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Post by Mike on Mar 18, 2019 11:38:50 GMT -5
Progress Report - Verb Technology Co. Inc. (NASDAQ: VERB) (formerly nFusz Inc.) - DD Home
SEC Filings - Latest News - CHART - Research/Analyst - Short Interest - Verb's Website
 
PIPELINE - Management - All Press Releases - CEO Reports - Interactive Demos
Significant Milestones
AGP TARGET PPS: coming soon
TaggEDU: Verb Wins First School Contract
Verb Direct: Subscribers increased 20k in one month to 575,000+ current users, Plus- 5 roll-outs with 5 clients in 5 weeks for the combined app. Very nice start!
Digital Revenue increased 40% in Q-1 over previous quarter.
Conference Call Exerpts: Posted in replies below
Latest Video & News
Progress Report July, 2019
June 03, 2019
VERB to Attend the Direct Selling Association Annual Conference in Austin, Texas
VERB management will be in attendance at the conference to expand relationships with existing clients, as well as develop new relationships with potential clients. Sound Concepts, recently acquired by VERB, has been a Supplier Exhibitor for more than 20 years at the event.
"The DSA Annual Meeting has been a major priority for us and a key to our success for many years," states McKinley Oswald, President of Verb Direct.
May 31, 2019
VERB Adds Leading Health Care Provider OnDoc to Its Client Roster
"We have worked with the VERB team in the past and it's no secret why their technology leads the industry," Mr. Wilson commented. "We want to give our leaders the tools they need to not only share the OnDoc message with others, but to help them be as successful as they can be. This application provides numerous benefits, particularly during a time during when healthcare continues to become more complex and costly. For only $30 a month, our services not only offer dramatic savings when it comes to money and time, but we also provide peace of mind. We are 100% HIPAA compliant, and our users are not required to have insurance in order to obtain health care, and that's a big deal for many people. The app has already proven to be effective and we couldn't be happier."
May 24, 2019
VERB to Host Stockholder Update Call on Wednesday, May 29th
May 24, 2019
PrimeMyBody To Adopt VERB’s Interactive Video CRM Sales App For Global Expansion
VERB Technology Company, Inc. (NASDAQ:VERB) ("VERB"), a leader in business-focused interactive video sales and marketing applications and the pioneer of Augmented Sales Intelligence software, today announced that its new customer, PrimeMyBody, a global health and wellness company focusing on hemp-based products, will launch a new branded mobile sales app and digital platform in foreign and domestic markets that will include product sampling and VERB's interactive tagg video features and functionality.
May 17, 2019
revital U International Unveils New Sales App with VERB’s Interactive Video Features
“We have been looking forward to launching our application in our second market, the United Kingdom,” said Andy McWilliams, CEO of revital U. “We have leaders and teams here who are doing some pretty remarkable things. And key to that is the revital U app, which offers a powerful interactive video functionality to couple with our sampling platform as we enter Europe and other markets.”
May 15, 2019
VERB Reports Consolidated, Unaudited and Pro Forma First Quarter Revenue of $4 Million, an Increase of 44.5% Year-Over-Year and a 40% Increase In Digital Revenue Over Prior Quarter
May 09, 2019
SeneGence International Unveils New Sales App With Verb’s Interactive Video Features
SeneGence unveiled their new SeneBiz app with Verb's interactive video feature at their Evolve Seminar event, held April 11-14 at their Tulsa, OK headquarters while live-streaming to their distributors in Australia and Canada. The SeneBiz app is powered by the VerbCRM platform.
May 03, 2019
VERB Launches Interactive Learning Platform With New York’s Sachem Central School District
HOLLYWOOD and SALT LAKE CITY, May 03, 2019 (GLOBE NEWSWIRE) -- VERB Technology Company, Inc. (NASDAQ: VERB) (“VERB”), a leader in business-focused interactive video sales and marketing applications and the pioneer of Augmented Sales Intelligence software, announces a contract with Sachem Central School District (Sachem CSD), one of the largest school districts by population on Long Island and largest among all suburban school districts in New York, to use VERB’s taggEDU interactive video platform for the upcoming 2019-2020 school year. VERB will issue 7,950 taggEDU licenses for use by administrators and educators, as well middle school and high school students, as a learning and communication tool.
“We’ve already been piloting use of VERB’s technology with a group of educators and administrators and the response we’ve received has been overwhelming,” stated Erin Hynes, Asst. Superintendent for Curriculum and Instruction at Sachem CSD. “As a result, we’ll be rolling out the VERB platform to students and faculty alike for the upcoming school year across our secondary education buildings.”
April 29, 2019
VERB to Report First Quarter 2019 Financial Results on May 15, 2019
VERB Technology Company, Inc. (NASDAQ:VERB) (‘VERB'), a leader in business-focused interactive video, and the pioneer of Augmented Sales Intelligence software, today announced that it will release its financial results for the first quarter ended March 31, 2019 after the market closes on Wednesday, May 15, 2019. The Company will host a conference call and webcast with the investment community on Wednesday, May 15th at 4:30 pm Eastern
It's coming together guys! Analysts & Revenue @ 10 min mark...
April 29, 2019
VERB Announces Strategic Partnership With Waymark Video Creation Platform
Waymark will offer VERB's proprietary interactive video technology within its video creation platform, allowing users to more effectively track engagement and interact with customers.
"VERB's technology will give our users the ability to make their Waymark videos more engaging by adding clickable taggs, in addition to providing access to detailed video analytics and actionable insights," said Nathan Labenz, CEO at Waymark. "The combination of VERB and Waymark's technologies will offer users an outlet to produce and distribute content that can truly drive substantial conversion while adding value broadscale." - Waymark wins top tech prize
April 25, 2019
Verb Adds Market Leader Stream Energy to Growing Client Roster
Stream represents one of the first clients to adopt the newly combined digital platform launched immediately following the successful closing of Verb's recent acquisition of Utah-based Sound Concepts, the leading provider of sales tools for the direct selling industry. A next-generation digital platform that combines the best of Sound Concepts' Brightools technology and Verb's interactive video technology, this new platform has been designed specifically to meet the needs of the direct selling industry.
April 22, 2019
Verb will use some of the IPO proceeds to open an 8,000-square-foot office in Newport Beach, its third in addition to the newly acquired Utah outpost.
LA Biz Journal
April 17, 2019
VERB Announces Closing of Sound Concepts Acquisition
Rory's NASDAQ interview
April 9, 2019
Verb Announces Customer Agreement with the National Association of Health Underwriters
April 5, 2019
Verb Technology Company, Inc. lists on the NASDAQ capital market and prices $20,000,000 public offering
March 28, 2019
VERB ANNOUNCES COLLABORATION WITH ADOBE
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Post by Mike on May 29, 2019 19:51:28 GMT -5
Conversion rates are exploding, markets are virtually unlimited and a rapid growth strategy is underway!
Sound Concepts and nFusz no longer exist, but Verb does, and it's fueled and positioned on the NASDAQ for launch.
Rory and his team have been working with the big boys for a year now, developing the best strategy and the new verbCRM core app for Oracle, Salesforce and the other large platforms. It's now complete and in testing before integrations begin this summer.
In the meantime, there's a heavy focus Verb Direct.
The Direct Sales Industry is massive and hungry for the new Brightools application, and rightly so, it works as advertised... It has all the tools needed to help marketers connect, order samples and sell their products. Direct Sales is a hands on, "in your face" business and not for the shy. Rory must be feeling like a kid in the "Walmart" of candy stores!
Notes from 1st conference call
Brightools users are 575,000 strong now and rapidly growing as clients are coming aboard on almost a weekly basis.
Verb Reports 40% Increase In Digital Revenue Over Prior Quarter and expected to continue at this rate if not increase.
The Brightools white label application ranges from $25,000 to $150,000 per month depending on features and functionality.
Verb is developing a white labeled application for a client that's expected to bring in 750k in revenue this year alone, with others interested in same.
No more of the OTC related financing. Verb paid off 2.4 million in debt & has enough revenue to support over 5 million in traditional debt if needed.
vimeo.com/307810146?cjevent=e9fb6e67806011e982c403bb0a240611
VERB and Sound Concepts Consolidated, Unaudited, Pro Forma,
Balance Sheet as of March 31, 2019:
Cash of $2.5 million
Total assets of $30.5 million
Total liabilities of $8.9 million
Total shareholders' equity of $21.6 million
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Post by Mike on May 30, 2019 8:13:57 GMT -5
Large platforms
Justin Butler: Okay. Could you clarify the status and expected timing of Verb Tech’s integration in the release in major CRM platforms, including Microsoft, Oracle, Salesforce, Adobe and Facebook?
Rory Cutaia: Sure. What we did previously is we integrated our interactive video-based CRM into Oracle NetSuite and Adobe Marketo. I don’t think that the integration was as terrific as I would have preferred that it be. For example, Oracle NetSuite already has a CRM, they didn’t need our CRM features, so users had to choose between the existing CRM features they were using or ours, and I think that took away from the application. We worked with a lot of the NetSuite users and with Oracle NetSuite directly to refine it. What we’ve done is we’ve created what we refer to as our core product. That is just the interactive video capabilities, the editing capabilities, adding the interactive tags to the videos, making those tags cool and animated, and also the tracking capabilities, so that when someone watches a video, all of the data associated with who’s watching it, when they watch it, how many times, etc., all that data is fed back into the host system.
I promised that we would have that done by the end of Q2, and it is done, so now we’re beginning the integrations into those products, because now that core is done. I’m hopeful that we’ll see that begin to be released with products over the next two months, three months, we’ll see which ones get done first, and we’ll keep everyone informed all the way through the process. I’m thinking more like August, you’ll begin to see that.
Justin Butler: Okay, good. Please explain how revenue will be generated from the partnerships with Microsoft, Oracle, Salesforce, Adobe and Facebook.
Rory Cutaia: Just for clarification, we’re not integrating the core product into Facebook, okay? You had asked about Facebook in a prior question. Not Facebook, and again not in this question, but, yes, Microsoft, Oracle, Salesforce, Adobe Marketo, and some others, as well. It’s a revenue share, and it’s a bilateral revenue share. We give them a percentage of what they sell of our product, because they’ll be marketing directly to their customers, and they give us a percentage of what we sell of their product. For example, we go into a large enterprise and they might need Salesforce, they want to switch to Salesforce. Our CRM alone is not sufficiently robust to manage full ERP integration throughout an entire enterprise where they’re tracking inventory and the like. So, we would sell Salesforce bundled with our capabilities and we would get paid on a monthly recurring basis for that by Salesforce. That’s how it works. There’s a little change with Microsoft, but I’ll talk about that as we move on.
Justin Butler: Okay. Is Verb Technology actually integrated into a software package, like MS Office, Microsoft Office, where, whenever someone gets a copy of Office, we are getting revenue, or is the Verb app an add-on that has to be purchased separately?
Rory Cutaia: This is that question that I was thinking. Look, it depends on the product. For example, for Outlook, it will be—at least initially, it’s planned to be an add-on. So, if you’re an Outlook user, existing Outlook user, you would pay an additional monthly fee and you would have the tag video, interactive video capability right there in your—right on your dashboard, on your tool bar, if you will, within Outlook. Now, depending upon user response and the like, yes, it’s possible that Microsoft will just bundle it in. Then, there’s other products. For example, there’s a product, it’s a video streaming product that Microsoft came out with not long ago called Stream, and that’s a little different. There, our team is working with their engineering people to talk about integrating it into the product that will be sold by Microsoft. So, that’s a different deal, different revenue model. That’s what I was referring to before when I said there’s some differences.
Justin Butler: Okay. Will these companies be advertising this interactive video platform to their customer base?
Rory Cutaia: Yes, absolutely. That’s the whole point of it.
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Post by Mike on May 30, 2019 11:22:48 GMT -5
Verb Direct
Justin Butler: Okay. What kind of plans does Management have to increase the average revenue per user of Brightools’ taggCRM application?
Rory Cutaia: As you know—you’ve heard me talk about this in the past—it’s all one platform now. There’s not a separate VERB product and a separate Sound Concepts product, it’s one company, it’s one platform. Within that platform, there’s different products, and we can’t talk about that. For the most part, we’re selling to enterprises, large enterprises that have thousands of individual users, and the monthly subscription is paid by the enterprise. However, in an upcoming release, which we’ll probably see this summer—in fact, there’s going to be several releases this summer, but we’re adding in-app purchasing for individual users. So, while the Company is paying for them to use the app with the basic feature set, individual users will be able to add on certain kinds of features, such as video filters, stickers, the video template store. Even the interactive video itself will be an upgrade for some of the customers that we’re using—that we’re working with, rather. So, we would expect to generate substantially more revenue from the existing customer base than we’re generating at this moment.
Justin Butler: How does the combined Brightools and VERB application generate revenue?
Rory Cutaia: As I said, it’s all subscription-based. It’s a monthly subscription, in some cases it’s annual, and it’s paid for by—in the case of enterprise users, it’s paid for by corporate, by the company. As I just mentioned, we will be introducing the ability for individual users within enterprise to buy additional features that could range anywhere from a dollar to several dollars per month. We also will have individual user programs and those will be paid for by the individuals, and that will range from somewhere between $9.99 per month to $24.99 a month.
Nathan Winfree: Now, the next question is: With inheriting a large sales team as part of the acquisition, does VERB have any of the former Sound Concepts sales team members now solely focused on the other verticals, such as the education and non-profits?
Rory Cutaia: No, we don’t, and the reason is this. The direct sales network marketing space is huge, it is a massive market, there’s very little competition in that space, and while we are, I believe, the dominant player, we still have a very small percentage of market share there. I think there’s enormous growth for us and I want these guys, who are experts in selling that to them, I want them focused on that, and we’re incentivizing them in certain ways and doing some things that I believe will help us get—or capture a much larger share of that market.
Now, we have brought in outside sales reps that are focused solely on those other sectors that you mentioned. They are success fee-based, so they don’t get paid unless they actually close a transaction in those particular sectors. We are adding people that will focus on those sectors, but the former Sound Concepts sales guys, who are really amazing, talented people, that are experts in that field, I want the experts focused on that. I hope that answers you question.
Nathan Winfree: Well, I think it might have answered my next one, as well, but it’s very similarly worded. Could you possibly describe how the sales focuses have changed since the two companies integrated into one?
Rory Cutaia: Yes. What we did before, as you long-term stockholders know, is we would create a product to go out, pitch it to a particular new market and try and open up that market, markets that we hadn’t sold into previously or at all, but we don’t do that really anymore, we might experiment from time to time, but right now our focus is let’s respond to current demand from paying clients. What that means is as we sign clients—these are clients that are making financial commitments—“If you build this for me, this is what we’ll pay, we’ll pay upfront.” There’s a lot of that kind of business for us. I think I talked about it a bit maybe in our last earnings call, the kinds of business that we’re seeing now. So, we’re really much more focused on bringing in dollars today, because that’s going to impact share price and earnings. That’s what’s really different. We’re focused now on selling into existing demand instead of trying to create demand, if that’s clear.
Nathan Winfree: For the customer-facing product, the $750,000 we are getting this year by just one company, will that be shown in one quarter or spreading throughout the rest of the 2019 quarters, the $750,000 build cost?
Rory Cutaia: Right. That will be spread out over the balance of this year and then, beginning in 2020, that will increase that particular customer’s monthly recurring fee. I think it’ll go from $30,000 odd to somewhere, I think, close to $70,000 per month from that one particular client.
Subscribers
Nathan Winfree: Are the 575,000 subscribers, including enterprise accounts that pay as a whole per month based on the technology used—say, for example, Revital U—(inaudible) integrated into their app, does each of the app users count as a subscriber even though they don’t pay directly, the company pays as a whole?
Rory Cutaia: Let me see if I can create some clarity around that. The individual users are users. Where the company is actually paying, the company is a subscriber. Now, I think I mentioned earlier that we’re going to create the ability for each of those—I think it’s closer to 600,000 users now—each of them to have in-app purchases. So, $0.50 a month, they’ll have some really cool Instagram-style stickers and filters that they can put on their videos, and that kind of stuff, and they’ll pay a modest monthly feel. But, even if it’s just a buck or two bucks, or whatever it is, and you’ve got 600,000 users out there, that’s meaningful, super-high margin revenue on a monthly recurring basis. Once they purchase and become a—that’s when they become a subscriber, but they’re all users.
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Post by Mike on May 30, 2019 11:39:00 GMT -5
taggEDU
Nathan Winfree: Thank you. The education front, are there other large school districts in the pipeline that are ready to go from the trial phase to signing a large agreement, similar to the Sachem School District announcement? Apologies if I said that wrong.
Rory Cutaia: Yes, there are, and we’ll be announcing them in the near term. I can’t provide more information on it just yet.
taggMED
Nathan Winfree: What is the status of TaggM-E-D or TaggMED?
Rory Cutaia: We’ve got some terrific things going on there. We’ve got two new clients that will be announced. I think we might try to get one of those announcements out this week or next. So, yes, there’s some terrific things going on, you’ll see that.
taggPRO
Ray Irvine: Excellent, thank you. The next question is from Roger, Roger’s been a shareholder for a year, and he wants to know: When do you expect the launch of the desktop version of TaggPRO?
Rory Cutaia: TaggPRO is part of core, I mentioned that before. We’ll see that released, I’m going to say end of June or early July. That’s right on track.
Video Template Store
Ray Irvine: Okay. The next question is from Susan, a two-year shareholder, and she asks: Will it have the library of stock videos at launch?
Rory Cutaia: The video template store, that will be released this fall. It’ll be part of TaggPRO, it’ll be part of a whole bunch of products. Look, we’ve got so much going on, we have to set priorities. I think that the tag video store thing is going to be really a big deal, but right now our—most of our customers are enterprises in the direct sales space, among other enterprises, and they create their own videos and then they push them down into the application for their users and members. The tag video template store is really going to be attractive for small business and solo users, that don’t really have a budget to create their own videos. I think that’s where that product is really going to shine. By the way, we have a small business product that’ll be coming out this summer, probably towards the end of the summer, beginning of the fall, that people are going to really, really love, it’s really going to make a dent in this marketplace, and those people would really want to take advantage of the video store, so we’re going to try to have it ready for that release.
Ray Irvine: Excellent. Another question regarding video is: When do you expect to partner with Vimeo, so users have an alternative to YouTube for video transfer to your apps?
Rory Cutaia: Good news, we’ve completed development now, so that not only will people be able to pull videos from Vimeo and YouTube, but actually approximately 150 other sources, and that’s now finished, it’s terrific. I’m waiting for a release date. I’m going to be in Utah tomorrow with the Dev Team and Chad and I’m going to try and get an update on when that’s going to come out, but it’s a great, great update to the product.
taggLIVE
Justin Butler: Okay. How far along is FacebookLive App products and what is the expected launch?
Rory Cutaia: Just for people who don’t know what that is, it’s a live broadcast app. So, you could use your mobile device and live broadcast yourself to your audience of followers, friends, etc. It’s essentially a video conference application, except the host can add interactive tags that appear on the screen of everyone watching and those viewers could then click on those tags in the live video feed, which is obviously different that what our application does now, people are clicking on prerecorded videos. This will allow people to broadcast themselves and promote themselves and their product. It really is far superior than any other kind of video conferencing that’s in the market right now, because of the ability to add the interactive capabilities.
It’s done, it’s working, it’s super cool. Facebook needs to open up the feature that allows users to link out of Facebook to enable our Buy It Now feature, which I think is probably going to be the most popular feature. That’s where you could drag an icon or a tag onto the video and people can click on it while you’re talking about it or showing it, and they could buy it right out of the video. Facebook has not enabled that yet. They have, apparently, enabled it for some companies, some preferred vendors, it appears, but they haven’t done that yet for us. I don’t know when they’re going to do that, to be perfectly honest with you, but you know us, we’re not standing still. We’ve already begun taking that core application and changing it, so that it no longer needs to reside within Facebook. It will be available as a feature within all of our applications. So, you’ll pay for that feature as an upgrade option on a monthly basis. What that’s going to do for us is it will solve what we had been struggling with, which is how do we monetize this. It’s not easy to do that in a Facebook application, but this will allow us to monetize it right out of the gate. So, look, we’ll keep you all updated on that. It’s really one of the very exciting things that’s going on here.
Ray Irvine: Can the technology be applied to streaming video services, such as, say, Amazon Twitch? From the sidelines, it seems like it would be a perfect fit.
Rory Cutaia: Yes, it’s what I spoke about earlier when we talked about FacebookLive and that new application that we’re going to come out with. I also mentioned working with Microsoft on Stream. I believe that the ability to add interactive elements and tags to live video is really a big deal. Amazon Twitch works that way, we would definitely be able to do that. We have not opened up any kind of dialog with Amazon on Twitch yet. If anyone listening has a relationship there, could make an introduction, we would appreciate it. But, yes, I agree, it would be a great fit.
Ray Irvine: Now, we’ve got a question from Bob, he’s been a shareholder for year. Somehow, he snuck in a three-part question. He’s asking about verticals. His first question is: Which ones have legs?
Rory Cutaia: Well, look, EDU and MED have amazing, I think, possibilities. It’s really going to come down to what’s going to create the most value for shareholders, and as we make that determination, we will certainly share that, but those two sectors—that’s obviously in addition to the direct sales space and some of the non-profit that we’re already in, but those, I think, have amazing possibilities there.
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Post by Mike on May 30, 2019 20:34:41 GMT -5
Justin Butler: How does the combined Brightools and VERB application generate revenue?
Rory Cutaia: As I said, it’s all subscription-based. It’s a monthly subscription, in some cases it’s annual, and it’s paid for by—in the case of enterprise users, it’s paid for by corporate, by the company. As I just mentioned, we will be introducing the ability for individual users within enterprise to buy additional features that could range anywhere from a dollar to several dollars per month. We also will have individual user programs and those will be paid for by the individuals, and that will range from somewhere between $9.99 per month to $24.99 a month.
Justin Butler: What are the Company’s profit margins at this time and what do you expect them to be as time goes on?
Rory Cutaia: Right now they’re in the range of about 78%, and I think over time we’re going to try and do better than that, but I can’t give you any more guidance than that at the moment.
Justin Butler: Rory, when do you anticipate being cash flow positive?
Rory Cutaia: Our current model indicates that we will be cash flow positive by the end of the year, but I’d like to be able to give some guidance on that and I’d like to wait until we have filed our second quarter’s earnings, and then I’ll provide something more definitive at that time. That’s what it’s looking like right now.
Justin Butler: Okay. Next question: What are the current projections for income of the new combined company?
Rory Cutaia: Well, look, as of March 31, when we filed the Q, we were on a run rate for the year of about $16 million, but like I said before, after we file the second quarter, I’m going to provide some guidance, or at least I’m going to do my best to provide some guidance. We’re going to come in—I can tell you now we’re going to be conservative, we’re going to look to under-promise, over-deliver, and I think everyone’s going to be real happy with what we’re going to come out with.
Justin Butler: Okay. Next question: How do you intend to finance operations until the business is cash flow positive?
Rory Cutaia: We have existing cash that we raised in connection with the offering, and some debt that we raised. In addition, we will take on traditional bank debt, not the kind of crazy, toxic things that you see OTC companies do, we don’t need to do anything like that. So, we’ll take on some traditional debt, and that, together with what we’ve raised and the cash that the business will generate, we should be in really good shape through the end of the year and beyond.
Justin Butler: Okay. Are there any synergistic companies being analyzed as a potential candidate for a merger or acquisition?
Rory Cutaia: Yes, definitely, but I can’t share any details right now.
Profit margins
Justin Butler: What are the Company’s profit margins at this time and what do you expect them to be as time goes on?
Rory Cutaia: Right now they’re in the range of about 78%, and I think over time we’re going to try and do better than that, but I can’t give you any more guidance than that at the moment.
Justin Butler: Okay. What kind of plans does Management have to increase the average revenue per user of Brightools’ taggCRM application?
Rory Cutaia: As you know—you’ve heard me talk about this in the past—it’s all one platform now. There’s not a separate VERB product and a separate Sound Concepts product, it’s one company, it’s one platform. Within that platform, there’s different products, and we can’t talk about that. For the most part, we’re selling to enterprises, large enterprises that have thousands of individual users, and the monthly subscription is paid by the enterprise. However, in an upcoming release, which we’ll probably see this summer—in fact, there’s going to be several releases this summer, but we’re adding in-app purchasing for individual users. So, while the Company is paying for them to use the app with the basic feature set, individual users will be able to add on certain kinds of features, such as video filters, stickers, the video template store. Even the interactive video itself will be an upgrade for some of the customers that we’re using—that we’re working with, rather. So, we would expect to generate substantially more revenue from the existing customer base than we’re generating at this moment.
Share Valuation
Ray Irvine: Okay. I have another question from Joseph. He actually submitted a lot of questions, and they were pretty good questions. Again, he’s a two-year shareholder, and he’s asking: I think a mention of how tech stocks are valued would be helpful for investors. A $40 million market cap is ridiculously undervalued, in my opinion. We have much more room to move up. Your comments on that.
Rory Cutaia: Yes, look, I think you know that I agree, I think our stock is ridiculously undervalued, but it’s worth commenting on how tech stocks are being valued today. What our research indicates, and I think this has been confirmed by other people that we’ve spoken to, for a tech company, like ours, in this space, at this stage of our development, on average, we’re seeing a multiple of revenue, not earnings, but a multiple of revenue, and it’s looking like 16.8 is what someone recently confirmed for me. Again, these are big-time forward-looking statements, you’ve got to do your own due diligence around this, okay? I’m just sharing with you what I’m seeing and what I’m being told. So, about 16.8 times annual revenue for companies at our stage.
As we mature, the multiple of revenue that would apply to us actually goes down, and then it ultimately switches from a multiple of revenue to a multiple of earnings—and you’re familiar with PE ratios and the like. By the way, CRM companies, they seem to have the highest multiples right now, so we are in a really good place. As we begin to get some analyst coverage and they apply market multiples to our business and come out with their price recommendations, I think we should fare pretty well.
Warrants
Nathan Winfree: All right, and the next question is: Is it cashless to exercise warrants once a strike price is reached?
Rory Cutaia: The warrants that—the VERB warrants that are out there trading under the symbol VERBW, they are not cashless. What that means is when the price of a share of our stock rises above the strike price of the warrant, which I believe is $3.43, when it rises above that, then people can exercise by paying that amount. For example, if the stock was trading at $10, they could buy a share of stock for $3.44. They would do that by paying $3.44.
Now, this is actually a really good question, because it allows me to share some other information that perhaps people are not aware of.
We’ve got some 40 some odd institutional investors now in the Company, which is quite amazing, in my view. When the stock price exceeds the strike price of the warrant, as it’s been explained to me, institutional investors typically will exercise immediately, and they do that because they want the one-year capital gains tax treatment to work, so they have to hold it for a year after they exercise, and they want that to happen as soon as possible and have that exercise period run so that they get favorable tax treatment on the gains. What that means for us is that once we see the stock price begin to rise above $3.44, we would expect to see a lot of those warrants being exercised, which means we could see, as early as this year, as much as $15 million, or more, flowing into the Company.
Nathan Winfree: Thank you, that’s a terrific example and explanation of how the warrants get used and exercised and benefit the Company.
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Post by Mike on Jun 3, 2019 11:09:03 GMT -5
Verb is going where no company has gone before... |
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