Verb Technology Company ((VERB)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call from Verb Technology Company was marked by a strong positive sentiment, highlighting significant revenue growth, successful restructuring initiatives, and strategic acquisitions. The company has effectively addressed past challenges, particularly those related to attrition and capital markets, setting a promising tone for future developments.
Revenue Growth
Verb Technology Company reported a remarkable revenue growth for 2024, with combined revenue reaching $895,000, an increase of $832,000 over the previous year, representing a growth of 1,321%. The fourth quarter alone saw revenue of $723,000, marking an almost 2,400% increase compared to the same period last year.
Debt-Free Balance Sheet
The company has successfully paid off all its debt and redeemed all previously issued preferred shares, resulting in a restructured balance sheet. Shareholder equity improved dramatically from nearly $2 million negative in June 2023 to more than $16 million positive by December 2024.
Successful Financing Strategy
Verb’s strategic use of Reg A for capital raise initiatives allowed the company to avoid predatory hedge-fund investors. This approach enabled them to issue straight common shares at-the-market, without warrant coverage or investment banking fees.
Launch of New Ventures
The introduction of new business units such as VANITY Prescribed and GO FUND YOURSELF indicates significant growth potential. Notably, GO FUND YOURSELF generated $25,000 in Q3 and $233,000 in Q4, showcasing its promising start.
AI Integration
The acquisition of LyveCom’s AI technology is expected to enhance the platform’s capabilities while reducing operational costs by approximately $1 million per year, positioning the company for further efficiency and growth.
High Attrition Rate in Previous Business Model
The company faced challenges with a high attrition rate among sales reps in its SaaS platform, which made it difficult and costly to achieve meaningful revenue growth. This issue has been addressed in the restructuring efforts.
Challenges in Capital Markets
Verb Technology encountered challenges such as predatory financing terms and short-selling, which eroded share prices. The company has taken steps to mitigate these issues through strategic financing strategies.
Forward-Looking Guidance
Looking ahead, Verb Technology Company anticipates continued revenue growth, with Q1 2025 expected to surpass Q4 2024. The company’s diversified revenue streams and the strategic acquisition of LyveCom are projected to reduce operational costs by about $1 million annually, further strengthening their financial position.
In summary, the earnings call for Verb Technology Company reflected a strong positive sentiment, driven by impressive revenue growth, strategic restructuring, and innovative ventures. The company’s proactive approach to addressing past challenges and its forward-looking strategies position it well for future success.