Ok, I will bite. If you are looking to place a
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Posted On: 06/28/2020 1:30:22 PM
Re: Jelloshots #20053
Ok, I will bite.
If you are looking to place a valuation on Verb based on earnings, you won’t get very far. They have no earnings....yet. Same is true with a large portion of all growth companies and especially SaaS. They are focusing on growth, not profitability. Once they get to a critical mass, they will refocus their efforts and gear up towards profitability. That is why there is alot of talk about being cash flow positive. Honestly, I hope it is some time before that happens as I want them spending money on developing the tech, marketing the product, and capturing customers.
So, it becomes harder to value. Companies with no earnings are then valued on things like revenue, revenue growth, customer base, customer growth, technology platform, and other things. No simple algorithm will do it justice.
So, it becomes a lot more of a subjective opinion. I am not intelligent enough to determine a proper valuation. But, one thing I can tell you for sure, is that as it currently stands, and with a potentially major market moving product about to hit the streets, with them capturing a good portion of the Direct Sales world with revenue growth just starting to ramp up there, with in app purchasing being turn on, with sampling just starting to make in roads, with major leaders of Direct Sales companies lining up one by one week after week touting the prospects of Verb, with Nancy Heinen and Judith Hammerschmidt singing its virtues, with new products like the Small and Medium Biz app being released that opens the doors of Verb’s app to companies outside of direct sales, and so much more.....I believe it is worth a HELL of a lot more than its current market cap. That is why I am here, that is why I buy whenever I have the opportunity, and that is why I am excited to be a shareholder over the next several years. My opinion only.
The valuations and all that stuff, I leave to the talking heads.
If you are looking to place a valuation on Verb based on earnings, you won’t get very far. They have no earnings....yet. Same is true with a large portion of all growth companies and especially SaaS. They are focusing on growth, not profitability. Once they get to a critical mass, they will refocus their efforts and gear up towards profitability. That is why there is alot of talk about being cash flow positive. Honestly, I hope it is some time before that happens as I want them spending money on developing the tech, marketing the product, and capturing customers.
So, it becomes harder to value. Companies with no earnings are then valued on things like revenue, revenue growth, customer base, customer growth, technology platform, and other things. No simple algorithm will do it justice.
So, it becomes a lot more of a subjective opinion. I am not intelligent enough to determine a proper valuation. But, one thing I can tell you for sure, is that as it currently stands, and with a potentially major market moving product about to hit the streets, with them capturing a good portion of the Direct Sales world with revenue growth just starting to ramp up there, with in app purchasing being turn on, with sampling just starting to make in roads, with major leaders of Direct Sales companies lining up one by one week after week touting the prospects of Verb, with Nancy Heinen and Judith Hammerschmidt singing its virtues, with new products like the Small and Medium Biz app being released that opens the doors of Verb’s app to companies outside of direct sales, and so much more.....I believe it is worth a HELL of a lot more than its current market cap. That is why I am here, that is why I buy whenever I have the opportunity, and that is why I am excited to be a shareholder over the next several years. My opinion only.
The valuations and all that stuff, I leave to the talking heads.
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