Verb(US:VERB)2022-08-16 04:18Financial Data and Key Metrics Changes - Total digital revenue for Q2 2022 was $2.2 million, a 19% increase from Q2 2021. SaaS recurring revenue was $2 million, up 23% year-over-year [30] - Total revenue was $2.4 million, a slight increase of 0.3% compared to the same period last year [30] - Gross margin improved to 65% from 53% in the same period last year, reflecting a shift towards higher-margin digital business [32] - Research and development expenses decreased by 57% to $1.4 million compared to $3.2 million in Q2 2021 [33] Business Line Data and Key Metrics Changes - The SaaS recurring subscription revenue for the first half of 2022 was $4 million, a 30% increase from the same period last year [36] - The legacy non-digital revenue represented only 10% of total revenue in Q2 2022, down from 24% in Q2 2021 [24] Market Data and Key Metrics Changes - During the Shopfest event, total views on MARKET.live were 45,161, with total unique views at 15,444 [13] - The event generated between $20,000 and $30,000 in gross merchandise value, with an average order size of just over $80 [16] Company Strategy and Development Direction - The company is focused on enhancing its MARKET platform and plans to announce significant updates in the coming weeks [4] - The strategy emphasizes building a community-driven shopping experience where customers prefer to buy from individuals rather than brands [10][51] - The company aims to increase the number of vendors on the platform, with over 300 vendors currently committed [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the platform's ability to create value and drive revenue, emphasizing the importance of awareness and engagement [71] - The company expects to see increased recurring SaaS revenue from new products in the second half of 2022 [23] Other Important Information - Cash totaled $5.5 million as of June 30, 2022, compared to $0.9 million at the end of 2021, following a successful capital raise [39] - The company has implemented a streamlined onboarding process for vendors to enhance participation on the MARKET platform [17] Q&A Session Summary Question: Confirmation of viewership numbers from Shopfest - Management confirmed approximately 45,000 views on MARKET.live, 70,000 views on Facebook, and over 1 million views post-event on Facebook [43][45] Question: Onboarding of large brands and their participation - Management indicated that large brands are in the queue and expected to participate soon, with Shopfest's success accelerating interest [48] Question: Revenue contribution expectations for 2022 and 2023 - Management anticipates that revenue from MARKET will be significantly higher in 2023 compared to 2022, but expects meaningful contributions in 2022 as well [50] Question: Lessons learned from Shopfest and monetization strategies - Management highlighted the importance of personal relationships in driving sales and indicated plans for monetization strategies based on these insights [51] Question: Digital recurring revenue trends - Management noted that new products like verbLIVE 2.0 and Pulse are expected to drive incremental revenue growth in the latter half of the year [53] Question: Economic differences between produced events - Management clarified that when vendors produce their own events, the company incurs no costs, enhancing the economic model [80] Question: Compliance with NASDAQ listing rules - Management expressed confidence in maintaining compliance with NASDAQ rules and dismissed concerns about potential reverse splits [77]