Verb Technology Q1 2025 Earnings Call Transcript

Quartr
Provided by Quartr
May 13, 2025

There are 2 speakers on the call.

Operator

Good afternoon, and welcome to the First Quarter twenty twenty five Financial Results Conference Call for Verb Technology Company Incorporated. At this time, all participants are in a listen only mode. Please be advised the call is being recorded at the company's request. On our call today is Rory J. Cutayo, Verb's Founder, Chairman and CEO.

Operator

Before we begin, I'd like to remind everyone that statements made during this conference call will include forward looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties that can cause actual results to differ materially. Forward looking statements speak only as of the date they are made, except as required by law as the underlying facts and circumstances may change. Verb Technology Company disclaims any obligation to update these forward looking statements as well as those contained in the company's current and subsequent filings with the SEC. I would now like to turn the call over to Rory J. Cutaya, CEO.

Operator

Rory?

Speaker 1

Thank you, moderator, and thanks to everyone for joining us today for our first quarter twenty twenty five financial results and business update conference call. So for those of you who have reviewed our 10 q file this morning or the summarized results in the press release we issued this morning, well well, you already know. Right? You you know the company is firing on all cylinders, and I'm talking about a 12 cylinder, finely tuned, exotic sports roaster. And, yeah, yeah, we had a crazy good quarter.

Speaker 1

This is the verb we've envisioned, and this is the verb we've manifested, and this is the verb we have worked so hard to deliver. And the best part, the really the really best part is this is just the beginning. I've gotta hand it to my management team. They never stop believing through all the trials and tribulations, and we've had more than our share. They stuck it out with me.

Speaker 1

We drew strength from one another, and no matter what no matter what, we never gave up. And I appreciate them all so very much and amazing, amazing board of directors. And now that we've begun to hit our stride, they're all feeling They know where we're taking this vehicle. And for those of you listening to this who have stuck it out with us, and for those of you thinking about joining us, from here on out, it's going to be a fun ride. We're cashed up, zero debt, insanely undervalued, and each birth division is performing very, very well.

Speaker 1

So I'm not gonna take your time reading the 10 q or reiterating everything we discussed about the company just six weeks or so ago when we reported our 2024 results. But I will definitely enjoy sharing some of our team's accomplishments in just the first three months of this year. So alright. Let's start with revenue. But first, let me provide some context.

Speaker 1

In q one of twenty twenty four, we we reported revenue of just $7,000. In q four of twenty twenty four, we reported revenue of $723,000. Definitely a great quarter and the first full quarter after we instituted a number of changes to our business model. As for the entirety of 2024, we reported a total of $895,000. But in q one of twenty twenty five, we reported $1,300,000.

Speaker 1

That's 80% revenue growth over the prior quarter and approximately 46% growth over all four quarters of revenue of 2024 combined. And while we've we've been busy signing and launching a plethora of new clients, we identified what we believe is the hottest AI social commerce technology company in the market and negotiated the terms of $8,500,000 cash and stock acquisition, signed a comprehensive term sheet, and then rapidly drove the deal to a closing all while actively integrating their AI technology into our own platform. We used about 4,200,000.0 in cash in closing an acquisition, and, look, I really like having a very robust zero debt cash up balance sheet. So being opportunistic, we identified a funding opportunity with extraordinary shareholder friendly terms, negotiated it, documented it, and closed it. A nondilutive, nonconvertible, nonvoting preferred stock deal with just a 9% annual dividend.

Speaker 1

And with that, we added $5,000,000 back onto the balance sheet. This deal is with a a trusted financial partner with whom we've now done several very successful deals. I do feel sorry for other companies doing terrible, horrible financing, steep steep discounts to market price, prefunded warrants, triple warrant coverage, decimating cap tables, and rendering many of these companies unfinanceable going forward who ultimately get shorted into oblivion, and you see it every day. Tough times for a a lot of companies, and I'm very grateful that we're in such a strong cash position, and we've been able to maintain a super clean cap table, no warrant overhang, and a very tight float, obviously not desperate to find a source of capital. In fact, with our cash on hand, no debt, and growing revenue across all business units, we expect to be able to fund operations easily easily into 2028 and beyond.

Speaker 1

As to the growth behind Market. Live, we've signed many very high profile clients and continue to do so. And I've been asked, well, why aren't we announcing them? Which we'd have to do multiple times a month. But but the answer is is most of these deals are where we're white labeling our platform for these well known brands, and our contract prohibits us from announcing the names.

Speaker 1

I wish I could. If I could, I doubt our stock would still be trading for 50% of our net cash with zero value given for all our business units. It's crazy. It's it's just crazy. I've also been asked why we don't see as many livestreams on market.live as as we used to, and that's because our new technology allows us to stream directly from our clients' own websites and then multicast their streams across multiple social media channels simultaneously.

Speaker 1

And this is this is really the killer app to growing so many more clients because it allows these brands to own and continue to own the customer relationship while still streaming over other social platforms. We're also seeing strong strong growth in shoppable ads among many other areas of our market.live and and now livecom business units. Our telehealth platforms, Vanity Prescribe and GoodGoRx continue to grow month over month adding recurring subscription based revenue. And our GoFund Yourself crowdfunding TV show is developing and almost hope like following, and more and more issuers who are applying to be on the show, forcing us now to become much more selective and and to accommodate demand, we're now shooting multiple episodes twice a month. And, of course, issuers pay to be on the show.

Speaker 1

And now we're about to launch season two on Shutter. So in in closing, I refer you to our form 10 q filed today for greater details concerning our q one twenty twenty five financial results as well as the press release that we distributed today summarizing those results for additional information that I've not covered in my in my conference call today. So thank you. Thank you for your interest in Verb and for taking the time to listen to our q one twenty twenty five financial results. And I presume you can tell how excited we are about the business.

Speaker 1

We're really excited. And, oh, yes. I do indeed expect q two results to be even better than this q one. So stand by.

Operator

Thank you. Ladies and gentlemen, this concludes the conference call. You may now disconnect your lines.

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Key Takeaways

  • In Q1 FY25, Verb reported $1.3 million in revenue, marking 80% sequential growth from Q4 FY24 and 46% growth versus the entirety of 2024.
  • The company closed an $8.5 million acquisition of a leading AI social commerce technology firm, using $4.2 million in cash and integrating the AI platform into its own offerings.
  • Management secured a $5 million nondilutive preferred stock financing with a 9% dividend, bolstering a zero-debt, cash-rich balance sheet capable of funding operations into 2028.
  • All business divisions are expanding, notably Market.live with white-label livestreaming and shoppable ads, telehealth platforms adding subscription revenue, and the GoFund Yourself TV show preparing for Season 2.
  • The CEO signaled that Q2 results are expected to surpass Q1 performance, highlighting ongoing momentum across the business.
AI Generated. May Contain Errors.
Earnings Conference Call
Verb Technology Q1 2025
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