Verb Technology Company, Inc. (Nasdaq:
VERB) ("VERB" or the "Company"), the leader in interactive
video-based sales-enablement applications, including MARKET.live,
its livestream social shopping platform, today filed its Form 10-K
reporting financial and operating results for the full year and the
quarter ending December 31, 2022.
Summary Financial Results For the Year
Ended December 31, 2022
- Total SaaS
recurring revenue was $7.7 million, an increase of
12% from the previous year and the highest amount of SaaS recurring
revenue generated any year in the history of the Company,
represents continued strong demand for the Company’s new suite of
sales enablement applications
- SaaS
recurring revenue as a percentage of Total Digital revenue
was 93%, compared with 84% for the previous year
- Total
Digital revenue was $8.3 million, a modest increase over
the previous year
- Total
Digital and Non-Digital combined revenue of $9.4 million
is comprised of a 12% increase in SaaS recurring revenue, a 55%
decrease in non-SaaS digital revenue, and a 51% reduction in
non-digital from the previous year as the Company continued to
execute its strategic decision to wind down its low margin
non-digital business silo
- Cost of
revenue was $3.3 million, an improvement of 27% from $4.5
million for the previous year, reflecting the Company’s focus on
higher margin digital business
- Gross
profit margin increased to 65% from previous year’s
57%
- Research and
development expenses of $5.2
million, 58% lower than the previous year, represents a significant
improvement as the Company continues to successfully execute its
drive to profitability
- SaaS
Business General and Administrative expenses reduced by
$2.4 million, represents an improvement of 9% over prior year.
MARKET.live general and administrative expenses limited to less
than $2.0 million
- Utah Office
Expense cut more than 60%, saving more than $200K per
annum
- Year End
Cash position $2.4 million, plus $1.6 million in
receivables and pre-paid expenses. Added $6.6 million cash in
January 2023 representing net proceeds of straight common equity
offering with no warrants
- Modified
EBITDA1 improved by approximately $7.5
million, or 28%, when compared with the previous year. Modified
EBITDA is a non-GAAP measure. Please review note below for more
information and greater specificity around our Modified EBITDA
analysis
Three Months Ended December 31, 2021
- Total SaaS
recurring revenue was $1.8 million, just under record
breaking quarter from same period last year
- Total
digital revenue was $1.9 million, a decrease of 12% from
the same quarter last year, reflecting significantly higher
non-SaaS digital revenue recorded in the same period last year
- Total
non-digital revenue was $0.2 million, down 57% from the
same period last year, reflecting the Company’s strategic decision
to continue to wind down its low margin non-digital services
- Cost of
revenue was $0.8 million, an improvement of 29% over the
same period last year the previous year, reflecting the Company’s
focus on higher margin digital business, successful execution of
cost reductions initiatives, and improved operational
efficiencies
- Research and
development expenses were $0.9
million, compared with $2.7 million for the same period last year,
reflecting a 69% reduction in costs
- General and
administrative expenses were $4.7 million, a decrease of
18% from the same period last year, and down 33% from the previous
quarter
1 Management considers our core operating
performance to be that which our managers can affect in any
particular period through their management of the resources that
impact our underlying revenue and profit generating operations
during that period. Non-GAAP adjustments to our results prepared in
accordance with generally accepted accounting principles (“GAAP”)
are itemized below. You are encouraged to evaluate these
adjustments and the reasons we consider them appropriate for
supplemental analysis.
In addition to our results under GAAP, we
present Modified EBITDA as a supplemental measure of our
performance. We define Modified EBITDA as net income (loss), plus
depreciation and amortization expense, share-based compensation
expense, impairment loss, interest expense, change in fair value of
derivative liability, other (income) expense, net debt
extinguishment costs, MARKET.live startup costs, and other
non-recurring charges. However, Modified EBITDA is not a recognized
measurement under GAAP and should not be considered as an
alternative to net income, income from operations, or any other
performance measure derived in accordance with GAAP or as an
alternative to cash flow from operating activities as a measure of
liquidity. In evaluating Modified EBITDA, you should be aware that
in the future we may incur expenses that are similar to or
different from the adjustments in this presentation. Our
presentation of Modified EBITDA should not be construed as an
inference that our future results will be unaffected by unusual or
non-recurring items. In addition, while many companies calculate
and track Modified EBITDA, you should be aware that other companies
may calculate Modified EBITDA in a manner that differs from our
calculation.
|
|
Years Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(37,437 |
) |
|
$ |
(34,486 |
) |
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
2,529 |
|
|
|
1,677 |
|
Share-based compensation |
|
|
4,455 |
|
|
|
5,668 |
|
Impairment loss |
|
|
11,965 |
|
|
|
- |
|
Interest expense |
|
|
2,947 |
|
|
|
2,575 |
|
Change in fair value of
derivative liability |
|
|
(2,933 |
) |
|
|
(598 |
) |
Other income |
|
|
(1,369 |
) |
|
|
(91 |
) |
Debt extinguishment, net |
|
|
- |
|
|
|
(1,112 |
) |
MARKET.live non-recurring
startup costs* |
|
|
802 |
|
|
|
- |
|
Other non-recurring |
|
|
126 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total EBITDA adjustments |
|
|
18,522 |
|
|
|
8,119 |
|
Modified
EBITDA |
|
$ |
(18,915 |
) |
|
$ |
(26,367 |
) |
* Includes general and administrative and R&D expenses that
are directly related to the launch of our MARKET.live platform and
are not expected to be recurring in future periods.
Conference Call InformationVERB
management will hold a conference call today, April 17, 2023, at
6:00 p.m. Eastern time, to discuss 2022 results in greater detail.
A telephonic replay of the conference call is available from 9:30
p.m. Eastern time today through May 16, 2023.
VERB Q4 and FY 2022 Earnings Call Date: Monday,
April 17, 2023Time: 6:00 p.m. Eastern time (3:00 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: 1-877-407-4021
International number: 1-201-689-8472
Replay: Available after 9:30 p.m. Eastern time
on the same day through Tuesday, May 16, 2023Toll-free replay
number: 1-844-512-2921International replay number:
1-412-317-6671Replay ID: 13737959
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 MARKET.live platform is a
multi-vendor, presenter, livestream social shopping destination at
the forefront of the convergence of ecommerce and entertainment,
where hundreds of retailers, brands, creators and influencers can
monetize their base of fans and followers across social media
channels. The Company’s Software-as-a-Service, or SaaS, platform is
based on its proprietary interactive video technology, is comprised
of a suite of sales enablement business software products offered
on a subscription basis. Its software applications are used by
hundreds of thousands of people in over 100 countries and in more
than 48 languages. VERB’s clients include large sales-based
enterprises as well as small business sales teams, including the
sales and marketing departments of professional sports teams. With
approximately 75 full-time employees, the Company is headquartered
in Lehi, Utah, and it also maintains offices in Newport Beach,
California.
For more information, please visit:
www.verb.tech.
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https://ir.verb.tech/news-events/email-alerts
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.
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; 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:investors@verb.techMedia
Contact:info@verb.tech
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