Thanksgiving demonstrates AHL's positive contribution strategy is on track

NEW YORK, NY and SYDNEY, AUSTRALIA--(Marketwired - December 13, 2016) - AHAlife Holdings Limited (ASX: AHL) ("AHA" or the "Company"), a digital marketplace for premium lifestyle products, is pleased to announce a new company record for the highest sales achieved in one day and a positive variable contribution¹ from sales over the Thanksgiving weekend.

Positive Contribution Strategy

Sales over Thanksgiving weekend reached a total of US310,000, including a record day of US$118,000 on Cyber Monday. Despite total sales being 10% down on the prior year, the contribution from those sales improved from a loss in FY16 to a positive variable contribution¹ in FY17 as a combined result of AHA's customer acquisition strategy and operational improvements which have reduced operating costs.

After several years of building the AHA brand and registered users, the focus for AHA is on acquiring and converting profitable customers. This means selecting specific marketing channels that target customers who repeat most frequently and therefore generate a higher life time customer value. It also means reducing costly investment in paid marketing channels to focus on those segments that generate a positive ROI on the customer's first transaction.

AHA has also recently implemented operational improvements that include reduced marketing offers and promotions, reduced shipping costs, the introduction of a minimum order value threshold for free shipping and the increased automation of roles and processes -- enabling the company to protect cash reserves as it strives towards break even.

Key data for the holiday period:
			Thanksgiving 2016		Thanksgiving 2015
	Average Order Value		US$205		US$196
	Product Margin		50%		47%
	Offers & Discounts		16%		20%
	Gross Margin		43%		37%
	Shipping Charges		6.1%		10.0%
	Paid Search Advertising		US$17k		U$83k
	Revenue Return on SEM2 Spend		$4.50 revenue		$1.78 revenue
			per $1 spent		per $1 spent

Technology Performance