VERB Beats SaaS Revenue Forecast and Reports Record Breaking 2020 Second Quarter Financial Results
August 17 2020 - 8:30AM
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, held its second quarter 2020
earnings conference call on Friday, August 14 during which VERB CEO
Rory J. Cutaia, and CFO Jeff Clayborne shared business and
operational insights.
VERB CEO Rory J. Cutaia began the call by discussing his
strategies for building the company from a start-up, the challenges
they faced along the way to becoming a NASDAQ-listed company and
the beginning of what is now five consecutive quarters of
impressive revenue growth in their core SaaS business. “As I’ve
talked about over the past year, we’ve been focused on setting the
table, building and shoring up the foundation upon which we are
building - piece, by carefully and strategically built piece, a
world class organization with global aspirations,” began
Cutaia.
“In an effort to provide the kind of transparency I believe our
shareholders deserve, not just our shareholders, who I consider our
co-owners, but shareholders in any company, I’ve talked quite a bit
about what we’re building, what’s coming, what we’re working on,
and our evolving vision for this company. But in the ‘I need it
now, immediate gratification, attention deficit-disordered, put up
or shut up, social media, mobile screen world that has consumed our
entire virtual existence, – talk - and talk alone - doesn’t move
the needle. Results move the needle. Measurable results. Execution
moves the needle. So today we’re going to talk about execution and
measurable results.” [click to see video clip here]
Second Quarter 2020 and Recent Operational Highlights
Discussed During the Call
- SaaS revenue of approximately $1.3M - up almost 21% over Q1 and
reflects growth of almost 49% over the same period last year.
- Total Digital revenue of approximately $1.7M - up almost 16%
over Q1.
- Total Non-Digital revenue of approximately $1M was up almost 9%
over Q1.
- Total Combined revenue of approximately $2.7M was up almost 13%
over Q1.
- 20 new client contracts executed in Q2 – almost double the 11
signed in Q1 – and 5 times the number signed in the same period
last year.
- The base guaranteed contract value of new contracts is $983,000
– represents growth of 65% over last quarter and 245% growth over
the same period last year.
- 5 consecutive quarters of SAAS revenue growth.
- On a pro forma basis, total SaaS revenue for the first 6 months
of 2020 was $2.3 million, - an increase of almost 42% from $1.6M
reported for the same period last year.
- On a pro forma basis, total Digital revenue for the first 6
months of 2020 was $3.1 million, - an increase of 25% from $2.5
million reported for the same period last year.
- Total user downloads of approximately 1.5 million, up from 1.3
million reported in first quarter 2020, and up from 670,000 for the
same period last year.
- Completed the integration of new live stream ecommerce
application verbLIVE, with
the platform of enterprise CRM
giant Salesforce.
- verbLIVE added to Salesforce’s AppExchange Partner
Program.
- VERB added to the Russell Microcap® Index as part of the
2020 Russell indexes annual reconstitution.
- In July, VERB closed an over-subscribed 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.
- In April, VERB began Japan operations, tapping into a
multi-billion-dollar market opportunity as part of its
international expansion plan.
- 26 new client proposals since June 30 – a 20% increase over
same period last quarter [correction].
- 7 new enterprise clients added during first 5 weeks of Q3
[correction].
- 17 existing clients signed during pre-launch for verbLIVE
represent a potential market opportunity of more than $5M of
additional annual recurring revenue.
- Letter of Intent executed for potential new acquisition to
allow the company to expand more rapidly into a desirable new
business vertical for its products and services.
“When we think of underlying business fundamentals, which, in
our view, is the source of true market value, this is what we focus
on. And this is what we believe value investors focus on. So with
growth of our SaaS business of almost 49% over last year and almost
21% over last quarter alone, I’m proud to report that our value
creation initiatives are indeed producing measurable, quantifiable,
and accelerating results,” concluded Cutaia.
The Company filed its Form 10-Q on August 14, 2020 and filed 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 STATEMENTS This press release
contains forward-looking statements that involve risks and
uncertainties, including statements about the closing of the
offering of common stock. 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 June 30, 2020, which was
filed with the SEC on August 14, 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: 888.504.9929
investors@verb.tech Media
Contact: 855.250.2300, ext.107
info@verb.tech
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