Verb Technology Company Inc (VERB)

[tedpeele]

Those are some good points.

It's a bit confusing - let's look at the 8k:

<<Revenue for the year ended December 31, 2017 decreased by approximately $1.1 million, or 9%, to approximately $11.5 million, as compared to approximately $12.7 million for the year ended December 31, 2016. The decrease primarily related to a $2.5 million decrease in sales of corporate kits as a customer moved its business closer to its corporate headquarters. The decrease was offset by an increase in Sound Concepts’ digital revenue of $1.4 million, or 81%, driven by an expansion of their customer base.>>

<<Doesn't this imply either that the digital revenue was either $1.728m in 2016 and grew by 81% to $3.128m in 2017, OR that it was $773k and grew 81% to $1.4m, depending on how you interpret it?>>

For the 1st 6 months of 2018 the 8k says: <<The overall decrease was offset by an increase in Sound Concepts’ digital revenue of $486,000, or 36%, driven by an expansion of their customer base.>>

It seems to me this implies that the digital revenue in the 1st 6 months of 2016 was either $1.35m and grew by 36% to $1.836m in 2017, OR that it was $357k and grew 36% to $486k, depending on how you interpret it.

I"m going with the interpretation that the digital revenue was as follows:

2016: 1.728
2017: 3.128 (1.35m in 1st 6 months, 1.778m in last 6 months)
2018: 1.836 (6 months)

So the last 3 6 months periods show this:

2017-1: 1.35
2017-2: 1.778
2018-1: 1.836

If Brightools in fact began in the last 3 months of 2017, it is hard to know how much of the digital revenue being reported comes from Brightools. Is it only the amount of the increase during the last 6 months of 2017? If so, that's $430,000. Adding in the $487k increase for the first 6 months, assuming 100% recurrance for the prior 6 months and we have Brightools revenue of only around $920,000.

It may be that Brightools is replacing old digital revenue so it is higher. Perhaps it is now at a $2m annual run rate.

With the increase from the 2017-2 period to 2018-1 period of only a little over 3% it would appear that growth slowed dramatically. BUT we are told 127,000 new users - paying users in the since August so it would appear growth continues.

It's just really hard to know how much those users are paying but it seems pretty clear that digital revenue is around $3-4m and Brightools is a subset of that digital revenue - maybe as low as $1-2m.

Feel free to make any corrections, or elaborate further.