Good afternoon and welcome to the Second Quarter 2021 Financial Results Conference Call for Verb Technology Company Inc. At this time, all participants are in a listen-only mode. Please be advised the call is being recorded at the company’s request. On our call today are Rory J. Cutaia, CEO and Jeff Clayborne, CFO. Before we begin, I would like to remind everyone that statements made during this conference call will include forward-looking statements under the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995, which involves risks and uncertainties that can cause actual results to differ materially. Forward-looking statements speak only as of the date they are made, except as required by law as the underlying facts and circumstances may change. Verb Technology Company disclaims any obligation to update these forward-looking statements as well as those contained in the company’s current and subsequent filings with the SEC. I would now like to turn the call over to Rory J. Cutaia, CEO. Rory?

Thank you and thanks to everyone for joining us today for our second quarter of 2021 financial results and business update conference call and a special welcome to all the new shareholders who joined the Verb family since our last earnings call in May. In fact, what I have seen, it appears we now have somewhere in the range of 25,000 shareholders, which is up dramatically from about 4,000 last year. However, some experts are telling me that the 25,000 number maybe low as the total number doesn’t show up in recent NOBO reports and it could be as high as 100,000 total Verb shareholders or more. For a company our size, that’s an extraordinary number. But I honestly expect the base to grow well beyond that, especially as the world continues to embrace the convergence of video, and I mean all video content and e-commerce. Most of the world is now online and soon the entire planet will be online with unlimited affordable high speed mobile access through 5G technologies everywhere and all the time. And what are they doing online? They are watching videos. They are creating and sending videos and they are shopping. Look, I think we are pretty smart, but it doesn’t take a genius to see that those things will converge. Of course, they will. It’s inevitable. Think about some of these data points. More and more people are cutting the cable TV cord and watching content online. Millennials are not even buying TVs. They are consuming video content on their mobile devices. Why do you think you are seeing Apple developing their own content for online consumption? Amazon Prime, Netflix, Disney+ and HBO Max are now distributing the latest studio films online. At the same time, they are putting them in theaters. Heck, even…

Thank you, Rory and good afternoon everyone. I would like to review our financial performance as reported in our Form 10-Q filed today, August 16 for the quarterly period ended June 30, 2021. I may reiterate and provide more color around some of the data points Rory shared with you. The following represents the company’s results of operations for Q2 2021 versus Q2 2020. Total SaaS recurring revenue, a component of total digital revenue, was $1.6 million, up 26% for the same period last year and up 10% over Q1 2021. SaaS recurring revenue as a percentage of total digital revenue was 88% compared with 76% from the same period last year and up over the 81% we have reported in Q1 2021. Total digital revenue of approximately $1.8 million was up 8% over the same period last year. And while it appears to be in line with Q1 2021, it actually represents an increase in our subscription-based SaaS recurring revenue of 26% over last year and a reduction in non-SaaS digital revenue. Total combined revenue of approximately $2.4 million consists of a $1.6 million in recurring SaaS revenue I just referenced, which is up 26% plus our non-SaaS digital revenue and the non-digital revenue stream that as Rory stated was slightly off due to the clients not hosting in-person conferences and conventions. We added 12 new client contracts with a guaranteed base value of $715,000 with expected annual recurring revenue of $405,000. However, those numbers do not include the expanded revenue we expect to recognize from existing clients we have recently launched and those that are about to launch verbLIVE with attribution, which should add no less than an additional $1 million conservatively in annual recurring revenue. Research and development expenses were $3.2 million compared with $1.6 million for…

[Operator Instructions] And the first question comes from Brian Kinstlinger with Alliance Global Partners. Please go ahead.

Hi, good evening, guys. Thanks for taking my questions. Let’s start with Microsoft Outlook. Love to hear how you are progressing on the getting inducted into the Microsoft Co-Sell program. And then while it’s only been a short period, can you highlight the early adoption numbers and what do you get for a free version? Is it just e-mail with video capabilities, but no other options or it’s a bunch in one?

Okay. So first, the free version of mail gives you really great e-commerce capabilities, where you can not only create a video or import a video, you may already have a video on your computer you want to use and you could add those interactive buttons to it, you can add the shoppable buy now buttons on it and send that out through Outlook. So it’s pretty full featured for a free version. Now, the features that are coming and the ones that I talked about earlier in the call, well, those features really take it to an entirely new level and that’s really for sales professionals. But this is for anybody really trying to promote or sell anything, but the other cool thing about it and the reason we made it free is because it’s also for people who just want to well communicate with friends and family and send out interactive video e-mails, inviting people to a party or an event or those kinds of things or delivering a document or contract. It’s really pretty terrific program and the response that we have gotten from it so far has been pretty amazing. So we have got, let’s see, it’s been out now for, I guess about a month and it looks like we have got somewhere around the 1,000 people on it. There is thousands and thousands of videos that are being created on the platform. And we haven’t really promoted it yet at all. So those initiatives, the promotion of it is really not going to begin until really the end of this month as we have brought in a whole new team of people that we have added to our sales and marketing department that will be focused on very specifically this initiative, both the free…

How long? Yes, yes, how long with what they have asked you to do? Is it 3 months of work? Is it 6 months of work? Is it pretty quick? And then it takes them some time to figure it out and just take us through kind of timing with 4 months to go in the year?

Some of the initial steps will probably take us into the end of September. And then from September I am hopeful that we are not looking at more than a few months, maybe a couple of months, but I don’t know and I don’t want any people to make investment decisions based on that. But I – look, it’s certainly going to happen. Let me take that back, nothing in this world is certain, okay. I believe that we are going to get this done before the end of the year, but again, I don’t have complete control over it, but I feel very confident about it.

Great. And then similar line of questioning in terms of verbLIVE, how many enterprises that you have signed up and how many paying users you have and then split between salesmen versus paid by the enterprise?

Gosh, I think we have got somewhere north of 600,000 people on live now. They are about on a global basis. I am not sure I could tell you specifically, how many of those are paying themselves for that. I would say that the vast majority of those subscriptions are being paid by their employers. We have seen – yes, I mean…

I was going to ask you how penetrated is that 600,000 into the enterprises? I mean, do they have 3 million possible field reps? Do they have 6 million? Do they have – are you well paying trade? Take me through what that capacity could look like?

Yes, the penetration rates, because it’s really so new. The penetration rates are pretty low. So, we have got huge, huge upside as we continue to add – well, as they continue to use it promoted internally. We are helping them with that. But the weekly growth numbers, the videos that are being created under different live streams, it’s already exceeded all our expectations internally, I think I have mentioned previously in the call that, that we have seen 10s of 1000s of live stream events just over the past couple of weeks. And but what’s really kind of a bigger deal about it is not so much that they are hosting events, which of course, we are thrilled about, because that brings more people onto it, but the kinds of results that they are reporting internally. The sales results that they are getting are really – just really very, very impressive. And I think that I mentioned some of the quotes from some of these executives and CEOs of these companies, they are pretty, jaw dropping for them is one of the other things that I have heard. They were not expecting those kinds of results. It’s that good. It’s super engaging, people are enjoying it, its social, it’s fun. People somehow feel compelled to make a purchase when they are on there. It’s hard to explain and it’s one of the reasons I think that this is going to be such a big deal not just for Verb, but I mean for social selling and online selling e-commerce globally.

And then is it too early to tell us how attribution is impacted the – maybe weekly signups and is attribution up-charge, or it now does it come standard in the product?

It’s an up-charge. We have added it to all the new verbLIVE accounts that are being sold. And it’s safe to say that attributions are really a big deal in terms of the draw. And the reason that people want to get on live as quickly as possible, because, as I have explained it. Not everyone wants to be in front of the cameras doing a verbLIVE event. But if you as a sales rep, can refer all of your contacts to that other rep, that’s really great in front of the camera. And you are still going to get paid. Well, that means that now you want to get on there and use it. So, that’s really driving adoption rates and certainly driving our pipeline for companies coming in and asking for it.

I have two more questions. The first one is, is there a timing of when you expect Verb Marketplace? And then there was a tweet out from a very high end sports retailer, should we look at those tweets, potentially as retailers who are participating in the early soft launch of the Verb Marketplace?

I don’t know specifically, what reach you are referring to Brian? And we have been really cautious about the information that we have shared about that.

That is why we can’t really say the name.

Yes, it’s been really, really minimal. And we want to keep it that way until we launch it on the global platform with our CDN network, and a lot of other things that we haven’t really talked about yet what this means. So, I really don’t want to comment on that stuff, because I really don’t know what it is. But with Marketplace, again, its codename, so we have been using internally, it’s probably not what’s going to be called when it’s launched, but it was a big deal, Brian, it really. And as we move through the balance of the year, and we begin sharing a lot more information about it, people will understand that.

Can you comment on do you expect it to be launched fully by the end of the year or is that maybe too aggressive?

No, we are super aggressive, as you know. And yes, I am anticipating that it will be launched by the end of the year.

Great. Last question I have got is Salesforce had an announcement about release and adding Salesforce Plus, it sounds – in my early days, in dealing and talking with you, with Verb clearly you were talking to Microsoft, you were talking with Salesforce, you were talking with a variety of CRM companies. And this particular product sounded very similar to some of the things that your technology does. Could you just talk about your relationship with Salesforce? And if you are partner with them in any way, shape, or form right now, and maybe any comments would be helpful?

So yes, we have we have an existing partnership with Salesforce. They were one of the first large companies to embrace the technology. They have our first version of it. Now in the Salesforce store, it’s – I think I alluded to that in the call earlier, where there is a big, big upgrade coming to that in the near-term. And I also alluded to that new Salesforce service that they come out with where they are now producing content, video content on a variety of different topics related to sales. And I think that’s fantastic. I really do. It’s not shoppable. It’s not interactive content. It’s not anything like that. And sure what I like to talk to them about making some of that content interactive, even if it’s taking polls and things like that in those videos that they are producing, yes, absolutely. Am I going to try and do that, yes, you better believe it. But our business is not going to revolve around that clearly. It just shows that people are beginning to embrace this concept of video being everything. It’s – I said last year, its table stakes. It’s more than table stakes now. It’s really all encompassing. And so our technology, of course, takes it to the next level.

Right, actually, I am going to do one numbers question for Jeff. Jeff, with the conversion, can you just tell us how many common shares you now have outstanding as of today?

That was in his report a couple slides ago.

Yes. 67,520,919 Brian?

Great. Thank you so much, guys.

Yes, 67 million correct.

Yes. Got it.

Thank you, Brian.

[Operator Instructions] The next question comes from Ed Woo with Ascendiant Capital. Please go ahead.

Yes. Thanks for taking my question. As you mentioned on the call that, video commerce is just booming. Have you noticed any change in the competition, whether more people are trying to come into this space that you guys have the first mover advantage on?

So Ed, I am seeing companies come into this space. I haven’t seen it accelerate greater than I think last time, you and I have spoken about this stuff. My feeling on this is, please, please bring it on, bring as many people into the space as possible, because this market is so gigantic. I mean, it’s almost difficult to quantify, it’s gigantic. And what we are doing and what we are talking about here with our technology is changing the consumer buying habits, retailer selling out, the things that people are used to. And as people see it, as they experience what this technology can do and what it does and the results that they are getting, people embrace it, they are honestly, they are all over it. So, what that means for us, as we look to grow this thing is, all we need to do is create greater and greater awareness. So, if we could leverage the marketing spend to create that awareness of all the other companies coming into the space, then I think that’s how we win because we don’t need to own 100% of the market. I mean, it’s silly, actually, right. But even a small percentage of this market is a multi-billion dollar enterprise for us. So, I am really hoping that we see more companies come into it. I will comment on some of the technology that I have seen, I don’t think there is anything out there, at least from what I have seen that compares with our technology, where you could place these interactive buttons right in the live stream, right in the video itself, as a host, you can move it around, take it on, turn it off. The other technology that I have been seeing, which again I…

Well, great. And my next question is on Verb Marketplace. Is your plan still to have a very big formal announcement launch event for it or it will be a more temperate release?

No, we are planning a pretty big launch event around that, absolutely.

Great. Well, looking forward to it. I wish you guys, good luck. Thank you.

Thank you so much.

This concludes our question-and-answer session. I would like to turn the conference back over to Rory for any closing remarks.

Okay, thank you. Thank you all for tuning in here today and listening to what we have got going on here at Verb. It is really kind of a crazy, exciting time. But there is a couple of things that I didn’t cover earlier in the call that I would like to just touch on right now. So first, we have continued to build on our ESG program and we are working closely with NASDAQ to be a model for ESG compliance and initiatives for all NASDAQ listed micro cap companies, something that we are really proud of working with NASDAQ. And our work through Verb for Humanity is an extension of those initiatives and a reflection of our socially conscious culture here at Verb, something else that we are pretty proud of. And last, but certainly not least, is our big Newport Beach event coming up this fall, something that we are calling Verb LIT, the Verb Leading Interactive Technology Symposium, where we are going to be showcasing our latest products using cutting edge technology where you will not only see how the products work, but you are also going to meet the people behind the technology and the products and learn who uses them and why and results that they are getting. We are also going to give you a sneak peek at what’s coming from Verb. And it’s going to be broadcast all over the world with clickable interactive capabilities through verbLIVE. The date is going to be some time at the end of September or beginning of October. We are still hoping that it’s going to be also an in-person event here at the Newport Beach offices, obviously subject to what’s coming down the road here with COVID and the restrictions associated with that. So, for our investors out there, watch your emails for invitations and watch social media for the date and more information. It’s, look, if you are someone who likes watching the Apple product launches twice a year, then you are really, really going to love Verb LIT. If you are a shareholder, you are going to be very proud. If you are not, you are going to want to be. Until then, well, thank you and goodbye. We have got to get back to work.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.