Glad you mentioned that... Exciting and frustra
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Posted On: 03/20/2021 9:33:59 PM
Glad you mentioned that...
Exciting and frustrating
I look at a lot of tech companies and talk to a lot of them to as well.
Having started up a few, I know the cost to ramp up and a lot about valuation so always thinking, how much is a company worth
I posted valuations before but would like to dig into it a bit deeper some point soon. There are many that think valuation is solely based on revenue, but that is a bunch of BS.
I literally stumbled across Bambuser as there was an ad running in the middle of a story I was reading about how talkshoplive raised $3M. I wonder if Verb even knows they exist. I am glad they do.
Finding Bambuser was a gold mine as no one can dispute they are somewhat similar to Verb. No one can dispute their revenues nor their valuation. These are all solid facts.
Here's a company that is using them. I didn't see the buy it buttons
https://www.svenskttenn.se/en/christmas-at-the-store/
Here's another one that I guess is their 1-on-1 product and seems pretty basic
https://www.kjell.com/se/livemote-med-kjell
Here's the Samsung one with the buying on the right. I haven't looked to see what it's like on my phone, but will hit the link after I post this. Will it even fit. Is it responsive web meaning the layout will change to work on a smaller form factor?
https://bambuser.com/customers/samsung
So far, I think Verb's solution is much better.
Forgot if I mentioned their apps doesn't have a ton of downloads and the one of the three that has the most +10K as an average rating of 2.8 which isn't too hot
So why isn't the valuation of Verb higher?
Maybe a couple of reasons
One is Verb was switching gears getting out of the low margin part of the business and ramping of SaaS. That made it seem like Verb revenues were flat and investors may not have been aware that in fact, SaaS revenues are doubling. This info is hidden and never really mentioned on the conference calls. Why I don't know.
If they continue double every year, that would be a great thing
Now if they have hypergrowth on top and not just double revenue but more, then that will get Verb some crazy valuations.
But keep in mind every company would love to be able to double revenues and giants like Apple, Microsoft, Salesforce can't do that
The other thing is, what business is Verb in?
Is that really clear to investors?
Was/is CRM...
About to be online streaming and a whole lot more
The former may have only been viewed as a company that only could sell CRM tools to MLM. We know that is not true, but perception can be everything
With the launch of VerbLIVE, even with one quarter of good revenues I think it will give the sp a big boast. Everyone is going to want to be in this space shortly and there aren't a lot of public companies that are.
The secret sauce is also the affiliate marketing and attribution features. That is not easy to do and I don't think anyone has anything like that or even thought about it. Keep in mind Verb has patents around some of this type of technology from what they were doing with direct sales that fit nicely
Given that Bambuser is valued at x5 higher than Verb, I think the market cap of Verb will get there with any kind of signs of adoption or revenue. Either or and doesn't have to be both. Meaning you won't have to wait for each earnings call
Keep in mind if the guy with the spreadsheet on twitter is right about the $1M deal, I think the second that is announced, the market will go nuts and we will quickly jump to a cap of 1/2 billion and that is just the start. No one would have guess Verb sells something for $1M. $10 yes, but would never see the $1M coming down Newport Blvd.
Exciting and frustrating
I look at a lot of tech companies and talk to a lot of them to as well.
Having started up a few, I know the cost to ramp up and a lot about valuation so always thinking, how much is a company worth
I posted valuations before but would like to dig into it a bit deeper some point soon. There are many that think valuation is solely based on revenue, but that is a bunch of BS.
I literally stumbled across Bambuser as there was an ad running in the middle of a story I was reading about how talkshoplive raised $3M. I wonder if Verb even knows they exist. I am glad they do.
Finding Bambuser was a gold mine as no one can dispute they are somewhat similar to Verb. No one can dispute their revenues nor their valuation. These are all solid facts.
Here's a company that is using them. I didn't see the buy it buttons
https://www.svenskttenn.se/en/christmas-at-the-store/
Here's another one that I guess is their 1-on-1 product and seems pretty basic
https://www.kjell.com/se/livemote-med-kjell
Here's the Samsung one with the buying on the right. I haven't looked to see what it's like on my phone, but will hit the link after I post this. Will it even fit. Is it responsive web meaning the layout will change to work on a smaller form factor?
https://bambuser.com/customers/samsung
So far, I think Verb's solution is much better.
Forgot if I mentioned their apps doesn't have a ton of downloads and the one of the three that has the most +10K as an average rating of 2.8 which isn't too hot
So why isn't the valuation of Verb higher?
Maybe a couple of reasons
One is Verb was switching gears getting out of the low margin part of the business and ramping of SaaS. That made it seem like Verb revenues were flat and investors may not have been aware that in fact, SaaS revenues are doubling. This info is hidden and never really mentioned on the conference calls. Why I don't know.
If they continue double every year, that would be a great thing
Now if they have hypergrowth on top and not just double revenue but more, then that will get Verb some crazy valuations.
But keep in mind every company would love to be able to double revenues and giants like Apple, Microsoft, Salesforce can't do that
The other thing is, what business is Verb in?
Is that really clear to investors?
Was/is CRM...
About to be online streaming and a whole lot more
The former may have only been viewed as a company that only could sell CRM tools to MLM. We know that is not true, but perception can be everything
With the launch of VerbLIVE, even with one quarter of good revenues I think it will give the sp a big boast. Everyone is going to want to be in this space shortly and there aren't a lot of public companies that are.
The secret sauce is also the affiliate marketing and attribution features. That is not easy to do and I don't think anyone has anything like that or even thought about it. Keep in mind Verb has patents around some of this type of technology from what they were doing with direct sales that fit nicely
Given that Bambuser is valued at x5 higher than Verb, I think the market cap of Verb will get there with any kind of signs of adoption or revenue. Either or and doesn't have to be both. Meaning you won't have to wait for each earnings call
Keep in mind if the guy with the spreadsheet on twitter is right about the $1M deal, I think the second that is announced, the market will go nuts and we will quickly jump to a cap of 1/2 billion and that is just the start. No one would have guess Verb sells something for $1M. $10 yes, but would never see the $1M coming down Newport Blvd.
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