Rory’s opening comments: This is our first quarter 2019 financial results, our first as public company and first as newly listed Nasdaq company. I will bring you up to date on the aquision since closing on Sound Concepts . Jeff Clayborne will provide review of combined results of 1st quarter. Insights to growth and perspectives to growth and expansion plans in 2019 and beyond, discuss overall state.
Filed quarter report 10q filed and press released and will follow up with form 8Ka, in order to provide everyone with a more complete picture of our financial performance of Q1.
Verb began integrating our business with S.C. soon after executed merger agreement last fall.
In Rory’s experience the success of a merger or acquisition is most impacted by how well the integration of the two companies are executed. Rory’s goal was/is to assure this happened, to hit the ground running together as a combined company as soon as possible. This has paid off well.
Closing of acquisition was delayed, we remained confident it would close. Dec 2018 we had our tech teams integrate our interactive video platform with bright tools. In January 2019 our combined sales team began marketing and selling the new integrated platform services to new and existing customers.
On a combined basis virtually all of our revenue was generated by the newly combined sales team on the combined platform and all of that revenue was accounted for on the S.C. P&L.
Transaction closed 1 week after Q1 and accounting practices prohibit reporting combined revs. Will follow up with 8Ka filing to show more details and be transparent.
Our Q1 rev is 4 mil, that represents 16 million yearly run rate so far. On a proforma basis that is up from 12.7 mil for full year 2018. That represents an increase of 45% of over first quarter period last year.
Digital revenue when combining our two platforms is a 40% increase. With what we know today we expect that growth to continue to Q2 and beyond…….
Our Q2 10q filing will show combined results.
570,000 current users up from 312,000 users from last year 83% increase from last year this time.
Up from 363,000 users when we announce our intent to do S.C. acquisition that is a 57% increase.
We attribute this to well executed integration plan, sales & marketing team and immediate recognition and acceptance of our platform by our customers of the effectiveness and the value of our tech.
To new investors our mission is to disrupt 40 billion dollar CRM industry. We have re-imagined and reinvented what a CRM tools should be. Secret sauce is our tech. allow sales people is to communicate with the customers they way they want to communicate and that is video through our phones, tablets, phones or even watches.
Real differentiator is that our interactive video tech allows a sales person client and prospects to respond to the information contained in the video right through the video such as buy it now, calendar appointment or connect immediately and etc, while their interest is peaked.
This has produced otherwise unheard of conversion rates, in many cases exceeding over 600%.
Large scale enterprises (MLM’s) currently makes up the largest percentage of our current customer base.
With AI, marketing professionals can now measure with precise accuracy in real time their ROI.
For individual sales and marketing professional we have available as low as 9.99/mo.
White labels range from 25k to 150k per month depending on features and functionality.
Entered into some new partnerships with Sales Force, Adobe/Marketo, Oracle Netsuite,Microsoft, Odoo, Shopify, Getty Images and Waymark among others.
We launched new verticals in the education sector, non profit, real estate and large professional associations among other new verticals.
Raised over 20m in our public offering, added more than 40 high quality institutional investors, closed the Sound Concepts acquisition, paid off 2.4 mil in debt and we are now a Nasdaq listed company.
Verb is now firmly embed in a much stronger foundation, that will support our current and expected future growth.
Verb is fortunate to be in the right place, with the right technology, with the right team at the right time.
Video is increasing dramatically as a part of our daily lives.
CRM’s globally produced over 40 billion, which eclipsed data management as the largest software segment globally.
Our integrations with partners are currently in testing and should be deployed in the coming months.
In 2019 video will be 80% of global internet traffic and 85% of internet traffic in the United States.
According to Hubspot, 81% of business are using video as a marketing tool.
Gartner is currently using our technology for their email signatures.
The upcoming launch of our in-app video template marketplace and content created ecosystem is yet another example of how we will monetize our platform, such as apple or google play.
Expecting to have over 750,000 video templates available in the marketplace at launch.
TaggCRM is soon to be branded VerbCRM
Launching a new customer facing application for large enterprise customers. That application alone should drive 750,000 new and additional revenue this year, just from this one new client.
Verb has not even launched this new customer facing application yet and they have interest from other customers as well.
Jeff Clayborne stated our combined revs will be reported Q2 on time, as one company on August 14th. See 10q and upcoming 8Ka for more detailed information on financials.
At the closing of the public offering, Sound Concepts purchased an aggregate of 4 million of the public offering units at the same price and same conditions of other investors.
Verb paid S.C. 11million, not 15 million. As of today there are 22,309,788 shares of common stock issued outstanding.
Of those approximately 8.3m shares are owned or controlled by insiders, which equals 37%.
Of that, Rory owns 3.3million shares or 15%.
Additionally, new institutional investors own 4.7m shares or 21%.
That means 58% is owned by insiders and institutional investors.
This got a little long, so I will post cliff notes for the Q & A in a different post.
Verb Technology Company, Inc (VERB) Stock Research Links