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Verb Technology Company Inc (VERB)
NASDAQ:VERB

Verb Technology Company (VERB) AI Stock Analysis

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Verb Technology Company

(NASDAQ:VERB)

48Neutral
Verb Technology Company is positioned in a challenging financial environment with ongoing net losses and negative cash flows. Despite impressive revenue growth and a positive earnings call sentiment, the technical indicators and valuation suggest caution. The company’s strong restructuring efforts and strategic acquisitions are encouraging, but profitability and cash flow generation remain critical areas for improvement.
Positive Factors
Financial Position
Shares are selling well below cash value, implying a large potential upside in the stock just for the cash.
Partnership
The company recently entered into a partnership with TikTok Shop, officially designating it as a TikTok Shop Partner.
Negative Factors
Guidance
The company did not provide forward guidance.

Verb Technology Company (VERB) vs. S&P 500 (SPY)

Verb Technology Company Business Overview & Revenue Model

Company DescriptionVerb Technology Company (VERB) is a technology firm specializing in interactive video-based customer relationship management (CRM) and sales engagement solutions. The company operates primarily within the technology and software sectors, offering a range of products designed to enhance sales processes and improve customer interactions. Verb's flagship offerings include interactive video-based sales applications, CRM platforms, and a suite of tools tailored for sales professionals to engage customers more effectively.
How the Company Makes MoneyVerb Technology Company generates revenue through a subscription-based model for its software-as-a-service (SaaS) products. Key revenue streams include recurring subscription fees from its CRM and sales engagement platforms. The company also earns income through strategic partnerships with other firms to integrate its interactive video technology into broader sales and marketing solutions. Additionally, Verb may generate revenue from professional services such as consulting, training, and support associated with its software products, further contributing to its earnings.

Verb Technology Company Financial Statement Overview

Summary
Verb Technology Company faces significant financial challenges with persistent losses and negative cash flow. Despite a low debt burden, the company struggles with profitability and cash generation, reflecting operational inefficiencies.
Income Statement
25
Negative
The company shows a significant decline in revenue growth with negative gross and net profit margins over the TTM period. The EBIT and EBITDA margins are also negative, indicating operational challenges.
Balance Sheet
40
Negative
The company maintains a low debt-to-equity ratio due to minimal debt levels, but the return on equity is negative due to consistent losses. Equity ratio remains stable, suggesting a moderate financial structure.
Cash Flow
30
Negative
Negative operating and free cash flows indicate liquidity challenges. The free cash flow growth rate remains negative, and the operating cash flow to net income ratio suggests inefficiency in converting income into cash.
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
201.00K63.00K9.44M10.52M9.96M9.10M
Gross Profit
-771.00K44.00K6.12M6.02M5.16M4.23M
EBIT
-10.95M-13.79M-26.83M-33.71M-24.74M-15.83M
EBITDA
-8.10M-11.46M-13.44M-29.68M-22.01M-11.06M
Net Income Common Stockholders
-10.06M-21.99M-46.47M-34.49M-24.96M-15.92M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.35M4.35M2.43M937.00K1.81M983.00K
Total Assets
10.84M10.84M24.49M34.43M32.54M28.36M
Total Debt
2.38M2.38M9.07M3.81M6.07M5.89M
Net Debt
-1.97M-1.97M6.65M2.87M4.26M4.91M
Total Liabilities
7.71M7.71M19.33M21.11M21.80M16.91M
Stockholders Equity
3.13M3.13M5.17M13.32M10.74M11.45M
Cash FlowFree Cash Flow
-9.28M-10.90M-24.16M-28.14M-16.61M-8.26M
Operating Cash Flow
-9.02M-10.60M-19.41M-25.86M-16.29M-8.12M
Investing Cash Flow
-5.26M4.44M-4.75M-2.26M-88.00K-14.59M
Financing Cash Flow
23.89M8.08M25.65M27.25M17.21M23.06M

Verb Technology Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.92
Price Trends
50DMA
5.40
Negative
100DMA
6.61
Negative
200DMA
11.33
Negative
Market Momentum
MACD
-0.05
Negative
RSI
43.71
Neutral
STOCH
17.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERB, the sentiment is Negative. The current price of 4.92 is below the 20-day moving average (MA) of 5.18, below the 50-day MA of 5.40, and below the 200-day MA of 11.33, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERB.

Verb Technology Company Risk Analysis

Verb Technology Company disclosed 29 risk factors in its most recent earnings report. Verb Technology Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verb Technology Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$367.50M31.321.75%-32.95%-89.11%
64
Neutral
$1.66B83.603.10%7.82%
58
Neutral
$21.03B10.28-16.29%2.47%4.45%-23.80%
48
Neutral
$5.48M-106.89%-60.68%96.58%
47
Neutral
$990.28M-70.72%18.61%49.61%
RURUM
32
Underperform
$3.14B-358.99%17.94%-186.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VERB
Verb Technology Company
4.92
-47.84
-90.67%
PERI
Perion Network
8.16
-13.72
-62.71%
MGNI
Magnite
11.60
1.02
9.64%
FUBO
fuboTV
2.90
1.32
83.54%
RUM
Rumble
7.24
0.00
0.00%

Verb Technology Company Earnings Call Summary

Earnings Call Date: Mar 25, 2025 | % Change Since: -13.99% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong positive sentiment with significant revenue growth, successful restructuring initiatives, and strategic acquisitions. Challenges in the past, particularly concerning attrition and capital markets, have been addressed effectively.
Highlights
Revenue Growth
Combined 2024 revenue was $895,000, an increase of $832,000 over 2023, representing revenue growth of 1,321%. Q4 2024 revenue alone was $723,000, an increase of $694,000 over the same period last year, representing growth of almost 2,400%.
Debt-Free Balance Sheet
The company has paid off all its debt, redeemed all previously issued preferred shares, and restructured its balance sheet. Shareholder equity went from almost $2 million negative in June 2023 to more than $16 million positive in December 2024.
Successful Financing Strategy
The company used Reg A to structure capital raise initiatives, avoiding predatory hedge-fund investors and allowing them to issue straight common shares, priced at-the-market, with no warrant coverage and no investment banking fees.
Launch of New Ventures
Introduction of new business units like VANITY Prescribed and GO FUND YOURSELF, showing significant growth potential. GO FUND YOURSELF generated $25,000 in Q3 and $233,000 in Q4.
AI Integration
The acquisition of LyveCom's AI technology is expected to reduce operational costs by approximately $1 million per year and enhance the platform's capabilities.
Lowlights
High Attrition Rate in Previous Business Model
The SaaS platform had a high attrition rate among sales reps, making it difficult and costly to generate meaningful revenue growth.
Challenges in Capital Markets
The company faced predatory financing terms and challenges like short-selling and financing exclusivity arrangements, eroding share prices.
Company Guidance
During the call, Verb Technology Company, Incorporated shared several key metrics and guidance for their future trajectory. The company reported a total revenue of $895,000 for 2024, marking a substantial increase of 1,321% compared to the previous year. Q4 alone saw a revenue of $723,000, which represented a nearly 2,400% growth over the same period last year and a 465% increase from Q3 2024. Verb successfully restructured its balance sheet, moving from a negative $2 million in shareholder equity in June 2023 to a positive $16 million by December 2024. The company has become debt-free, with over $13 million in cash and highly liquid securities, and boasts a tight share float of less than 1 million shares. Looking forward, Verb anticipates Q1 2025 revenue to surpass that of Q4 2024, driven by their diversified revenue streams and strategic acquisition of LyveCom, which is expected to reduce operational costs by about $1 million annually.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.