The truth is ....
Rory -
With the data collection and analysis features of our platform, we are an enterprise-scale customer relationship management and sales enablement platform. And, as such, we participate in the $40 billion CRM sector, and we believe we should be valued accordingly. However, our appeal to people who have traditionally never used a CRM product and the rapid rate at which we are accumulating enterprise clients who are adopting our platform for the sales teams all around the world means we are addressing markets that are many times larger than the $40 billion U.S. CRM sector. And yes, we’re global, as we’re now in more than 60 countries, and our platform is offered in more than 40 languages.
To best determine our third quarter performance, we then look at what we added to that recurring revenue base number through new contracts actually executed and closed and not cleared. This is how we measure growth and performance of our sales and marketing departments. And, in Q3, I’m proud to say that we achieved two new records for our SaaS recurring revenue business. First, we signed 14 new enterprise clients for our CRM platform during the quarter. That represents the increase of 250% over Q1 and Q2, respectively, in the number of new enterprise CRM clients signed in the quarter. And that’s a record for us.
These 14 new enterprise contracts represent more than $195,000 of new and additional quarterly recurring SaaS revenue once the applications are delivered and we could recognize it in accordance with GAAP revenue recognition rules. That is a second new record for us in Q3. These contracts represent an increase of 396% over Q2 of new and additional quarterly recurring SaaS revenue once the applications are delivered and we could recognize it in accordance with GAAP revenue recognition rules and an increase of 877% over Q1. We expect that the enterprise contracts we executed in Q3 will produce at least $780,000 of new and additional annual recurring SaaS revenue. That is in addition to the annual recurring SaaS revenue base as of September 30 of $3.8 million which combine to a total of $4.6 million in annual recurring revenue once recognized. This obviously does not include what we will add in Q4 2019.
"We think this is an important distinction because the revenue we are able to recognize under the GAAP rules in Q3 doesn’t reflect the actual performance of our sales and marketing team during that quarter and, as a result, makes it difficult to assess our growth, which, as the non-GAAP numbers demonstrate, was considerable in Q3, to say the least, and is a strong leading indicator of future GAAP-recognized revenue."
"SaaS business, which currently has a gross margin greater than 80%."
"Okay. So, with that background, let’s get to our third quarter 2019 performance. I believe our third quarter will come to be known as our “breakout quarter,” as this was when our digital stack CRM business really began to take off. Because we have a recurring revenue business model, we begin the quarter with revenue we derive from contracts signed in prior periods. "
So, looking only at our GAAP-recognized revenue for Q3, that breaks down as follows: SaaS recurring revenue recognized during the three months ending September 30, 2019, was $953,000. That represents an 11% increase over the SaaS revenue we recognized in the second quarter. Total digital revenue for Q3 was $1.4 million. This represents an increase of 28% of GAAP-recognized revenue for our digital business over the same period last year. Our nonrecurring revenue from the legacy business that we recognized during the three months ending September 30, 2019, was also, coincidentally, $1.4 million. That represents a sequential decrease in our nondigital, nonrecurring business from the prior quarter of approximately $844,000 or 37% and essentially flat over the same period last year.
Some additional updates I’d like to share: as I referenced above, we’re continuing to work on the integrations with other platforms, and that now includes the technology I will demonstrate to you at the end of this call, as well as an exciting joint marketing and co-selling initiative with one of those partners. I expect to be able to share more information about those things at the end of this quarter.
"We now have approximately 825,000 users on the platform. That’s up from the approximately 700,000 users we had last quarter, representing growth of approximately 125,000 users or 18% in the prior quarter."
Jeffrey R. Clayborne
Chief Financial Officer
"Thank you, Rory, and good afternoon, everyone. I’d like to review our financial performance as reported in our Form 10-Q filing today for the quarterly period ending September 30, 2019. Highlights from the filing not already covered on this call include the following: the cost of revenue in Q3 totaled $1.5 million, that’s a decrease of 29% from the same period last year. Gross profit as a percentage of total SaaS recurring as well as non-SaaS nonrecurring revenue was 48%, which represents a modest increase over Q2."
Any 5th grade mathematician can see this equation is one of addition .
So what rough number has VERB started Q4 with?
Head down, step by step, stride by stride and contract by contract #teamVERB is succeeding.
I just them by what they are doing and they are doing great things. And with zero evidence of slowing down, in fact all evidence shows them accelerating on all fronts, new contracts, new languages, new countries, new features, new SAAS revenue....
They have my full support.
Much Aloha
Rory -
With the data collection and analysis features of our platform, we are an enterprise-scale customer relationship management and sales enablement platform. And, as such, we participate in the $40 billion CRM sector, and we believe we should be valued accordingly. However, our appeal to people who have traditionally never used a CRM product and the rapid rate at which we are accumulating enterprise clients who are adopting our platform for the sales teams all around the world means we are addressing markets that are many times larger than the $40 billion U.S. CRM sector. And yes, we’re global, as we’re now in more than 60 countries, and our platform is offered in more than 40 languages.
To best determine our third quarter performance, we then look at what we added to that recurring revenue base number through new contracts actually executed and closed and not cleared. This is how we measure growth and performance of our sales and marketing departments. And, in Q3, I’m proud to say that we achieved two new records for our SaaS recurring revenue business. First, we signed 14 new enterprise clients for our CRM platform during the quarter. That represents the increase of 250% over Q1 and Q2, respectively, in the number of new enterprise CRM clients signed in the quarter. And that’s a record for us.
These 14 new enterprise contracts represent more than $195,000 of new and additional quarterly recurring SaaS revenue once the applications are delivered and we could recognize it in accordance with GAAP revenue recognition rules. That is a second new record for us in Q3. These contracts represent an increase of 396% over Q2 of new and additional quarterly recurring SaaS revenue once the applications are delivered and we could recognize it in accordance with GAAP revenue recognition rules and an increase of 877% over Q1. We expect that the enterprise contracts we executed in Q3 will produce at least $780,000 of new and additional annual recurring SaaS revenue. That is in addition to the annual recurring SaaS revenue base as of September 30 of $3.8 million which combine to a total of $4.6 million in annual recurring revenue once recognized. This obviously does not include what we will add in Q4 2019.
"We think this is an important distinction because the revenue we are able to recognize under the GAAP rules in Q3 doesn’t reflect the actual performance of our sales and marketing team during that quarter and, as a result, makes it difficult to assess our growth, which, as the non-GAAP numbers demonstrate, was considerable in Q3, to say the least, and is a strong leading indicator of future GAAP-recognized revenue."
"SaaS business, which currently has a gross margin greater than 80%."
"Okay. So, with that background, let’s get to our third quarter 2019 performance. I believe our third quarter will come to be known as our “breakout quarter,” as this was when our digital stack CRM business really began to take off. Because we have a recurring revenue business model, we begin the quarter with revenue we derive from contracts signed in prior periods. "
So, looking only at our GAAP-recognized revenue for Q3, that breaks down as follows: SaaS recurring revenue recognized during the three months ending September 30, 2019, was $953,000. That represents an 11% increase over the SaaS revenue we recognized in the second quarter. Total digital revenue for Q3 was $1.4 million. This represents an increase of 28% of GAAP-recognized revenue for our digital business over the same period last year. Our nonrecurring revenue from the legacy business that we recognized during the three months ending September 30, 2019, was also, coincidentally, $1.4 million. That represents a sequential decrease in our nondigital, nonrecurring business from the prior quarter of approximately $844,000 or 37% and essentially flat over the same period last year.
Some additional updates I’d like to share: as I referenced above, we’re continuing to work on the integrations with other platforms, and that now includes the technology I will demonstrate to you at the end of this call, as well as an exciting joint marketing and co-selling initiative with one of those partners. I expect to be able to share more information about those things at the end of this quarter.
"We now have approximately 825,000 users on the platform. That’s up from the approximately 700,000 users we had last quarter, representing growth of approximately 125,000 users or 18% in the prior quarter."
Jeffrey R. Clayborne
Chief Financial Officer
"Thank you, Rory, and good afternoon, everyone. I’d like to review our financial performance as reported in our Form 10-Q filing today for the quarterly period ending September 30, 2019. Highlights from the filing not already covered on this call include the following: the cost of revenue in Q3 totaled $1.5 million, that’s a decrease of 29% from the same period last year. Gross profit as a percentage of total SaaS recurring as well as non-SaaS nonrecurring revenue was 48%, which represents a modest increase over Q2."
Any 5th grade mathematician can see this equation is one of addition .
So what rough number has VERB started Q4 with?
Head down, step by step, stride by stride and contract by contract #teamVERB is succeeding.
I just them by what they are doing and they are doing great things. And with zero evidence of slowing down, in fact all evidence shows them accelerating on all fronts, new contracts, new languages, new countries, new features, new SAAS revenue....
They have my full support.
Much Aloha
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