Verb Technology Company, Inc. (VERB): Business Model Canvas [11-2024 Updated]

In today's fast-paced digital marketplace, Verb Technology Company, Inc. (VERB) is revolutionizing the way consumers engage with brands through its innovative live commerce solutions. By leveraging partnerships with platforms like TikTok and offering a seamless shopping experience, VERB is positioned to transform e-commerce. This blog post delves into the intricacies of VERB's Business Model Canvas, highlighting key elements such as value propositions, customer segments, and revenue streams. Discover how VERB is not just participating in the e-commerce space but reshaping it entirely.

Verb Technology Company, Inc. (VERB) - Business Model: Key Partnerships

Collaboration with TikTok Shop

Verb Technology Company has established a significant partnership with TikTok, which has played a crucial role in driving revenue growth. For the nine months ended September 30, 2024, the company reported revenue of $172,000, a substantial increase of 406% compared to $34,000 for the same period in 2023. This increase is primarily attributed to revenue generated through its partnership with TikTok and related services within the MARKET.live business unit.

Partnerships with Brand Agencies

Verb Technology Company collaborates with various brand agencies to enhance its market reach and service offerings. These partnerships allow the company to leverage marketing expertise and resources, which are vital for promoting its products effectively. While specific financial figures related to these partnerships are not disclosed, they contribute to the overall growth strategy of the company by expanding its customer base and enhancing brand visibility.

Affiliates for Lead Generation

To boost its lead generation efforts, Verb Technology engages with a network of affiliates. These affiliates are incentivized to drive traffic and generate sales through commissions. The financial impact of this strategy is reflected in the overall revenue growth; however, specific affiliate-generated revenue figures are not publicly available. This model helps the company reduce customer acquisition costs while enhancing conversion rates.

Influencer Management Networks

Verb Technology Company actively collaborates with influencer management networks to tap into the growing trend of influencer marketing. By partnering with influencers, the company can promote its products to a wider audience, leveraging the trust and reach that influencers have with their followers. This approach is critical for driving engagement and sales, particularly within the e-commerce sector. The effectiveness of these collaborations is evidenced by the increased revenue streams attributed to influencer-led campaigns.

Partnership Type	Revenue Impact (2024)	Growth Percentage
TikTok Shop	$172,000	406%
Brand Agencies	Not Disclosed	N/A
Affiliates	Not Disclosed	N/A
Influencer Networks	Not Disclosed	N/A

Verb Technology Company, Inc. (VERB) - Business Model: Key Activities

Development of MARKET.live platform

The development of the MARKET.live platform is a critical activity for Verb Technology Company, Inc. As of September 30, 2024, the platform generated revenues of $172,000, a significant increase of 406% compared to $34,000 for the same period in 2023. This growth is attributed to partnerships, including a notable collaboration with TikTok, which has enhanced the platform's visibility and functionality.

Hosting live shopping events

Hosting live shopping events is a core component of the MARKET.live platform. The live events provide a unique shopping experience that combines entertainment and commerce, driving customer engagement. The operational costs associated with these events include expenses related to production, marketing, and technology infrastructure, which amounted to approximately $2.44 million for the three months ended September 30, 2024.

Providing e-commerce support services

Verb Technology offers e-commerce support services that facilitate transactions on the MARKET.live platform. This includes payment processing, customer service, and logistics support. The general and administrative expenses related to these services were $7.22 million for the nine months ended September 30, 2024, down from $9.08 million in the same period in 2023, reflecting improved operational efficiency.

Marketing and content creation

Marketing and content creation are essential activities that drive traffic and engagement on the MARKET.live platform. In the third quarter of 2024, marketing expenses were approximately $2.11 million, which reflects a strategic focus on digital marketing initiatives aimed at enhancing brand awareness and customer acquisition.

Activity	Revenue (Q3 2024)	Operational Costs (Q3 2024)	General & Admin Expenses (9M 2024)
MARKET.live Platform Development	$172,000	N/A	N/A
Live Shopping Events	N/A	$2,440,000	N/A
E-commerce Support Services	N/A	N/A	$7,218,000
Marketing & Content Creation	N/A	$2,113,000	N/A

Verb Technology Company, Inc. (VERB) - Business Model: Key Resources

Proprietary technology for live commerce

Verb Technology Company, Inc. has developed proprietary technology that facilitates live commerce, allowing businesses to engage customers in real-time. The technology primarily supports the MARKET.live business unit, which has seen significant growth attributed to partnerships with platforms like TikTok. Revenue from this segment reached $147,000 for the nine months ended September 30, 2024, compared to $34,000 in the same period the previous year, marking a substantial increase of 332% .

Strong brand partnerships

Partnerships with prominent brands and platforms are vital to Verb's business strategy. In particular, the collaboration with TikTok has been instrumental in driving revenue, contributing to a total revenue increase of 406% year-over-year, from $34,000 in the nine months ended September 30, 2023, to $172,000 in the same period of 2024 .

Skilled workforce in tech and marketing

Verb boasts a skilled workforce with expertise in technology and marketing, essential for the development and promotion of its live commerce solutions. As of September 30, 2024, the company reported general and administrative expenses of $7.2 million, a decrease from $9.1 million in the same period of 2023, indicating improved operational efficiency despite maintaining a focus on talent retention and development .

Cash reserves and short-term investments

As of September 30, 2024, Verb Technology Company holds cash reserves of $10.5 million and short-term investments totaling $5.1 million. This financial buffer is critical for maintaining operational flexibility and funding ongoing projects in live commerce technology .

Resource	Details	Financial Impact
Proprietary Technology	Live commerce platform supporting real-time customer engagement	Revenue from MARKET.live: $147,000 (2024) vs. $34,000 (2023)
Brand Partnerships	Collaboration with TikTok and other brands	Total Revenue: $172,000 (2024) vs. $34,000 (2023)
Skilled Workforce	Expertise in technology and marketing sectors	G&A Expenses: $7.2 million (2024) vs. $9.1 million (2023)
Cash Reserves	Available cash and short-term investments	Cash: $10.5 million; Short-term investments: $5.1 million

Verb Technology Company, Inc. (VERB) - Business Model: Value Propositions

Seamless integration with social media platforms

Verb Technology Company, Inc. has emphasized its capability to integrate seamlessly with various social media platforms, which is critical for its target demographics. This integration allows users to leverage existing social media channels for enhanced engagement and sales. In 2024, the partnership with TikTok significantly contributed to the revenue stream, with a reported revenue of $172,000 for the nine months ended September 30, 2024, compared to $34,000 for the same period in 2023, marking a 406% increase.

Interactive shopping experiences

The company has developed interactive shopping experiences that enhance customer engagement and drive sales. These experiences are designed to captivate audiences by providing dynamic content that encourages interaction. The effectiveness of these initiatives is reflected in the 341% increase in revenue from $29,000 in Q3 2023 to $128,000 in Q3 2024.

Metric	Q3 2023	Q3 2024	Percentage Increase
Revenue	$29,000	$128,000	341%
Cost of Revenue	$5,000	$54,000	980%
General and Administrative Expenses	$2,850,000	$2,113,000	-26%

Real-time investment opportunities via Go Fund Yourself!

Verb's 'Go Fund Yourself!' initiative allows users to explore real-time investment opportunities, offering a unique value proposition in the crowdfunding space. This service is designed to empower users to fund their projects directly through the platform, enhancing user engagement and retention. The initiative is part of the broader strategy that has seen significant growth, with overall revenue increasing from $34,000 in 2023 to $172,000 in 2024.

Comprehensive support for TikTok sellers

As part of its value proposition, Verb provides comprehensive support tailored for TikTok sellers, which is increasingly crucial in today's e-commerce landscape. This support includes training, tools, and analytics to help sellers maximize their potential on the platform. The partnership with TikTok not only enhances the user experience but also positions Verb as a competitor in the rapidly evolving social commerce market.

Verb Technology Company, Inc. (VERB) - Business Model: Customer Relationships

Dedicated support for businesses onboarding to TikTok

Verb Technology Company, Inc. has established dedicated support for businesses looking to onboard onto TikTok. As part of its services, the company reported a significant increase in revenue attributable to its partnership with TikTok, with revenue increasing by 406% to $172,000 for the nine months ended September 30, 2024, compared to $34,000 during the same period in 2023.

Engagement through live events and webinars

Engagement through live events and webinars is a crucial aspect of Verb's customer relationship strategy. The company has been actively hosting such events to foster community interaction and enhance customer engagement. For instance, during the nine months ended September 30, 2024, Verb's revenue from its MARKET.live business unit, which includes live streaming services, contributed significantly to its overall growth.

Regular updates and communication via digital channels

Verb Technology ensures regular updates and communication through various digital channels. This approach has been reflected in the company's general and administrative expenses, which decreased by 21% to $7.2 million for the nine months ended September 30, 2024, compared to $9.1 million in the previous year. This reduction indicates a more efficient communication strategy while still maintaining customer engagement.

Building community through interactive platforms

Building community through interactive platforms is a core focus for Verb Technology. The company's community engagement strategy is evident in its integration with social media platforms like TikTok, aimed at enhancing user interaction. For the nine months ended September 30, 2024, Verb reported total revenues of $172,000, with a significant portion stemming from community-driven initiatives within its service offerings.

Metric	Q3 2024	Q3 2023	Change (%)
Revenue	$128,000	$29,000	341%
General and Administrative Expenses	$2,113,000	$2,850,000	-26%
Operating Loss	$(2,312,000)	$(3,390,000)	+32%
Net Loss	$(1,965,000)	$(3,541,000)	+44%

Verb Technology Company, Inc. (VERB) - Business Model: Channels

MARKET.live website and app

As of September 30, 2024, Verb Technology Company reported revenue of $172,000 for the nine months, showing a significant increase of 406% compared to $34,000 in the same period in 2023. This growth is largely attributed to their MARKET.live platform, which has been pivotal in enhancing their digital sales capabilities.

Social media platforms (TikTok, Instagram, etc.)

Verb's partnership with TikTok has been particularly lucrative, contributing to the revenue growth of the MARKET.live business unit. The revenue generated from TikTok-related services has substantially impacted the overall financial performance, highlighting the importance of social media channels in their business model.

Email marketing and newsletters

Email marketing remains a critical channel for Verb, facilitating direct communication with customers. The company has enhanced its email marketing strategies, which included regular newsletters that provide updates on services and promotions, contributing to customer engagement and retention.

Live-streaming events

Live-streaming events have become an essential element of Verb's engagement strategy. These events not only showcase products but also drive real-time interaction with potential customers, thereby enhancing the effectiveness of their sales channels. The integration of live-streaming into their marketing efforts has been instrumental in reaching broader audiences.

Channel	Revenue Contribution (2024)	Growth (%)
MARKET.live website and app	$172,000	406%
TikTok Partnership	Significant	Not disclosed
Email Marketing	Contributes to retention	Not disclosed
Live-streaming Events	Enhances engagement	Not disclosed

Verb Technology Company, Inc. (VERB) - Business Model: Customer Segments

Brands and retailers seeking e-commerce solutions

Verb Technology Company, Inc. offers innovative e-commerce solutions tailored for brands and retailers. The company's revenue for the nine months ended September 30, 2024, reached $172,000, a significant increase of 406% compared to $34,000 in the same period in 2023. This growth is largely attributed to partnerships with platforms such as TikTok, which have enabled brands to enhance their online presence and sales capabilities.

Influencers looking for monetization strategies

The influencer market continues to expand, with many individuals seeking effective monetization strategies. Verb's offerings, particularly through its MARKET.live business unit, facilitate influencers in generating revenue via interactive shopping experiences. The company's general and administrative expenses amounted to $7.2 million for the nine months ended September 30, 2024, a reduction from $9.1 million in the previous year, indicating a streamlined approach to supporting influencer partnerships.

Public and private companies for crowdfunding

Verb provides crowdfunding solutions that cater to both public and private companies. In 2024, the company reported a net loss of $7.1 million, down from $19.1 million in 2023, reflecting improved operational efficiency. The Go Fund Yourself business unit has been instrumental in offering crowdfunding services, allowing companies to raise capital through interactive platforms.

Consumers interested in interactive shopping

Consumers are increasingly drawn to interactive shopping experiences. Verb's solutions enable a unique engagement model that combines social media and e-commerce. The company's revenue from interactive shopping services has been instrumental in its overall revenue growth, contributing to a total revenue increase of 341% for the three months ended September 30, 2024, compared to the same period in 2023.

Customer Segment	Revenue (2024)	Revenue (2023)	Growth Rate
Brands and retailers	$172,000	$34,000	406%
Influencers	Part of general revenue	Part of general revenue	Streamlined expenses: $7.2M (2024) vs $9.1M (2023)
Public and private companies	Part of Go Fund Yourself revenue	Part of Go Fund Yourself revenue	Improved operational efficiency; net loss reduced to $7.1M (2024)
Consumers	Part of interactive shopping revenue	Part of interactive shopping revenue	341% increase in revenue for three months ended September 30, 2024

Verb Technology Company, Inc. (VERB) - Business Model: Cost Structure

Operational costs for platform maintenance

The operational costs for platform maintenance include expenses directly associated with the upkeep and functionality of the technology infrastructure. For the nine months ended September 30, 2024, the cost of revenue, which excludes depreciation and amortization, was $90,000, an increase from $7,000 in the same period of 2023. This significant rise reflects the company’s focus on enhancing its digital platform capabilities.

Marketing and advertising expenses

Marketing and advertising expenses are crucial for driving customer acquisition and brand awareness. As of September 30, 2024, Verb Technology Company reported total costs and expenses of $8,106,000, down from $10,817,000 in 2023. This reduction indicates a strategic shift in spending, although specific figures for marketing alone are not detailed in the financial reports available. The company’s partnership with TikTok is expected to contribute positively to marketing ROI.

Salaries and compensation for staff

Salaries and compensation for staff form a substantial part of the operational costs. General and administrative expenses, which include staff salaries, were $7,218,000 for the nine months ended September 30, 2024, compared to $9,080,000 for the same period in 2023. This decrease of approximately 21% is attributed to reduced stock compensation expenses and legal fees.

Technology development and integration costs

Technology development and integration costs are associated with enhancing the underlying technology and integrating new functionalities. For the nine months ended September 30, 2024, depreciation and amortization expenses amounted to $798,000, down from $1,730,000 in 2023. This reduction in amortization is due to a revision in the estimated useful life of software development costs, effective January 1, 2024. The company is strategically extending the life of its assets to optimize costs.

Cost Category	2024 Amount (in $000)	2023 Amount (in $000)	Change ($000)
Cost of Revenue	90	7	83
General and Administrative	7,218	9,080	(1,862)
Depreciation and Amortization	798	1,730	(932)
Total Costs and Expenses	8,106	10,817	(2,711)

Verb Technology Company, Inc. (VERB) - Business Model: Revenue Streams

Fees from businesses using MARKET.live

For the nine months ended September 30, 2024, revenue from the MARKET.live segment was $147,000, an increase from $34,000 in the same period of the previous year. This represents a growth of approximately 332% year-over-year, driven primarily by partnerships and promotional activities.

Commission from sales through Go Fund Yourself!

The Go Fund Yourself! segment generated $25,000 in revenue for the nine months ended September 30, 2024, compared to $0 in the prior year. This segment's growth is attributed to increased user engagement and successful fundraising campaigns.

Subscription fees for e-commerce services

As of September 30, 2024, total revenue from subscription fees associated with e-commerce services was part of the overall revenue reported as $172,000 for the nine months, reflecting a 406% increase from $34,000 in the same period in 2023. The subscription model has been effective in creating a steady stream of income, bolstered by improved service offerings and customer retention strategies.

Affiliate marketing revenue from partnerships

Affiliate marketing revenue is an emerging revenue stream for Verb Technology Company. The company has engaged in various partnerships aimed at enhancing its marketing reach. While specific revenue figures from affiliate marketing were not detailed, the overall revenue growth of 406% year-over-year indicates a positive contribution from these initiatives.

Revenue Source	Q3 2024 Revenue	Q3 2023 Revenue	Year-over-Year Growth
MARKET.live Fees	$147,000	$34,000	332%
Go Fund Yourself! Commissions	$25,000	$0	N/A
Subscription Fees	$172,000	$34,000	406%
Affiliate Marketing Revenue	Not Specified	Not Specified	Positive Contribution

Updated on 16 Nov 2024

Resources:

1. Verb Technology Company, Inc. (VERB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Verb Technology Company, Inc. (VERB)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Verb Technology Company, Inc. (VERB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.