Long Post for Investors (redflix S5E10)
Here is Episode II
Rory Unleashed the Force Yesterday Alright
“Your focus determines your reality.”
VERB CEO Provides 2019 Business Recap and Outlines Plans for 2020
Looked like a great, focused 2020 plan to other investors and me
Cue the tunes...
VERB CEO Provides 2019 Business Recap and Outlines Plans for 2020
To continue where the last episode left off
If you remember, was talking about Salesforce, Hubspot, etc.
Did you know, only SAP has a solution for direct sales of all the big CRM players that I know of?
"SAP to Acquire Callidus Software Inc., Will Offer Comprehensive “Front Office” Suite"
https://news.sap.com/2018/01/sap-to-acquire-c...-software/
You know who else has a “Front Office” Suite?
Yup, VERB Technology
SAP bought Callidus for $2.4B two years ago
Yup they have other solutions, but so does VERB
What you may not know unless you did some more DD when I posted about Callidus before was, they were losing a sh-t ton of money
"Apr 2, 2019 - Callidus has lost more than $400-million over the past two years."
So here's the funny thing.
Company sold for 12 times, the amount they LOST, over the last two years.
This is what makes General Grievous and the droid army look so silly with their endless arguments
They can't post any DD because they did zero except to get it off a message board from others. All they can do is find stuff in other posts to criticize.
They seem to know absolutely zero about technology and I'd question if they know anything at all about investing without running to someone else.
Uncertainty Level On that last comment: Low
Proven they can't even count.
I read where some traders don't even care what a company does. Actually don't even want to know. Must be true because I read it on the internet. Just want to buy your shares low, so they can flip high.
Now why spend an ounce of energy replying to someone that doesn't care about the company you invested in and wants to steal your shares?
If their goal was to save investors (Ha-Ha), then why are they posting on the boards of companies that are losing 100's of millions of revenue, borrow a ton of money?
Here's the embarrassing thing. Professional traders don't even post on a message board. Why would they? They are too busy making money. The two bit flippers posting, are amateur, small potatoes hacks.
So remember Salesforce, Hubspot, VERB are in a $40B market, but only VERB, and now you know SAP, are selling into Direct Sales with a market of over $200B
I read that VERB's total customer base has revenue over $2B
With VERB being such a critical part of their sales revenue, let's say these companies end up spending just 1% of their revenue with VERB to double and triple sales
That is a reasonable amount. Know where I am going with this?
Let's say they triple sales over the next year. Not hard to see that. Some are just starting out where other ones are on fire
So $6B * 1% = $60M just on existing customers
Triple in size might be a BAHG for some of them, but others are small and will like be 50 times larger or more
Keep in mind VERB is likely to double their customer base which would offset some of these assumptions if over estimated anyway
And those existing customers are just 1% of the pie ($2B of a $200B pie). There aren't a lot of pie eaters at the table to begin with and a lot of the ones there, baked a pie customer have lost a taste for
Let's say VERB never gets 100% of that pie
Even 10% would be $20B * 1% = $200M
10% of $20B is $200M
But remember I factored in that VERB customers will grow their clients business by 3x so $600M or revenue
That is 17 times higher than the $35M market cap today
And that doesn't even include the multiplier. If they grow quickly you can factor a 10x multiplier on that
Yup, folks, that is how you get to be a $6B company
That is 170 times the current share price = $250+
Insane, eh?
Even if it was 17 times with zero multiplier, that would be a $25 sp
But everyone should do their own DD and figure out what matters to you
There is risk investing in stocks. CDs are much safer
Back to the other super large CRM vendors
I mentioned, they all would love to get into other big markets
Do you know what another $200B market is?
I'll give you a hint
"Google For Jobs: Potential To Disrupt The $200 Billion Recruiting Industry"
Yup, Recruiting
Remember the days where everyone was posting all these idea about how VERB and it's interactive video technology and analytics would be perfect for?
That hasn't changed
I think people kind of lost sight of that with all the focus on driving revenue, customers and users.That foundation has been set which you'll see this year.
Those other verticals are still a huge potential verticals for VERB as they are for Google and the rest.
Speaking of Google, did you know they don't have a CRM solution. They have a bunch of 3rd party add-ons. I bet they would love their own CRM solution as part of G Suite
Zoom posted yesterday about how VERB would be great for Ticketmaster
Brilliant idea
So many opportunities. Hard to prioritize
Wish someone would throw $100M at VERB to do it all right now
Hey Callidus was lost 4 times that and was worth Billions
But Oh no, BWers would scream dilution
Poor non-investors so concern about my investment
Yeah, I guess maybe they know only biotechs where they do get diluted down and then a company ends of with single digit royalties. So do create even with that.
That's why I say, they don't know tech companies. Doesn't take 100's of millions to get a product to market unless each developer can only write 999 lines of code max. Than you need thousands of developers.
Unless you totally bootstrap your startup, most tech companies have multiple rounds of funding
A company can negate that investment pretty quickly with good products, sales and users
And from all indication, customers love VERB products
Alright, let's get to some facts
VERB has close to 1M users
Wasn't that a nice surprise yesterday, eh?
Should get there this quarter I would think
Oh, but Slack has 12M users
Whoa, 12M, no wonder why everyone talks about them
Even though it's a different type of product (i.e. collaboration software) VERB going to have to increase 12 fold the user base to catch them, right?
Wrong, but hang out for a few
VERB Market Cap: $35M
Slack Market Cap: $7B
Whoa, $7B big ones
Dam, I was just talking about how to get to $6B and they one billion up'd me!
VERB cap would have to increase 200x to catch them, right?
Wrong, but hang out for a few
VERB stock is going up
Slack stock is going down
Whoa
VERB ratings higher than Slack
Whoa
Here's the Doink...
Slack Makes 40 Percent of Its Revenue From Less than 1 Percent of Its Customers.
Oh, say it isn't so!
But wait there is more...
Here's the Double Doink...
oops, wrong DD
Here you go...
Only 15 percent of Slack customers paid for the service.
OMG, you don't say
Well actually I didn't say
Forbes and Inc said it on the internet, so it must be true
But they seem to be a creditable source
Let's do some number crunching
You know, A- R- I- T- H- M- E- T- I- C
Hard to remember how to spell but I found this handy
A R at I n T he H ouse M ight E at T he I ce C ream
Ice Cream?
I thought rats didn't like Ice Cream
Anyway...
85% of 12M users = 1.8M users
Do you see where I am going with this?
You mean VERB has more than half the paying users of Slack?
And got there a lot quicker than Slack
If you followed my posts over the years, this is not the first time I said a lot of these companies are giving away the product for free and a large percentage of their users are not paying
I've posted a number of examples of this
I've also talked about how valuable 1M paying users actually are
Remember the story in November where Microsoft has 20M users now and Slack 12M
It was quite a story all over the news with different headlines like this...
"Microsoft Teams hits 20M daily users, up 50% in 4 months — here’s how that compares to rival Slack"
Something you may not know
Teams has a free version
So how many of the 20M are free?
I can tell you, a lot
But, but, doesn't VERB have a lot of free users?
Nope
Either a company is paying for the users or the users are buying it themselves
All enterprise customers are paying unlike Slack
Can't end this episode without talking about yet another opportunity
I think it largely slipped by as no one mentioned it except Rory
What is it?
"We intend to expand our foray into affiliate marketing with new clients to be announced as we see this burgeoning sales business model becoming the dominant model for social selling. Our application is perfectly aligned with this fast-growing sales phenomenon and we expect that it will generate the type of impressive results our clients are currently experiencing in the direct sales space."
Yup, yup, yup...
Affiliate Marketing
I'm guessing many don't know what that is or thought it was direct sales
This site has a nice infographic on this $15B a year industry that is growing
Got the space theme going on to...
I think VERB is a perfect fit for Affiliate Marketing
Oh, and then there is this...
"with new clients to be announced"
Sounds like some have already signed up
https://jebcommerce.com/2019-affiliate-market...rket-size/
Here is Episode II
Rory Unleashed the Force Yesterday Alright
“Your focus determines your reality.”
VERB CEO Provides 2019 Business Recap and Outlines Plans for 2020
Looked like a great, focused 2020 plan to other investors and me
Cue the tunes...
VERB CEO Provides 2019 Business Recap and Outlines Plans for 2020
To continue where the last episode left off
If you remember, was talking about Salesforce, Hubspot, etc.
Did you know, only SAP has a solution for direct sales of all the big CRM players that I know of?
"SAP to Acquire Callidus Software Inc., Will Offer Comprehensive “Front Office” Suite"
https://news.sap.com/2018/01/sap-to-acquire-c...-software/
You know who else has a “Front Office” Suite?
Yup, VERB Technology
SAP bought Callidus for $2.4B two years ago
Yup they have other solutions, but so does VERB
What you may not know unless you did some more DD when I posted about Callidus before was, they were losing a sh-t ton of money
"Apr 2, 2019 - Callidus has lost more than $400-million over the past two years."
So here's the funny thing.
Company sold for 12 times, the amount they LOST, over the last two years.
This is what makes General Grievous and the droid army look so silly with their endless arguments
They can't post any DD because they did zero except to get it off a message board from others. All they can do is find stuff in other posts to criticize.
They seem to know absolutely zero about technology and I'd question if they know anything at all about investing without running to someone else.
Uncertainty Level On that last comment: Low
Proven they can't even count.
I read where some traders don't even care what a company does. Actually don't even want to know. Must be true because I read it on the internet. Just want to buy your shares low, so they can flip high.
Now why spend an ounce of energy replying to someone that doesn't care about the company you invested in and wants to steal your shares?
If their goal was to save investors (Ha-Ha), then why are they posting on the boards of companies that are losing 100's of millions of revenue, borrow a ton of money?
Here's the embarrassing thing. Professional traders don't even post on a message board. Why would they? They are too busy making money. The two bit flippers posting, are amateur, small potatoes hacks.
So remember Salesforce, Hubspot, VERB are in a $40B market, but only VERB, and now you know SAP, are selling into Direct Sales with a market of over $200B
I read that VERB's total customer base has revenue over $2B
With VERB being such a critical part of their sales revenue, let's say these companies end up spending just 1% of their revenue with VERB to double and triple sales
That is a reasonable amount. Know where I am going with this?
Let's say they triple sales over the next year. Not hard to see that. Some are just starting out where other ones are on fire
So $6B * 1% = $60M just on existing customers
Triple in size might be a BAHG for some of them, but others are small and will like be 50 times larger or more
Keep in mind VERB is likely to double their customer base which would offset some of these assumptions if over estimated anyway
And those existing customers are just 1% of the pie ($2B of a $200B pie). There aren't a lot of pie eaters at the table to begin with and a lot of the ones there, baked a pie customer have lost a taste for
Let's say VERB never gets 100% of that pie
Even 10% would be $20B * 1% = $200M
10% of $20B is $200M
But remember I factored in that VERB customers will grow their clients business by 3x so $600M or revenue
That is 17 times higher than the $35M market cap today
And that doesn't even include the multiplier. If they grow quickly you can factor a 10x multiplier on that
Yup, folks, that is how you get to be a $6B company
That is 170 times the current share price = $250+
Insane, eh?
Even if it was 17 times with zero multiplier, that would be a $25 sp
But everyone should do their own DD and figure out what matters to you
There is risk investing in stocks. CDs are much safer
Back to the other super large CRM vendors
I mentioned, they all would love to get into other big markets
Do you know what another $200B market is?
I'll give you a hint
"Google For Jobs: Potential To Disrupt The $200 Billion Recruiting Industry"
Yup, Recruiting
Remember the days where everyone was posting all these idea about how VERB and it's interactive video technology and analytics would be perfect for?
That hasn't changed
I think people kind of lost sight of that with all the focus on driving revenue, customers and users.That foundation has been set which you'll see this year.
Those other verticals are still a huge potential verticals for VERB as they are for Google and the rest.
Speaking of Google, did you know they don't have a CRM solution. They have a bunch of 3rd party add-ons. I bet they would love their own CRM solution as part of G Suite
Zoom posted yesterday about how VERB would be great for Ticketmaster
Brilliant idea
So many opportunities. Hard to prioritize
Wish someone would throw $100M at VERB to do it all right now
Hey Callidus was lost 4 times that and was worth Billions
But Oh no, BWers would scream dilution
Poor non-investors so concern about my investment
Yeah, I guess maybe they know only biotechs where they do get diluted down and then a company ends of with single digit royalties. So do create even with that.
That's why I say, they don't know tech companies. Doesn't take 100's of millions to get a product to market unless each developer can only write 999 lines of code max. Than you need thousands of developers.
Unless you totally bootstrap your startup, most tech companies have multiple rounds of funding
A company can negate that investment pretty quickly with good products, sales and users
And from all indication, customers love VERB products
Alright, let's get to some facts
VERB has close to 1M users
Wasn't that a nice surprise yesterday, eh?
Should get there this quarter I would think
Oh, but Slack has 12M users
Whoa, 12M, no wonder why everyone talks about them
Even though it's a different type of product (i.e. collaboration software) VERB going to have to increase 12 fold the user base to catch them, right?
Wrong, but hang out for a few
VERB Market Cap: $35M
Slack Market Cap: $7B
Whoa, $7B big ones
Dam, I was just talking about how to get to $6B and they one billion up'd me!
VERB cap would have to increase 200x to catch them, right?
Wrong, but hang out for a few
VERB stock is going up
Slack stock is going down
Whoa
VERB ratings higher than Slack
Whoa
Here's the Doink...
Slack Makes 40 Percent of Its Revenue From Less than 1 Percent of Its Customers.
Oh, say it isn't so!
But wait there is more...
Here's the Double Doink...
oops, wrong DD
Here you go...
Only 15 percent of Slack customers paid for the service.
OMG, you don't say
Well actually I didn't say
Forbes and Inc said it on the internet, so it must be true
But they seem to be a creditable source
Let's do some number crunching
You know, A- R- I- T- H- M- E- T- I- C
Hard to remember how to spell but I found this handy
A R at I n T he H ouse M ight E at T he I ce C ream
Ice Cream?
I thought rats didn't like Ice Cream
Anyway...
85% of 12M users = 1.8M users
Do you see where I am going with this?
You mean VERB has more than half the paying users of Slack?
And got there a lot quicker than Slack
If you followed my posts over the years, this is not the first time I said a lot of these companies are giving away the product for free and a large percentage of their users are not paying
I've posted a number of examples of this
I've also talked about how valuable 1M paying users actually are
Remember the story in November where Microsoft has 20M users now and Slack 12M
It was quite a story all over the news with different headlines like this...
"Microsoft Teams hits 20M daily users, up 50% in 4 months — here’s how that compares to rival Slack"
Something you may not know
Teams has a free version
So how many of the 20M are free?
I can tell you, a lot
But, but, doesn't VERB have a lot of free users?
Nope
Either a company is paying for the users or the users are buying it themselves
All enterprise customers are paying unlike Slack
Can't end this episode without talking about yet another opportunity
I think it largely slipped by as no one mentioned it except Rory
What is it?
"We intend to expand our foray into affiliate marketing with new clients to be announced as we see this burgeoning sales business model becoming the dominant model for social selling. Our application is perfectly aligned with this fast-growing sales phenomenon and we expect that it will generate the type of impressive results our clients are currently experiencing in the direct sales space."
Yup, yup, yup...
Affiliate Marketing
I'm guessing many don't know what that is or thought it was direct sales
This site has a nice infographic on this $15B a year industry that is growing
Got the space theme going on to...
I think VERB is a perfect fit for Affiliate Marketing
Oh, and then there is this...
"with new clients to be announced"
Sounds like some have already signed up
https://jebcommerce.com/2019-affiliate-market...rket-size/
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