VERB Reports Record-Breaking Digital Revenues in 2020 Third Quarter Financial Results
November 16 2020 - 4:05PM
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, today reported financial and
operating results for the three months ended September 30,
2020.
Management Commentary
“The third quarter continues what has been a tremendously
successful 2020 for VERB,” said Rory J. Cutaia, CEO of VERB. “We’ve
now delivered six consecutive quarters of SaaS revenue growth and
we’re reporting our highest level of quarterly digital revenue to
date. Our successful financial results reflect our continued focus
on our higher-margin SaaS business applications.
“While our third quarter results demonstrate the continued
growth in adoption and deployment of our verbCRM application among
large sales enterprises, verbLIVE, our interactive video-based
livestream ecommerce and webinar product, continues to draw
significant interest, setting the stage for what we expect will be
explosive revenue growth throughout 2021.
“We also successfully completed several strategic initiatives
during the quarter. We completed the accretive acquisition of
SoloFire, which gives us an immediate entry into the lucrative
medical and life sciences sales market. We completed the
integration of verbLIVE into the Salesforce platform. We also
completed the inclusion of verbLIVE in the Salesforce AppExchange
marketplace, expanding our distribution channels by making verbLIVE
available to all Salesforce users. We significantly increased the
number of user downloads both sequentially and year over year, and
during today’s earnings call, we will announce several hyper-growth
initiatives to drive revenue during the balance of this year and
throughout 2021 and beyond,” Mr. Cutaia continued.
Third Quarter
2020 and Recent
Company Highlights
- Completed accretive
acquisition of SoloFire, which develops and markets leading
SaaS-based sales enablement applications for sales representatives
of medical device, diagnostics and life sciences companies. With
strong customer relationships and a proven product that increases
sales productivity and marketing effectiveness, SoloFire’s natural
strategic fit gives VERB an immediate entry into the lucrative
medical and life sciences sales market, one of the largest and
fastest growing markets for the sales enablement software
industry.
- SaaS recurring
revenue of approx. $1.5 million, up 16% over Q2 and up 55% from
third quarter 2019.
- Total Digital
revenue of approx. $1.84 million, up almost 10% over Q2 and up 28%
from third quarter 2019.
- Total Non-Digital
revenue of approx. $1.0 million, up almost 5% over Q2.
- Total combined
revenue of approx. $2.9 million, up almost 8% over Q2.
- Added 16 new client
contracts with a guaranteed base value of $834,000 and almost
$500,000 in annual recurring revenue.
- Six consecutive
quarters of SaaS revenue growth.
- On a pro forma
basis, total SaaS revenue for the first nine months of 2020 was
$4.5 million - up 33% from $3.4 million reported for the same
period last year.
- On a pro forma
basis, total Digital revenue for the first nine months of 2020 was
$5.7 million - an increase of almost 20% from $4.7 million reported
for the same period last year.
- Total user downloads
now at 1.65M, up from approximately 1.49M reported in the second
quarter 2020, and up from 720,000 for the same period last
year.
- Added Market America
| SHOP.COM to growing roster of clients.
- Completed the
integration of livestream ecommerce application
verbLIVE, with the platform of
enterprise CRM giant Salesforce.
- verbLIVE added to
Salesforce’s AppExchange Partner Program.
- Strengthened
executive leadership team with appointments of Kym Nelson, Mitch
Bledsoe and Julie Holdren.
- VERB added to the
Russell Microcap® Index as part of the 2020 Russell indexes
annual reconstitution.
- In July, VERB closed
an underwritten public offering of common stock for gross proceeds
of approximately $13.8 million, including full exercise of the
underwriter's over-allotment option to purchase additional
shares.
- Launched Verb For
Humanity as part of a continuing and growing commitment to its ESG
initiatives.
Financial ResultsThree Months Ended
September 30, 2020
- Total
Digital revenue was $1.8 million, an increase of 28% from
the same quarter last year and an increase of almost 10% from the
prior quarter.
- Total SaaS
recurring revenue (a component of total Digital
revenue) was $1.5 million, an increase of 55% from the same period
last year and increase of 16% from the prior quarter. SaaS
recurring revenue as a percentage of total Digital revenue was 80%,
compared with 66% for the same period last year.
- Total
revenue was $2.9 million, in line with revenue for the
same period last year, but reflecting the Company’s strategic
change in revenue mix with a substantially higher percentage of its
revenue, approximately $400,000, coming from its digital
applications business.
- Cost
of revenue was $1.3 million, a decrease
of 12.5% from $1.5 million for the same period last year.
- Research and
development expenses were $2.4
million, almost double the $1.2 million for the same period last
year. The increase was attributable to the development of verbLIVE
and enhancements to verbCRM and VERB’s core platform to facilitate
native integrations with Salesforce, Microsoft, and other channel
partners.
- General and
administrative expenses were $6.7 million, approximately
double the $3.3 million for the same period last year, reflecting
increases in stock-based compensation expense and labor-related
costs to support growth, as well as expenses related to the
acquisition of SoloFire.
-
Cash totaled $10.7 million as at September 30,
2020, compared with $983,000 at December 31, 2019.
Conference Call
Information
VERB management will hold a conference call on Monday, November
16, 2020, at 5:30 PM Eastern time, to discuss its results in
greater detail. A telephonic replay of the conference call is
available from 8:30 PM Eastern time on the same day through
November 30, 2020.
Live Call:Date: Monday, November 16, 2020Time:
5:30 PM Eastern time (2:30 PM Pacific time)U.S. dial-in number:
1-877-407-4018International number: 1-201-689-8471
Replay:Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
13712506
The Company filed its Form 10-Q on November 16, 2020 and will
file a transcript of the conference call on Form 8-K. These filings
can be viewed in the Investor Relations section of VERB’s
website.
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), verbLEARN (Learning Management System application),
and verbLIVE (Interactive Livestream eCommerce and Video Webinar
application). The Company has offices in California and Utah. For
more information, please visit: www.verb.tech.
FORWARD LOOKING STATEMENTSThis press release
contains forward-looking statements that involve risks and
uncertainties. These forward-looking statements involve risks and
uncertainties. 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. These risks and uncertainties
include risks associated with: 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; and the risks described
in the filings that we make with the Securities and Exchange
Commission (“SEC”) from time to time, including the risks described
under the headings “Risk Factors” and “Management Discussion and
Analysis of Financial Condition and Results of Operations” in our
Annual Report on Form 10-K, which was filed with the SEC on May 14,
2020, as amended by Amendment No. 1 on Form 10-K/A to our Annual
Report on Form 10-K, which was filed with the SEC on June 4, 2020,
and which should be read in conjunction with our financial results
and forward-looking statements contained therein, and our Quarterly
Report on Form 10-Q for the quarter ended September 30, 2020, which
was filed with the SEC on November 16, 2020, and which should be
read in conjunction with our financial results and forward-looking
statements contained therein. All forward-looking statements in
this press release 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.
Investor Relations
Contact:888.504.9929investors@verb.techMedia
Contact:855.250.2300,
ext.107info@verb.tech
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Select Unaudited Pro Forma Performance Metrics By Quarter -
as Filed |
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2019 |
2020 |
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|
Q1 |
Q2 |
Q3 |
Q4 |
|
Q1 |
Q2 |
Q3 |
Total User Downloads |
550,620 |
668,272 |
717,066 |
855,859 |
|
1,313,467 |
1,458,934 |
1,562,378 |
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|
|
SaaS Recurring Rev |
$ |
786,000 |
$ |
858,000 |
$ |
953,000 |
$ |
995,000 |
$ |
3,592,000 |
$ |
1,057,000 |
$ |
1,274,000 |
$ |
1,478,000 |
Other Digital |
273,000 |
596,000 |
485,000 |
344,000 |
1,698,000 |
400,000 |
406,000 |
360,000 |
Total Digital Revenue |
$ |
1,059,000 |
$ |
1,454,000 |
$ |
1,438,000 |
$ |
1,339,000 |
$ |
5,290,000 |
$ |
1,457,000 |
$ |
1,680,000 |
$ |
1,838,000 |
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Welcome Kits & Fulfillment |
$ |
2,265,000 |
$ |
1,784,000 |
$ |
1,164,000 |
$ |
965,000 |
$ |
6,178,000 |
$ |
728,000 |
$ |
713,000 |
$ |
836,000 |
Shipping |
677,000 |
495,000 |
271,000 |
181,000 |
1,624,000 |
169,000 |
259,000 |
186,000 |
Total Non-Digital Revenue |
$ |
2,942,000 |
$ |
2,279,000 |
$ |
1,435,000 |
$ |
1,146,000 |
$ |
7,802,000 |
$ |
897,000 |
$ |
972,000 |
$ |
1,022,000 |
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Total Combined Revenue |
$ |
4,001,000 |
$ |
3,733,000 |
$ |
2,873,000 |
$ |
2,485,000 |
$ |
13,092,000 |
$ |
2,354,000 |
$ |
2,652,000 |
$ |
2,860,000 |
Digital Revenue as a % ofTotal Combined Revenue |
|
26% |
|
39% |
|
50% |
|
54% |
|
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|
62% |
|
63% |
|
64% |
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