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Verb Technology Company Inc (VERB)
NASDAQ:VERB

Verb Technology Company (VERB) AI Stock Analysis

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Verb Technology Company

(NASDAQ:VERB)

Rating:54Neutral
Price Target:
$5.50
▼(-9.54%Downside)
Verb Technology's stock shows potential with revenue growth and strategic acquisitions. However, significant risks remain due to ongoing profitability and cash flow challenges. The stock's technical indicators suggest cautious optimism, but valuation metrics highlight concerns about current pricing.
Positive Factors
Cash Position
Verb had $16 million in cash and no debt, believed to have enough cash through 2025.
Partnerships
MARKET.live, Verb's multivendor social shopping platform, has entered into a partnership with TikTok Shop, expanding its reach and potential customer base.
Revenue Growth
Verb Technology Company reports strong Q4 revenue growth, with revenue significantly exceeding estimates.
Negative Factors
Guidance
The company did not provide forward guidance.

Verb Technology Company (VERB) vs. SPDR S&P 500 ETF (SPY)

Verb Technology Company Business Overview & Revenue Model

Company DescriptionVerb Technology Company (VERB) is a technology firm specializing in interactive video-based customer relationship management (CRM) and sales engagement solutions. The company operates primarily within the technology and software sectors, offering a range of products designed to enhance sales processes and improve customer interactions. Verb's flagship offerings include interactive video-based sales applications, CRM platforms, and a suite of tools tailored for sales professionals to engage customers more effectively.
How the Company Makes MoneyVerb Technology Company generates revenue through a subscription-based model for its software-as-a-service (SaaS) products. Key revenue streams include recurring subscription fees from its CRM and sales engagement platforms. The company also earns income through strategic partnerships with other firms to integrate its interactive video technology into broader sales and marketing solutions. Additionally, Verb may generate revenue from professional services such as consulting, training, and support associated with its software products, further contributing to its earnings.

Verb Technology Company Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2025)
|
% Change Since: 4.65%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, successful acquisitions, and a strong financial position, alongside innovative technology advancements and diverse business unit growth. However, challenges remain with client announcement limitations and reduced visibility of live streams. Overall, the sentiment is positive, driven by strong financial and operational performance.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue increased by 80% over the prior quarter to $1.3 million, and by approximately 46% over all four quarters of 2024 combined.
Successful Acquisition and Integration
Negotiated and closed an $8.5 million cash and stock acquisition of a leading AI social commerce technology company, integrating their technology into Verb's platform.
Strong Financial Position
Maintained a robust zero-debt cash balance, secured a $5 million preferred stock deal with a 9% annual dividend, and projected to fund operations into 2028 and beyond.
Innovative Technology Solutions
Launched new technology for streaming directly from clients' websites to social media channels, leading to increased client acquisition.
Growth in Diverse Business Units
Continued month-over-month growth in telehealth platforms and increased demand for the crowd-funding TV show 'Go Fund Yourself.'
Negative Updates
Lack of Public Client Announcements
Unable to publicly announce high-profile client signings due to contractual prohibitions, potentially affecting public perception of company growth.
Reduced Visibility of Live Streams
Decrease in the visibility of live streams on MARKET.live due to technological changes, which might affect public engagement metrics.
Company Guidance
During the first quarter of 2025, Verb Technology Company reported significant financial and operational achievements. The company achieved an 80% revenue growth from the previous quarter, reaching $1.3 million, marking a 46% increase over the entire 2024 revenue. Verb Technology has no debt and maintains a robust cash position, augmented by a $5 million preferred stock deal with a 9% annual dividend. This financial stability allows the company to fund operations until at least 2028. The company also acquired an AI social commerce technology company for $8.5 million in cash and stock, integrating the technology into its platform. Verb's MARKET.live and LyveCom business units are experiencing strong growth, particularly in shoppable ads and white-label partnerships, while telehealth platforms Vanity Prescribed and Good Girl Rx are adding recurring subscription revenue. Additionally, their crowd-funding TV show, Go Fund Yourself, is gaining popularity, leading to increased demand and more frequent episodes. Rory J. Cutaia, CEO, expressed optimism for even better results in the upcoming quarter.

Verb Technology Company Financial Statement Overview

Summary
Verb Technology Company is experiencing significant net losses and negative cash flows despite revenue growth. The balance sheet shows improvement in equity, but profitability and cash flow generation remain critical issues. The company must focus on achieving operational efficiencies and managing cash flow to improve financial health.
Income Statement
35
Negative
Verb Technology Company has experienced significant volatility in its income statement metrics. While the revenue has shown growth from $63,000 in 2023 to $895,000 in 2024, the company continues to incur substantial net losses as indicated by a negative net income of $10.3 million in 2024. The gross profit margin is relatively high at 75%, but the negative EBIT and EBITDA margins reflect ongoing operational challenges.
Balance Sheet
40
Negative
The company's balance sheet indicates some improvements as stockholders' equity increased to $16 million in 2024 from $3.1 million in 2023. However, the debt-to-equity ratio is low at 0.03, suggesting limited leverage, but this is due to the low debt levels rather than strong equity. The equity ratio stands at 77.6%, providing some stability, yet the persistent losses are a concern.
Cash Flow
30
Negative
Cash flow analysis shows ongoing negative free cash flow, with a figure of -$9.1 million in 2024. While operating cash flow remains negative, there is no immediate financial distress due to a large increase in cash reserves. However, the company is not generating positive cash flows from its operations, which is concerning for future liquidity.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
895.00K63.00K9.44M10.52M9.96M
Gross Profit
671.00K44.00K6.12M6.02M5.16M
EBIT
-11.64M-13.79M-26.83M-33.71M-24.74M
EBITDA
-10.57M-11.46M-13.44M-29.68M-22.01M
Net Income Common Stockholders
-10.33M-21.99M-46.47M-34.49M-24.96M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.53M4.35M2.43M937.00K1.81M
Total Assets
20.64M10.84M24.49M34.43M32.54M
Total Debt
464.00K2.38M9.07M3.81M6.07M
Net Debt
-7.15M-1.97M6.65M2.87M4.26M
Total Liabilities
4.61M7.71M19.33M21.11M21.80M
Stockholders Equity
16.20M3.13M5.17M13.32M10.74M
Cash FlowFree Cash Flow
-9.11M-10.90M-24.16M-28.14M-16.61M
Operating Cash Flow
-8.77M-10.60M-19.41M-25.86M-16.29M
Investing Cash Flow
-5.38M4.44M-4.75M-2.26M-88.00K
Financing Cash Flow
18.29M8.08M25.65M27.25M17.21M

Verb Technology Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price6.08
Price Trends
50DMA
5.17
Positive
100DMA
5.41
Positive
200DMA
7.92
Negative
Market Momentum
MACD
0.37
Negative
RSI
55.08
Neutral
STOCH
60.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERB, the sentiment is Neutral. The current price of 6.08 is above the 20-day moving average (MA) of 5.90, above the 50-day MA of 5.17, and below the 200-day MA of 7.92, indicating a neutral trend. The MACD of 0.37 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VERB.

Verb Technology Company Risk Analysis

Verb Technology Company disclosed 29 risk factors in its most recent earnings report. Verb Technology Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verb Technology Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$11.51B10.19-6.95%2.94%7.57%-9.20%
54
Neutral
$9.17M-66.08%3125.00%98.06%
52
Neutral
$5.83M-21.35%-4.85%43.93%
46
Neutral
$5.85M-619.57%
VSVS
39
Underperform
$9.66M-34.07%-78.87%85.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VERB
Verb Technology Company
6.08
-26.16
-81.14%
RIME
Algorhythm Holdings
2.17
-277.83
-99.22%
VS
Versus Systems
1.94
0.53
37.59%
MITQ
Moving iMage Technologies
0.60
0.11
22.45%

Verb Technology Company Corporate Events

M&A TransactionsBusiness Operations and Strategy
Verb Technology Completes Acquisition of Lyvecom
Positive
Apr 17, 2025

On April 11, 2025, Verb Technology Company, Inc. completed the acquisition of Lyvecom, an AI-driven video commerce platform, for a total deal value of up to $8.5 million. This strategic acquisition aims to enhance Verb’s MARKET.live platform by integrating Lyvecom’s technology, enabling brands and merchants to offer a comprehensive omnichannel livestream shopping experience. This move is expected to position Verb for accelerated growth in the rapidly expanding online video platforms market, projected to reach $117.35 billion by 2034. The integration will allow brands to maintain control over their audience and content, while leveraging AI-powered tools to optimize customer engagement and conversion rates.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.