Closed $8.5 Million Acquisition Of AI Social Commerce Technology Platform Lyvecom
$5 Million Cash Added To Balance Sheet In Non-Dilutive, Non-Convertible, Preferred Stock Deal
Zero Debt - Strong Cash Position – Expected To Fund Operations Into 2028 And Beyond
Increased Growth Projected For Q2 2025
LAS VEGAS, May 13, 2025 (GLOBE NEWSWIRE) -- Verb Technology Company, Inc. (Nasdaq: VERB) ("VERB" or the "Company"), Transforming the Landscape of Social Commerce, Social Telehealth and Social Crowdfunding with MARKET.live; VANITYPrescribed; GoodGirlRx; and the GO FUND YOURSELF TV Show, today filed its Form 10-Q reporting financial and operating results for the quarter ending March 31, 2025.
Q1 Highlights
For the Quarter Ended March 31, 2025
Total Q1 revenue - $1.305 million, an increase of $582 thousand, or 80% over Q4 2024; and an increase of $1.298 million, or 18,543%, over the prior year comparable quarter. Represents the greatest amount of revenue generated since the strategic sale of the Company’s direct sales SaaS business unit in June 2023
Net loss reduced by $1.0 million, represents an improvement of 29% over the prior year comparable quarter
Operating loss reduced by $558 thousand, represents an improvement of 17% over the prior year comparable quarter
General and Administrative expenses slight increase of $0.4 million, represents an increase of 12% over prior year; indicates that the Company’s current enhanced financial performance is attributable to increases in revenue – not excessive cost cutting measures
ZERO DEBT - All Remaining Debt retired in Q1
Closed Acquisition of AI Social Commerce Technology Platform Lyvecom in deal valued at $8.5 Million
Opportunistically Added $5 Million in Cash to the Company’s balance sheet through non-dilutive, non-convertible, non-voting, preferred stock deal – replenished all the cash used in Lyvecom acquisition and more
Strong Cash Position – expected to fund operations into 2028 and beyond
Results of Operations
Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
The following is a comparison of the results of our operations for the three months ended March 31, 2025 and 2024 (in thousands):
Three Months Ended March 31,
2025
2024
Change
Revenue
$
1,305
$
7
$
1,298
Costs and expenses
Cost of revenue, exclusive of depreciation and amortization shown separately below
347
5
342
Depreciation and amortization
286
256
30
General and administrative
3,331
2,963
368
Total costs and expenses
3,964
3,224
740
Operating loss from continuing operations
(2,659
)
(3,217
)
558
Other income (expense)
Interest income
121
-
121
Unrealized gain on short-term investments
83
-
83
Interest expense
(1
)
(225
)
224
Other income (expense), net
18
(3
)
21
Total other income (expense), net
221
(228
)
449
Net loss
$
(2,438
)
$
(3,445
)
$
1,007
Revenue
Revenue was $1,305 for the three months ended March 31, 2025, as compared to $7 for the three months ended March 31, 2024. The revenue increase of $1,298, representing an increase of 18,543%, is primarily attributable to revenue received from our MARKET.live business unit services packages and from our Go Fund Yourself business unit which began its operations in July 2024.
The table below sets forth our quarterly revenues beginning with the quarter ended September 30, 2023 (the first quarter following the sale of our SaaS business unit) through the quarter ended March 31, 2025, which reflects the trend of revenue over the past seven fiscal quarters:
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
MARKET.live
$
29
29
7
37
103
490
561
GO FUND YOURSELF
$
-
-
-
-
25
233
744
CONSOLIDATED
$
29
29
7
37
128
723
1,305
VERB Revenue
Operating Expenses
Depreciation and amortization expenses were $286 for the three months ended March 31, 2025, as compared to $256 for the three months ended March 31, 2024.
General and administrative expenses including stock compensation expense were $3,331 for the three months ended March 31, 2025, as compared to $2,963 for the three months ended March 31, 2024.
Other Income (Expense), net
Other income, net, for the three months ended March 31, 2025 was $221, which was primarily attributable to interest income attributable to our short-term highly liquid investments.
Three Months Ended March 31, 2025 Compared to Three Months Ended December 31, 2024
The following is a comparison of the results of our operations for the three months ended March 31, 2025 and December 31, 2024 (in thousands):
March 31, 2025
December 31, 2024
Change
Revenue
$
1,305
$
723
$
582
Costs and expenses
Cost of revenue, exclusive of depreciation and amortization shown separately below
347
134
213
Depreciation and amortization
286
279
7
General and administrative
3,331
4,020
(689
)
Total costs and expenses
3,964
4,433
(469
)
Operating loss from continuing operations
(2,659
)
(3,710
)
1,051
Other income (expense)
Interest income
121
331
(210
)
Unrealized gain (loss) on short-term investments
83
(153
)
236
Interest expense
(1
)
(1
)
-
Other income (expense), net
18
164
(146
)
Total other income (expense), net
221
341
(120
)
Net loss
$
(2,438
)
$
(3,369
)
$
931
Revenue
Revenue was $1,305 for the quarter ended March 31, 2025, as compared to $723 for the quarter ended December 31, 2024. The revenue increase of $582, representing an increase of 80%, is primarily attributable to growth from our MARKET.live business unit services packages and from tremendous growth in our Go Fund Yourself business unit.
Operating Expenses
Depreciation and amortization expenses were $286 for the three months ended March 31, 2025, as compared to $279 for the three months ended December 31, 2024.
General and administrative expenses including stock compensation expense were $3,331 for the three months ended March 31, 2025, as compared to $4,020 for the three months ended December 31, 2024.
Use of Non-GAAP Measures – Modified EBITDA
In addition to our results under generally accepted accounting principles (“GAAP”), we present Modified EBITDA as a supplemental measure of our performance. However, Modified EBITDA is not a recognized measurement under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of liquidity. We define Modified EBITDA as net income (loss), plus depreciation and amortization, share-based compensation, unrealized (gain) loss on short-term investments, interest expense, financing costs, and other (income) expense, and other non-recurring charges.
Management considers our core operating performance to be that which our managers can affect in any particular period through their management of the resources that affect our underlying revenue and profit generating operations that period. Non-GAAP adjustments to our results prepared in accordance with GAAP are itemized below. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Modified EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Modified EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
Three Months Ended March 31,
(in thousands)
2025
2024
Net loss
$
(2,438
)
$
(3,445
)
Adjustments
Depreciation and amortization
286
256
Share-based compensation
958
378
Unrealized gain on short-term investments
(83
)
-
Interest expense
1
225
Other (income) expense, net
(18
)
3
Other costs (a)
256
84
Total EBITDA adjustments
1,400
946
Modified EBITDA
$
(1,038
)
$
(2,499
)
(a) Represents a litigation accrual in 2024. Represents severance costs in addition to acquisition costs incurred for Lyvecom acquisition in 2025.
We present Modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Modified EBITDA in developing our internal budgets, forecasts and strategic plan; in analyzing the effectiveness of our business strategies in evaluating potential acquisitions; and in making compensation decisions and in communications with our board of directors concerning our financial performance. Modified EBITDA has limitations as an analytical tool, which includes, among others, the following:
Modified EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
Modified EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
Modified EBITDA does not reflect future interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Modified EBITDA does not reflect any cash requirements for such replacements.
Liquidity and Capital Resources
Overview
As of March 31, 2025 and 2024, we had the following balances of cash, restricted cash, and highly liquid investments.
March 31, 2025
December 31, 2024
Cash
$
6,275
$
7,617
Restricted Cash
880
878
Investments: Government-Backed Securities
3,884
3,731
Investments: Corporate Bonds
1,197
1,182
Total
$
12,236
$
13,408
Conference Call Information
VERB CEO, Rory J. Cutaia will hold a conference call today, May 13, 2025, at 1:00 p.m. Eastern time to discuss the first quarter 2025 results and strategic plans for the remainder of 2025 and beyond. A telephonic replay of the conference call is available from 4:00 p.m. Eastern time today through May 27, 2025.
VERB Q1 2025 Earnings Call Date: Tuesday, May 13, 2025 Time: 1:00 p.m. Eastern time (10:00 a.m. Pacific time)
To access by phone: Please call the conference telephone number 10-15 minutes prior to the start time. An operator will register your name and organization.
Meeting Link:CLICK HERE Toll Free: 1-877-407-4018 Toll/International: 1-201-689-8471 Telephonic Replay: Available after 5:00 p.m. Eastern time on the same day through May 27, 2025 at 11:59 PM ET
Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID:13753877
About VERB Verb Technology Company, Inc. (Nasdaq: VERB), is Transforming the Landscape of Social Commerce, Social Telehealth and Social Crowdfunding with MARKET.live; VANITYPrescribed; GoodGirlRx; and the GO FUND YOURSELF TV Show. The Company operates several business units, each of which leverages its social commerce technology and video marketing expertise. MARKET.live, together with recently acquired AI social commerce technology innovator Lyvecom, is a multi-vendor, livestream social shopping platform that allows brands and merchants to deliver a true omnichannel livestream shopping experience across their own websites, apps, and social platforms. Advanced AI capabilities power real-time user-generated-content creation, automated video content repurposing, and AI-powered virtual live shopping hosts that are virtually indistinguishable from human hosts, capable of real-time audience engagement. Brands utilize our proprietary AI model trained on tens of thousands of video commerce interactions to automate content creation and our intelligent tools designed to optimize merchandising strategies and increase conversion rates. GO FUND YOURSELF is a revolutionary interactive social crowd funding platform and TV show for public and private companies seeking broad-based exposure across social media channels for their crowd-funded Regulation CF and Regulation A offerings. The platform combines a ground-breaking interactive TV show with MARKET.live’s back-end capabilities allowing viewers to tap, scan or click on their screen to facilitate an investment, in real time, as they watch companies presenting before the show’s panel of “Titans”. Presenting companies that sell consumer products are able to offer their products directly to viewers during the show in real time through shoppable onscreen icons. VANITYPrescribed.com and GoodGirlRx.com are telehealth portals, intended to redefine telehealth by offering a seamless, digital-first experience that empowers individuals to take control of their healthcare needs. They were designed and developed to disrupt the traditional healthcare model by providing tailored healthcare solutions at affordable, fixed prices – without hidden fees, membership costs, or inflated pharmaceutical markups. GoodGirlRx.com, a partnership with Savannah Chrisley, a well-known lifestyle personality and advocate for health and wellness, offers customers access to convenient, no-hassle telehealth services and pharmaceuticals, including the new weight-loss drugs, with fixed pricing regardless of dosage, breaking away from the industry’s traditional model of excessive pricing and pharmaceutical gatekeeping.
The Company is headquartered in Las Vegas, NV and operates full-service production and creator studios in Los Alamitos, California.
FORWARD-LOOKING STATEMENTS This communication contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties and include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, or achievements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those identified in our filings with the Securities and Exchange Commission (the “SEC”), including our annual, quarterly and current reports filed with the SEC and the risk factors included in our annual report on Form 10-K filed with the SEC today. Any forward-looking statement made by us herein is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise.
