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The Digital Box: results for the Second Quarter and the First Half of 2018

Growth continues to consolidate across all channels

 

Gravina, Italy, 1st August 2018 – The Digital Box, the company that designed and developed ADA, an innovative integrated platform for Mobile Engagement based on Artificial Intelligence, today announced the financial results for the Second Quarter and First Half of 2018 .

In the Second Quarter of 2018, net revenues amounted to € 2.277k, accounting for a 35% growth compared to the same period in 2017, and to the First Quarter of 2018. The results are 8% lower than the plan announced in May in the press release for the First Quarter.

Recurring revenues, monthly and quarterly, or MRR (MonthlyRecurringRevenues) rose to a record of € 326K for the month of June 2018 and QRR (QuarterlyRecurringRevenues) amounted to € 978k.

Total costs were lower than the estimated 5%, despite significant investments in the international channel, whereas the Group’ EBITDA amounted to € 284k, about 15% less than the budgeted amount.

In the First Half of 2018 revenues amounted toabout € 3,964k, accounting for a 29% growth compared to the revenues for the First Half of 2017 and the EBITDAamounted to €287k, around half of the EBITDA recorded in 2017.

“In the second quarter all our indicators relating to international sales improved significantly and excellent performance was recorded in Italy, in particular with our subsidiary Genesis.” Says Roberto Calculli, CEO of The Digital Box “The international channel has generated a performance significantly better than the first quarter of 2018 but will have to improve considerably in the coming quarters to achieve
our ambitious growth targets”.

During the Second Quarter, the Company has given extensive support for all GDPR regulations to all its customers, including an Opt-in tool to facilitate compliance with the new European standard for Digital Agencies using ADA. In order to ensure full awareness of the interaction between the customer and marketing campaigns addressed to them, the GDPR is a vital element to improve the quality of the engagement between the Brand and the Customer.

In the Second Quarter, The Digital Box successfully organized the first “Digital Converge Day” in Milan at the Bocconi University Auditorium. Nearly five hundred Digital Marketing professionals participated in a program of in-depth presentations by Google, Facebook, Computer Associates and Microsoft, just to mention a few.

On the Digital Converge Day,Guy Kawasaki,the marketing strategist for the Macintosh team at Apple gave two talks on the convergence between Digital Marketing, Social Media and Mobile. On top of a packed schedule of presentations and debates, lecturers from Bocconi University, the Polytechnic and University of Pisa, dwelled on Artificial Intelligence applied to Digital Marketing.

The “Digital Convergence Day has confirmed Digital Box’s top position in discovering and applying Artificial Intelligence even beyond the realm of Customer Engagement” said Marco Landi, The Digital Box President”

As already announced in the First Quarter of 2018, the Company confirms its intention to continue the project of aggressive international expansion while acknowledging that delays and longer implementation times than expected will reduce the growth targets in 2018.

The Digital Box Group – Profit and Loss Account, Second Quarter 2018 (sums in K €)

Q2-2018

Q2-2017

Delta %

Total Bookings

2.277

1.684

35%

Subscriptions

1.412

1.017

39%

Special Projects

531

261

103%

Consumable
(SMS/Email/Gad/FB)

281

374

(25)%

Maintenance

53

32

66%

Costs of Goods

256

413

(38)%

Gross Margin

2.021

1.270

59%

Operating Costs

1.736

935

86%

EBITDA

284

335

(15)%

The Digital Box Group – Profit and Loss Account, First Quarter 2018 (sums in K €)

1H-2018

1H-2017

Delta %

Total Bookings

3.964

3067

29%

Subscriptions

2.426

1800

35%

Special Project

901

606

49%

Consumable
(SMS/Email/Gad/FB)

553

585

(5)%

Maintenance

84

76

11%

Cost of Sales

425

582

(27)%

Gross Margin

3539

2485

42%

Operating Costs

3252

1933

68%

EBITDA

287

551

(48)%

The Digital Box S.p.A.

The Digital Box S.p.A. was founded in Puglia, by a group of Marketing visionaries and digital technologies experts. The company has developed ADA, an innovative integrated platform for Mobile Engagement based on Artificial Intelligence solutions. Driven by a unique and advanced technology, a highly profitable and scalable sales model based on a network of Marketing Agencies, and by the focus on Mobile Devices, The Digital Box has grown very rapidly and is developing across Italy as well as in Europe and Latin America. ADA allows Agencies to generate more Leads, more Conversions, more revenues for lower costs, providing more information on their sales plans aimed at customer loyalty. Led by a highly experienced management team, the Company plans to further expand its activity in Northern Europe and start working in North America.

* Bookings

In the financial statements of this communication, there is no application of policies for the allocation of GAAP monthly revenues for SaaS. SaaS revenues are accounted for the first year of subscription and renewal of the contract by the Customer. The Company believes that the Booking item provides a better understanding of the growth strategy and is also useful for accountancy  in order to calculate the performance indicators of MonthlyRecurringRevenues (MRR), QuarterlyRecurringRevenues (QRR) and AnnualRecurringRevenues (ARR).

Some of the statements in this press release, future expectations or other information or forecasts, are subject to known and unknown risks. The advanced information is based on various factors and many hypotheses. In light of the risks, assumptions and uncertainties, there can be no guarantee that the information in this document will actually be implemented.

The Company makes no statements and undertakes no obligation to update the information on the basis of the final results or any changes in assumptions, hypotheses or other factors that could influence the statements themselves.

FINANCIAL STATEMENTS:
Investor Relations
Saverio Merlo
E-mail: s.merlo@thedigitalbox.com
Tel: +39 3484909235

CFO
Virgilio Picca
E-mail: v.picca@thedigitalbox.com
Tel. +39 3346624325

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