Verb Technology Company, Inc. (Nasdaq:
VERB) ("VERB" or the "Company"), the 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 the second quarter and six months ending June
30, 2021.
Management Commentary
“It’s been a very exciting time for us at VERB.
Since we last reported in May, we have made several milestone
announcements that highlight our solid progress in delivering
best-in-class sales-driving technology and applications,” said Rory
J. Cutaia, CEO of VERB. “We released verbMAIL for the Microsoft
Outlook platform, a revolutionary video email solution that makes
our proprietary interactive video technology available to over one
billion Outlook users, turning a favorite contact management tool
into a favorite sales tool. We announced a major partnership with
Market America Worldwide | SHOP.COM, for the deployment of our
verbLIVE livestream ecommerce application to over 100,000
distributors globally, and launched it with our Attribution feature
throughout Asia, Europe and North America in July. We also
announced a similar partnership this quarter with NewAge, Inc., a
direct-to-consumer (D2C) sales company, to add up to 600,000
distributors on our platform in 75 countries.
“And we introduced PULSE, our newest sales
enablement platform feature. It’s like a sales coach in your pocket
tracking your interactions with your prospects and telling you what
to do next to close that sale.
“For the second quarter, our SaaS recurring
revenue grew 26% year over year and 10% from the previous quarter.
Our results do not include contributions from any of the recently
announced products and partnerships, but we expect these to produce
a positive revenue impact in the coming quarters.
“We believe that our technology and suite of
sales enablement solutions give us a clear competitive advantage
and position us to lead the burgeoning high-growth livestream
ecommerce sector, which has already seen tremendous success in Asia
and which we believe is set to gain ground in the U.S. and other
markets. In addition to launching verbLIVE with Market America and
multiple sales applications with NewAge, Inc., we are continuing to
build a robust sales pipeline targeting larger businesses that can
accelerate product adoption and boost annual recurring
revenues.
“We continue to improve on our offerings,
fine-tuning and elevating, and adding new, value-enhancing,
innovative features and products that will continue to allow us to
deliver the industry leading sales enablement tools our clients and
customers have come to expect from us. We are also adding sales and
marketing professionals to respond to the growing demand we are
cultivating while simultaneously increasing product penetration
among existing clients. We are continuing to deliver
paradigm-shifting technology and products which represent
long-term, value-creating revenue catalysts that drive our growth
and increase shareholder value. We are excited to report on our
continued progress for the remainder of the year.”
Second Quarter 2021 Financial Results and Recent Company
Highlights
-
Total SaaS recurring revenue (a component of Total Digital revenue)
was $1.6 million, up 26% year over year, and up 10% over Q1
2021.
-
SaaS recurring revenue as a percentage of Total Digital revenue was
88%, compared with 76% for the same period last year and up over
the 81% we reported in Q1 2021.
-
Total Digital revenue of approx. $1.8 million, up 8% year over
year.
-
Total combined revenue of approx. $2.4 million represents the 10%
growth in our SaaS recurring revenue over last quarter and 26% over
last year, and a reduction in revenue from the legacy printing and
fulfillment side of our business of approximately $400K since last
year as that component of our business is driven by our clients’
in-person conferences and sales events which were essentially
non-existent due to the continuing effects of COVID.
-
Added 12 new client contracts with a guaranteed base value of
$715,000 and expected annual recurring revenue of $405,000.
However, those numbers do NOT include the expanded revenue we
expect to recognize from existing clients who have recently
launched and those that are about to launch verbLIVE with
Attribution, which should add not less than an additional $1
million, conservatively, in annual recurring revenue.
-
Total user downloads now at 2.8M, up more than 75% over the 1.6M
reported in same period last year, and up from approximately 2.0M
as of May 13, 2021, which represents an increase of 40% in just the
last 90 days.
-
Research and development expenses were $3.2 million, compared with
$1.6 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, the Microsoft Outlook
integration and the forthcoming new Marketplace platform, among
other as yet unannounced features and products.
-
General and administrative expenses were $6.5 million, compared
with $4.0 million for the same period last year, with the increase
attributed to 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 on the balance sheet totaled $6.4 million as of June 30, 2021,
compared with $1.8 million on December 31, 2020.
-
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.
-
Partnered with Market America Worldwide | SHOP.COM to launch SHOP
LIVE™, powered by verbLIVE, providing its global distributors with
their own livestreaming channel to easily demonstrate and sell
products to current or potential customers at any time.
-
Partnered with NewAge, Inc. for delivery of their sales enablement
app for use by up to 600,000 of their brand partners and
distributors in 75 countries to help increase customer engagement
and sales conversion rates. The app includes customer relationship,
content, and learning management systems, and they are expected to
add verbLIVE, our livestream shopping app in September 2021.
-
Introduced a new, powerful Attribution feature to verbLIVE, which
adds affiliate marketing technology to allow 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.
-
Introduced PULSE, an AI/BI-based feature set that tracks prospect
interactions then educates salespeople while it automates the
selling process
-
New VERB platform [codename] Marketplace, a new 24/7 online
shopping destination, is in active beta testing with multiple
retailers. Simultaneous interactive livestream sessions hosted by
retailers, consumer brands, and influencers across numerous
categories will comprise Marketplace, creating a fun, engaging and
social shopping experience for consumers and hosts alike.
Six Months Ended Financial Results
-
Total SaaS recurring revenue (a component of Total Digital revenue)
was $3.1 million, up 31% year over year
-
SaaS recurring revenue as a percentage of Total Digital revenue was
85%, compared with 74% for the first 6 months of 2020.
-
Total Digital revenue of approx. $3.6 million, up 15% year over
year.
-
Research and development expenses were $6.1 million, compared with
$2.9 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, the Microsoft Outlook
integration, the forthcoming new Marketplace platform, among other
as yet unannounced features and products.
-
General and administrative expenses were $13.9 million, compared
with $7.5 million for the same period last year, with the increase
attributed to non-cash stock compensation expense, labor-related
costs to support growth, professional services, marketing expenses,
as well as expenses related to SoloFire operations following the
acquisition.
-
Subsequent to the end of the quarter, the Company converted all
remaining 1,706 preferred shares into shares of the Company’s
common stock. As a result, there are no more shares of preferred
stock outstanding.
Conference Call Information
VERB management will hold a conference call
today, August 16, 2021, at 5:00 p.m. Eastern time, to discuss
second quarter 2021 results in greater detail. A telephonic replay
of the conference call is available from 8:00 p.m. Eastern time
today through August 30, 2021.
VERB Q2 2021 Earnings Call Date: Monday, August
16, 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:
http://public.viavid.com/index.php?id=146228
Replay:Toll-free replay number:
1-844-512-2921International replay number: 1-412-317-6671Replay ID:
10159398
About VERBVerb 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), verbLEARN (Learning
Management System application), and verbMAIL (an interactive video
mail solution integrated seamlessly into Microsoft Outlook). The
Company has offices in California and 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 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.107info@verb.tech
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