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Verb Technology Company Inc (VERB)
NASDAQ:VERB
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Verb Technology Company
(NASDAQ:VERB)
48Neutral
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)
Market Cap
$4.80M
Dividend YieldN/A
Average Volume (3M)41.67K
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue Growth-60.68%
EPS Growth96.58%
CountryUS
Employees18
SectorTechnology
Sector Strength39
IndustrySoftware - Application
Share Statistics
EPS (TTM)-33.24
Shares Outstanding1,113,143
10 Day Avg. Volume46,019
30 Day Avg. Volume41,673
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)26.98
Price to Cash Flow (P/CF)-0.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$100.00Price Target Upside2220.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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 is experiencing financial challenges with significant net losses and negative cash flows despite a remarkable revenue growth. While the balance sheet shows improvement in equity, profitability and cash flow generation remain critical issues.Income Statement
Verb Technology Company has experienced significant volatility in its income statement metrics. While the revenue has shown growth from $63,000 in 2023 to $895,000 in 2024, the company continues to incur substantial net losses as indicated by a negative net income of $10.3 million in 2024. The gross profit margin is relatively high at 75%, but the negative EBIT and EBITDA margins reflect ongoing operational challenges.35
Negative
Balance Sheet
The company's balance sheet indicates some improvements as stockholders' equity increased to $16 million in 2024 from $3.1 million in 2023. However, the debt-to-equity ratio is low at 0.03, suggesting limited leverage, but this is due to the low debt levels rather than strong equity. The equity ratio stands at 77.6%, providing some stability, yet the persistent losses are a concern.40
Negative
Cash Flow
Cash flow analysis shows ongoing negative free cash flow, with a figure of -$9.1 million in 2024. While operating cash flow remains negative, there is no immediate financial distress due to a large increase in cash reserves. However, the company is not generating positive cash flows from its operations, which is concerning for future liquidity.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 201.00K | 895.00K | 63.00K | 9.44M | 10.52M | 9.96M | Gross Profit |
| -771.00K | 671.00K | 44.00K | 6.12M | 6.02M | 5.16M | EBIT |
| -10.95M | -11.64M | -13.79M | -26.83M | -33.71M | -24.74M | EBITDA |
| -8.10M | -10.57M | -11.46M | -13.44M | -29.68M | -22.01M | Net Income Common Stockholders |
| -10.06M | -10.33M | -21.99M | -46.47M | -34.49M | -24.96M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 22.97K | 7.62M | 4.35M | 2.43M | 937.00K | 1.81M | Total Assets |
| 42.73K | 20.64M | 10.84M | 24.49M | 34.43M | 32.54M | Total Debt |
| 0.00 | 464.00K | 2.38M | 9.07M | 3.81M | 6.07M | Net Debt |
| -22.97K | -7.15M | -1.97M | 6.65M | 2.87M | 4.26M | Total Liabilities |
| 6.32K | 4.61M | 7.71M | 19.33M | 21.11M | 21.80M | Stockholders Equity |
| 36.40K | 16.02M | 3.13M | 5.17M | 13.32M | 10.74M |
| Cash Flow | Free Cash Flow | ||||
| -9.28M | -9.11M | -10.90M | -24.16M | -28.14M | -16.61M | Operating Cash Flow |
| -9.02M | -8.77M | -10.60M | -19.41M | -25.86M | -16.29M | Investing Cash Flow |
| -5.26M | -5.30M | 4.44M | -4.75M | -2.26M | -88.00K | Financing Cash Flow |
| 23.89M | 0.00 | 8.08M | 25.65M | 27.25M | 17.21M |
Verb Technology Company Technical Analysis
Negative
4.31
Price Trends
5.30
Negative
6.37
Negative
10.90
Negative
Market Momentum
-0.10
Positive
44.09
Neutral
13.14
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 4.31 is below the 20-day moving average (MA) of 5.09, below the 50-day MA of 5.30, and below the 200-day MA of 10.90, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 44.09 is Neutral, neither overbought nor oversold. The STOCH value of 13.14 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
56 Neutral | $7.03M | ― | -25.45% | ― | -2.48% | 21.51% | |
48 Neutral | $4.80M | ― | -106.89% | ― | -60.68% | 96.58% | |
45 Neutral | $4.81M | ― | -112.57% | ― | ― | ― | |
34 Underperform | $10.27M | ― | -34.59% | ― | -79.87% | 90.89% |
* Technology Sector Average
Performance Comparison
VERB
Verb Technology Company
4.31
-43.43
-90.97%
RIME
Algorhythm Holdings
2.24
-184.76
-98.80%
VS
Versus Systems
2.04
0.23
12.71%
MITQ
Moving iMage Technologies
0.71
0.19
36.54%
Verb Technology Company Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: -24.65% | 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.