Reklaim Ltd. (MYID.V) Earnings Call Transcript & Summary

Neil, thanks for being with us today.

Thanks for having me on.

Now Killi is bringing much needed transparency and consumer compensation to the massive data industry. You've been dubbed the Robinhood or Uber of consumer data. Let's start with an overview of your platform.

Sure. So as I'm sure most of your viewers will understand is that data is being collected on them 24 hours a day, 7 days a week based on the various different platforms that they engage with. This pervasive collection means that every single adult in the United States and around the world has a data profile that is being sold for approximately about $6,000 per year. That usually tends to elicit a pretty visceral reaction from the consumers. What our philosophy has always been is that we believe data is property. As you will likely imagine, is that property is actually written into the U.S. Constitution. Consumers are getting no compensation for the use of that data, and it's really being treated as a free cost of good for a number of businesses, who're using it to make billions and billions of dollars. So really, what we're trying to do for consumers around the world is give them a platform and a destination where they can vend in and take back control of what's rightfully theirs. And simplistically, that's their data. In doing so, they can opt out, they can change the data, and they can obviously opt-in to be compensated for the use of that data, which we believe is a redistribution of wealth back to the individual consumer-based on something that's rightfully theirs.

So today, you have data on people in about 6 countries. I think in the U.S., you have data on just about everyone in the country. Is that correct?

That's correct. So just picking up on that last statement is that there is already a digital profile on all of us that's being used today. What we've done at Killi is we've gone out into the market, we secured each of those individual profiles, and we brought them to the Killi ecosystem really with the idea of actually shining light on this data for the first time for consumers. Consumers can come to Killi, they can put in what's called an identifier. So simplistically, they can put in an email address. Once that e-mail is validated that it's owned by you, the consumer, we will then unveil all of the data that is being collected and sold without your involvement. It's shocking. I will tell you that. There's upwards to 260 different attributes on consumers. So really, we believe we're the only company and the first company that's really ever taken this ambitious step of exposing this, what we call black market of data.

Let's talk about the business model. I know that these profiles, individual profiles are worth about $6,000 annually to these data sellers and collectors. Is that correct?

Correct, and it's growing at a rate of about 30% per year. And I think the important piece for people to understand is that it's been commoditized naturally, because the consumer is not involved in the negotiation. We could probably sell your neighbor's house, the 2 of us, we could probably come to a deal pretty quickly. But once your neighbor got involved in that negotiation, I suspect that the actual price would probably go up. This is the same thing with data is that when you look at the data market today, just to give you a quick stat, perpetual location data, that which is tracking you in 24 hours a day sort of 7 days a week, trades in the market for less than $0.01 per month. No consumer in the right mind was that anybody tracked their location for 24 hours a day, 7 days a week for $0.01 per month. So we think that by including the consumer in this actual negotiation that there will be massive sort of accretion in regards to the actual pricing of the actual -- of the data as well.

Okay. And how do you make money?

So simple. Every brand in the world and every platform in the world uses data today. They pay for that data. For us being the broker between those 2 worlds by providing this platform to allow a brand to buy data directly from the consumer, we take a commission. So we work directly with the consumer on a 50-50 rev share. So again, staying true to our mantra, trying to be fair and equitable. So simplistically, if Procter & Gamble or Unilever spends $1 on data, $0.5 would get redistributed back to the consumer, $0.5 would come to us. And we would rinse and repeat for pretty much any advertiser or a platform or a brand that was looking to buy that data.

This is a revolutionary model. No one else is doing this, correct?

No one else is doing it. And I would say that it's not an easy thing to do. For us, what we believe the gap in the market is, is that we believe that there's universal acceptance amongst consumers around this concept. I think if we were at a cocktail party, had a conversation about what we do for a living, people tend to lean in to think what you're creating a platform that's allowing me to have access or control of my data. Interesting. So I think this idea of universal acceptance, we feel every consumer believes in. The gap, though, is that there hasn't been universal action. And part of the reason for that, we believe, is data is something that you can't hold in your hand. It's not tangible. It tends to operate kind of behind closed doors. But also, we believe, this is the reason that there is no action, is that there is no destination. Coming back to your reference of us being the Robinhood of data or the Uber of data. When you look at those business models, they provided a very simple, clean consumer interface and a very simple clean consumer narrative for people to understand trading or understand transportation. There is no such brand as it relates to data. Our goal is to become the consumer face of data to really give people a rallying spot from which they can come to see the data, edit the data, voice their displeasure with big tech, et cetera. So we think it's a really important piece for the world. And for -- to just give you a sense of the size and the scope of this model, this is a multitrillion dollar a year model. Every single person on the planet over the age of 16 can potentially be a client of Killi. Why? Because every single person over the age of 16 has a data profile that is currently being arbitraged and sold without their involvement.

Is there a mechanism in place, let's talk about the U.S. or regulations in place that would allow the consumer to say, you can't use my data, because your model is -- you're going to -- if you want to sell your data, you can, but you're going to get a piece of it, and you're going to make sure they do that?

So I think when you look at the United States, the United States is the biggest data market in the world by far. It's a bit of a wild west as it relates to regulation as well. I think when you go back in time a couple of years and you see what's happened in Europe, specifically around the privacy legislation that has been enacted there. What's happened is that set off a tsunami of regulation around the world. And that came ashore in California last year with the California Consumer Privacy Act. And without boring with all the details about the privacy legislation because nobody wants to talk about that. The point is that every privacy regulator around the world is realizing this sort of data arbitrage that's happening, and they're rewriting privacy law to put the consumer at the center of this. The problem with the United States is that there is no federally driven policy, which means you have 50 individual states with different agendas. There's positives and negatives around this. The positive is that every state is actually rewriting privacy laws to include the consumer. The negative is that it's creating chaos for anybody who's trying to manage privacy and regulation in order to run their business. The other problem, which we believe is going to happen is that it's going to set off a series of lawsuits for people that have been collecting data from consumers. You could argue that a lot of these large data firms are staring down the barrel of 50 individual class action lawsuits from the individual states. So we believe this is a huge disruption that is coming to the market. From a consumer perspective, yes, you can opt out or you could ask to be compensated. But really, there -- that -- the rule around compensation has not been enacted. There are people like Andrew Yang, which you'll be familiar with, who was running for President, who believes in this notion of the data dividend. We are very much aligned in the same sort of thinking. They have a bit more of a litigious approach, whereas we have a more consumer approach. But our core philosophy here really is about trying to create that universal platform for consumers to bend in and we think it's a movement. If every consumer bends in, it puts pressure on brands to buy data that includes the consumer and it puts pressure on those companies that are actually not including the consumer to find consent and/or get out of business.

Okay. Neil, talk to us about your background, you're serial entrepreneur, give us some flavor on some of the things that you've done?

I've been in the space now for close to 20 years. I think we have a bit of a trend here where Killi as a company was actually incubated inside of a larger company, my last company, which is a company called Freckle. Freckle was a big data company that was incubated inside of my last company, a company called JUICE and so on and so forth. So we pride ourselves on kind of building what's next, not what's now. Really building the technology in the future, commercializing that and bringing that to the market. I think through the 4 or 5 different companies that I've started over the last 20 years, we have a very clear reputation of being thought leaders in this space and incubating this leading edge technology.

Excellent. I want to close out today with your giving us a look at the big picture. What's the essential value proposition? Tell us about near-term catalysts as well.

Well, I think the value proposition is that as we can appreciate, consumers don't like being taken advantage of. Nobody likes that. And currently, today, in the data market, that's exactly what's happening. So the proposition for Killi is really, we're giving you an opportunity to take that control of you from them, them being the big technology companies, the big data companies who've been collecting your data. We think that, that's just the right thing to do. The secondary or tertiary transaction is you can opt out having your data being sold. You can edit your data, you can be compensated for your data. We think that there's an endless list of positive things that come with the data being in your hands as a consumer. So that's a big deal. We think that just sort of unveiling the data for the consumer is a huge catalyst. Just the idea that we have a record on every single adult. Any adult in the United States can come to this platform, put in an e-mail address and see their data for the first time. We think that, that's dramatic. We're talking hundreds of millions of profiles. This is in tens of millions of profiles. So it's a huge, huge initiative. And we also believe that's kind of down the road, looking at where redemption options are such as sort of the implementation of some emerging banking trends in the fintech space, whether it's the addition of Crypto for consumers to be compensated in that. White label banking solutions where you can have your on Killi Visa card or bank card. Those are all important. And I would stay tuned to kind of how we increasingly double down on this trend towards becoming the default brand for consumers around data. That's our destiny. That's our goal. I talk internally all the time is that we want to plant a giant flag in the middle of the field where everybody knows that when you think about consumer data, you think about Killi.

Neil, it's a fascinating story. It's going to be very interesting to watch and unfold. Thanks for being with us today.

Thanks for having me.