Business
VERUS INTERNATIONAL ACHIEVES RECORD QUARTERLY REVENUE AND PROVIDES UPDATE TO BUSINESS PROGRESS
VERUS INTERNATIONAL ACHIEVES RECORD QUARTERLY REVENUE AND PROVIDES UPDATE TO BUSINESS PROGRESS.
About this update from Verus International, Inc.
[{"type":"text","content":"\n Gaithersburg, MD, April 29, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) reported results for its first fiscal quarter ended January 31, 2020. In conjunction with this release, the Company is also providing additional details on recently announced business opportunities that will impact the 2020 financial year. For Q1 2020, management is noting the following items of importance: Revenue set an all-time record of $6.2 million, an increase of 153% over the $2.4 million reported in Q1 2019.Gross profit margin improved to 18.4%, approximately 340 basis-points higher than the 15.0% reported in Q1 2019 and 320 basis-points higher than the average of the trailing four fiscal quarters.Operating expenses of $2.7 million were $2.3 million higher than the $0.4 million reported in Q1 2019, as a result of a $1.7 million increase in stock-based compensation and higher expenses across all other categories to support the record revenue including costs related to enhancements of our Major League Baseball (“MLB”) branded products.Operating loss of $1.6 million was $1.5 million higher than the $0.1 million loss reported in Q1 2019, as a result of non-cash expenses that more than offset the gross profit increase. On a proforma basis, Q1 2020 generated proforma operating income of approximately $139,000, after excluding non-cash expenses (stock-based compensation, intangible assets amortization, and depreciation).Net loss was $2.5 million for Q1 2020 compared to a net loss of $0.3 million for Q1 2019. On a proforma basis, Q1 2020 generated net income of approximately $88,000, excluding non-cash expenses (stock-based compensation, intangible assets amortization, convertible notes payable related items, and depreciation). “Our best line items in the quarter were our record revenue, a return to a higher triple digit revenue growth rate, and our improving margins,” explained Verus CEO Anshu Bhatnagar. “We are currently in the process of addressing our non-cash charges and are working on a plan to mitigate some of the expense line items that are masking our improved performance. Overall, this quarter reflected the period just before the lockdown during February 2020. We were very lucky to participate in some trade shows, vendor and customer meetings, a...