Verb Technology Company Inc (VERB)

[Nspireaction]

Verb Is Building a New Platform from the Ground Up that will speed the launch of Enterprise Clients, adoption of new features and revenue recognition!

. . . . . . . . . . . . . . . . . . Covid-19 was a wake-up call in many ways to both Verb and the Direct Sales industry.
. . . . . . . . . . . . Current shutdowns of large events such as conventions only highlighted the need for better social sales tools,
. . . . . . . . . . . . . . . . alternative ways to connect with people in an effective manner and a more efficient delivery system.


. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kendra Brassfield, CEO of NeoLife

Verb can't keep up with client demand due to the on-boarding process, and with the introduction of each new product the problem seems to be getting worse. The current platform on which all of Verb's applications and features reside is labor intensive, time consuming and already in need of an upgrade to streamline the process of adding new products for new and current clients..

The current platform increasingly delays revenue generation and recognition in three ways.

1, The time it takes to customize each client's apps and features and,
2, each time a new app or feature is released, Verb is forced to revist each of the growing list of existing clients to customize each new product for those clients and,
3, clients that need to wait until they can schedule the next event/convention to introduce and launch new apps and features to their users.

On the flip side, with the New Streamlined Platform, Enterprise Clients will have cheaper access to the white labled application, and much sooner, and just think how much easier, faster and cheaper it will be for a client to demonstrate a new product to users with Verb LIVE, without the need to schedule a large event. Verb LIVE is the perfect tool to go over new products and features in real time, answer questions and demonstrate how they work with Verb LIVE's capabilities.


Verb's New Platform will remove bottlenecks that delay clients in receiving and launching applications
and features, virtually eliminate backlogs and greatly reduce delays in revenue generation.

1 - Self Service Builds: The new platform will allow businesses to choose the products and features they want and upload corporate logos to build their own customized applications.

2 - Affordable Access: Up front costs will be much lower if clients can build their own custom app, and cheaper access to the platform means more clients can afford to implement it.

3 - Scale: It's conceivable that there could be hundreds of businesses building their own custom apps, all at the same time, drastically increasing the speed in which clients can on-board and launch to distributors, and it would only take one help line for questions or assistance.

4 - Immediate Revenue Generation: It will no longer take 3 months for Verb to build these apps and start generating revenue. Once a new client has completed their custom app, they can launch on their own schedule without tieing up Verb's resources.

5 - Cost Effective: Verb doesn't generate recurring revenue from building a custom app and this will save build costs and free up valuable human resources to work on other projects.

6 - In-app Purchase Capability: Everything Verb sells and has yet to roll out, including added features, complimentay apps, video templates and other applications like Verb LIVE, will be available directly through the app to a growing user base that already has 1.4 million users

7 - Marketing Costs:. Between the in-app-purchasing and the ability for Verb to send an offer to all users at once, marketing new products and features to the growing user base will cost only a few minutes of time.

8 - Third-Party Developers: Verb is releasing an open API that will allow third-party developers to develop applications, features and functionality that will integrate seamlessly into the platform. They will market their products directly to our users through the app on a revenue share basis.

From the conference call:

Brian David Kinstlinger
Alliance Global Partners, Research Division

Great. That leaves me into my next question about in-app purchasing. Can you talk about where we are in in-app purchasing? What I mean by that is, can all users access app purchasing, in-app purchasing? Or do we need some time before everyone can access it? And then can you provide some early discussions and how it’s impacted ARPU for those that can’t access it?

Rory J. Cutaia
Founder, Chairman, President, CEO, Secretary & Treasurer

So we’ve just begun rolling out this program, and because each application for each of our large enterprise users is a white-labeled application, it’s customized for them. When we roll out these kind of features, we need to do it each client at a time.
So we’ve got a handful of them now implemented along with some other really, really, really cool features like Magic Link and some of the things that we’ve talked about that enhance penetration.
But we have to do that 1 client at a time. So we’ve got a handful of them now.
And I would say, by third quarter, we should probably have all of them now on the same in-app — with the same in-app purchase capability and that store rolled out. So that’s the current schedule. Now I will tell you this.

Behind the scenes, we are building an entirely new platform from the ground up, and that will mean several things.
First, people that want to have a customized white-labeled application won’t need to use our services to go ahead and customize it for them. They’ll be able to do it themselves online, choosing what features and functionality they like, uploading their logos, completely self-service model. That will accelerate revenue generation for us because more people will be interested in doing that. And it will also accelerate revenue recognition for us. Right now, as I mentioned, it could be as much as 3 months from the time we sign a contract before we can actually recognize that revenue. So that’s going to really make a big difference there.

And the other benefit, which goes to your question,
is when we roll out a new feature such as the in-app purchase capability, it will impact every app, every user, all of our clients, all at the same time. So we won’t have that gradual rollout process that we currently have right now. So that’s changed dramatically.

Theodore Rudd O’Neill
Litchfield Hills Research, LLC

Rory, can you give us just a little color on what else needs to be done or what accomplishments you need to hurdle in order to get VERB Live into production?

Rory J. Cutaia
Founder, Chairman, President, CEO, Secretary & Treasurer

There are no — aren’t any more hurdles. We are — it’s actually in limited production now. For example, 1 of the hardest categories hit by this — by the economic crisis is small business owners. A lot of them are facing bankruptcy. And obviously, most of them, if not all of them, are closed. So what we’ve begun doing is providing VERB Live to some of these and they are hosting VERB Live webinars, where they are — they provided there their people from their customer list that used to come into their stores to go ahead and watch these webinars and purchase product. And I can tell you that we’ve had more than one call from shop owners crying happy tears about how this has saved their livelihood and their business and what a difference it’s made for them. And so we’ve been doing quite a bit of that. And yes, of course, we want to help these people. I’m sure we all want to help anybody we can, right? So that’s gone incredibly well, I believe. And also, it serves as a terrific beta test environment for us, where we can identify things that we can improve and features that we should add or maybe features we didn’t need after all.

So we’re refining that literally as we speak and preparing for the much broader global release and commercialization of it, including changes that we need to update the website to create the ability for people to easily go ahead and sign up. So all those things are happening as we speak. And so it’s not that there’s — it’s not that it’s not ready.

*** Otherwise, it’s the onboarding process and those kinds of things and the website updates, which are all coming. ***

I think you’re probably starting to see some of that now, but that’s about it.

And the other benefit, which goes to your question, is when we roll out a new feature such as the in-app purchase capability, it will impact every app, every user, all of our clients, all at the same time. So we won’t have that gradual rollout process that we currently have right now. So that’s changed dramatically.

We have an existing user base now. These are people that have the device in their hands — of now over 1.4 million of these people. Those are the first people that we’re going to go to. We’ve already got 15 of our existing enterprise clients that have signed on for Verb LIVE. So as soon as we release it commercially, we’ll have all of those people. But then all of those individual VERB live will be behind the pay wall for all of those people so that they could put their own credit cards up if their company hasn’t subscribed for it yet for them. They put their own credit cards up and immediately subscribe for it and marketing to those people is simple. We don’t have to spend zillions of dollars with TV commercials to reach those people. It takes us about 5 minutes to send a notification right to their device, notifying them, “Hey, check this out. Cool new feature, combination of Zoom and Shopify. Think about what that means for your business. People can click right in your live video and buy your products.” Yes, a big, big, big differentiator for us is the fact that we already have such a large user base that we can market to.

Taking that a step further, we are releasing an open API that will allow third-party developers to develop applications, features and functionality that will integrate seamlessly into our platform that they will market directly to our users to our app also on a revenue share basis. And because we now have such a large number of users who have downloaded our application, we have become an attractive and easily addressable market for third party developers. And that is all very high margin, virtually no-cost revenue for us.

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