Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Verb Technology Co Inc (NASDAQ:VERB) has achieved impressive revenue growth, with a 1,321% increase in 2024 compared to 2023.
• The company has successfully transitioned to a debt-free balance sheet, enhancing financial stability.
• The strategic acquisition of LyveCom's AI technology is expected to reduce operational costs by approximately $1 million per year.
• Verb Technology Co Inc (NASDAQ:VERB) has diversified its revenue streams with new business units like GoFundYourself and VANITYPrescribed.
• The company has a strong cash position with more than $13 million in cash and highly liquid securities, providing a solid foundation for future growth.

Negative Points

• The company faced high attrition rates among sales reps in its former SaaS business, impacting revenue growth.
• Outdated internal communication policies at client companies hindered effective use of Verb's sales tools.
• The company had to navigate predatory financing terms and market conditions that affected many small-cap companies.
• The MARKET.live livestream shopping business is not yet revenue-generating, posing a risk to future profitability.
• The company had to undergo a reverse split to maintain exchange listing requirements, which can be seen as a negative by investors.

Q & A Highlights

• Warning! GuruFocus has detected 4 Warning Signs with VERB.

Q: Can you elaborate on the strategic decision to sell the SaaS business unit and focus on the MARKET.live livestream shopping business? A: Rory Cutaia, CEO, explained that the decision was driven by the challenges in generating meaningful revenue growth due to high attrition rates among sales reps and outdated internal communication policies. The shift to MARKET.live was a bold move that has proven beneficial for shareholders, allowing the company to focus on a new, promising revenue stream.

Q: How has Verb Technology managed to maintain a debt-free balance sheet and a clean cap table? A: Rory Cutaia, CEO, highlighted the use of a unique Reg A financing strategy that avoided predatory hedge fund investors. This approach allowed the company to issue straight common shares without warrant coverage or investment banking fees, enabling them to pay off all debt and redeem previously issued preferred shares.

Q: What are the revenue growth figures for Verb Technology in 2024, and what are the expectations for 2025? A: Rory Cutaia, CEO, reported that 2024 revenue was $895,000, a 1,321% increase over 2023. Q4 2024 alone saw a 2,400% increase compared to the same period last year. The company expects Q1 2025 to surpass Q4 2024 in revenue.

Q: Can you discuss the integration and acquisition of LyveCom's technology? A: Rory Cutaia, CEO, stated that the integration of LyveCom's AI technology resulted in significant operational cost reductions and enhanced the MARKET.live platform's capabilities. The acquisition is expected to be highly accretive and produce meaningful value for shareholders.

Q: What are the new business units Verb Technology has developed, and how are they performing? A: Rory Cutaia, CEO, mentioned the launch of VANITYPrescribed, GoodGirlRx, and GoFundYourself. GoFundYourself, in particular, showed promising growth, generating $25,000 in Q3 and $233,000 in Q4 2024. These units are part of the strategy to diversify revenue streams and leverage the company's interactive social video commerce technology.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.