Gears still grinding: Was doing some thinking a

Gears still grinding:

Was doing some thinking about the potential revenue Verb can generate from the Direct Sales world. In a previous post, I mentioned I keep track of all the Direct Sales app's I can find that Verb has created for different customers. I gave a range stating that I see somewhere between 50 - 100 Direct Sales customers. Granted, some of these customers are new and not generating anything, and some are legacy or outdated and revenues are capped. But for sake of argument, and given they are the numbers I have, let's assume they are all equal.

Given the 50 - 100 customers that Verb has, let's also pull in the fact that both analysts are projecting 2019 Verb Technology revenue of $10mil. Working backwards, we can determine that on average, Verb currently generates $100k - $200k of revenue per customer. As an aside, if we take out the new customers and the legacy customers, the average revenue per customer is higher, but will leave these in since it is hard to tell which is which.

(50 to 100 customers) / $10mil 2019 revenues = $100,000 to $200,000 average rev per customer in 2019

Remember, this is the current situation. What happens when Verb turns on the in app purchasing which Rory said would happen shortly if not already? What happens when the new customers come online?

I generated a spreadsheet (found below) of the potential revenues Verb could bring in based solely on the Direct Sales arm showing an increasing number of customers as well as a scaling increase in average revenue per customer.

The key for Direct Sales revenue growth is signing up new accounts, moving these accounts to revenue-generating, turning on the in app purchases, and offering new products or new in app purchases so the product does not get stale.

Given the fact we are currently around $100k-200k of average revenue per customer without the widgets or add ons, it is not hard to fathom how quickly revenues can grow once they are turned on and the new customers come on line.

Now, use your imagination of what the Core Integrations will add. Or Verb Live being used by customers outside of Direct Sales. Or some other new product that Rory keeps talking about. All of which would be added on top of the revenue from Direct Sales listed below.

Not hard to imagine how quickly revenues could grow just from Direct Sales. Add in revenues from other verticals, and that is what I call a "Blockbuster"!