VERB To Report Record Annual Growth for 2020
March 30 2021 - 08:00AM
VERB Technology Company, Inc.
(Nasdaq: VERB) ("VERB" or the
"Company"), a SaaS sales enablement platform rapidly
emerging as the market leader in business-focused interactive video
sales and marketing tools, including livestream ecommerce, CRM, and
content management applications, to report financial and operating
results tomorrow for the full year 2020 and the quarter ending
December 31, 2020.
Full Year 2020 and Recent Company Highlights to be
Discussed on the Earnings Call
- SaaS recurring
revenue of approx. $5.1 million in 2020, up 82% over the previous
year
- Total Digital
revenue of approx. $6.5 million, up 53% over the previous year
- Total Non-Digital
revenue of approx. $3.5 million, down 29% from the previous year,
consistent with strategic objective to shift revenue mix towards
Digital products
- Total combined
revenue of approx. $10 million in 2020, up 10% over the previous
year
- Completed the
integration of livestream ecommerce application
verbLIVE, with the platform of
enterprise CRM giant Salesforce
- Beta program for
integration of VERB’s interactive video technology with Microsoft
Outlook integration now underway, with availability anticipated
through Microsoft’s Commercial Marketplace and Co-Sell program with
Microsoft’s field sales upon commercial release
- Completed accretive
acquisition of SoloFire, giving VERB immediate entry into the
lucrative medical and life sciences sales market, which the Company
believes is one of the largest and fastest growing markets for the
sales enablement software industry
- Launched verbTEAMS,
a self-onboarding content management and customer relationship
management system with built-in livestream ecommerce capability and
one-click synchronization to Salesforce, for small businesses and
solo entrepreneurs
- Total SaaS revenue
for the fiscal year ended 2020 was $6.1 million - up 31% on a pro
forma basis from $4.6 million over the same period last year
- Total Digital
revenue for the fiscal year ended 2020 was $7.5 million - an
increase of 18% on a pro forma basis, from $6.3 million for the
same period last year
- Total user downloads
now at 1.93M, up more than 250 % over the 550,000 reported in same
period last year and up from approximately 1.56M reported in the
third quarter 2020
- In March 2021, VERB
closed a registered direct offering for straight common shares
without warrants for gross proceeds of $15.0 million; in July 2020,
VERB closed an underwritten public offering of common stock without
warrants for gross proceeds of approximately $13.8 million
- In January 2021,
VERB ranked first in Social Selling News’ list of
companies providing apps for direct selling, ranked by the number
of clients over the past 12 months
- In November 2020,
VERB won Salesforce’s AppExchange Demo Jam for productivity apps
with a demonstration of verbLIVE, which featured five other
companies including Adobe and Smartsheet
- Added Shaklee and
Market America | SHOP.COM to growing roster of clients
- In June, VERB was
added to the Russell Microcap® Index as part of the 2020
Russell indices’ annual reconstitution
- Launched several
initiatives to help small businesses recover from the impact of the
pandemic, as well as VERB for Humanity, as part of continuing and
growing commitment to ESG initiatives
Financial ResultsYear Ended December
31, 2020
- Total
Digital revenue was $6.5 million, an increase of 53% from
the previous year
- Total SaaS
recurring revenue (a component of total Digital
revenue) was $5.1 million, an increase of 82% from the previous
year. SaaS recurring revenue as a percentage of total Digital
revenue was 79%, compared with 66% for the previous year
- Total
revenue was $10.0 million, an increase of 10% from the
previous year, but also reflecting the Company’s strategic change
in revenue mix with a substantially higher percentage of its
revenue coming from its digital applications business
- Cost of
revenue was $4.8 million, a decrease from $4.9 million for
the previous year
- Gross
margins increased 22% over previous year
- Research and
development expenses were $7.9
million, an increase of 84% from the previous 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 $20.5 million, an increase of
39% from the previous year, reflecting non-cash stock-based
compensation expense of $6.1 million and labor-related costs to
support growth, as well as expenses related to the acquisition of
SoloFire
-
Cash totaled $1.8 million as of December 31, 2020,
compared with $983,000 on December 31, 2019.
Three Months Ended December 31, 2020
- Added 15 new
client contracts with a guaranteed base value of $617,000
and $325,000 in annual recurring revenue
- Total
Digital revenue was $1.5 million, an increase of 14% from
the same quarter last year
- Total SaaS
recurring revenue (a component of total Digital revenue)
was $1.3 million, an increase of 31% from the same period last
year. SaaS recurring revenue as a percentage of total Digital
revenue was 86%, compared with 74% for the same period last
year
- Total
revenue was $2.1 million, a 16% decline from the same
period in 2019, reflecting the Company’s 2020 strategy to reduce
its focus on lower margin non-digital products and the successful
execution of its strategy to ensure a substantially higher
percentage of total revenue is generated from its digital
business
- Cost of
revenue was $1.3 million, in line with the same period
last year
- Research and
development expenses were $2.6
million, compared with $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 $6.3 million, an increase of
5% from the same period last year, reflecting increases in
stock-based compensation expense and labor-related costs to support
growth, as well as expenses related SoloFire
Three Months Ended March 31, 2021 – (UNAUDITED
PROJECTED)
- Total
Digital unaudited projected revenue was $1.8 million, an
increase of 24% over the same period last year, and already over
20% of Q4 2020
- Total SaaS
recurring unaudited projected revenue (a component of
total Digital revenue) was $1.4 million, an increase of 30% over
the same period last year and already over 10% of Q4 2020
- SaaS
recurring unaudited projected revenue as
a percentage of total Digital revenue was 79%, compared with 73%
for the same period last year
Conference Call Information
VERB management will hold a conference call tomorrow, March 31,
2021 at 4:30 PM Eastern time, to discuss its results in greater
detail. A telephonic replay of the conference call is available
from 7:30 PM Eastern time on the same day through April 14,
2021.
Live Call:Date: Wednesday, March 31, 2021Time:
4:30 PM Eastern time (1:30 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:
13717712
About VERB VERB Technology Company, Inc.
(Nasdaq: VERB) is rapidly emerging as the market leader in
business-focused interactive video sales and marketing tools,
including livestream ecommerce, CRM, and content management
applications. With offices in California and Utah, USA, VERB
provides next-generation software applications to sales-based
organizations in more than 60 countries and 48 languages.
The Company’s proprietary, patented, and patent-pending
technology platform produces real-time, measurable
results, with customers reporting greater than 600% increases
in conversion rates. VERB’s software-as-a-service (SaaS)
products are cloud-based, accessible on all mobile and desktop
devices, and are available by subscription for individual and
enterprise users. The Company’s technology is also integrated
into popular ERP, CRM, and marketing platforms. For more
information, please visit www.verb.tech.
FORWARD LOOKING STATEMENTSThis press release
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 press release relate
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. 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 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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