CEO: David Lucatch
WSA: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Analyzer. Joining us today is David Lucatch, the CEO of Yappn Incorporated. The company trades on the OTCQB ticker symbol YPPN. Thanks for joining us today there, David.
David Lucatch: Thank you, Juan.
WSA: Great. Now, starting off, please give us a history and overview there of the company for some of our listeners who are new to your story.
David Lucatch: Well, thanks, Juan. Well, it’s very simple. We make language matter. Today, there is 2.8 billion people online and growing, and most of the people online, in fact the vast majority don’t speak English, don’t converse in English, don’t chat in English, and don’t conduct business in English. We help businesses, and corporations, and enterprises engage with those people in their native language in real time.
WSA: Great. And so, can you talk about some of your Q2 highlights that you’ve recently put out. You have a program going on with Digital Widget Factory?
David Lucatch: Yes, thank you. Digital Widget Factory is a global brand that basically creates portals and traffic opportunities for people to engage with other sites around the world, and they’ve been doing this for many years. They approached us late in 2013 and asked us if we could build an ongoing program. And initially, it conflicted with some of the development in our e-commerce space for real time engagement.
So, by the end of 2014, Q2 for us in the calendar around November, we came to terms with Digital Widget Factory that we would build 200 sites in 2015, and increase that number over the next three years, and basically manage a program with them that would allow people to view content in their native language. So, one that means if you were sitting in the US and your browser was set to Spanish, even if the content of the site was in English, you would automatically see it in Spanish and be able to engage fully in Spanish or in Vietnamese, or Korean, or any other language in real time. And it would be timely content, engaging content, and it would be really content that was associated with e-commerce, which is the mainstay of Yappn.
So, we’ve started that program, very happy to report that in Q2 which is the end of November, we had started revenue in that program, all be it, it was 73,000 but by December which in a subsequent note, we had seen 134,000, and that continues to grow on a healthy basis, and we’re looking forward to getting to numbers that were in the press release on December 1st, we just talked about a $3 million first year program.
WSA: And what are some of the other key trends that you’re focusing on right now in the sector and how is the company positioned to capitalize?
David Lucatch: Well, we think that e-commerce globally is the big, big opportunity and we’ve seen that with Alibaba recently with their growth in China. And Alibaba, while they’re talking about coming to North America and other places, there’s so much growth in China that we think that will be a huge opportunity for them to stay in that region for the short term. We’re seeing companies in that region, in Europe, in South America, and even in the US and Canada coming to us, and saying, we want to be able to engage our customers in another language.
And it sounds really easy. It’s not as easy as it sounds because when you see a website today, you see a website and it’s usually translated by Google or Bing but e-commerce is not the same. It’s behind a firewall and easy to say that it needs some support to get that language and get it. So, what we do is we help companies–our mainstay of our business is to help companies enable their marketing, their sales, and their support in the language of the users choice. So, we see that trend continuing and growing.
I mean, the space is a $37 or $38 billion space. Right now just in language services according to Common Sense Advisory, and we see that growing exponentially, and we see e-commerce going exponentially. So, you no longer will saturate your market. Domestically, we can now help you sell anywhere in the world immediately because we know that FedEx, UPS, and even USPS ship anywhere.
WSA: Right, yeah. Well, the possibilities are endless there. And so, what are some of the other key factors you feel make the company unique from some of the other players in the sector?
David Lucatch: Well, we’re built. One of the big keys is that we’re built. We’re built and technologically able to execute today. So, we’re not talking about what we’re going to do. We’re able to do that today and we are executing on our technology that is proprietary, robust, real time, and has been technologically vetted by companies globally. I mean, in Q2, we did an event. It may have been – yeah, it was Q2. We did an event with Daymond John, one of the Sharks (from the TV show Shark Tank). And Daymond continues to be a business partner of ours, and we also did one for IMDB and Amazon. We did – in Lionsgate, we did the John Wick chat with Keanu Reeves. So, we’re already in the space and able to go forward.
So, we’re on a growth trajectory because we’re ready to go. We don’t have to go and build anything. So, now, we’re in revenue. We’re not in development any longer. So, I think that’s a key factor for investors and other people to look at is that we have the ability to grow today, not have to look to tomorrow to build, and then grow.
WSA: Certainly. And perhaps, you can walk us through your background and experience, David, and talk a little bit about the management there at YPPN.
David Lucatch: Super. Well, thank you. We’ve been in the Internet space, most of us for almost 20 years since its infancy. We helped develop an early stage payment technology and banking technology that really gave us the basis for security and understanding the consumer market and the business to consumer market. Most of us come from either a traditional design and development background, and/or marketing background with technology.
So, we’re well positioned. Our CFO is a well-seasoned CPA and our Head of Technology has worked with some of the biggest companies worldwide. So, we’re well positioned to understand the space. We’ve worked with major corporations in entertainment, non-profit, technology. So, we’re seasoned veterans that understand the technology space, understand the business space, and understand the marketing base so that we’re able to execute on the products that we’ve developed.
WSA: And what are some of the key goals and milestones that you and your team are hoping to accomplish over the course of the next six to 12 months?
David Lucatch: Well, first of all, with the DWF Project, we want to stay ahead of that statement that we’ve made that it’s a $3 million opportunity. We think it could be, you know, potentially significantly larger than that. That’s a big focus for us because again, if you’re consuming content, we get e-commerce.
Our next area of focus is obviously our e-commerce business and we’re seeing a lot of traction early on in that space, and I think there’s a lot of opportunity for us to communicate to the investment community in the next few months about what we’re doing. So, e-commerce is continuing to grow. And our goal is to really focus on growth and revenue because, again, we’re out of the development phase.
WSA: Right. And so, when it comes to investors and the financial community, David– as you know, it is the pretty original story, do you believe that your company profile and message and the upside potential are completely understood and appreciated by them? And if not, what do you wish they better understood about the company?
David Lucatch: Well, I think it’s a challenging story to appreciate immediately because most people, especially your listeners, will listen in English. So, let’s say, well, you know, we’re doing business in English, I can communicate in English but I think that’s the challenge, but I’m going to give you a very, very interesting factoid.
So, I think we’ve all probably seen or most of the listeners and the investors have probably seen one of the major blockbusters like Iron Man, or Avengers, or Thor, or Captain America. Most of those movies, and we do work with Disney Corporation, Disney Studios, and in most of that work, all those films do about a billion dollars worldwide, and that’s usually verified, but domestically, they do about $350 million, about 35% in a ramp. So, the balance is done globally. What’s really interesting about that is I think we’d all agree that they’re produced out of Hollywood, California. Won’t you agree, Juan?
WSA: Yeah, of course. I mean, that’s what it seems like.
David Lucatch: Right, exactly but if you go to Southern California, the biggest television broadcaster in that region is now Univision. It’s a Spanish broadcaster.
David Lucatch: Right. So, think about that. And the other thing to think about is in the last ten years or last 15 years, Harley Davidson, the motorcycles have got lower to the ground because more people of shorter stature are buying those bikes. So, the market changes to the demand.
David Lucatch: With 2.8 billion people online today, 800 million speaking English and approximately 300-million in North America speaking English of that 800 million, your market is not necessarily an English market if you’re growing as a global business. You can ship anywhere. Now, it’s time to start communicating with your customer in their language of choice.
So the story will get easier and easier to understand as people understand globalization. One of the big, big feathers in the industry’s cap is that recently Skype announced that they’re going to do translation right inside of Skype. That will allow people to communicate with anyone around the world. Now, our technology allows them to sell to anyone in the world.
WSA: Well, good. And once again, joining us today is David Lucatch, the CEO of Yappn Incorporated. The company trades on the OTCQB ticker symbol YPPN. Currently trading at six cents a share. Market cap is north of seven million. And before we conclude here, David to recap some of your key points, why do you believe investors should consider the company as a good investment opportunity today?
David Lucatch: Thank you, Juan. One is our technology is built. Two is we’re in the e-commerce space, global e-commerce space which is a massively growing industry. Three, we’ve already got contracts and are showing performance against our contracts, and we believe we have strong revenue growth opportunities. Those growth opportunities will allow us to accelerate our development and growth in the sector. So, we believe we’re a great opportunity for investors to look at if they’re looking at young, dynamic companies with a global outlook.
WSA: Well, we certainly look forward to continuing to track the company’s growth and report on your upcoming progress. And we’d like to thank you for taking the time to join us today, David, and update our investor audience on Yappn. It was great to have you on.
David Lucatch: Thank you so much, Juan, I appreciate it.