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 quarter ending March 31, 2021.
Management Commentary
“Live stream ecommerce is coming to America – it’s going to
marginalize most other forms of online commerce - and with our
verbLIVE technology and related software products, we intend to be
at the forefront of this massive shift,” said Rory J. Cutaia, CEO
of VERB. “As I mentioned in our recent Letter to Shareholders in
April, first quarter 2021 saw us sign the first of what we expect
to be many new clients, each of which could generate $1 million in
annual recurring revenue driven entirely by our verbLIVE products,
as we now have many more in our sales pipeline. This year we’re
seeing the average client and deal size increase dramatically, as
our new products, coupled with increased awareness from solid
marketing, allow us to target and attract larger businesses. We’re
also adding many more salespeople as we have a clearly defined and
accelerated path to ROI per sales rep. Our improved product
development processes and more rapid product delivery cycles,
together with new anticipated cost savings coupled with expected
new revenue catalysts, have allowed us to begin formulating a plan
that we believe will reduce our burn, quarter over quarter, reduce
our reliance on outside capital, and move toward cash flow positive
status.
“Among those revenue catalysts is the integration of our
interactive video sales technology with Microsoft Outlook, a
platform with over one billion users. We’re nearing completion of a
very successful public beta test for this exciting new product with
commercial release expected in mid-June.
“During the quarter, we also launched verbTEAMS, a
self-onboarding sales tool with great content management and
analytics capabilities for small businesses and solopreneurs, now
bundled with verbLIVE built-in. Livestream selling has exploded in
Asia, with leading influencers achieving record sales through their
livestreams.
Fueling our expectations for revenue growth from our verbLIVE
products, as well as demand from new and existing clients, is our
new Attribution feature which we released today. Attribution adds
an affiliate marketing technology to verbLIVE that allows anyone to
receive credit for purchases made by their referrals to verbLIVE
sessions hosted by others, which we expect will drive attendance
and revenues exponentially. It’s going to be an exciting year for
VERB shareholders,” added Mr. Cutaia.
First Quarter 2021 Financial Results and Recent Company
Highlights
- Total SaaS recurring
revenue (a component of Total Digital revenue) was $1.5 million, up
38% year over year, and up 12% over fourth quarter 2020
- SaaS recurring
revenue as a percentage of Total Digital revenue was 81%, compared
with 73% for the same period last year
- Total Digital
revenue of approx. $1.8 million, up 24% year over year and up 18%
over fourth quarter 2020
- Total combined
revenue of approx. $2.5 million, up almost 21% over fourth quarter
2020
- Added 16 new client
contracts with a guaranteed base value of $900,000 and $424,000 in
annual recurring revenue
- Total user downloads
now at 2.05M, up more than 47% over the 1.4M reported in same
period last year and up from approximately 1.9M as of March 26,
2021
- Well capitalized
balance sheet following closing of $15.0 million gross proceeds
registered direct offering in March 2021. Offering was for straight
common shares priced at $1.60 per share with no warrants.
- In January 2021,
Social Selling News, a leading industry publication, ranked VERB
first in its list of companies providing apps for direct selling
industry by number of clients. Verb had almost double its closest
competitor and now almost triple.
- Launched several ESG
initiatives through its Verb for Humanity division to help small
businesses recover from the impact of the pandemic, including
working with Olympic hopefuls to generate revenue so they may
continue their Olympic aspirations, among many other things, as
part of VERB’s continuing and growing commitment to ESG
initiatives
- Research and
development expenses were $2.9 million, compared with $1.3 million
for the same period last year, with the increase attributed to the
development of verbLIVE, VERB’s new Attribution feature, as well as
the Microsoft Outlook integration and the forthcoming new
Marketplace platform
- General and
administrative expenses were $7.3 million, compared with $3.5
million from the same period last year, attributed to increases in
non-cash stock-based compensation expense, labor-related costs to
support growth, marketing expenses, professional services, as well
as expenses related to an additional quarter of SoloFire operations
following the acquisition
- Cash totaled on the
balance sheet totaled $12.9 million as of March 31, 2021, compared
with $1.8 million on December 31, 2020.
Conference Call Information
VERB management will hold a conference call today, May 13, 2021
at 3:00 p.m. Eastern time, to discuss its results in greater
detail. A telephonic replay of the conference call is available
from 6:00 p.m. Eastern time today through May 27, 2021.
VERB Q1 2021 Earnings Call Date: Thursday, May
13, 2021Time: 3:00 p.m. Eastern time (12:00 p.m. Pacific
time)To access by phone: Please call the
conference telephone number 10-15 minutes prior to the start time.
An operator will register your name and organization. U.S. dial-in
number: 1-877-407-4018International number: 1-201-689-8471
To access by webcast: A live and archived
webcast will also be available. Webcast link:
http://public.viavid.com/index.php?id=144966
Replay:Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
13719830
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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSThis 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
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.125info@verb.tech
Verb Technology (NASDAQ:VERB)
Historical Stock Chart
From Aug 2024 to Sep 2024
Verb Technology (NASDAQ:VERB)
Historical Stock Chart
From Sep 2023 to Sep 2024