I said they would be least around $3M ($1M a month
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Posted On: 05/02/2019 12:03:58 AM
I said they would be least around $3M ($1M a month). Maybe more.
Certainly won't be $32K
I was rounding since it's an estimate based on the current monthly revenue rate. I've learned when you present an exact number, people think those numbers are real. Rounding implies an estimate. If Q1 is $3-$4M, that's great. If it's more, even better.
For what it's worth, I factored in December (slow month) which traditionally companies aren't launching apps which would effect Jan/Feb.
November was in the numbers I posted for December if that makes sense.
I also took a look at the dates apps went live. VERB added 18 new customers since December. How many received their solution and when did the revenue recognition clock start is the question. When they add these customers, user ramp up takes awhile. If existing Q4 users were added, that would show in Q1, but not really so much the 18 new customers. That would be more Q2.
Also I've posted before about a company Adobe bought called Day Software. They were doing a complete rewrite of their content management software. While they were doing this, sales tanked as people didn't want to buy and then have to turn around and upgrade. After the new release came out, sales were off the charts and the stock went crazy on the Swiss exchange. This type of stage could be set for VERB as well. Keep in mind, this was traditional software sales before the subscription model so very worst case, revenue is flat.
Also remember that only a percent of their revenue is coming from the digital business where there is other revenue outside of that. Are they dialing up that revenue or down?
As far as taggCRM, remember the date that went live and the first month is a $1 so those sales will likely be more Q2.
One last thing, SC was a net income positive, cash flow positive company. A very good thing. What that means is they didn't borrow a ton of money to ramp up sales, development and delivery with the hopes business would come. I imagine they are throttled based on how much work they can handle with the team they have and schedule delivery dates a month, two or three out based on existing resource capacity. Their profits from 2018 they can roll into expanding the team.
With the PO funding and when VERB takes on some debt, that is when the gas petal goes to the metal on acceleration. They would be crazy not to.
Something to think about
What happens when investors see revenues go from $8K to $3M+?
Remember, most NASDAQ investors think it's $32K for 2018 and that's what most of the sites show which is right.
Certainly won't be $32K
I was rounding since it's an estimate based on the current monthly revenue rate. I've learned when you present an exact number, people think those numbers are real. Rounding implies an estimate. If Q1 is $3-$4M, that's great. If it's more, even better.
For what it's worth, I factored in December (slow month) which traditionally companies aren't launching apps which would effect Jan/Feb.
November was in the numbers I posted for December if that makes sense.
I also took a look at the dates apps went live. VERB added 18 new customers since December. How many received their solution and when did the revenue recognition clock start is the question. When they add these customers, user ramp up takes awhile. If existing Q4 users were added, that would show in Q1, but not really so much the 18 new customers. That would be more Q2.
Also I've posted before about a company Adobe bought called Day Software. They were doing a complete rewrite of their content management software. While they were doing this, sales tanked as people didn't want to buy and then have to turn around and upgrade. After the new release came out, sales were off the charts and the stock went crazy on the Swiss exchange. This type of stage could be set for VERB as well. Keep in mind, this was traditional software sales before the subscription model so very worst case, revenue is flat.
Also remember that only a percent of their revenue is coming from the digital business where there is other revenue outside of that. Are they dialing up that revenue or down?
As far as taggCRM, remember the date that went live and the first month is a $1 so those sales will likely be more Q2.
One last thing, SC was a net income positive, cash flow positive company. A very good thing. What that means is they didn't borrow a ton of money to ramp up sales, development and delivery with the hopes business would come. I imagine they are throttled based on how much work they can handle with the team they have and schedule delivery dates a month, two or three out based on existing resource capacity. Their profits from 2018 they can roll into expanding the team.
With the PO funding and when VERB takes on some debt, that is when the gas petal goes to the metal on acceleration. They would be crazy not to.
Something to think about
What happens when investors see revenues go from $8K to $3M+?
Remember, most NASDAQ investors think it's $32K for 2018 and that's what most of the sites show which is right.
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