Verb Exchange Inc.

Verb Exchange Inc.

April 28, 2009 09:29 ET

Verb Exchange Announces $26 Million in Revenue for 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 28, 2009) - Verb Exchange Inc. (TSX VENTURE:VEI), a leader in digital media, announces that it has released and filed its audited financial statements for the fiscal year ended December 31, 2008. Verb is pleased to report revenues of $26,350,630 compared to revenues of $23,461,944 in the prior year (2007). Verb's Annual General Meeting of shareholders is now scheduled for May 28, 2009 and will be held in Vancouver, BC.

Increased traffic on its Carrier Services routes led to a 12.3% ($2,888,686) increase in overall revenue. Gross profit increased 142% to $695,535 and as a percentage of revenue from 1.2% to 2.6% as a result of increased sales and marketing efforts.

The increase in Carrier Services revenue in 2008 was offset by the start up costs associated with the launch of the Tabrio™ product during the year and the increased costs associated with the marketing and sales efforts to grow its Carrier Services revenue. 2008 costs associated with the Tabrio™ platform included the following: (i) increased marketing costs, (ii) the amortization of Tabrio™ development costs, and (iii) the expensing of costs previously capitalized to Tabrio™ development costs.

"The combination of an equity financing, the exercise of warrants and increased gross margins during the year contributed to a strengthening of our balance sheet in 2008. We look forward to an exciting year of growth in revenue and sustainability as we continue our focus on the commercialization of Tabrio™ and increasing the global reach of our Carrier Services division," said Craig Goldenberger, CEO for Verb Exchange.

Comparative figures for summarized annual financial information are as follows (all figures in Canadian dollars and in accordance with Canadian GAAP):

2008 ('000s) 2007('000s)
Revenue $26,351 $23,462
Cost of Sales $25,655 $23,175
Gross Margin $696 $287
Expenses $3,696 $1,828
Net loss $(2,990) $(1,541)
Total Assets $2,717 $2,069
Total Liabilities $563 $450

Weighted Average Shares Outstanding 64,631 37,549
Net loss per share $(0.05) $(0.04)

2009 Forward Outlook Statement:

2009 and beyond presents opportunities for Verb Exchange to deploy the technology and expertise gained in 2008. While telecommunications will continue to dominate our revenue column, new revenue streams are expected to emerge from our Tabrio™ user base and technology. Today's consumer is not tied to a desk and that's why Tabrio™ technologies reach not only the static desktop, but also the mobile device.

In 2009, the Company will seek to establish a base of business customers that will distribute Tabrio™ branded enablers throughout North America and the world. Tabrio™ Business Services, a sales accelerator of business marketing efforts that brings our business partner's message to their consumer anywhere with the ability to respond, and buy, will be released in Q2. Our skill and technology allows us to provide our Tabrio™ Business subscribers, not only direct connection with their customers, but vital analytics to qualify, quantify and close their potential customers better. Tabrio™ Business Services provide very high value and command a significant premium to simple telecommunications needs and management anticipates an enhancement of the Company's margin profile in the coming year.

We expect to continue to expand our telecommunications business. We have invested in people and technology to grow the business and expand our margins. We have entered higher value markets that can take advantage of our enhanced capabilities. 2009 should be another year of revenue growth and more importantly, of margin growth.


Verb Exchange (TSX VENTURE:VEI) is a digital communications and media company delivering high quality, low-cost, talk and text around the world. Through its two wholly owned subsidiaries, Eurotel and Tabrio™, the Company has three distinct revenue streams:

1) Sales of digital communications to major telecom providers (Eurotel);

2) Retail sales of Tabrio™ talk and text;

3) Highly Targeted Online, Desktop and Mobile Advertising through Tabrio™

Eurotel's global network infrastructure and cash flow compliments our rapidly growing Tabrio™ subscriber base. Tabrio™ is a high quality, low-cost talk and text application that works from any desktop, web browser or mobile phone with ease. Tabrio™ generates revenue through talk and text sales, coupled with permission-based marketing. The complementary service offerings of Eurotel and Tabrio™ position the Company to build a valuable subscriber base in the rapidly expanding digital and mobile advertising industry.

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Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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