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Verb Technology partners with TikTok Shop for on-demand merch

EditorNatashya Angelica
Published 06/21/2024, 02:00 AM
VERB
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LOS ALAMITOS, Calif. – Verb Technology Company, Inc. (NASDAQ:VERB), a leader in interactive video-based sales applications, has announced a new technology integration with TikTok Shop, enabling creators and brands to sell custom merchandise directly to consumers without the need for inventory management.

This collaboration is designed to streamline the process for TikTok Shop sellers, allowing them to produce and sell bespoke items on-demand as orders are received, thus reducing costs associated with unsold inventory.

The integration, which represents a significant step in social commerce, allows TikTok Shop users to leverage their platform handle to offer personalized products such as T-shirts and hats during live streams without pre-purchasing inventory. Motivational speaker and media personality David Meltzer is among the first to adopt this technology for his TikTok Shop, which he uses to engage with his over 880,000 followers.

Rory J. Cutaia, CEO of VERB, expressed enthusiasm for the new integration, highlighting the removal of traditional barriers to entry for creators looking to capitalize on the opportunities presented by live stream shopping, particularly on TikTok. The company anticipates that this advancement will lead to higher margins and profits for TikTok Shop sellers using the MARKET.live platform and increased revenue for VERB.

VERB's MARKET.live platform is a multi-vendor, multi-presenter, live stream social shopping destination that combines e-commerce with entertainment. It enables retailers, brands, creators, and influencers to monetize their fan bases across various social media channels, including TikTok, Facebook (NASDAQ:META), Instagram, and others. The platform also offers a drop ship program and TikTok affiliate program for creators and entrepreneurs to earn income by selling products from popular MARKET.live retailers.

This announcement is based on a press release statement from Verb Technology Company, Inc. and reflects the company's strategic direction in enhancing the e-commerce experience through technological innovation. Investors and interested parties are advised to consult filings with the Securities and Exchange Commission for further details and to understand the risks associated with forward-looking statements.

In other recent news, Verb Technology, the company behind MARKET.live, reported a notable improvement in its financial health. For the first time, the firm's audited financial statements for 2023 do not include a "Going Concern" opinion, suggesting a positive shift in its operational sustainability.

The company's 2023 Form 10-K showed cash and equivalents of approximately $14.2 million and notes payable of around $1.2 million, reflecting an increase in cash of $10.9 million and a decrease in notes payable of roughly $7.3 million from the prior year.

In another development, Verb Technology announced a partnership with TikTok Shop, making it an official TikTok Shop Partner. This collaboration will enable MARKET.live to provide various services to TikTok Shop, including onboarding assistance for brands and influencers, content creation, and studio space rentals across the U.S. The partnership is expected to generate revenue for MARKET.live through service fees and a percentage of monthly revenue from TikTok stores established via their platform.

These recent developments demonstrate Verb Technology's commitment to enhancing its financial position and expanding its partnerships. The company's management expressed confidence in their improved cash position and reduced operating costs, expecting these factors to fund operations for at least the next 14 months.

CEO Rory J. Cutaia highlighted new partnerships, technology integrations, and strategic relationships as key elements in focusing on revenue growth and delivering returns for shareholders.

InvestingPro Insights

As Verb Technology Company, Inc. (NASDAQ:VERB) forges ahead with its integration with TikTok Shop, the financial metrics and expert insights from InvestingPro paint a detailed picture of the company's current market position.

VERB has a relatively modest market capitalization of $12.39 million USD, indicating it's a smaller player in the market with potentially more room for growth or volatility. This is underscored by a significant revenue growth rate in the last twelve months as of Q1 2024, with an impressive 102.54% increase, signaling a strong upward trajectory in sales performance.

Despite these promising growth figures, InvestingPro Tips suggest caution for potential investors. VERB is currently trading near its 52-week low, with the price at a mere 3.59% of the 52-week high, and has experienced a sharp price decline of 91.77% over the last year.

Moreover, analysts do not anticipate the company will be profitable this year, as reflected in the negative P/E Ratio (Adjusted) of -0.91 for the last twelve months as of Q1 2024. These data points indicate that while there is potential for sales growth, the company's profitability remains under pressure.

For those interested in a deeper dive into VERB's financial health and future prospects, InvestingPro offers a range of additional tips. Currently, there are 17 more InvestingPro Tips available for VERB, which can be accessed at https://www.investing.com/pro/VERB. These tips provide valuable insights for investors seeking to make informed decisions about their investments in the interactive video-based sales applications sector. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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