Earnings call transcript Q4 2022

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Operator

Good afternoon. And welcome to the Full Year and Fourth Quarter 2022 Financial Results Conference Call for Verb Technology Company Incorporated. At this time all participants are in a listen-only mode. Please be advised that this call is being recorded at the company's request.

On our call today are Rory J. Khan, Salman and CEO, CFO. Cutaia,

provisions I Before cause XXXX, that statements which to Securities actual harbor everyone involves risks that to like made we under Reform during could of safe forward-looking results begin, statements include this remind will differ Private uncertainties would conference Act the of and the Litigation call materially.

law Technology circumstances only of to forward-looking made, current disclaims required in the by with are may obligation the except and SEC. the filings facts Verb they Forward-looking as date as update underlying statements statements, Company as speak any as company's change. the those subsequent as these and well contained

call to turn I would Cutaia, to now Rory over like CEO. the J. Rory.

Rory Cutaia

joining and certain update have fourth to for Thank you, These that us moment, At ongoing moderator today initiatives time. Board's advised that M&A fall of I'm include, comments full and to not and business XXXX we're matters. the and refrain quarter is review financial engaged other conference results it call. number of ensure this among from strategic consideration the we this statements, firm ready for our opportunities we any at advisory a accuracy thanks on. year everyone to Alantra, best report to last the by presented forward-looking any of

of in XX-K four call hope in to Accordingly, to today. As activities the the time, review questions. respond results. limit that position earnings my you and this at going details another of know, in it's succinct contained filed I'm the weeks that expectation points and salient to these discuss about around some Form to a we to have coming up call XXXX And will provide a we QX, be

XXXX challenging While we for the operate our profitability. in. was are Among optimistic for for top a outlook priorities a that was drive businesses XXXX many environment to to XXXX, very

implement the us members, well the our significant and included These the as myself, efficiencies and bonuses. of organization, the focus reduction additional We XXXX non-essential compensation entire board elimination as new to reductions. cash continue on staff, creating and of including of allowing executives in throughout to cost cost elimination paid highest high

XX% compared million research year million, and development to December $X.X to $XX.X XX, as ended for expenses We by the slashed XXXX.

remaining our our research expect research rapidly work product development to XXXX development reductions through As deployment cost to moves development and we beyond. from continue and and stage stage, the

general representing administrative from expenses business XX% our to MARKET.live improvement We've for We've our associated by expense and administrative than reduced million, $X $X.X per under of $XXX,XXX by and more reduced We've business just year-over-year. to approximately than general an annum. $XXX,XXX, saving Utah SaaS more expenses limited with $XXX,XXX X% office our approximately million.

the to has our revenue. growth subscription on regard business, recurring focus primary been our our With SaaS of

and costly years, several the shipping to printing our past can wind business margin continued we to outsourcing services services the the we by a have generate as based business on fulfillment low exit determination is better ROI Over and a That's it digital and down business. non-digital scale. our that

verbLEARN associated driven For XX, ended year a and for was XX, recurring our year platform. of and increase revenue The the verbTEAMS XX% December subscription-based revenue suite our SaaS applications XXXX. $XXX,XXX with million the verbCRM, the ended SaaS verbPULSE XXXX, increase subscription December our $X.X from over $X.X of was the recurring million, primarily verbLIVE,

the ended for year non-digital the representing the total was year ended year the XX. revenue, XX, For year-ended revenue the December December year-ended $X.X million planned SaaS to million, the year a XX% for of XX% ended recurring XXXX. XX, increased revenue for December up decrease Total ended total a digital XXXX. XX, XX, from December of from as the XX% XXXX, revenue was for percentage December December XXXX, revenue $X.X XX% XXXX XX, up from XXXX, for

ended for December was the revenue of XXXX. the The is the million, year-ended $X.X of to cost million XX, December Total improved XX% representing XXXX, XX, $X.X cost for year improvement, margin revenue base. almost compared to enterprise partially our reduction on primarily offset to cost and in platform within slight the attributed planned our users increase in a support non-digital existing low services, digital additional by customers increased customer a

December December margin gross the our XXXX, $X.X for year-ended increased the We at the XX, for XX% year-ended million XX, XX% over to XXXX.

operations from of December year-ended XXXX for a reflects $XX.X the operations XX of statement loss Our million.

in and dollars this and items in include sum million and depreciation impairment. of $X.X in expenses, non-cash However, includes stock-based intangibles $XX non-cash goodwill expenses. amortization $X.X compensation, million These million million $XX

other goodwill The the results of an long-lived the sheet the reflected represents balance due Sound previously XXXX Concepts. acquisition non-cash impairment of was $XX impairment following loss million on $XX assets impairment charge to intangible and our non-cash the of This assets. to million goodwill, primarily testing of impairment annual

in in offering with million plus million net no with warrants. shares proceeds We And dollars common $X.X of prepaid representing receivables $X.X another straight January an cash $X.X in year the million over of approximately cash ended added and what expenses. and just we equity

also With to certain regard shopping to are platform, our earlier stream ongoing MARKET.live. initiatives MARKET.live referred that are apply to there

until discussion QX, month, So XXXX. around we I'm further on next when going to defer report MARKET.live

to Okay with it that, Salman. turn over I'll

Salman Khan

And previous year. results the XX-K I'd year I the following XXXX. as good more the shared performance review December ended year data the to for April of operations some points afternoon, color XXXX fiscal XXXX like today, financial with Rory. you. filed Thank for may provide company's our of The our XX, you, compares Rory in XX, around reported everyone. with Form

generated revenue revenue for year. of XX% history revenue, approximately up million of SaaS the total previous just up XX% was digital Total year. the with a revenue component $X.X year Total the the total revenue XX% revenue year, modestly digital year fiscal as company. previous SaaS recurring SaaS million amount any or XXXX, of in was compared and for recurring recurring percentage $X.X a the the digital of or of previous highest

reliable not phase digital of it our and we growing completely which our indicator which non-digital performance, the business out is our a non-digital revenue business, exiting. generated our we Until our both since revenue business total legacy from be are includes will

only total now the For with revenue business example, XX% XX% compared represents of non-digital last year.

cut Rory of million reliance expenses XX, discussed, series strategy profitability we dramatically. million the and As have by cost reduce ended our for we outside reduced implemented XX% reductions. December year operational In to costs and capital, development to as establishing have to a accelerate compared $XX.X We $X.X research specific XXXX. on

cost XXXX QX, and beyond. reductions We expect continue through our R&D to

administrative business SaaS X% million, less $X.X general an We and associated MARKET.live expenses $X million. representing year-over-year. also for our with than were reduced G&A business by of improvement

non-cash recorded impairment the impairment and charge SoloFire during acquisitions reflected million, results we on of goodwill charge year, due loss conducted that assets we to of non million sheets. the of this balance cash the our $XX testing relates intangibles, impairment and previously $XX During the Sound Concepts annual a QX. This from to long-lived was

three At expect December MARKET.live, costs XX, which development to XXXX, development over we amortize attributed have capitalized we the period. year a million of to software of $X.X

million $X.X at During of a and balance million the we had amortized $X.X December year XX, XXXX. remaining

size, the management investors business and quality plan, of We high which able to capital and access to our attract team. are our terms quality institutional better fortunate speaks be execution on companies than markets to the our many

we Among a common of XXXX XX, of the gross gross gross proceeds $X common million shares a gross were offering of financing activities registered XX, and shares proceeds direct on registered January proceeds XXXX April undertook $X direct XXXX. common X, November million in registered non-convertible on $X.X a million million XXXX; $XX and on shares offering October XX, note offering XXXX; on direct promissory proceeds subsequently,

Verb. partner the equity Stone and XXXX, Capital. for On full, is repaid XXXX debt entered and sale of and with HELOC line favorable a The obligations fees HELOC whose three long Stone over agreement was well in XXXX, years. the XX, market Capital, as January $X.X to with and discontinued as LP all that had of XX, manager XX, million company institutional January we the agreement a term investors January into of Note credit facility On three $XX inclusive issuance above shares terms, been financing Tumim the up with general and million Tumim under convertible investor outstanding Xi, in offering supplemental

results operations three XX, XXXX. the of December with months the for company's following XXXX, ended compares months ended XX, The December three

company's the Total breaking record over in which slowest Sales of services. down revenue strategic direct XX% from down under XXXX quarter same $X.X the quarter decrease its was year. revenue XXXX historically $X.X Total recurring fourth was year, reflecting quarter fourth just the revenue to last for margin, a the same and XX% non-digital to Total was digital continue is was slightly the period low what from $X.X quarter million, sales. wind million, of just decision the non-digital million, last

revenue of and $X.X was year, same cost from operational million down the reductions period improved XX% planned last reflecting Cost efficiencies.

last same million, were same and down administrative reflecting expenses a XX% General and from R&D last $X.X the in period million XX% period million for $X.X reduction the with previous costs. year, were $X.X year, XX% of from compared a expenses the quarter. decrease

or derivative liability, XX-K impairment the loss, in charges. other performance. Form change today, costs modified loss, or debt, expense, interest depreciation expense, of measure EBITDA modified We section we amortization extinguishment and expense, of supplemental income as and EBITDA define compensation a our startup value income expense, MARKET.live fair In our share-based net filed of MD&A other provide non-recurring costs net as plus

under GAAP measure should other income, liquidity. an not operations from note that activities or with measurement as operating as However, from required measure are in derived performance EBITDA to a I to alternative and is any be GAAP, as income to accordance alternative flow recognized not a am considered modified of cash net an

future, In this should to different expenses are the incur modified from in we adjustments similar that in or evaluating may be you presentation. EBITDA, that aware

of an items. presentation should construed be as inference modified non-recurring EBITDA or will unusual our be Our results that by future unaffected not

modified addition, be manner calculate from our may that EBITDA, you modified calculation. many that differs and in track In a companies aware companies other should while calculate EBITDA

in modified results today. year-over-year. of XX% in also XXXX, of Please modified calculation release, EBITDA million EBITDA for approximately Our filed Form refer the $XX.X quite year the fiscal in negative EBITDA EBITDA modified our earnings modified represents in XX-K to significant and provided a of reconciliation improvement which

concludes now Operator? the management's This you back call presentation. like the I'd the to all. turn to operator. Thank

Operator

This today's call. concludes you. Thank

You may your you for And thank disconnect. participation. now

Verb Technology (VERB) 17 Apr 232022 Q4 Earnings call transcript