Growth Metrics

Total Transaction Value

Total Transaction Value refers to the face value of goods, services and gift cards purchased via the OODLZ platform. OODLZ closely monitors Total Transaction Value as a lead indicator of Commissions.

Total Transaction Value may not convert to revenue as some transactions could subsequently be declined for a variety of reasons, mainly being the return of goods, services or gift cards, or in the case of travel, cancellation of bookings.

In respect to travel, Total Transaction Value is typically recorded well in advance of travel revenue being recognised, as the revenue is only recognised once the Merchant Partner provides the User with the travel service.

Total Transaction Value (including gift cards and travel) should increase with a robust Active User and Merchant Partner acquisition strategy (including the network effect from the tri-sided value proposition) and new and improved product development.

Total Transaction Value exhibits some seasonality aligned with annual events based on operational Country. E.G. Black Friday and Cyber Monday in November, and the holiday period including Christmas, Thanks Giving and Boxing day in December.

Gift card contribution to Total Transaction Value

We expect Gift Cards to contribute approximately 20% to Total Transaction Value. However the revenue contribution is immaterial, as we estimate this to only account for approximately 3% to revenue, due to a revenue margin of 0.2% on Total Transaction Value.

OODLZ should earn a rebate of approximately 0.2% on the face value of the gift cards sold. This differs to the core Cashback model where OODLZ earns a Commission, from which it pays Cashback to Users.

The alignment with OODLZ’ core Cashback mechanic will enable Users to accumulate more Cashback and enhance OODLZ’ core value proposition for both Users and Merchant Partners.

OODLZ assumes no additional credit or fraud risk as the purchase and supply of gift cards will be managed by a third party.

Commissions

OODLZ’ Commission from Merchant Partner sales is directly linked to the Total Transaction Value of sales processed via the OODLZ ecosystem.

The Total Transaction Value of Cashback sales not only defines the Commissions Users receive but also provides a key indicator on DeFi forecasted usage and commissions from the OODLZ Earn products.

User spend

The revenue generated from Active Users in their first year of transacting should consistently expanded over time. It is the opinion of OODLZ that the increased spend of Active Users will be a result of OODLZ bringing new Merchant Partners into the OODLZ ecosystem and launching new products, such as Card-linked Offers and the OODLZ Earn products.

Maximising User spend, in combination with a growing base of Active Users is fundamental to increasing the financial returns of OODLZ over time.