Killi Sales Momentum Growing

Custom Data Offerings Increasingly Attracting New Fortune 500 Bands, Providing Strong Tailwind for Long-Term Growth

Aug. 12, 2021


New York, NY, August 12th, 2021 – Killi Ltd. (TSXV: MYID) (OTCQB: MYIDF) (“Killi”), a supplier of compliant consumer data, is pleased to provide investors with an operational and corporate update.
 
Killi is successfully executing its business-to-business (B2B) strategy of selling unique consumer data to a large and growing list of Fortune 500 clients.  In Q1, the Company sold its data to 46 companies, up from 33 in the prior quarter, a 39% quarter over quarter increase.  It’s expected that the volume of data sold to these existing clients will increase over the coming quarters as the company generates additional insights from its 320 million data profiles while adding new brands to expand its overall client offering.
 
To accelerate its data monetization, the Company plans to double the size of its existing sales team while adding sales leadership.  Additionally, the company is looking to build a presence in Chicago to expand the US markets it serves from Los Angeles and New York to a third hub. Each of these moves will enable the Company to drive more revenue in the most critical data markets in the US, a market worth approximately $245 billion per year.
 
“Last year, we focused on the scale and distribution of our product, now we are focused on revenue growth”, said Neil Sweeney, CEO, and Founder of Killi.  “Each new client we sign and renew is further validation of the Killi data set.  It’s very encouraging that some of the biggest brands in the world are choosing Killi data over those that have historically provided them with data in the past.  While still early days, the momentum is building on the revenue side of the business, and we are well-positioned to take advantage of the transition of the data market to one that requires consumer consent.”
 

Business-to-Business Revenue Streams Update.
Killi services three distinct revenue streams:

●     Platforms: Platforms can be thought of as “transmission lines” for companies to purchase Killi’s user-consented data and move it into their ecosystem for their use. As of the end of Q1/2021, Killi has integrated 11 global platforms, up from 9 the quarter prior, a 22% increase in its distribution footprint. These integrations include MediaMath, Pubmatic, Liveramp, Lotame, Xandr (an AT&T company), T-Mobile, Tru Optik (a TransUnion company), and other platforms used by Fortune 500 companies to purchase data.  By increasing platform integrations, Killi can expand the overall distribution of its data, leading to increased recurring sales in the future.

●     Brands & Agencies: To date, Killi’s direct sales team has successfully attracted brands directly as well as through agencies. The company has successfully expanded the number of brands it sells data to, from 33 as of Q4/2020 to over 46 at the end of Q1/2021 (+39%).   The Company has signed several new significant brands, including multiple agreements with a global toy company and a large US bank in the last quarter alone. In conjunction with previous contracts, these deals, including an ongoing relationship with an American multinational technology corporation that produces computer software, consumer electronics, personal computers, and related services worldwide, are helping to accelerate the revenue for the company.

●     Data Feeds: Data firms span many businesses, including media buying platforms and analytical firms. Killi most recently signed a deal to provide a compliant data feed to a publicly traded global measurement firm to inform their TV panel.  Additional contracts with companies looking to offset their exposure to the depreciating cookie and those looking to build an identity graph are, on average, 12 months in length and contain an auto-renewal.
 
“At the onset of a new sales relationship, our clients take on a portion of our data - whether that is an audience segment or a data feed,” said CEO & Founder Neil Sweeney.  “This ingestion comes after a rigorous validation that examines consent, fidelity, and accuracy.  As with all relationships, as time and performance scale, the volume of purchased data increases. Each deal and platform signed further validates our model, and we believe we are just scratching the surface of its potential.”
 
Looking ahead
The US$245 billion data market is transitioning from one of no compliance or consumer inclusion to one that legally requires it. The impact of this transition is that any company that is currently ingesting data today will be required to find new data sources in the future.  Killi has spent the past year building the scale of its data set to take advantage of this migration.
 
Industry Trends
Two industry trends are significantly impairing the accumulation, selling, and use of consumer data – trends that are highly beneficial to Killi.

  1. Global technology firms are implementing data privacy as foundational elements to their products:

o   Catalyst: As of its most recent update, Apple allows iPhone users to opt out of advanced ad tracking.  All applications in the Apple store are now required to provide a pop-up to consumers asking them if they would like to be tracked by other third-party applications.  Current research shows that 96% of Apple consumers in the USA say ‘no’ to tracking when asked. Globally, approximately 88% of Apple users opted out.  Additionally, Google’s mobile operating system, Android, recently updated its operating system as well to allow Android users to opt-out of advertisement tracking by obfuscating their Android Identifier.
o   Impact: Android maintains approximately 79% market share of the global handset/tablet market. The removal of Android tracking will drastically reduce the overall supply of data that companies can use for targeting and generating revenue.
o   Impact: Platforms and advertisers dependent upon mobile tracking in iOS are revising growth estimates downwards due to a lack of data.  Facebook’s CFO most recently stated growth would ‘significantly’ slow due to the loss of Apple tracking. Zynga and Poshmark had similar statements in their earnings reports this past week.    

  • Solution: Killi’s 320 million profiles are underpinned by all next-generation identifiers, including IP address, email, phone number, and mobile ID, providing a foundation for companies looking for a source of compliant data to mitigate this loss of supply in iOS or Android.

o   Catalyst: Google announced that it would ban third-party cookies, the core online tracker, in its Chrome browser.  
o     Impact: Chrome has approximately 70% market share of the online browser market. All online publications have a dependency on the cookie to run their advertising business as it allows them to target users.  There are approx. 1.8 billion websites in operation today around the world have a dependency on the cookie for revenue.

  • Solution: Killi has no exposure to any cookies in its 320 million profiles and can supply any publisher or company currently looking for a new identifier to mitigate their exposure to the loss of the cookie.

 
Summary: An acceleration of privacy initiatives led by large technology firms drastically reduces the amount of data supply available to independent firms in the global market.  All companies that have a dependency on this data will be required to find an alternative.  Killi is well-positioned to be this alternative.
 

  1. In the absence of U.S. Federal laws, states continue proposing personal data privacy Bills:

Catalyst: California, Colorado, and Virginia have passed privacy laws, and another 31 have proposed Bills.

o   Catalyst: Federally, the Information Privacy and Data Transparency Act was reintroduced to create data privacy standards and force companies to provide explicit privacy policies.

o   Impact: The opaque collection and use of consumer data has caught the attention of regulators worldwide.  First introduced in the EU in 2020, these rules have manifested in the Apple and Google ecosystems and are accelerating to disrupt the data broker market.  There are currently over 4,000 data brokers today, generating approximately $200 billion in revenue.  Due to a lack of a user interface where brokers can maintain consent with consumers, a requirement of new privacy legislation, data brokers are drastically exposed. Over the next twelve to eighteen months, most of these data brokers will be forced to shutter, driving this $200 billion in revenue into walled gardens such as Facebook and Google as well as complaint data companies such as Killi.
 
With many U.S. states imposing their own privacy laws, and data not respectful of these geographic borders, logistical and legal issues make it extremely difficult for companies to remain compliant across state lines. A recent survey of 1,000 business professionals revealed that 62.4% did not think their companies were “completely compliant” with applicable data regulations.
 
Summarizing KIlli’s progress to date and views on the overall industry, CEO Neil Sweeney concluded: “We are at a crucial crossroads for the consumer data industry. Consumers prefer not to have their data amalgamated and sold without their consent, but this opaque arbitrage of consumer data powers the entire data market.  The high opt-out rates of Apple users in iOS confirm that 96% of Americans do not want to be tracked, but yet the entire $245 billion data market is based on access to this data.  Compounding this further are changes to privacy law requiring companies to gather consent.  These two conflicting facts, a desire not to be tracked and an industry that requires tracking, are on a collision course that will result in the largest disruption in the data market that the industry has ever seen. The industry has not properly re-positioned itself for these shifting tides and is fiddling while Rome burns.  We believe we are only at the start of what will prove to be a potent long-term secular shift that Killi stands to benefit from enormously.”
 
About Killi Ltd
Killi Ltd. (TSXV: MYID) (OTCQB: MYIDF) is a company driven by consumer data and privacy evolution. Offering compliant, first-party data to brands & agencies, platforms, and data companies, Killi allows consumers to visit the platform, confirm their identity and unveil data that has been collected and sold on them for years. Kill enables consumers to take back control of this data by setting up a Killi account where, should they choose to, consumers can be compensated for using their data.
For further information, please contact:
Neil Sweeney, Founder and CEO
1-855-908-DATA
E: investorrelations@killi.io
 
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accept responsibility for this news release's adequacy or accuracy.
Forward-Looking and Other Cautionary Statements
This news release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving several risks and uncertainties and are not guarantees of the company's future performance. Actual results and future events could differ materially from those anticipated in such information. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Except as required by law, the Company does not intend and undertakes no obligation to update any forward-looking statements to reflect, in particular, new information or future events.




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