Nice find!
5 things l like besides almost 20M shared of volume today and there is still afterhours.
1.) Company does not have any significant customers concentration (>10% of revenues).
Some companies have some of their big revenue eggs in on basket which is a big risk of that customer ever left. Verb does not which is very, very good.
2.) "The company should have enough cash until mid-2022."
That shoots some holes in someone's wet sheets. Most SaaS companies at this stage are not in that position. Just ask Bambauser who raised $40M in 2020 and another $65M in Feb. Ask Bambauser when they 'think' they can be cashflow positive. I believe Verb market cap will surprise theirs which is why I am invested in this stock and not that one.
3.) "Verb’s recent financial performance is reflective of its early commercialization stage. In its Q1 2021 report (on May 13, 2021), the company reported revenue of $2.5 million (vs. $2.4 million y-o-y). While sales appear flat (y-o-y), the company had good growth in its digital products revenue (SaaS and other) of +24% (y-o-y) and +18% sequentially from Q4, and represented 71% of total revenues. SaaS recurring revenue was +38% (y-o-y) and +12% sequentially from Q4. This was offset by planned declines in its non-digital legacy business as it phases out of this business (-19% y-o-y)."
This is why Verb will surprise a lot of people. They intentionally moved away from nonSaaS revenue to focus on SaaS. Without looking carefully, revenue appears to be flat when it really isn't. Oh and an early commercialization company you wouldn't expect SaaS revenue to really grow, but it is.
4.) "For 2021, we expect revenues of $12 million (+20% y-o-y) and EPS of $(0.47) (vs. $(0.80) y-o-y), with strong growth in digital products revenue of +45% (y-o-y) offset by continued phase out of its non-digital revenue (-27% y-o-y).
The $4 target is based on Verb only increasing revenues 20% this year. Just with the deals they already signed they should be well over that. What happens if they double revenue in one quarter YoY?
5.) For 2022, we expect much stronger growth with revenues of $19 million (+59% y-o-y) and EPS of $(0.35). We believe investors should be more focused on its digital revenue growth due to its high growth and high margins than on its total revenue growth which is tempered by declines in its non-digital business (declining sales and low margin)."
The $4 target is based on Verb doubling digital revenue next year. What happens if they increase revenue even more than that?
5 things l like besides almost 20M shared of volume today and there is still afterhours.
1.) Company does not have any significant customers concentration (>10% of revenues).
Some companies have some of their big revenue eggs in on basket which is a big risk of that customer ever left. Verb does not which is very, very good.
2.) "The company should have enough cash until mid-2022."
That shoots some holes in someone's wet sheets. Most SaaS companies at this stage are not in that position. Just ask Bambauser who raised $40M in 2020 and another $65M in Feb. Ask Bambauser when they 'think' they can be cashflow positive. I believe Verb market cap will surprise theirs which is why I am invested in this stock and not that one.
3.) "Verb’s recent financial performance is reflective of its early commercialization stage. In its Q1 2021 report (on May 13, 2021), the company reported revenue of $2.5 million (vs. $2.4 million y-o-y). While sales appear flat (y-o-y), the company had good growth in its digital products revenue (SaaS and other) of +24% (y-o-y) and +18% sequentially from Q4, and represented 71% of total revenues. SaaS recurring revenue was +38% (y-o-y) and +12% sequentially from Q4. This was offset by planned declines in its non-digital legacy business as it phases out of this business (-19% y-o-y)."
This is why Verb will surprise a lot of people. They intentionally moved away from nonSaaS revenue to focus on SaaS. Without looking carefully, revenue appears to be flat when it really isn't. Oh and an early commercialization company you wouldn't expect SaaS revenue to really grow, but it is.
4.) "For 2021, we expect revenues of $12 million (+20% y-o-y) and EPS of $(0.47) (vs. $(0.80) y-o-y), with strong growth in digital products revenue of +45% (y-o-y) offset by continued phase out of its non-digital revenue (-27% y-o-y).
The $4 target is based on Verb only increasing revenues 20% this year. Just with the deals they already signed they should be well over that. What happens if they double revenue in one quarter YoY?
5.) For 2022, we expect much stronger growth with revenues of $19 million (+59% y-o-y) and EPS of $(0.35). We believe investors should be more focused on its digital revenue growth due to its high growth and high margins than on its total revenue growth which is tempered by declines in its non-digital business (declining sales and low margin)."
The $4 target is based on Verb doubling digital revenue next year. What happens if they increase revenue even more than that?
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