- California’s Consumer Privacy Act, Privacy Rights Act, and Europe’s General Data Protection Regulation represent a changing data market
- Reklaim is a leader in compliant data with a comprehensive platform that allows consumers to re-take control of their data and be compensated should they decide, it can be bought and sold
- Reklaim’s revenue jumped 277% year-over-year to $645,008 in Q2 as the company grows organically and explores accretive M&A opportunities
In years gone by, not long ago, companies were quietly hoarding as much data as possible from consumers, then promptly selling it for the maximum amount with little to no concern if the consumer liked it or not. Thankfully, a paradigm shift is happening with new privacy laws in North America, namely the California Consumer Privacy Act (“CCPA”) and the California Privacy Rights Act (“CPRA”), and Europe with its General Data Protection Regulation (“GDPR”), paving the way for litigation against data companies if they don’t comply. That has created an opportunity for companies like Reklaim (TSX.V: MYID) (OTCQB: MYIDF) to burst on the scene with an innovative privacy-compliant identity ecosystem.
Unable to secretly swipe consumer data, many companies in the data space find themselves in unfamiliar territory with little infrastructure to communicate with consumers. There is no skirting the laws, which undergirds why Reklaim believes many of these firms coping with the changing regulatory climate “will suffer significant revenue declines, and those without a compliance partner will likely cease to exist.”
The implications are tremendous. Consider that Facebook parent Meta said it expects a $10 billion write-down on revenue in 2022 because of changes Apple made to halt user tracking on external applications. To be clear, Apple’s App Tracking Transparency feature doesn’t stop all data collection, but it did upend the $200 billion US data market and caused data users to scramble to rethink strategies, just like they have to do with the shifting regulatory landscape.
For enterprise software juggernaut Oracle, a massive class-action lawsuit has been filed alleging privacy violations for collecting, profiling, and selling data on five billion users worldwide. Further evidence of the trend is shown in the Federal Trade Commission filing a lawsuit against data broker Kochava Inc. for selling geolocation data from mobile devices that identified people at places of worship, addiction clinics, domestic violence shelters, and other highly sensitive locations.
Reklaim is an eye-opener, allowing consumers to log in to their platform and confirm their identity, unlocking data collected on them, bought, and sold for years without their explicit consent. At that point, consumers can take control of their data and, if they choose, receive compensation for its use. With consent secured, Reklaim offers the data to Fortune 500 brands, platforms, and data companies. The company also has a subscription service for consumers that shrinks the amount of data leaking from their devices and delivers alerts on password and third-party data breaches.
As described by Sophic Capital, the supply of data is dramatically shrinking owing to new laws and actions of Apple and Google, which are planning on banning third-party cookies in Chrome, which will remove 65% of tracking from 1.8 billion websites on the open web today; further complicating companies trying to monetize data. Compliant data is not going to be the gold standard; it will be the only standard for brands to walk confidently within the parameters of the law. Reklaim also provides the ability to scale compliant targeting marketing initiatives with its database of compliant data for 350+ million profiles in the U.S. alone.
With the CCPA and CPRA going into effect shortly, business is picking up at Reklaim. During the second quarter, total revenue increased 277% to $645,008 from Q2 0221 and 65% from the first quarter of 2022. Recurring revenue accounted for 85% of the total revenue in Q2 2022 and was up 87% during the year’s first half compared to a year earlier.
According to Reklaim CEO Neil Sweeney, the company is focused on driving costs out of operations and exploring strategic acquisitions that can be immediately accretive to bolster the top and bottom line at a time when the compliant data market is about to go through a growth spurt. Realizing a “strike when the iron is hot” opportunity, Reklaim intends to increase its sales force to meet demand and foster further organic growth.
The addressable market in the U.S. is transformational on its own. However, this is global. Market research firm Gartner forecast in May called for a regulatory evolution that will result in 75% of the worldwide population having its personal data covered under privacy regulations by the end of 2024.
For more information, visit the company’s website at www.ReklaimYours.com.
NOTE TO INVESTORS: The latest news and updates relating to MYIDF are available in the company’s newsroom at https://ibn.fm/MYIDF
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