief Executive Officer of Perk, stated: “We acquired Corona last year with the goal of getting access to a large pool of third-party app developers to rapidly extend our Perk platform. We integrated our platform earlier in 2016 and as the competition for mobile development engines accelerated we looked at strategic options that would allow both Perk and Corona to thrive given the increased investment required for Corona. We are very pleased with the agreement we completed with Roj for several reasons – most importantly it will allow both Perk and Corona to focus and invest appropriately. Perk is able to continue to distribute our rewards platform through Corona through an exclusive partnership while redeploying the previous investment in Corona, which was in excess of USD$1,000,000 on a quarterly basis, towards accelerated sales and marketing efforts that will improve Perk’s business fundamentals. I’d like to thank Roj for his contribution to Perk from co-founding the business to leading Corona as a global mobile development engine.”

Perk retains a strategic relationship with Corona Labs, as the exclusive rewards platform for Corona’s community of 300,000+ developers worldwide.

Mr. Niyogi stated: “I’m excited for the next chapter in building Corona and also for the ongoing partnership with Perk. It has been an amazing experience from co-founding Perk, taking it public on the TSX, and now focusing on Corona.”

Additional information regarding the Transaction can be found in the Material Change Report filed by the Corporation in respect of the Transaction, which is available on SEDAR.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

About Corona Labs

Corona is the leader in 2D game and app development and is reinventing how the world builds apps and games for mobile, connected TV, and desktop platforms. Corona’s flagship product, Corona SDK, is the world’s most advanced development platform, empowering developers to build apps faster for iOS, Android, tvOS, OS X, and Windows – all with a single code base. Experienced by more than 300,000 developers around the globe and with hundreds more signing up daily, apps built with the Corona platform enjoy a combined total of over 1.6 billion user sessions each month.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Global Consumer Packaged Goods Company Partners with Perk Inc. to Increase Brand Awareness, Purchase Intent, and Drive In-Store Traffic

AUSTIN, Texas–September 13, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), the Rewarded Engagement Platform that connects brands with consumers, today announces that the Company recently completed a comprehensive Perk IQTM brand study following a successful marketing campaign with a globally-known consumer packaged goods company.

The Perk IQ study was conducted in conjunction with a brand campaign aimed at increasing awareness, building purchase intent, and driving in-store traffic with geo-targeted messaging on Perk’s Rewarded Engagement Platform. The campaign also employed targeted in-app product advertising to educate consumers as they engaged with content on Perk’s apps. As a result, the campaign achieved:

  • 200% increase in likelihood of buying the consumer packaged goods company’s products
  • 33% consumer participation in the in-store promotion
  • Nearly half of consumers who participated in the in-store promotion purchased promoted products
  • 236% lift in ad recall

“We are ecstatic to see our brand partners achieve extraordinary results,” says Ted Hastings, CEO at Perk. “This highlights our ability to deliver excellent results for brands when they work with us directly through our sales team. Our Rewarded Engagement Platform offers brands the opportunity to engage with consumers on a far deeper level than other advertising channels, and Perk IQ provides the valuable insights necessary to evaluate success and make the most of marketing spend.”

Perk recently announced the launch of Perk IQ, which offers brand and agency partners advanced audience targeting and insights capabilities. Partners are able to obtain insights throughout the entire buyer’s journey, including the ability to tie content and advertising engagement to in-store visits, brand lift, and purchase behavior.

About Perk

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

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Perk Expands Credit Facility to $17MM With Silicon Valley Bank

Austin, Texas, September 07, 2016 – Perk Inc. (TSX: PER) (“Perk” or the “Company”), announced today that the Company has increased its credit facility with present lender, Silicon Valley Bank (“SVB”). The amended agreement will increase the maximum available capacity of the facility from US$4.5 million to US$17.3 million.

The Company intends to use a portion of the facility to fund the Orion EBITDA buyout, which was previously announced on August 16, 2016.

Jeff Collins, Chief Financial Officer of Perk commented, “We are pleased to increase our credit facility with Silicon Valley Bank. The revised agreement with SVB will provide the Company with access to a larger facility that is more in line with the Company’s current size and financial profile in addition to freeing up restricted capital. We appreciate SVB’s support and believe the new facility demonstrates the bank’s confidence in the Company, as SVB recognizes our progress and the potential of Perk’s leading rewarded engagement platform.”

“It’s our pleasure to continue our partnership with Perk,” said Dax Williamson, managing director of Silicon Valley Bank in Austin. “Perk continues to mature and expand its platform to enable deep connections between brands and consumers. Our objective is to support their success with the right financing, connections and global services.”

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

About Silicon Valley Bank

For more than 30 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Inc. Announces Buyout of Earn-Out Obligations Under Asset Purchase Agreement With Orion Foundry (Canada) Inc.

Buyout Allows Perk to Retain all EBITDA Generated in the Coming Quarters While Simultaneously Strengthening the Company’s Balance Sheet  

Austin, Texas, August 16, 2016 – Perk Inc. (TSX: PER) (“Perk” or the “Company”), announced today that the Company has bought out the remaining EBITDA based earn-out obligations owing by Perk.com Canada Inc. (“Perk Canada”), a wholly owned subsidiary of the Company, to Orion Foundry (Canada) Inc. (“Orion”) pursuant to the asset purchase agreement entered into between Perk Canada and Orion on April 13, 2015 (the “Asset Purchase Agreement”) at 53% of the face value of such obligations.

Pursuant to the Asset Purchase Agreement, Perk Canada acquired certain assets (the “Purchased Assets”) and assumed specific liabilities of Orion that included websites, mobile apps, certain employees, and technology such as an online advertising customer acquisition platform, and capital assets. Under the terms of the purchase and sale agreement, Perk Canada was required to pay Orion a percentage of the EBITDA generated from the Purchased Assets until April 2018. In addition, Perk Canada issued an undertaking, which provided that should Orion receive less than a certain dollar value of tax credits, Perk Canada shall make an additional payment to Orion. At the time of the acquisition, Perk Canada measured these liabilities at fair value and accounted for the estimated payments as a provision for contingent consideration. Such liabilities represented approximately 22% of the Company’s total liabilities as at June 30, 2016.

The Company determined that it was in its best interest to utilize its strong cash and working capital position to buy out these liabilities at 53% of the face value of such liabilities based on their estimated fair value as at June 30, 2016.

Ted Hastings, Chief Executive Officer of Perk commented, “We were pleased that Orion accepted our offer to pay off the remaining balance due from the acquisition. As a result of this buyout, we are able to eliminate the contingent obligations from our balance sheet. Maintaining a strong capital position is important to the Company and this is another significant step forward, as this buyout will free up capital over the long term while retaining 100% of EBITDA we expect to generate.  We are working to reinvest in our business and accelerate the worldwide adoption of Perk’s leading mobile rewards platform.”

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including which may relate to, but which may not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to its SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; and the success of new products developed by Perk; Perk’s ability to retain key members of its management team. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Inc. Reports 2016 Second Quarter Financial Results Highlighted by a 64% Increase in Revenues

Company to Hold Second Quarter Conference Call Today, August 12, 2016, at 12 p.m. ET

Austin, Texas, August 12, 2016 – Perk Inc. (TSX:PER) (“Perk” or “the Company”), the  Rewarded Engagement Platform that connects brands with consumers, today reported its operating and financial results for the second quarter and six month period ended June 30, 2016.

2016 Second Quarter Highlights (all comparisons to the same prior year period)    

  • Total revenue increased approximately 64% to $20.4 million.
  • Gross Profit was $9.1 million, or 45% of total revenue.
  • Net loss was approximately $0.5 million as compared to a net loss of $15.8 million.
  • Adjusted EBITDA of $2.2 million, which included approximately $1 million invested in Corona Labs, compared to $2.1 million in Adjusted EBITDA for the prior year period.
  • In April 2016, Perk Points was accepted as an alternative payment option by over 49,000 apps and games in over 190 countries and territories that use the SuperRewards platform.
  • Corona Labs entered a strategic partnership with KIDOZ, the largest content discovery network for kids, in the launch of the KIDOZ plugin, which provides developers with a kid-friendly way to monetize their apps.  
  • Subsequent to the second quarter, the Company announced the launch of Perk IQTM, a built-in analytics solution which offers brand and agency partners advanced audience targeting and insight capabilities.

2016 Year-to-Date Highlights (all comparisons to the same prior year period)     

  • Total revenue increased 106% to $37.7 million for the six months ended June 30, 2016.
  • Gross Profit was $16.8 million, or 45% of total revenue.
  • Net loss was approximately $2.8 million, as compared to a net loss of $17.4 million
  • Adjusted EBITDA of $1.6 million, compared to Adjusted EBITDA of $1.7 million for the same period of the prior year. The slight decrease in Adjusted EBITDA for the period was the result an increase in operating costs due to planned investments in the Company’s Corona Labs platform of approximately $1.5 million.
  • In February 2016, the Company completed the acquisition of the Viggle App and related assets, which consisted of a leading mobile and tablet application, brands and consumers, intellectual property including patents in the rewards category, brand and advertiser relationships, and a direct sales team. Total consideration paid was $7.3 million and the Company used a combination of stock, warrants and cash to pay for the acquisition.  
  • As of June 30, 2016, there are over 20 million registered users that have redeemed more than $21.0 million in Perk Rewards.  

Ted Hastings, Chief Executive Officer of Perk commented, “We continue to see steady growth in our user base and have more than doubled the number of Perk app downloads since this time last year, while also maintaining a strong retention level across our existing users. We achieved a 64% increase in revenues for the three-month period and returned to positive EBITDA after a seasonally slower first quarter of the year. We continue to focus on enhancing and diversifying our customer base by building direct advertising relationships with leading brands that see the value of the Perk platform. We are confident that Perk offers a solution that resonates with brands by providing a direct connection to consumers and insight into the effectiveness of their advertising dollars. As the influx of available mobile video inventory settles, we believe that Perk will remain in the forefront as a leader in the digital advertising space. In the months ahead, we will continue to invest in our business, including our Corona Labs platform and direct advertising sales team in addition to growing the Company through the further expansion of our user base and rewards platform. The team at Perk remains focused on driving shareholder value and we look forward to a successful second half of 2016.”

2016 Second Quarter Financial and Operational Review

  • Total revenue for the second quarter of 2016 increased 64% to approximately $20.4 million, as compared to approximately $12.4 million for the prior year period. Perk’s revenue increased 29% to approximately $16.0 million for the second quarter of 2016, which excludes revenues from the AppRedeem acquisition, the Playerize acquisition, the Corona acquisition and the Viggle acquisition (collectively the “Acquisitions” and acquired after June 30, 2015). The increase in advertising revenues are a result of an increase in traffic and monetization of Perk’s mobile web and desktop properties which helped to offset lower than expected fill rates and price compression from third party ad networks which was primarily the result of an abundance of available mobile video inventory in the market.   
  • For the second quarter of 2016, Perk generated advertising revenue from barter transactions of approximately $0.6 million, of which approximately $0.1 million was attributed to the Acquisitions. Excluding the impact of the approximately $0.6 million of barter transactions on the second quarter revenues, year over year revenue grew by 59% from approximately $12.4 million to approximately $19.7 million. In conjunction with the revenue generated from barter transactions, Perk recorded an increase in marketing and user acquisition expense of approximately $0.6 million. Perk did not generate advertising revenue from barter transactions during the second quarter of 2015.
  • Perk reported cost of revenue, which is comprised of the costs of the rewards provided to users, platform fees, traffic acquisition costs to its desktop and mobile websites and revenue sharing commissions, for the three months ended June 30, 2016 of approximately $11.2 million, compared to $6.7 million in the second quarter of 2015. Excluding the Acquisitions, cost of revenue increased by $3.0 million to $9.7 million from the second quarter of 2015. The increase in costs is a result of growth in monetization opportunities on the Company’s owned and operated mobile web and desktop properties.
  • Gross profit for the three months ended June 30, 2016 was approximately $9.1 million (45% of revenues), compared to approximately $5.8 million (46% of revenues) for the second quarter of 2015. The slight reduction in gross margin as a percentage of revenue was the result of the growth in monetization opportunities on the Company’s owned and operated mobile web and desktop properties which typically generate margins on revenue at a lower rate than the Company’s mobile apps business. Excluding the Acquisitions, gross profit for the second quarter of 2016 increased by $0.5 million to approximately $6.3 million or 39% of revenue as compared to the second quarter of 2015 when gross profit was approximately 46% of revenue.
  • Net loss for the three months ended June 30, 2016 was approximately $0.5 million compared to a net loss of approximately $15.8 million for same period of the prior year.  
  • Adjusted EBITDA was approximately $2.2 million for the three months ended June 30, 2016, as compared to approximately $2.1 million of Adjusted EBITDA generated in the three months ended June 30, 2015. Included in the second quarter Adjusted EBITDA of $2.2 million is approximately $1.0 million in Adjusted EBITDA loss resulting from the Corona Acquisition. Excluding the Acquisitions, Adjusted EBITDA for the three months ended June 30, 2016 was approximately $1.9 million. A table reconciling Adjusted EBITDA to net loss can be found at the end of this release.

2016 Year-to-Date Financial and Operational Review

  • Total revenue for the six months ended June 30, 2016 was approximately $37.7 million, representing a 106% increase over total revenue of approximately $18.3 million for the prior year period. Perk’s revenue, excluding the impact of the Acquisitions, increased by $12.4 million to $30.7 million for the six-month period ended June 30, 2016, as compared to the same period of the prior year.
  • Perk’s reported cost of revenue for the six months ended June 30, 2016 of approximately $20.8 million compared to $10.3 million for the prior year period. Excluding costs of revenue from the Acquisitions, cost of revenue increased for the six months ended June 30, 2016 by $7.4 million from the prior year period.
  • Gross profit for the six months ended June 30, 2016 was approximately $16.8 million (45% of revenues), compared to approximately $8.0 million (44% of revenues) for the prior year period. Excluding the Acquisitions, gross profit for the six months ended June 30, 2016 was approximately $13.1 million or 42% of revenue as compared to the first six months of 2015 when gross profit was approximately 44% of revenue.
  • Perk generated advertising revenue from barter transactions for the first six months of 2016 of approximately $2.2 million, of which approximately $0.2 million was attributed to the Acquisitions. Revenue for the six-month period ended June 30, 2016, excluding the impact of the approximately $2.2 million in barter transactions, grew by 94% from approximately $18.3 million to approximately $35.5 million. In conjunction with the revenue generated from barter transactions, Perk recorded an increase in marketing and user acquisition expense of approximately $2.2 million for the six-month period ended June 30, 2016. Perk did not generate advertising revenue from barter transactions during the first six months of 2015.
  • Net loss for the six months ended June 30, 2016 was approximately $2.8 million compared to a net loss of approximately $17.4 million for same period of the prior year.  The current year net loss is impacted by $2.1 million of amortization and depreciation expense, $1.3 million of share based payment expense, $0.7 million of transaction and restructuring costs, and $0.4 million of interest accretion expense on non-interest bearing provisions.
  • For the six months ended June 30, 2016, Adjusted EBITDA was approximately $1.6 million, a decrease of $0.1 million when compared to the same six months of the prior year.  Included in the year-to-date Adjusted EBITDA of $1.6 million is approximately $1.5 million in Adjusted EBITDA loss resulting from the Corona Acquisition. Excluding the Adjusted EBITDA loss of approximately $0.9 million generated by the Acquisitions during the first six months of 2016, Adjusted EBITDA was approximately $1.7 million.

Balance Sheet Summary

  • Perk had cash and investments of approximately $12.5 million at June 30, 2016 compared with approximately $17.5 million at December 31, 2015. The year to date decrease in cash is the result of approximately $2.2 million in cash taxes paid, $1.1 million in payments against term loans /contingent consideration in addition to non-cash working capital items using approximately $1.6 million in cash. The majority of the cash required for working capital was used to reduce the Company’s unredeemed rewards liability in addition to reducing our trade and accounts payable balances.
  • At June 30, 2016, shareholders’ equity was approximately $36.8 million, compared to approximately $32.1 million at December 31, 2015.

 

Conference Call Details

Date/Time: Friday, August 12, 2016, at 12 p.m. ET

Live Participant Dial-In (Toll-Free US & Canada):   877-407-9711

Live Participant Dial-In (International):   412-902-1014
Webcast

The call will also be simultaneously webcast over the Internet via the “Investor Relations” section of Perk’s website at ir.perk.com or by clicking on the conference call link:  http://perk.equisolvewebcast.com/q2-2016.

 

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: www.ir.perk.com.

 

Financial Information

A copy of Perk’s unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2016, which are prepared in accordance with International Accounting Standard 34, Interim Financial Reporting (“IAS 34”) and Perk’s Management’s Discussion & Analysis, will be available on or before August 12, 2016 via the Canadian Securities Administrators’ website at www.sedar.com or through the Company’s website at www.ir.perk.com.

Non-IFRS Measures

The Company defines Adjusted EBITDA as net income (loss) from operations before: (a) depreciation of property and equipment and amortization of intangible assets; (b) share-based compensation, (c) income tax expense (recovery) and (d) other charges, net. Management uses Adjusted EBITDA as a measure of the Company’s operating performance because it provides information related to the Company’s ability to provide operating cash flows for acquisitions, capital expenditures and working capital requirements. The Company also believes that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies in its industry. Adjusted EBITDA should be used in addition to and in conjunction with the results presented in the Company’s unaudited interim condensed consolidated financial statements prepared in accordance with IAS 34. Management strongly encourages investors to review the Company’s financial statements in their entirety and to not rely on any single financial measure. As non-IFRS financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-IFRS financial measures having the same or similar names.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including which may relate to, but which are not be limited to, Perk’s business; Perk’s strategy, operations and financial performance; Perk’s user and advertiser engagement; Perk’s ability to establish new marketing partnerships; Perk’s ability to expand into new markets; and Perk’s ability to acquire and integrate new businesses and technologies. Such forward-looking statements reflect Perk’s expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate”, “believe”, “estimate”, “upcoming”, “plan”, “target”, “intend” and “expect” and similar expressions, as they relate to Perk or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to Perk and are subject to a number of risks, uncertainties, and other factors that could cause Perk’s actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements, including, but not limited to: maintenance by Perk of relationships with advertising network providers and partners; successful development of the “Perk” brand; Perk’s ability to keep up with rapid technology developments in Perk’s markets; Perk’s ability to avoid defects in products and services delivered by Perk; Perk’s ability to attract app and website developers to Perk’s SDK’s; Perk’s ability to successfully enter new business areas and geographic markets; success of new products developed by Perk; Perk’s ability to retain key members of its management team; and certain other risk factors set forth in Perk’s Management’s Discussion and Analysis for the three and six months ended June 30, 2016. Perk does not undertake to update any forward-looking statement, except as required by law.

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Perk Inc. Schedules 2016 Second Quarter Financial Results and Conference Call

Austin, Texas, July 29, 2016 – Perk Inc. (TSX: PER) (“Perk” or “the Company”), announced today that it expects to release its financial results for the second quarter ended June 30, 2016 on Friday, August 12, 2016.

Perk will conduct its quarterly conference call to discuss these results later that day at 12:00 p.m. ET.

The dial-in numbers are:

Live PARTICIPANT Dial-In (Toll-Free US & Canada):  877-407-9711

Live PARTICIPANT Dial-In (International):  412-902-1014

To listen to the live webcast, please go to ir.perk.com and click on the conference call link at the top of the page, or go to: http://perk.equisolvewebcast.com/q2-2016.

 

About Perk Inc.

Perk’s Rewarded Engagement Platform brings together the interests of advertisers and consumers to deliver profound insights and actionable results. With Perk, brands form deep connections with consumers to achieve greater engagement, loyalty, and conversion. Perk’s insights and intelligence solution, Perk IQ™, allows brands to measure performance and uncover valuable data around advertising attribution, brand impact, and purchase behavior.

Additional information about Perk Inc. can be found at the Company’s corporate website: http://www.ir.perk.com.

 

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