Albert Technologies wins new agency contract but losses persist

Albert Technologies increased revenues 653% in 2017 and announced a new agency contract but the artificial intelligence marketing outfit continues to operate at a loss.

With revenues up to $1.7m and revenue costs rising roughly in line at 761% to $284,000, Albert’s operating loss stems from increased investment in research and development, up 61% to $5.6m, and marketing expenses which were up 39% at $5.4m for the period.

Recruiting additional employees and investment in its US operations to “support current business opportunities and future growth” was behind a lot of the costs.

As such, the company, which floated as Adgorithms in 2015 and last summer changed its name to that of its self-driven marketing and advertising platform, saw a 36% increase in operating loss up to $11.4m.

Chief executive Or Shani said: “Albert - our unique proprietary technology benefitting from seven years of R&D - is gaining industry recognition for its transformative ability to drive performance and efficiencies throughout the marketing chain. During 2017 we signed important contracts with global brands and agencies and we have started 2018 with a strong pipeline of new business activity.”

A new 12-month contract announced by Albert on Monday will see the company’s AI marketing platform manage online advertising campaigns for several brands served by the agency, with Albert expected to generate a minimum of $300,000 of annual SaaS fees through the deal. Albert said it has been working with the unnamed agency since the middle of 2017, yielding “excellent results” as the agency deployed Albert’s AI platform for one of its brands.

“This significant contract win reflects further progress in fulfilling our strategic goal of working with leading advertising agencies. Our technology simplifies the process of delivering effective digital campaigns for agencies and the brands they work with,” said Shani.

Albert's AI marketing platform, which is the “world’s first and only” such marketing platform according to the company, has also been used by brands including Harley-Davidson, Natori, and Dole Asia.

As of 0922 GMT, Albert’s shares were up 6.41% at 41.50p.