Good afternoon and welcome to the Second Quarter 2020 Financial Results Conference Call from VERB Technology Company, Inc. Please be advised that this 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 provisions of the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties that could 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 obligations to update these forward-looking statements, as well as those contained in the company's current and subsequent filings with the SEC. The company also notes that in addition to these results under Generally Accepted Accounting Principles or GAAP discussed on this call, the company will also present two non-GAAP measures as supplemental measures of its performance: quarterly recurring subscription revenue or QRR; and annual recurring revenue or ARR. Although QRR and ARR are commonly not used by companies in the SaaS space, neither is a recognized measurement under GAAP and should not be considered as an alternative to the company's net income, income from operations or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from the company’s activities as a measure of liquidity. I would now like to turn the call over to Rory J. Cutaia, CEO. Rory, you may begin.

Thank you. And I thank everyone for joining us today for our 2020 second quarter financial results conference call. On today's call, we will bring everyone up to date on the progress over the past three months. At time that for companies and investors alike has been fraught with uncertainty, uncertainty arising from the continuing potentially long lasting, if not permanent effects of COVID-19 on business, investments and the economy at large, as well as the uncertainty surrounding the ongoing social unrest, the upcoming election and the potential impact of these events on the capital markets. I'll discuss the measures we've implemented and the steps we've taken to mitigate that uncertainty for ourselves, our employees and certainly, for our investors. And some of those initiatives have allowed us to deliver the best quarter in the history of our company. Jeff Clayborne, our CFO will provide a more detailed review of our financial results for this period. And at the end of the earnings call, we'll hold a Q&A session. So for those new to our company, we're software as a service or SaaS applications platform developer or platforms comprised of a suite of sales enablement apps marketed on a subscription basis. Our applications available in both mobile and desktop versions are offered as a fully integrated suite, as well as on a standalone basis, they include verbCRM, our customer relationship management application, verbLEARN our learning management system application and verbLIVE, our live broadcast, interactive video webinar, and live stream ecommerce application. Our suite of applications can be distinguished from other sales enablement products, because they utilize our proprietary interactive video technology as the primary means of communication between sales and marketing professionals and their customers and prospects. Moreover, the proprietary data collection and analytics capabilities of our applications inform our…

Thank you, Roy, and good afternoon everyone. I'd like to review the financial highlights as included in our Form-10Q filed today, August 14 for the quarterly period ending June 30, 2020. As we already discussed, we've been focused on growing our SaaS recurring subscription revenue, total SaaS revenue for Q2 totaled 1.3 million, an increase of almost 21% and the 1.1 million reported last quarter and an increase of almost 49% from 858,000 reported for the same period last year. Total digital revenue for Q2 totaled 1.7 million an increase of almost 16% from the 1.5 million reported last quarter and an increase of almost 16% and 1.5 million reported for the same period last year. On a pro forma basis, the total SaaS revenue for the first six months of 2020 totaled 2.3 million, an increase of almost 42% and the 1.6 million reported from the same period last year. On a pro forma basis, total digital for the first six months in 2020, a total 3.1 million, an increase of almost 25% from 2.5 million reported for the same period last year. Looking at our operating expenses, we continue to add resources to our product team to support development of verbLIVE plus enhancements to verbCRM and to our core platform to facilitate native integrations with Salesforce, Microsoft, Adobe and other channel partners. Research and development for Q2 totaled 1.6 million, an increase of approximately 22% and 1.3 million reported from the same period last year. On a pro forma basis, research and development for the first six months of 2020 totaled 2.9 million, an increase of 12% to 2.6 million reported for the same period last year. We've also had increases to general and administrative expenses attributed to increase labor and stock compensation expense to support growth and…

Thank you. At this time we will be conducting a question-and-answer session. [Operator Instructions] Our first question has come from the line of Jon Hickman of Ladenburg Thalmann. Please proceed with your question.

Could you talk a little bit about the sales success over the last couple, well, last month or so? But as far as new accounts go, et cetera. And if you can, can you name names?

Look, the company, as you could see over the past quarter has continued to add clients that I think I've used the word furious already, furious, I think appropriate. We've added, let's see, I think we've gotten 1, 2, 3, 4, 5, 6 I think just in the past couple of weeks, we're really doing very, very well right now. I think that the market has finally begun to understand what we do and what our value proposition is. And we're really -- we're doing incredibly well and the sales team is doing a great, great job. We've beefed up the sales team. We've added a bunch of people we've added people on the customer support side customer success. Some of the names that are in that list that I just talked about are names that you would recognize, their brand names, but without their permission, I would decline to name them right now, at some point, we'll get their consent we'll put out press releases and be happy to share those names.

Okay. As far as your potential acquisition goes, could you -- is this technology you're buying, are you buying customers?

This is an operating business that has revenue and customers in a particular sector that we are very keen on. And that we are very much looking forward to launching a combined product into that sector in the near term. So this is something that, believe it or not, through this crazy pandemic, the capital raise, travelling to Asia for the one right before that, we've been working on doing due diligence and negotiating the deal. So it's been busy, busy, busy is a ridiculous understatement. But I think we've got this thing teed up for to close next month. Look again, let me be clear, no guarantees of anything please, don't hold us do. We feel pretty good and confident about it.

Can you tell us, this is going to be accretive?

Yes, we believe it will be accretive.

Okay. Then one last question for me. You talked a lot about how verbLIVE is not yet generally available if you've kept it to select existing customers? Do you have, I know it's about servers stuff and getting all the bugs out? Do you have any idea when it might be generally available?

Yes, I mean, I'm targeting generally available two months ago frankly, but I think we're looking at some time over the next several weeks. Here's the bottom-line. This thing is great, okay? We think it's going to be an enormous value creation, opportunity for all of our shareholders. And if we put it out and we get the kind of response that our models are predicting, the thing just blows up and overload servers and people have, not a great experience and I can't let that happen. So look, I may be totally wrong, and nobody likes it, nobody cares. I don't think so. So we are building up our global infrastructure around this, we're even looking at some private networks in order to make sure that it works incredibly well no matter where you are in the world. So I'm hopeful that over the next several weeks, maybe that gets pushed into September, but that's not going to stop us from beginning to generate revenue from it. Look, we put it out. It's now available in Salesforce. And it's great. I was playing with it this morning. And I think people are really going to like it. I think the first few Salesforce sales people that begin using it' they're going to tell everybody about it, because I think it's just that cool. And then, if you're selling something, it's probably the most effective way to sell anything right now. So I suspect just from word of mouth that's going to really take off, but we are working on a plan that we're working with Salesforce on to really promote it within the wholesale stores ecosystem. And by the way, we're already on the Microsoft integration and launch there too. So there's a lot going on. So we'll begin generating revenue from that. And it'll be within, a universe of potential use that we feel very, very confident that we can manage right now on the existing infrastructure that that, frankly, we plan for when we did our initial modeling around this and built and put in place and it's ready to go. But over the past couple of months, as we continue to assess the market and see what the response is and update our modeling, it became clear to us that this could be way bigger than what we had originally intended. So that's why we're being cautious and doing it the right way.

Okay. Just if I was Zoom and I wanted to duplicate this interactive capability. We're kind of head start to think you have and patent protection.

We've got terrific IP protection around it. We've got a pretty meaningful head start and some of our investors who have been with us a long time though, this is something I've been talking about doing for the past three years. So it's been a long process, a lot of fits and starts. The technology is pretty complicated behind it. And because we were way out in front of this before everyone else, we've got some terrific IP protection already in place. So I think we have a meaningful head start. But I will add this, this market for this product is so massive, that could be 15 other companies offering the same thing, it's not going to change one bit for us. So it's that big.

Thank you. Our next question is coming from the line of Brian Kinstlinger of Alliance Global Partners. Please proceed with your question.

Hi, everyone, this is Jacob on for Brian. Can you talk about the timing for the purchasing release and when it will be available for all users also, when you expect it will begin to have an impact on digital revenue?

So we've already released that, we release it company by company. So that's already in motion. We expect to see an impact and we'll report on that separately in next quarter. So people will see that. But also, look, we're pretty -- we like to be very transparent as it progresses, we'll put out press releases and let people know how it's dealing, but we've got great expectations for that.

Okay. And you talked a bit about new customers in last couple of weeks. I think you said about six. Can you talk about the new order flow that you've been seeing kind of month to month, so from 2Q going into July and August?

Let's see. I'm going to see, if I can pull something up here that I can give you some more accurate information. Give me a moment. What is that looking like? Let's see. So since second quarter ended it looks like we've got a total of 24 was that 26? 26, I see. Yes, so we're -- the deal has been pretty impressive even for us. So, but again, I can't release names, but we will put them out in press releases. In fact, I think what we'll do to address this is, we will put out a press release listing the clients that were added just recently, we probably won't mention names, but we will put revenue numbers in, so people can see exactly how this is ramping up, which is pretty nice. And I think that would probably be the best way to for us to deal with it, so everyone can see what's going on.

So you've added 26 from July through until now in August, right?

Approximately, yes.

Okay. And then, is this going to be reflected in the second half annual recurring revenue bookings?

Yes.

There are no further questions at this time. I would now like to turn the call back over to management for any closing remarks.

We just want to say thank you, all of you for your support. We feel lucky, we feel blessed. I feel super grateful for our team that is in there, killing it every single day. It's taken this period of time to get where we are, as I mentioned earlier in my remarks. We were setting the table and now our shareholders will eat. We're very proud of where we are, where we're going. But this is really just the beginning, really, really just the beginning. I think that the beginning of the call, there was some difficulty. I know I had some difficulty dialing in and so it's possible that some people may have had questions, were not able to get it. So I propose this. If you've got a question, send it to investors@verb.tech and over the next week, I promise you that I'm going to read every single one of them and I will respond to them. So you're not trying to elicit material non-public information. But I will respond to every one of them because it's important to me that you are as informed as an owner of this business, as an owner of this company, as we are, at least as we possibly can allow you. So, please feel free to do that. I encourage that. Again, on behalf of myself and everyone in the company and our Board, thank you very much. We look forward to communicating again soon.

This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation and have a great weekend.