VERUS INTERNATIONAL REPORTS RECORD THIRD QUARTER RESULTS
Gaithersburg, MD, Sept. 21, 2020 (GLOBE NEWSWIRE) -- Verus International, Inc. (“Verus” or the “Company”) (OTCQB: VRUS) reported record results for its third fiscal quarter ended
July 31, 2020. In conjunction with this release, the Company is also providing additional details on significant business developments occurring subsequent to its quarter end.
For fiscal Q3 2020, management is noting the following items of importance:
- Revenue achieved an all-time 3rd quarter record, reaching $6.2 million, an increase of 78% over the $3.5 million reported in Q3 2019;
- Q3 revenue marked the Company’s 9th consecutive quarter of double- or triple-digit year-over-year revenue growth;
- The global pandemic continued to impact suppliers, customers and transport during Q3, but did show gradual improvement during the quarter;
- Gross profit margin was 14.8%, 60 basis points higher than the 14.2% reported in Q3 2019;
- Operating expenses of $1.2 million were $0.6 million lower than the $1.8 million reported in Q3 2019, primarily due to the completion of the CEO’s stock-based compensation program during Q2 2020, resulting in no related stock-based compensation expense for Q3 2020, partially offset by a net increase in other operating expenses to support the 78% revenue increase;
- Operating loss of $0.3 million improved significantly, declining from $1.3 million in Q3 2019, a 79% year-over-year improvement;
- Net loss was $1.3 million for Q3 2020 compared to a net loss of $1.4 million for Q3 2019. The Company experienced a one-time increase in interest expense of $0.8 million related to the conversion of certain convertible notes payable during Q3 2020; and
- Stockholders’ equity achieved a new record at $0.6 million, which is significantly higher than the stockholders’ deficit of $0.9 million reported at fiscal year-end October 31, 2019.
“The retail recovery in our markets was a little choppier than we anticipated during Q3, but we were pleased to improve our revenue both on a sequential and year-over-year basis,” explained Verus CEO Anshu Bhatnagar. “We faced downward uncertainties in all of our markets and had some delays late in the quarter, but still generated 78% revenue growth, extending our streak of double- or triple-digit revenue growth into its third year. We believe we have a great line up in place to carry our positive growth trend into 2021.”