Why Did Verb Technology Plunge 11.73% Despite Revenue Surge?

On May 14, 2025, Verb Technology experienced a significant drop of 11.73% in pre-market trading, reflecting a notable decline in investor sentiment.

Verb Technology reported a quarterly loss of $2.51 per share for the first quarter of 2025, which was better than the expected loss of $3.14 per share. This loss, however, was an improvement from the $22 per share loss reported in the same period last year. The company's revenue for the quarter was $1.31 million, surpassing the consensus estimate by 63.13%. This revenue figure also marked an 80% increase from the previous quarter and exceeded the 2024 annual revenue.

The company's operating loss for the quarter was $2.7 million, an improvement from the $3.2 million loss in the previous year. Despite the net loss, the company's revenue growth and improved operating loss indicate a positive trend in its financial performance. The company's management highlighted the acquisition of an AI social commerce technology firm as a strategic move to enhance its technological capabilities and market position.

Investors are closely watching Verb Technology's earnings outlook, which currently indicates an unfavorable trend. The company's stock has underperformed the market so far this year, and the current consensus EPS estimate for the coming quarter is -$2.97 on $0.9 million in revenues. The company's management will play a crucial role in shaping investor expectations and the stock's immediate price movement based on their commentary during the earnings call.