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Verb Tech Q1 Sales $2.400M

Total revenue for the first quarter of 2020 was $2.4 million, a decrease of 41% from $4.0 million for the same period last year. The decrease in total revenue was attributable entirely to the decrease in revenue from

Benzinga · 05/19/2020 12:19
  • Total revenue for the first quarter of 2020 was $2.4 million, a decrease of 41% from $4.0 million for the same period last year. The decrease in total revenue was attributable entirely to the decrease in revenue from the Company’s intentional exit from its legacy welcome kit printing and marketing merchandise fulfillment business in order to focus on building revenue for its SaaS application business which has improved quarter-over-quarter since Q1 2019.
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  • Total Digital revenue for the first quarter of 2020 was $1.5 million, an increase of 38% from $1.1 million for the same period last year.
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  • Total SaaS recurring revenue (as a component of total Digital revenue) for the first quarter of 2020 was $1.1 million, an increase of 34% from $786,000 for the same period last year.
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  • Cost of revenue for the first quarter of 2020 was $1.1 million, a decrease of 53% from $2.3 million for the same period last year.
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  • Gross profit for the first quarter of 2020 was $1.3 million, a decrease of 26% from $1.8 million for the same period last year. The decrease in gross profit was primarily attributable to the previously mentioned exit from the Company’s legacy printing and fulfillment business totaling $797,000 or 93%, offset by an increase in the Company’s Digital business totaling $335,000 or 38%.
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  • Research and development expenses for the first quarter of 2020 were $1.3 million, virtually flat compared to $1.3 million for the same period last year.
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  • General and administrative expenses for the first quarter of 2020 were $3.5 million, an increase of 10% from $3.2 million for the same period last year. The increase in general and administrative expenses was primarily attributable to an increase in labor to accelerate development of the Company’s new applications, including verbLIVE, and an increase in stock-based compensation expense.
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  • Cash totaled $1.6 million as of March 31, 2020, compared to $983,000 at December 31, 2019.