VRME - Earnings call transcript Q4 2023

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Operator

Good day, and welcome to the VerifyMe Year-end 2023 Financial Results Conference Call. [Operator Instructions] Please note that today's event is being recorded. I would now like to turn the conference over to Nancy Meyers, CFO of VerifyMe. Please go ahead.

Nancy Meyers

Thank you. thank presentation. joining and our today everyone, call earnings morning, you us for for Good

call I'm and the who On today, will and Stedham, give President, CEO an operations strategic joined update. by Adam

like on presentation, we the a I attention Following our to forward-looking will your statements management bring on X. Q&A have session. would Slide note to

of differ presentation factors, to understood that be and It statements. should due under described the Today's those projected results including answers materially could the forward-looking a those to number questions include from actual forward-looking on of Stedham statements Adam XX-K caption risk Form turn the reports and now XX-Q. to over for quarterly on some the the factors company's I call will opening annual report remarks. and on Form

Adam Stedham

everyone. call. extensive welcome, had you, Nancy, We strategy and an recently Thank

anticipate than call a will So particular earnings be typical. I little this shorter

XXXX we profits During to EBITDA. in and stated and supported better expected than $XX healthy EBITDA, by revenue which in finish Nancy was adjusted QX, XXXX finished $XX.X that we adjusted million strategy those more than and more. $X.X discuss revenue with very call, breakeven will million in million in that with We

reaffirm revenue double-digit the also expectation during we XXXX. indicated the growth double-digit I we growth Now for in call, XXXX. in anticipate strategy revenue

Now growth I to rate. rate do HX anticipate our exceed our HX growth

ending QX, Now was the company had $X.X positive operations in total cash our cash as for from XXXX, flow million.

and was of our Our million. debt was million, total current maturities long-term $X.X debt $X.X

debt a $X.X $X.X end negative of XXXX. So the as we net as million million a result, to compared cash of had at of September

and these opposed at repaid will convertible the proceeds of be converted notes net cash this mind, the So notes keep in includes position with majority from of anticipates million, company maturity. as to $X.X cash

anticipate continue we So generating as generate and XXXX. throughout company, we're to will cash a we cash, in summary,

putting that share strategy we our the traded Since blackout, plan above bit. share price trading primarily XXXX, of and entering short-term point, announced So company a discuss established. at to place like buyback buyback a a the this capital little the I'd has program. QX In price in that

We we'll continue strategy to evaluate all utilize value. Throughout our continue place shares. XXXX, around to program options in available our monitor maximize we'll our capital buyback have and to announced to shareholder repurchasing

this shift at our let's X segments. to So operating point, conversation the

the Trust During XXXX, with on strategy our we for all go-to-market customers. we efficiency and the the stack We of acquisition Codes our and business primarily completed operational Code PeriShip focused focused technology for creating on Authentication company. foundation Logistics. segment integrated our the for existing We Trust vertically Precision and

In addition, we defined integrate a target industries. this commercial technology into specific across strategy to platform relationships

XXXX XXXX it fiscal the Logistics So revenue a revenue versus with segment, Precision pro of million in completed million. $XX forma $XX.X

Logistics. XXXX, for During gross significantly margin improved Precision the we

margin XX%, was quarters and gross margin X, the average Our QX gross was X X XXXX across and XX%.

Now this relationship segment The a did customers. our in small with in revenue QX on revenue segment. improvement was the XXXX. discontinued generated result Precision in contributing million factor impact to lower-margin this XXXX was $X.X XXXX. XXXX as Logistics XXXX QX XXXX some XXXX, in This in including a pro experienced versus dollars gross the for result Precision XXXX net growth segment to our in over numbers, margin The forma Logistics compared some QX increase QX in organic significant experienced

$XXX,XXX conditions. difficult of to challenges out portion APAC shift market call that in now in associated The pointed We strategy in authentication segment me had our our approximately let -- So segment. with QX. been revenue segment this generated experiencing the

and our continues for our conditions we're in feeling, We also discussed seeing that experience our growth and anticipate This to our they we improve, will to XXXX. organic those expectation contribute be XXXX.

increasing awareness to to accelerate technology In stack. our associates this within our team addition, sales by the we've added growth segment industry-leading X of

where call transitioned strategy platform. the now or we -- the technology existing have onto our our we customers Codes that technology technology, all Trust discussed our we of stated During

saw our that this pleased our platform about program. we're hopefully, indicating platform significant that development, Amazon's addition, has it and recent In our transparency review press excited our integrated release you belief We're technology by delivers. into is Amazon's of value now confirmed the

This good and that, can brand for for VerifyMe addition should believe be counterfeit shareholders. to for be In it the It's marketplace, very in we meaningful support Amazon's the good sold combat the we products Amazon efforts Amazon. for that for provide consumers, good to it's will good marketplace. in support

So I continues look about to to forward sharing develop. it more that as relationship information

the turn she'll point, Meyers, CFO, Nancy I'll report. our to more So detailed at call financial back and over this a provide

Nancy Meyers

you, Adam. Thank

revenue and call, in 'XX April versus increased million of increased today's XXXX. year I highlights for versus of fiscal XX% revenue prior Fiscal of quarter. due acquisition the $XX.X the financial in XXXX will million $X.X XXXX. Precision a to For our PeriShip Logistics touch by year forma to by fourth the basis, the pro XX.X% on On

discontinued in quarter, offset During the from service due fourth lower-margin revenue, our increase service an by $X.X in $X.X decreased to Logistics segment some with in million $X.X customers by relationship the to partially Precision our million proactive million premium revenue. revenue our

XXXX the to fiscal our in Revenue did XXXX. from QX in in million a million and to due large to XXXX decreased QX on recur order not million from segment that year $X.X authentication $X.X $X.X million $X.X for

we $X.X anticipate XXXX. in XXXX million continue work million However, with fiscal $X.X XXXX. $X additional this in orders million Gross to fiscal versus increased to profit and in customer

percentage profit of gross in a revenue, to XX% increased versus XX% As XXXX.

increased customer XXXX decrease, $X.X Logistics XXXX. The For QX our of our the has in mix to the to made. margin shift the million versus $X.X mainly year-over-year as million segment due increase company process is $X.X by in offerings well million service QX in fourth in with quarter, as improvements even revenue and the Precision gross

variability shifts in Precision in the margin expect customer segment offerings can some service You and of occur. Logistics mix gross as

year fiscal $X.X for in $X.X by million increased from XXXX. versus expenses million administrative the and $XX.X General million

PeriShip $X.X XXXX, and XXXX by in in April and increased year acquisition for to Global in $X.X general Code For March million Global stock expenses compensation. the Trust The the severance primarily additional million million $X.X relate $X.X to XXXX, expense of fourth of increases versus of in XXXX. million the quarter, administrative

fiscal $X.X employees related expenses consultants, $X.X primarily and to in Sales travel XXXX. million for in $X.X fourth a decreased to million offset additional by Authentication partially marketing And versus year the expenses decrease decreased reduction versus the The million segment. $X.X by they XXXX. $X.X in quarter, and million is million to in for the

the $X.X for than was Our versus in $X.X less net million million income XXXX. quarter

increase forward. $X.X loss as assets. of $X.X long-lived investment discussed adjusted overhead a the included impairments $X.X fiscal compared and to $X.X QX, of an by million a on And $X.X optimize the equity expenses million of to fourth for EBITDA of quarter our XXXX. year of of million adjusted $X.X However, our results EBITDA positive the for million loss XXXX, $X.X XXXX year quarter million In we result, million improve increased fourth for XXXX $X.X for million to for efforts million to versus by fiscal to going XXXX our

year first also operation for fiscal of with and million activities in QX XXXX XXXX. by our resulted $X.X cash the provided for million year $X.X

of sheet XX, is our XXXX. last December as balance the slide On

from as XXXX. on the December $X.X $X.X of $X.X we XX million, XX, Our million cash a is December had decrease million of

million. capital of convertible of XX million our sale the had the notes, months million we through severance of $X.X on loan, repaid However, raise $X.X and Codes through of paid a $X.X Trust acquisition of XXXX, million $X.X of expense the

to XXXX, have XX, Adam. December million would available our of As like and we credit borrowings I no line With the to back turn us. of that, have call $X under to

Adam Stedham

confident strategy suffice the in to developments authentication we're it I Nancy. recently key want platform But optimistic new you, industry information into don't we go-to-market our seeing presentation. repeat authentication we're Thank and will both Precision our strategy strategy generate leaders the about integrating segments. the to Logistics of of in value. say our covered I'm our

into Logistics clear believe a value I addition, efficient market. operation a business our is with transforming clear target proposition an and In Precision

to excited. that a I'm stack by consumers real opportunity today's that and solves I'll we're cash, face in excited companies and I'm shareholders with tech XXXX, the generate cash the in our we have So environment. company by have a problems fund company and has conclude simply proven our we saying operations,

but look forward I So at this call you unfolds, we'll as -- sharing point, for open to up the year the more information with questions.

Operator

[Operator with Instructions] Today's Petusky Barrington from Mike Research. first comes question

Michael Petusky

expect So mid-single-digit growth some being those not I'm that Adam, first you do in really expect growth, still half. the like so half, second the lines least fair along towards I in second about guess that first assumption on your Is at the a assuming you half. that likely it's swung something half comment stronger.

Adam Stedham

Yes.

growth more organic than you first expect HX second have both if We -- halfs. could feel just -- We there'll and growth we HX definitely expect but yes, we'll HX versus the half in our show be HX, growth will versus in -- our half.

Michael Petusky

that the forward? see come I'm became as of expense Because longer-term a part And of the chance decline then sort a assumed expands the how there business of items it's sort that margin, I sort to would leverage that least speak gross is of as time, and well, bigger Logistics time been some the I gross on just over of impression and frame wondering, out sort most likely over would G&A Can of was you thinking, in of because this 'XX, sort rather the that not sort understand playing actually both going just to the I'm slightly. more I of you trying 'XX expected gross to really, continue I've at guess would of margin than I Precision really maybe but you your margin. plan? of under

Adam Stedham

Sure.

pricing the has So well revenue really leverage into G&A efficiency It effort generate margin contributed improvement I be improvement. margin on business. you side. managing completely -- should we of the with been primarily leverage that's as hasn't able gross grows as gross the no as and agree an to that to been driving the there's

revenue our I enabled over of G&A. revenue can experienced going our scale haven't expect We XXXX the But forward, proportional absolutely this growth scaling that would without that point to the that.

should down. So G&A as able a percentage to of revenue be go

Michael Petusky

meaning as 'XX? show in any can will chance some number there go absolute down number an Or growth that Is level of G&A? that

Adam Stedham

down it XXXX. don't I going see in

Michael Petusky

for Logistics, The that Nancy. say. think number, to $X.X right? Easy what, for [indiscernible] and for [indiscernible]. for is the one for would equate million I 'XX to, I Is heard that fiscal This me authentication Precision

Nancy Meyers

Yes.

Michael Petusky

weren't by year Okay. any the have Logistics chance of full have that you they And 'XX, for do you Do any the time part pre-acquisition. a number guys, you, like by including chance, handy? number Precision

Nancy Meyers

$XX Yes, million. that was

Michael Petusky

Okay.

did the grow. business So

Nancy Meyers

Yes.

Operator

Jack Aarde Maxim from Vander comes question with next Group. The

Jack Vander Aarde

strong the on Congrats year. finish the to

well. your You definitely all from the points, Investor as on think, hit I Day

I'll guess, question margin, just about up a I the stuff. good covered. question was that want all surprises, follow with as guidance, this real I to had think just no obviously, So revenue kind on Gross again touch -- on a I but I well. of

the but to come And by it [indiscernible] quarter margin I the doesn't -- So very, very record was really thought well. authentication gross strong quarter third fourth was held stronger -- fourth was than margin, expecting to as much the yet. And gross mix segment obviously. quarter driven it a down, it up I seem

you a given -- on sense that's just but gross forward? -- of a floor of any kind outliers do happen, this a impossible. that quarter do always -- can going [indiscernible] So there's I have you margin mean, is have

Adam Stedham

gross margin current gross pointed margin than of impact runs gross as the our grow, our gross think margins. is our mix our begins margin higher Precision substantially business, I go with margin that our would sustainable authentication going to forward. business percentage could The as gross the authentication an upward that up. -- that you would at larger It it be revenue a have and associated a on mean Logistics out, depending I

So we're a sustainable here. think don't from do it I level. see that at retracting I

a we give insight think that can even sustainable on We the to to mix. that, we -- with explain all drive We and efficiency going level that this that into could up we'll gross you a announced how we of gross But calculate product at we changes some QX make margin. call, one-off. go all is are how will but the when margins. we're could and show to going We that more QX, don't we're maintain think

Jack Vander Aarde

that itself of particular Okay. quarter in let's -- a kind customer the see, customer. here. revenue given revenue switch just mix kind I segment have, of relationships Precision sense I'll guess services Great. types or That's year-over-year, down helpful of And of that customer the fourth actual it Logistics color. proactive gears makes terms you that and was

was sort XXXX? which have get historical you what I of goal at your you think like end customers. just mix expect to the goal of any idea mix. that Do more Just pace like focusing premium or of from as as to exit that you'll on be [indiscernible] about you XX% these an

Adam Stedham

really air don't their business a world these their efforts freight of X have the We largest goal. go-to-market customers. No. are in The to different. One, is lines strategy the very our in service supporting we company of

so And that business go-to-market of strategy. their the tied to is growth

The selling proactive other, it's business. into for would more the us. direct marketplace the be That

So other, resources mix of and situation allocate get not go-to-market specific it's strategies target because operate specific to a we independent each really don't we X have a the a mix. where somewhat

Jack Vander Aarde

question me. maybe one just Got That you. then sense. makes more And for

associates just and head plans where segment. X an and plan? strategy count Authentication in head we on marketing update in XXXX are think just sales the and kind in provide your mentioned I overall you you your and goals sales you of Can hired count

Adam Stedham

take So seeing is we've Zealand -- and marketplace so to in we're improve in wanted advantage is hired do conditions. we as world APAC the largest across main conditions X New U.S. And market the X the to those U.S., we in them marketplace of the the favorable to area. more sales continue are region, the we capacity [indiscernible] -- for X add what for The in associates, of -- the

point. the before the business reach the point is in a quite we year-over-year have of is -- growth. it's going strategic way continuing We year business tipping that isn't I believe slow operates to we just added why add that a This the to could us to that's that resources that. going to reach tipping business And the that see this end in U.S. So a a believe that X inflection. and a is

sure available we ready And what do. so have the as and more we market the becomes we more capacity and that sales to to make want to address trained that's it receptive

Jack Vander Aarde

Understood. on the forward Thanks. Well, to and again, congrats QX look strong finish

Adam Stedham

All right. Thank you.

Operator

comes Fred The private investor. next Breaker, from question

Alfred Breaker

me recent add help will huge to on past. Can my over you congratulations understand like the your Amazon significance how release this impact improvement I'd your Manuka press the future. and on and of the

Adam Stedham

absolutely. Sure,

Fred. say would -- for first and question, So thanks off, I the

as efforts So customers counterfeit. we're to excited. We're combat first pleased off, I'd our say Amazon's support well to as

XX% brands currently, years. Fred, X participate that that's last XX,XXX year So are at transparency, over a the there and in growing Amazon over been a rate of the about

If sell units you at off-line ideally an per in online and total. million at look sweet and to targeted in than spot it's brands who more our customers want X brands their are that environment platform, year our protect

well in channels. Now that the as as would sales Amazon other their marketplace include distribution

$XX,XXX our we of revenue if for about year a So platform at VerifyMe. that average participation, adopts estimate would brand you recurring generate all for that, look each of and that Amazon transparency, traceability an new annual

to adding it you at would will math the believe it So successful, our you to run ARR could and very we brands, on the start significant we look we're these if rate impact start have apply impact going is have forward. successful be and at a as

So that I why we give significant. providing to updates hopefully, a can you our think forward it's sales efforts, on look feel for more but

Alfred Breaker

as Or did business? as do Amazon? does far brands Or these develop how these. you from salesman you Or do the acquire that? Do acquiring come their it

Adam Stedham

at this We our that. were a -- week we've last trade will -- directly. are be we that hired selling show So salespeople just doing

it's Amazon of very work suited marketplace ideally the that are and be certain VerifyMe that, targeting we specific we would marketplace addition, that discussing segment for with and do. a Amazon there's what that In

of So will everything be it said. a combination you

Operator

Our Porter next Management. question Capital with comes from Jeff Porter

Jeff Porter

label sort that potentially out might a here and Just white customers reach big question them turbocharge sort salespeople. that develop product loud kind and are of do as of prospective trying in Does make marketing got point view? Yes, that we be X wondering, area. mentioned get and our to pretty strategic have hired able with venture out you touch some to or there of sales our sense business, I'm partners the we're that from that our joint authentication just to you growth there of thinking really strategic X

Adam Stedham

and accurately sense, strategy. make also it does It our part describes go-to-market of

So if a towards movement, There's a you talk look What into integrating is a there's movement we're global industry-leading packaging. smart at about it, when saying movement. our we platform U.S. brands.

this we So are that to where companies with Marketplace. cans information the largest into in world. their about for leading the talked canning product can the tech of allow have stack with consumers in to they leafy the infant integrating producer we smart there. And We're world world. with working that and to want as they're are they integrate We've the nutrition ever-growing one in company provide they customers their to already of packaging. greens working packaging digital looking We're our largest sell equipment the Amazon them working about

you're these what We're what companies. is working exactly we're doing. with So saying exactly

about about want inside, Think inside. the think technology that VerifyMe have model we our to

the be go market they to as of back end they're our empowering do. smart packaging, tech what of trying will to So with inside

to So trying what exactly do. we're that's

Jeff Porter

magnitude it more gross type would margin? on gross now? software imagine of business orders our margins a are I that above gross the like margins of And that where are Is

Adam Stedham

Yes.

Jeff Porter

Okay.

the going if a greater we can revenue of drive there, really hopefully, becomes mix, could we revenue it gross expand see forward? the percentage So our and margin

Adam Stedham

Absolutely.

our revenue naturally to given for drive margin the proportion is and think and up. Logistics, If just percentage the Logistics. gross represents the the up goes margin Precision of gross relative Precision it will it rate authentication run mathematically, authentication represents current margin this of our that ongoing think, it company I -- I of sustainable gross revenue

right. exactly You're

Jeff Porter

holes And are in of last technology any if the -- to this it, any do "Geez, that development are pretty need proposition? could are terms be. our saying, you add our technology customers feature stack, question, would enhance there additional we things Or really value in much that that there not think but you is where

Adam Stedham

Right the our technology is think ahead market. stack of now, I

so -- there's we think we the that continually we realizes But functionality of more we'll this the that and than market capability point. provide I the -- U.S. average in consumer integration our GSX want, think the have, at as evolves, they market, particularly develop don't that I level any technology. gaps the

Jeff Porter

very viewpoint, I investor the a from can That's exciting it, to because would investors the of than rather attractive got forward very authentication a because of lot an going company it viewed think be in technology value-added way the the growth. company freight that's and forwarder/logistics I think to is potential be company sizzle a as

So great forward going, your and I'll following progress. look to

Adam Stedham

very you Thank Great. much.

Operator

Capital REG The comes Richard with next from question Advisors. Greulich

Richard Greulich

couple and couple of of quick A questions a comments. then

First trying during some Day, that forces integration kind achieve with of had spoken actually higher to to with FedEx Has you the you're working sales alluded all, the started. there. again the question, today. it Investor and But of you of

Adam Stedham

a XXXX on of look UPS, year if the at isn't this and related No, at no. if a to It is the attention has major is alone, at not work put -- if We're around if freight you to with you actually in look this started very press at releases this a lot that. -- companies, and there's models look continuing challenging point. them forecasting they're FedEx so FedEx, this you

a We strategy, progress hasn't thus far. continue had of but the to believe it in lot

Richard Greulich

you to you while didn't I months just two, know everything ago. Number want Okay. did rehash X.X wisely

thinking that, had to last just who revenues of X didn't XX% I $XX you to outlook, presentation margin. that in adjusted sort that million that of you in and I out really $XX kind said changed those during thought EBITDA a million XX% X-year investors out would For far watch much. weeks, assume that point the hasn't

Adam Stedham

the will even And mix the you -- product product authentication we X as EBITDA and revenue the lower higher -- thing from I depending if margins significantly our Precision difficult No, that's to say same the would or now, but it upon gross is margin, just mix or be predict no. it's could hasn't really, And with Logistics. of amount talked changed. years with about associated very it the our versus

outlook we this haven't at our X-year So point. changed

Richard Greulich

Yes.

the to what think So gross you higher. if would that discussing be be you'd getting earlier implication adjusted able like achieve EBITDA you're when margin I'm to do, that margin you

Adam Stedham

in our if our Yes, we change grows, rapidly would more an X-year upward than business we our it plan, percentage authentication modeled if in EBITDA currently definitely direction. have

Richard Greulich

Yes.

units the But year mentioned year, customers that end might about you low distribution, could ARR more those yield a with during accomplished that as customers for of your with what spot kind Third, of a that X is sweet ARR XX,XXX recall, than per $X kind of million I VerifyMe. of of had sort XX,XXX an million. be annual was presentation

Adam Stedham

end, reasonable be can we're looking product is million people a really, exactly It think our a looking and model. X units go that we right. product to customers agree. Completely when you're in think suited for But mean that, averages, our from that's you're at million about but I to a XXX ideally year. average low at -- -- for

that XXX a customer If than then you're if $X for you year, very different a ARR units have that's million. -- million

Richard Greulich

regression a simple an repurchase the your doing be which at widely company valuation companies overall look why to is way my alternative approaching even use is market price opportunity you an share the stock of you capital. you're of go way overall this -- of think opportunity, Far My at many is repurchase I stock time to where start very like for. give may the what true to comment just without periods the market but during just having give attractive pay I much companies is not willing your overvalued, of you're And approaching they're well, overvalued, a will I mean sense appreciate and disciplined out too very just really buying is a for the price. though

cash the of So your regard. I way in that kind shepherding you're appreciate

Adam Stedham

you. Thank

Operator

with [Operator [indiscernible] from Arlo question Daniel comes Instructions] Street. The next

Unknown Analyst

think that of I back how the ideas think and end the How much was that, on lumpy can million million it? how years to just everything clarity in the around the a point. X is necessarily -- reflect are capital $XX get theory, that's Does course running you we're these you some then that want today. of covered come prior share look at back buying for share reinforce management, sense you be out. should going $XX in to far pipeline? the price were pretty is shares. to you risk up conversations the really Obviously, this what maintain not balance revenue Trying greater the appropriate year? could to becoming like out your about does have then along And the well, to And over so you I in mean you in every you if terms question of say, of to and that repurchase, context be how of it of

Adam Stedham

Right.

Unknown Analyst

gross little with point? starting EPS-oriented, the in there be data just we're bit to you're your will that And thinking to a state margin? better But the of about inform terms market. the points of in trade-offs that question second I'm the trying then tension the that pipeline reenter way context decision to understand that how is between going more let along

Adam Stedham

Great.

perspective. So answer a from let me so pipeline --

of tested, stages up and platform, pipeline. is with, or go-to-market strategy X programs of technology knowledge. have integrated technology integration or are enable Amazon X to there's then the confidence with you technology your it going to partners who to stack your these have side, consumers and have authentication smart your Stage designed the packaging to transparency into to the have this some or your take come sort on many So platform with you to

had far very Amkor. very to Amazon relates that. We've on had this transparency. press comfortable. around we're We've We feel now that release press releases along So

into of we large we good the providers of from are So are where platform it going to perspective our go-to-market take a the integration very marketplace. who feel from to pipeline about and a

to sales. have those make sure the the and and to To customers step close X support then is we resources development sales to that them the business help

we seeing on comfortable opportunities we very where We're that's That's the are that. authentication So and side. with develop We're feel now. pipeline. so seeing

heavily Precision that Logistics perspective, they believe earlier. the customer that on I what proposition focused growth on right really, really, where proactive and think talked drive Logistics value the for proactive well On that a more of current it And be we pipeline understanding to we're Precision from the side, on business. And is have. our we've now about focused side could the below the pipeline

to hard side. on working we're So pipeline increase the the proactive

have our As I say opportunities capital ready value we to accordingly have that need we to company the believe that, our that and that not ties we're a a I miss as to our point on platform focused structure, provides very I company. that the and sufficient fully as and service fully indicated, resources is back to is marketplace And And capital unfold. realizes tipping respond type of when out.

situation shares be we if found hiring we -- be a XXX,XXX Would -- buying if ourselves evaluate we in would provide to the able that -- are most or salespeople? continually off to would we're better be we find shareholder So we which X value. want

So And they our value shares, our certain that's in miss no-brainer and is. think mind, we our would what mark looking now, we buy that we how have right grossly prices we're just real the at on there's it. that

strategic of using best capital, likely shareholder what's options the at rationalized outside to a for multiple that, more value. But our it's looking give the of

Unknown Analyst

enough. Fair enough. Fair Look, it's not ball. crystal a

sort gross the like number way right right current higher at of what overall. way it If through basis Is think about range EPS appropriate on on double the of be it would of margin. at some from your revenue the -- to Is You think Is sort to [indiscernible] of think about that the the basis, have the but about about that to at so to thinking to we're X.X digits, incremental count? some way. anywhere sort share this guidance point. that

Adam Stedham

X-year are You're -- because want you what X-year to modeling, at for you time looking you frame what are [indiscernible]. -- saying, modeling,

Unknown Analyst

about is But point, $XX think to don't years, actually can happens you're out of actually sort a certain range for but X.X-year be if nobody some level tipping you range -- clarity X of to be the at EPS. it I think state understand I discount of -- trying this think I'm don't thinking to year. years, compounding growth you're when for of at Therefore, it's I modeling over of -- about not organic has. anybody course a that the really am some happens if to out I'm have X.X steady trying trading million, expected out at it

X that could an trading therefore, incremental we at x. say and margin and it's our a it's million So XX% years, $X

I'm probably you how talking just isn't here of of it's and what is a intrinsically directed about we're it's revenues. around to if the on trying sort the stock this It's at is, part to basis, of half understand, undervalued undervalued, and all. just trading revenue

well the earnings. get it does [indiscernible] and what take in So revenues to

you it able framed well, throughout that talk can we EPS out a unfold point because stage. part bit expecting flow about we to year an tipping going we're is maybe might then as little that year, how not in mind it. talk my Investor positive So might about year, cash in way doing this the still is your on a the there But of and be the the mind does of framework Day to for, say, contribution

Adam Stedham

agree. Absolutely

we growth be there's based consistently of your you that organic to a period I and shared for have -- get a I or are I where start the here. ARR growth of to reality model is this and to I technology would start and credit is the prepared share a Yes. really think for over and effect of your going, and certain you, start that upon level to nothing But companies demonstrate people look don't you're of ARR you forward . be layering we've to lot they get rate. that are of I'd publicly model [indiscernible] is where to say What need organic So a forward able then time your

we record our organic track Given benefit don't price share getting have we're that that growth in of of any calculation. the not

I do the organic growth -- believe organic -- will, I we with tied that growth, year, think is price really think so share don't going we if that is and think will -- share we be up the deliver EPS. this to throughout then happen I the we back throughout XXXX And to what follow

to think will the back EPS growth translate that then around perception a perspective. what organic an ultimately I and will the ARR to modeling of be it layering and from tied the

don't unfold, how crystal ball, have but it my just that's best. a that's don't but So I mean, I know. think I I will

Unknown Analyst

just just no, done is the no. No, your hard now being ways. set with mean company forthright appreciate when right it expectations rebuild all you've a I that. of I it's to lot in

should be to it the how I point congratulations But the tipping bringing for down So that. you're looking road. was curious

Adam Stedham

I understand completely.

Operator

over back to questioners the turn to At would the this this no and queue, showing remarks. time, any like further for does closing our session. now Stedham conference are we conclude question-and-answer I Adam in

Adam Stedham

you, takes closing out longer a Thank Well, little closing year a year is thank because for attending. you. interesting than quarter. time This out an of a everybody,

give is So our on of not value these away, too of think we'll latest and business far and to be the -- updates that that you, around that as continued of forward call in the as we it's what some an update of answers any progress well release, on press questions I look on with me not QX. more another do

again. look to to and forward attending, for you everyone, thanks, talking So

Operator

The now and you for today's conference presentation, now attending you disconnect. has concluded. may Thank

VerifyMe (VRME) 21 Mar 242023 Q4 Earnings call transcript