Verb Technology Company, Inc. (Nasdaq:
VERB) ("VERB" or the "Company"), the leader in interactive
video-based sales enablement applications, including interactive
livestream eCommerce and shoppable video, webinar, CRM and
marketing applications for entrepreneurs and enterprises, today
reported financial and operating results for the third quarter and
nine months ended September 30, 2021.
Management Commentary
“The third quarter results we report today
should be seen as compelling evidence of the significant increase
in demand we’re experiencing for our products and services and
strong validation of our strategy to invest in the accelerated,
simultaneous development of what I’ve referred to previously as our
hyper-growth initiatives,” said Rory J. Cutaia, CEO of VERB. “In
our earnings call today I intend to finally share the details of
Marketplace and verbTV, which together represent the culmination of
hard work by countless dedicated professionals on these multi-year,
multi-discipline projects, and the pinnacle of our hyper-growth
initiatives, which lay the foundation for the enormous value
creation we expect our shareholders to enjoy for years to come.
“For insights into our Company, our
technological breakthroughs, as well as some of the people behind
them, check out a recording of our recent verbLIT Symposium
(Leading Interactive Technology) that showcases, among other
things, our true in-video ecommerce technology. Go ahead and click
on the shopping bag you see in the video. verbLIT can be viewed
here,” added Mr. Cutaia.
Financial Results for Third Quarter 2021
-
Added 16 new client contracts with a combined minimum contract
value of $1.1 million – a record for new contracts executed in a
single quarter.
-
Total Digital revenue was $2.4 million, an increase of 30% over Q2
2021 and up 28% year over year.
-
Digital revenue now represents more than 81% of total combined
revenue – up from 64% for the same period last year and up from the
76% reported in Q2.
-
SaaS recurring digital revenue (a component of Total Digital
revenue) was approx. $1.8 million, up 25% year over year and an
increase of 15% over Q2.
-
Non-SaaS digital revenue (the other component of Total Digital
revenue) of more than $500,000, an increase of 42% year over year
and up 144% over Q2.
-
Total Combined revenue in Q3 was $2.9 million – up 21% from $2.4
million in Q2.
-
3.0 million total user downloads as of September 30, up from 2.2
million as of June 30, and more than 88% over 1.6 million downloads
reported in same period last year.
-
Research and development expenses were $3.5 million, compared with
$2.4 million for the same period last year, with the increase
attributed to the development of verbLIVE, VERB’s new Attribution
feature, product enhancements to verbCRM, verbPULSE, the Microsoft
Outlook integration and the forthcoming new Marketplace platform,
among other as yet unannounced features and products.
-
General and administrative expenses were $6.1 million, compared
with $6.7 million for the same period last year, with the decrease
in spending attributed to lower stock compensation expense of $1.3
million.
Financial Results for Nine-Month Period Ending September
30, 2021
-
Total Digital revenue of approx. $6.0 million, was up 20% year over
year.
-
Total SaaS recurring revenue (a component of Total Digital revenue)
was $4.9 million, up 29% year over year.
-
SaaS recurring revenue as a percentage of Total Digital revenue was
82%, compared with 77% for the same period last year.
-
Research and development expenses were $9.6 million, compared with
$5.3 million for the same period last year, with the increase
attributed to the development of verbLIVE, VERB’s new Attribution
feature, product enhancements to verbCRM, verbPULSE, the Microsoft
Outlook integration and the forthcoming new Marketplace platform,
among other as yet unannounced features and products.
-
General and administrative expenses were $20.0 million, compared
with $14.2 million for the same period last year, with the increase
attributed to labor-related costs to support growth, professional
services, marketing expenses, as well as expenses related to
SoloFire operations following the acquisition.
-
As of September 30, 2021, total assets were $35.9 million, total
liabilities were $21.5 million and total stockholders’ equity was
$14.4 million.
-
The Company successfully converted all remaining preferred shares
into shares of the Company’s common stock. As a result, there are
no shares of preferred stock and associated rights outstanding and
the cap table reflects a clean capital structure comprised of one
class of common shares.
-
As of today, there are 70,470,415 shares of our common stock issued
and outstanding. Of the total number of common shares issued and
outstanding, approximately 6.1 million shares or approximately 8.7%
are owned or controlled by management and the Board members.
Recent Company Business Highlights
-
At the beginning of the third quarter, announced the general
commercial release of verbMAIL for Microsoft Outlook, which
provides interactive video email capabilities for Outlook users who
can now add interactive clickable buttons and icons right in the
video for easy-click purchasing by viewers (“Buy-It-Now”),
scheduling appointments, downloading or viewing product literature
and media, and many other sales enabling interactions.
-
Introduced PULSE, an AI/BI-based feature set that tracks prospect
interactions then coaches salespeople on follow-up recommendations
while automating the selling process
-
Partnered with Market America Worldwide | SHOP.COM to launch SHOP
LIVE™, powered by verbLIVE, providing distributors their own
livestream selling platform to easily demonstrate and sell products
to current or potential customers from anywhere in the world, at
any time.
-
Partnered with NewAge, Inc. to provide up to 600,000 of their brand
partners and distributors in 75 countries access to Verb’s sales
enablement platform to increase customer engagement and sales
conversion rates.
-
Launched the Professional Sports vertical to its expanding client
base by adding the Pittsburgh Penguins sports team franchise, with
other teams expected to follow, that will use VERB’s interactive
video technology solutions to drive ticket and merchandise sales
and increase fan engagement.
-
Held first technology symposium, verbLIT, on Oct. 7, 2021, to
provide clients, consumers, and investors the opportunity to
experience VERB’s shoppable video technology by showcasing newly
released products verbMAIL, verbLIVE with Attribution, and PULSE
and offering a sneak peek at what is upcoming.
-
Expects to release verbMAIL Pro before year-end, a feature-rich,
paid version of verbMAIL intended for businesses and professional
users.
-
Marketplace and verbTV development on track for completion before
year-end – representing a new centralized eCommerce platform and
expanded revenue streams for social eCommerce and shoppable TV,
respectively.
Conference Call Information
VERB management will hold a conference call
today, November 15, 2021, at 5:00 p.m. Eastern time, to discuss
third quarter 2021 results in greater detail. A telephonic replay
of the conference call is available from 8:00 p.m. Eastern time
today through November 29, 2021.
VERB Q3 2021 Earnings Call Date: Monday,
November 15, 2021Time: 5:00 p.m. Eastern time (2:00 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: 1-877-300-8521International number: 1-412-317-6026
To access by webcast: A live and archived
webcast will also be available. Webcast link:
https://viavid.webcasts.com/starthere.jsp?ei=1510486&tp_key=03f8645407
Replay:Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
10161783
About VERBVerb Technology
Company, Inc. (Nasdaq: VERB), the market leader in interactive
video-based sales applications, 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 is comprised of 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, VERB's applications
are offered as a fully integrated suite, as well as on a standalone
basis, and include verbLIVE (an Interactive Livestream eCommerce
and Shoppable Video and Webinar applications), verbCRM (a
White-labelled Interactive Video-based Customer Relationship
Management application), verbTEAMS (a Self On-boarding version of
verbCRM with built-in verbLIVE and Salesforce synchronization for
small businesses and solo entrepreneurs), verbLEARN (an Interactive
video and gamified Learning Management System application), and
verbMAIL (an interactive video mail solution integrated seamlessly
into Microsoft Outlook). With 200 employees, the Company maintains
offices in Newport Beach, California and American Fork,
Utah.
For more information, please visit:
www.verb.tech.
Follow VERB here:VERB on
Facebook: https://www.facebook.com/VerbTechCo/VERB on
Twitter: https://twitter.com/VerbTech_CoVERB on
LinkedIn: https://www.linkedin.com/company/verb-tech/VERB on
YouTube:
https://www.youtube.com/channel/UC0eCb_fwQlwEG3ywHDJ4_KQDownload
verbMAIL here: verbMAIL on Microsoft AppSource Store
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 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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