Verb Technology Company Inc (VERB)

[CUIN2]

Amazing investor call last night!
Rory was answering “hardball” investor questions in rapid succession and investors are loving it (not turning away from critics either)

Excitement is definitely spreading because of huge progress and exciting items like Salesforce coming soon!

Hard to believe we are the same company that traded at $46 (pre-split) last year.

Check out this excerpt from the AGP analyst report ($3.50 buy rating)

“We argue interactive video advertising will emerge as a valuable tool for direct sales. Brands are constantly looking to drive stronger sales conversion rates.

Aragon Research predicts the worldwide sales engagement market to grow to $5.6 billion by 2023, from $1.9 billion in 2018. By introducing its interactive video advertising, where viewers can purchase, provide information and communicate with vendors, that we believe uniquely positions VERB to benefit from the market growth trends. Furthermore, the interactive video solution empowers sales professionals with a plethora of quality data about ads, including consumer responsiveness, tracking capabilities and effectiveness, plus adds the ability to establish customer relationships that we believe is a valuable and differentiated tool for direct sales people.


The acquisition of Sound Concepts creates a leadership role among network marketers, in our view. Sound Concepts provides SaaS-based lead generation and a CRM application mainly for direct sales and networking marketers. It’s customer base included 75 of the top direct sales organizations and VERB recreated the advertising solution to include its proprietary interactive video software. Since the acquisition, VERB has grown the user base to about 700,000 in early August 2019, from 490,000 in November 2018 and we believe this is only scratching the surface of the opportunity. According to the World Federation of Direct Selling Associations, there are more than 118 million direct sales reps globally and at about $5 per month, we estimate a $7.1 billion market opportunity for VERB. In addition, VERB will release a store that will enable individual sales people to buy tools above and beyond an enterprise license that we expect will drive additional recurring revenue and increase the ARPU.
Partnerships with the large CRM software platforms could drive substantial revenue. VERB has announced agreements with MSFT, Salesforce, Oracle-subsidiary NetSuite and Adobe-subsidiary Marketo to integrate its interactive video software with the OEM’s CRM software platforms. VERB is in various stages of development and testing with these software vendors and we believe if interactive video is an integrated option into these CRM platforms the revenue contribution could be substantial. Furthermore, if one software company integrates interactive video, we believe others would expedite integration in order to maintain a level competitive landscape. However, our revenue estimates do not include significant contribution from these partnerships.

We initiate coverage of VERB with a Buy rating and $3.50 price target. Our target is based on a sum of the part valuation with an EV/Sales multiple of 5x our 2020 Digital (SaaS) revenue estimate of $15.6 million, 0.5x the remaining $12.9 million of revenue we estimate in 2020 and subtracting $5 million of preferred stock that converts to common shares at $1.55. Our valuation for the SaaS business is a discount to high growth and more mature SaaS businesses given its limited history and early stage that adds execution risk and more likely to experience delays in adoption.”

https://europac.bluematrix.com/sellside/EmailDocViewer?encrypt=d29430c4-e5de-49d4-8cbf-2605603dd03b&mime=pdf&co=Europac&id=[e-mail]&source=mai