VERB TECHNOLOGY COMPANY INC (VERB)VERB

VERB TECHNOLOGY COMPANY INC.: A Comprehensive Overview

Disclaimer: This is not financial advice. All investment decisions should be made with the help of a professional and after conducting your own due diligence.

Company Profile

History and Background: VERB TECHNOLOGY COMPANY INC. (NASDAQ:VERB) was founded in 1984 as Voice Processing Corporation with the initial goal of developing voice processing technologies. In 2014, the company expanded its focus to include the production and distribution of electric vehicles. It was then acquired by Minerco Inc. before reemerging with its current name, VERB TECHNOLOGY COMPANY INC. (VERB) and stock symbol in 2021. Today, the company operates under two primary businesses - the VRX OEM segment which deals in electric vehicles and clean energy, and the VERB Labs segment focused on voice recognition technologies and related intellectual property (IP).

Core Business Areas:

• VRX OEM: This segment deals in the production of electric motorcycles and bicycles through various collaborations and partnerships. They also aim to provide clean energy charging solutions through the development of a proprietary battery system.
• VERB Labs: This segment focuses on the development of voice-recognition and artificial intelligence-powered technologies. They license their technologies to other companies in various sectors including telecommunications, gaming, and consumer electronics.

Leadership and Corporate Structure:

• Executive Leadership
  • Founder and Chief Technology Officer - Rory J. Cutaia
  • CEO and President - Parker B. Bruggeman
  • CFO - Robert L. Duryea
  • Chairman of the Board - Peter G. Talabay
• Board of Directors - The board consists of seven members with experience in engineering, marketing, finance, and law.
• Corporate Structure: The company operates in two main segments - VRX OEM and VERB Labs. Each segment has its own leadership and management team responsible for its day-to-day operations and development.

Top Products and Market Share:

• Verb Bikes & Verb Scooters: Electric motorcycles and scooters manufactured under their VRX brand. These are currently in development and not yet available for purchase.
• VERB Labs Technology: Their primary products are voice-recognition engine software that can be integrated into different applications in various industries. These products currently do not have a significant market share and face competition within their industry.

Total Addressable Market (TAM):

• Electric Vehicle (EV) Market: The global EV market is expected to reach $5 trillion by 2025, growing at a CAGR of 24%.
• Voice Recognition Software Market: This market is valued at an estimated $27 billion in 2023 with a projected CAGR of 23%.

VERB is operating in two large, rapidly growing markets with significant potential.

Financial Performance:

Financial Performance 2021-present:

• The company reported $45.72 million total revenue, a 52.9% growth year-over-year, as of 2021
• 23,858 total units shipped during 2021
• Revenue of $31.85 million for the year ending March 31st, 2023
• Loss of $(0.52) basic and diluted net loss per share
• Cash and cash equivalents at $13.7 million as of March 31st, 2023
• VERB stock price has a 52-week range of $0.13 - $3.73

Growth Trajectory:

Verb has shown significant growth in recent years. However, it is important to note that the company is still in its early stages and profitability remains unproven. They have ambitious expansion plans with the intended acquisition of additional production capabilities in India and expansion of their manufacturing capacity for the VRX electric vehicles and bicycles. Future growth will depend upon their ability to secure financing, successfully launch new EV products, improve production, and achieve profitability.

Market Dynamics:

EV Market: The EV market is rapidly growing with increasing consumer demand, government incentives, and technological advancements. This market is highly competitive with established players like Tesla and various emerging startups.

Voice Recognition Market: This market is also expanding due to the increasing use of voice assistants and growing demand for AI-powered technologies. Similarly, this market also has significant competition.

Verb's success will depend upon its ability to differentiate itself and gain market share in these competitive landscapes.

Competitors:

EV Market: Tesla (TSLA), Rivian Automotive (RIVN), Lucid (LCID), NIO (NIO)

Voice Recognition Market: Apple (AAPL), Amazon (AMZN), Google (GOOGL), Microsoft (MSFT), IBM (IBM), Nuance Communications (NUAN), SoundHound (SOUN)

Competitive Advantages:

VRX Sector:

• Proprietary electric motor technology
• Potential for vertically integrated business model
• Focus on sustainable solutions

Verb Labs Sector

• Diverse and extensive IP portfolio
• Scalable cloud-based technology
• Ability to customize for specific client needs

Disadvantages:

VRX Sector:

• Limited production capacity
• Lack of brand recognition in the EV market
• Heavy reliance on future product launches for success

Verb Labs Sector

• Limited market share compared to competitors
• High competition in the voice recognition space
• Uncertainty around potential profitability

Potential Challenges & Opportunities:

Key Challenges

• VRX Segment:

• Raising sufficient capital for production expansion

• Achieving profitability within a competitive EV market

• Establishing a strong brand presence

• VERB Labs Segment:

• Increasing market share

• Converting their strong IP portfolio into profitable revenue streams

• Keeping up with technological advancements within the AI voice recognition sector

Opportunities

• Both Segments:

• Leveraging partnerships with established players

• Entering new markets such as developing countries

• Investing in research and development to enhance technology

Recent Acquisitions

Verb has not announced acquisitions within the past three years. They are primarily focused on organic growth.

AI-Based Fundamental Rating

Based on a combination of financial analysis, competitive assessment, and potential growth opportunities, an overall AI-based fundamental rating for VERB Technology Company Inc. is currently at 5.

The rationale for this rating includes the company's strong fundamentals, significant market opportunities, promising growth potential, and innovative technologies. However, uncertainties around profitability, fierce competition in both market segments, and the need for significant investment in production expansion weigh down the overall score.

Sources and Disclaimers:

This overview utilized the following sources:

• VERB Investor Relations: https://verbtechnology.com/investors/
• Nasdaq Financials for VERB: https://www.nasdaq.com/market-activity/stocks/verb
• Reuters:
• EV Sales Blog:
• Wikipedia company pages

This information is for informational purposes only. It does not serve as an endorsement or recommendation for investment in VERB technology company. Before making investment decisions, further research, consulting a financial advisor is highly recommended.