Verb Technology Company, Inc. (Nasdaq: VERB) ("VERB" or the
"Company"), a leader in interactive video-based sales
enablement applications, including interactive livestream
ecommerce, webinar, CRM and marketing applications for
entrepreneurs and enterprises, released a letter to shareholders
from Chairman & CEO Rory J. Cutaia. The complete letter, dated
April 23, 2021, follows:
Dear Friends and Shareholders,
I wanted to take this opportunity to share my
excitement with you as we drive toward the realization of our
shared vision for your company – yes - your company – VERB is as
much your company as it is ours. I’m referring to the vision that
launched a multi-year journey culminating in the development of
assets and the commercial release of products that we believe will
produce both near-term and long-term value for you, our
shareholders, whom we consider our co-owners, as well as for
ourselves. Meaningful value. Indeed, virtually all of us here at
VERB are shareholders, and as such, our interests are in complete
alignment with yours.
Here’s what I will cover in this update:
- Our 2020 Report
Card – Performance Quantified and Achievements
Recognized.
- Our 2021 Performance
Outlook – $15M more cash in the bank and Q1 off to an
impressive start.
- verbLIVE – The
burgeoning market for livestream ecommerce coupled with
accelerating changes in consumer behavior, and why I believe we are
well positioned to lead this exciting and lucrative new ecommerce
phenomenon.
- Our 2020 Report Card
- 2020 SaaS Recurring Revenue
– Up 82% over the prior year. The amount and rate of
growth of SaaS recurring revenue are the most important measures of
value for any software business. While we believe our 2020 rate of
growth in our core business was impressive, especially in light of
the challenges imposed by a global pandemic, we anticipate even
greater growth this year.
- Total User Downloads
– up more than 250% over the same period last
year. Now more than 1.93M.
- We completed the accretive
acquisition of SoloFire, a leading SaaS sales enablement platform
for healthcare and life sciences sales. This
acquisition provides us with immediate entry into the lucrative
medical and life sciences sales market, which we believe is one of
the largest and fastest growing markets for the sales enablement
software industry. 2020 proforma revenue for that platform was $1M,
though we were only able to recognize $130,000 in 2020 due to GAAP
revenue recognition rules. However, we will be able recognize most
of that revenue this year together with the anticipated and ongoing
additional sales growth we expect to generate from that new
vertical.
- verbLIVE now fully
integrated with the Salesforce platform and available on Salesforce
AppExchange.
- VERB was the winner of the
Salesforce AppExchange Demo Jam Contest for best Salesforce
productivity app.
- In July 2020, we closed an
underwritten public offering of common stock without warrants for
gross proceeds of $13.8M to beef up our balance
sheet.
- VERB was selected for
inclusion in the Russell Microcap® Index.
- Our 2021 Performance Outlook – Q1 off to an impressive
start
- Our Microsoft Outlook
integration of VERB interactive video sales technology is now in
public beta testing, with imminent commercial
release. Our Microsoft Outlook VERB App add-in
availability is anticipated through Microsoft’s Commercial
Marketplace and Co-Sell program with Microsoft’s field sales reps.
Assuming we can gain access to Microsoft’s Co-Sell program, which
based on our communications with Microsoft appears likely, this may
be one of the most important revenue and value creators our Company
may experience this year and beyond, among a strong field of very
promising catalysts.
- Q1 2021 unaudited projected
results indicate more than 30% SaaS recurring revenue growth over
Q1 2020 and up more than 10% over Q4 2020.
- We launched verbTEAMS for
small businesses and solo entrepreneurs, a new self-onboarding
content management and customer relationship management platform
with integrated verbLIVE livestream ecommerce capability and
one-click synchronization to Salesforce.
- Healthy Balance
Sheet – Last month we
closed a registered direct offering for straight common
shares – with no warrants - for gross proceeds of $15M to further
enhance our balance sheet.
- VERB’s sales enablement
platform was ranked #1 by Social Selling News. We led the
list with over 100 direct selling clients - almost double our
closest would-be competitor, confirming our dominant position as
the best performing, most requested sales platform for the direct
selling industry.
- ESG – We have
accelerated our environmental/social/governance initiatives here at
VERB, demonstrating with actions – not just – words – that
companies at any level, at any scale, can and should take
responsibility for change – real change – change that leaves our
world in a better place than where we found it – for ourselves and
our children. This year we’ve already undertaken a number of ESG
initiatives, including helping entrepreneurs and small companies
all over the country recover from the impact of COVID-19 on their
businesses; we’ve also helped young Olympic hopefuls realize their
dreams, and in so doing inspire so many others, among many, many
other initiatives through our Verb For Humanity project.
- verbLIVE
- Marketplace – How
do you take livestream ecommerce technology and make it even more
fun, engaging, social, entertaining, compelling, and lucrative?
Create a 24/7 online destination where anyone can go to experience
scores of simultaneous interactive livestream presentations hosted
by retailers, consumer brands and influencers across numerous
categories, where viewers/customers/fans and followers can go in
and out of live events, converse with hosts and other shoppers in
real time - browse, shop, chat and simply enjoy the experience of
the next generation of livestream ecommerce. That’s VERB
MARKETPLACE - it’s built and in active beta testing with numerous
retailers. This will be a new revenue model for us as we will
participate in the volume of sales generated through the
platform.
- Attribution Technology
– We are nearing completion of our Attribution Technology
which we believe elevates the already exciting livestream ecommerce
experience to greater heights. Think about the benefits of an
affiliate marketing program on steroids. With our attribution
feature, sales reps can invite their clients, customers, and
prospects to watch a colleague’s verbLIVE event knowing they will
get credit for any purchases made by their clients, customers, or
prospects at their colleague’s verbLIVE event. Think about how this
will drive conference attendance and revenue generation, among
other revenue generating applications and opportunities. And think
about how this technology will impact participation in VERB
MARKETPLACE. This is our technology; we developed it and it further
demonstrates our commitment to the leadership position in the new
generation of SaaS sales enablement and ecommerce paradigm.
- $1M a year
clients. This year we’re seeing the average client and
deal size increase dramatically, as we target and attract larger
businesses for our products and services. We’ve now signed our
first $1M-a-year revenue potential client, driven by our verbLIVE
product and have several more in our sales pipeline. We’re also
adding many more salespeople as we have a clearly defined path to
ROI per sales rep.
In addition, we’ve recently added several
product professionals, creating a deeper bench for our product
teams, and revamped our entire development team and processes,
moving to an agile environment which has not only resulted in a
more efficient, effective, rapid, and higher quality development
cycle, but also resulted in significant cost savings. These cost
savings will help us execute our current plan to reduce our burn
and drive aggressively toward cash flow positive status through a
reduction in operating expenses quarter over quarter, coupled with
higher topline revenue generation.
I’m also happy to report that our shareholder
base has expanded dramatically – almost three-fold - from
individual retail investors, to a broad array of funds, family
offices, and other institutional investors, which now comprise more
than 12,500 shareholders.
We have built greater liquidity where we
regularly see trade volume average more than 1.8 million shares per
day. We attribute this to the greater awareness we’ve generated
among the investment community, coupled with the passion and
loyalty of our long-term shareholders, without whose support, none
of our accomplishments could have been possible.
The senior management team of our Company,
including our Board of Directors, believe deeply in the future of
our Company and the meaningful value we intend to unlock together.
We believe that is evidenced by the fact that none of us has sold a
single share of the Company’s stock as well as the fact that much
of our compensation is comprised of VERB shares in lieu of
cash.
We also recognize that value doesn’t happen
overnight, and there will be volatility along the road. But we
continue to build assets, develop leading-edge, monetizable
technology, invest in accretive acquisitions, and attract and
recruit top-tier talent, as our people remain the heart and soul of
VERB.
We are now close to 200 strong and we all live
and breathe VERB every day, driven by the excitement of what we’re
building for you and us, and motivated by the tangible progress
that we now see each and every week. In closing, I thank you for
your continued trust and support. We’re making this happen –
together.
Sincerely,
Rory J. CutaiaChairman & CEOVerb Technology Company,
Inc.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
This communication contains “forward-looking
statements” as that term is defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties and include, without limitation, any
statement that may predict, forecast, indicate or imply future
results, performance or achievements, and may contain words such as
“anticipate,” “expect,” “project,” “plan,” or words or phrases with
similar meaning. Forward-looking statements contained in this
communication relates to, among other things, the Company's
projected financial performance and operating results, including
SaaS Recurring Revenue, as well as statements regarding the
Company's progress towards achieving its strategic objectives,
including the successful integration and future performance of
acquisitions and performance of SoloFire, Microsoft Outlook
integration, and development of verbLIVE. Forward-looking
statements are based on current expectations, forecasts and
assumptions that involve risks and uncertainties, including, but
not limited to the COVID-19 pandemic and related public health
measures on our business, customers, markets and the worldwide
economy; our plans to attract new customers, retain existing
customers and increase our annual revenue; the development and
delivery of new products, including verbLIVE; our plans and
expectations regarding software-as-a-service offerings; our ability
to execute on, integrate, and realize the benefits of any
acquisitions; fluctuations in our quarterly results of operations
and other operating measures; increasing competition; general
economic, market and business conditions. If any of these
risks or uncertainties materialize, or if any of our assumptions
prove incorrect, our actual results could differ materially from
the results expressed or implied by these forward-looking
statements. Investors are referred to our filings with the
Securities and Exchange Commission, including our Annual Reports on
Form 10-K and Quarterly Reports on Form 10-Q, for additional
information regarding the risks and uncertainties that may cause
actual results to differ materially from those expressed in any
forward-looking statement. All forward-looking statements in this
communication letter are based on information available to us as of
the date hereof, and we do not assume any obligation to update the
forward-looking statements provided to reflect events that occur or
circumstances that exist after the date on which they were made,
except as required by law.
About VERB
Verb Technology Company, Inc. (Nasdaq: VERB) transforms how
businesses attract and engage customers. The Company’s
Software-as-a-Service, or SaaS, platform is based on its
proprietary interactive video technology, and comprises a suite of
sales enablement business software products offered on a
subscription basis. Its software applications are available in over
60 countries and in more than 48 languages to large enterprise and
small business sales teams that need affordable, easy-to-use, and
quick-to-get-results sales tools. Available in both mobile and
desktop versions, the applications are offered as a fully
integrated suite, as well as on a standalone basis, and include
verbCRM (Customer Relationship Management application), verbLIVE
(Interactive Livestream eCommerce and Video Webinar application),
verbTEAMS (a Self On-boarding version of verbCRM with built-in
verbLIVE and Salesforce synchronization for small businesses and
solo entrepreneurs), and verbLEARN (Learning Management System
application). The Company has offices in California and Utah. For
more information, please visit: www.verb.tech.
Investor Relations Contact: 888.504.9929
investors@verb.tech Media
Contact: 855.250.2300, ext.107
info@verb.tech
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