Latest news with #VERI
Yahoo
5 days ago
- Business
- Yahoo
Veritone Inc (VERI) Q2 2025 Earnings Call Highlights: Strong Software Growth Amidst Managed ...
Revenue: Over $24 million for Q2 2025, flat compared to Q2 2024. Software Products and Services Growth: Over 45% year-over-year, excluding Veritone Hire. Public Sector Revenue Growth: Over 90% year-over-year. Commercial Enterprise Revenue Growth: Improved by $0.8 million year-over-year. Managed Services Decline: $1.9 million decrease, driven by a decline in representation services. Gross Profit: $15.3 million, down from $16.4 million in Q2 2024. GAAP Gross Margin: 63.9%, compared to 68.2% in Q2 2024. Operating Loss: $19.3 million, improved by 5% year-over-year. Net Loss from Continuing Operations: $26.8 million, increased by 14.5% year-over-year. Non-GAAP Net Loss: $8.7 million, improved from $9.7 million in Q2 2024. Cash and Restricted Cash: $13.9 million as of June 30, 2025. Debt: Approximately $128 million, down from $201 million in December 2021. Q3 2025 Revenue Guidance: Expected between $28 million and $30 million. Fiscal 2025 Revenue Guidance: Expected between $108 million and $115 million. Warning! GuruFocus has detected 5 Warning Signs with VERI. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Veritone Inc (NASDAQ:VERI) reported revenue of over $24 million for the quarter, reaching the high end of their updated guidance. The company experienced strong organic non-Veritone hire software revenue growth of over 45% in the quarter. Veritone Inc (NASDAQ:VERI) secured 104 new software customers and grew their Veritone Data Refinery (VDR) pipeline by over 100% from Q1. The public sector pipeline increased to $189 million, up from $110 million at the end of the first quarter. The company announced cost-saving initiatives expected to generate $10 million in annualized savings, strengthening their financial position. Negative Points Managed services revenue declined by $1.9 million, driven by a decrease in representation services. GAAP gross profit decreased by $1.1 million, with gross margins declining from 68.2% to 63.9%. Net loss from continuing operations increased by $3.4 million or 14.5% compared to Q2 2024. The company experienced a decline in total software product and service customers by 9% year-over-year. Veritone Inc (NASDAQ:VERI) anticipates continued negative trends in representation services throughout 2025. Q & A Highlights Q: Can you elaborate on what needs to convert to support the step-up in acceleration for the top line, and what gives you confidence in this visibility? A: Ryan Steelberg, CEO, explained that they have the smallest gap of "go get" revenue to realize their Q3 guidance. Much of the revenue is already contracted or in process, such as with the Department of Defense (DoD) contracts and new customers with Veritone Data Refinery (VDR). They are confident in their ability to meet guidance due to existing customer transactions and ongoing revenue generation. Q: How does Veritone differentiate itself in regulated industries like defense and law enforcement compared to other AI platforms? A: Ryan Steelberg highlighted that Veritone's aiWARE platform is model-agnostic and can manage the full end-to-end stack, allowing customers to rely on Veritone as models mature. Veritone's ability to process unstructured data at scale, such as audio and video, is a significant differentiator. The platform's flexibility to operate in various environments, including air-gapped and on-premises, further sets it apart. Q: Regarding the Air Force contract, do you need to close more deals of this size to meet your guidance, and how does this contract impact future opportunities? A: Ryan Steelberg stated that the Air Force contract is a significant opportunity that will likely lead to further expansion within the DoD and other agencies. The contract itself presents a substantial growth opportunity, and Veritone has a healthy pipeline that supports their guidance. The visibility and credibility from this contract are expected to facilitate additional opportunities. Q: Can you provide more details on the $20 million VDR pipeline and its translation to revenue? A: Ryan Steelberg explained that the $20 million pipeline is qualified with high visibility over the next 3 to 12 months. VDR has found a strong product-market fit, particularly with hyperscalers and AI model developers. The demand for high-quality training data is significant, and Veritone is well-positioned to capitalize on this opportunity. Q: The full-year guidance was raised, but the non-GAAP net loss was also adjusted. Can you explain the reasons behind this? A: Michael Zemetra, CFO, clarified that the adjustment in non-GAAP net loss is due to margin compression from the rapid growth of VDR. While revenue guidance was raised, the margins on VDR are currently compressed, impacting the net loss forecast. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
14-03-2025
- Business
- Yahoo
Veritone Inc (VERI) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
Full-Year 2024 Revenue: $92.6 million, down 7% from $100 million in 2023. Q4 2024 Revenue: $22.4 million, down $4.7 million from Q4 2023. Full-Year 2024 GAAP Gross Profit: $62.7 million, down from $70.3 million in 2023. Full-Year 2024 GAAP Gross Margin: 67.6%, down from 70.4% in 2023. Q4 2024 GAAP Gross Profit: $15.3 million, down from $19.9 million in Q4 2023. Q4 2024 GAAP Gross Margin: 68.1%, down from 73.5% in Q4 2023. Full-Year 2024 Loss from Operations: $86.8 million, an improvement from $99.6 million in 2023. Q4 2024 Loss from Operations: $19.7 million, flat year over year. Full-Year 2024 Non-GAAP Net Loss from Continuing Operations: $48.8 million, improved by $5.4 million year over year. Q4 2024 Non-GAAP Net Loss from Continuing Operations: $9.7 million, relatively flat year over year. Cash and Restricted Cash as of December 31, 2024: $17.3 million, compared to $47.5 million at December 31, 2023. Shares Outstanding as of December 31, 2024: 40.2 million shares, with 2.4 million warrants outstanding. Fiscal 2025 Revenue Guidance: $107 million to $122 million, representing a 24% increase at the midpoint. Fiscal 2025 Non-GAAP Net Loss Guidance: $27 million to $17 million, representing a 46% improvement at the midpoint. Q1 2025 Revenue Guidance: $23 million to $24 million, compared to $24.2 million in Q1 2024. Q1 2025 Non-GAAP Net Loss Guidance: $9.5 million to $8.5 million, an improvement of 13.5% at the midpoint compared to Q1 2024. Warning! GuruFocus has detected 4 Warning Signs with VERI. Release Date: March 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veritone Inc (NASDAQ:VERI) reported solid revenue performance for Q4 2024 and full-year fiscal 2024, reflecting significant strides in strategic initiatives. The company has optimized its operating structure and strengthened its balance sheet, focusing on AI software and services offerings. Veritone Inc (NASDAQ:VERI) has a diverse customer base with no single customer accounting for more than 5% of revenues, maintaining gross revenue retention above the 90th percentile. The launch of Veritone Data Refinery (VDR) is expected to be a major contributor to revenue growth in 2025, with a strong sales pipeline. Veritone Inc (NASDAQ:VERI) is well-positioned in the public sector, with significant opportunities in digital evidence management and AI solutions for government agencies. Revenue for 2024 was $92.6 million, down 7% year over year from $100 million in 2023, primarily due to declines in Software Products & Services. The company experienced a decline in GAAP gross profit and gross margin, driven by a decrease in higher-margin revenue from consumption-based customers. Veritone Inc (NASDAQ:VERI) reported a loss from operations of $86.8 million, although this was an improvement from the previous year. The company is still facing challenges in the commercial sector, with a decline in Software Products & Services customers and lower consumption-based revenue. Despite improvements, Veritone Inc (NASDAQ:VERI) is not expected to achieve profitability until the back half of 2026. Q: When do you expect to fully anniversary the consumption-customer headwinds, and when will year-over-year comparisons improve? A: We expect to be out of the consumption comparison by Q1 2024. (Michael Zemetra, CFO) Q: Are you experiencing any disruption or delay in federal government contracts due to the administration turnover? A: We are not seeing disruption for contracts already awarded. Our current deployments and revenue opportunities are primarily servicing against approved 2025 dollars. (Ryan Steelberg, CEO) Q: What are the potential upsell opportunities with the 11 new commercial customers signed during the quarter? A: For VDR-related customers, initial contracts have exceeded expectations. We anticipate multiple Statements of Work (SOWs) and upsell opportunities over the course of the year and into 2026. (Ryan Steelberg, CEO) Q: Beyond consumption headwinds, what specific drivers underscore your confidence in growth for this year? A: VDR and public sector are leading growth. VDR has exceeded expectations in contract velocity and revenue growth, and we are actively deploying solutions in DOD facilities. (Ryan Steelberg, CEO) Q: When do you expect to break even on a cash operating standpoint, and what are the longer-term profitability targets? A: Based on our projections, we expect to break even in the back-half of 2026. (Michael Zemetra, CFO) Q: How does the new iDEMS offering differ from previous public safety revenue products? A: iDEMS is a suite of applications, expanding beyond Redact and Illuminate to include Track and Investigate, allowing for larger contracts and more diverse solutions. (Ryan Steelberg, CEO) Q: Can you describe the competitive landscape for iDEMS and how Veritone differentiates itself? A: iDEMS, built on aiWARE, is the leading open platform capable of ingesting diverse data sets, creating a common narrative for investigations, which is critical in the public sector. (Ryan Steelberg, CEO) Q: What are the key assumptions in your fiscal 2025 guidance? A: We expect public sector growth of 100% to 150% year over year, driven by near-term deals with the Department of Defense and international expansion. Commercial enterprise growth will be driven by renewed partnerships and new VDR product offerings. (Michael Zemetra, CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
02-03-2025
- Business
- Yahoo
Why Veritone, Inc. (VERI) is Plunging So Far in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Veritone, Inc. (NASDAQ:VERI) stands against the other AI stocks. Investors have been turning sour on the AI industry. Many have expected AI stocks to decline for the past two years, but that did not turn out to be the case and AI companies proved bears wrong in each of the past eight or so quarters. Microsoft has canceled its data center contracts and Trump's tariff plans are increasingly complicating the AI narrative, especially for semiconductor companies that derive a good portion of their revenue from China. Perhaps AI could prove the bears wrong again, but considering even Nvidia's recent earnings beat failed to overpower the cautiousness investors now have about AI, it is worth looking into some bearish arguments. A good way to do that is by looking into AI stocks that have corrected the most so far this year. The AI industry is quite broad and you'll be able to gain useful insight into some major AI sectors and their challengers if you look into why these stocks have been declining. For this article, I screened the worst-performing AI stocks year-to-date. Stocks that I have covered recently will be excluded from this list. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A professional giving a keynote address around the potentials of AI models for businesses. Number of Hedge Fund Holders In Q4 2024: 5 Veritone, Inc. (NASDAQ:VERI) is a tech company that specializes in AI. It has an aiWARE platform that can transform unstructured data to make them more digestible for its clients. The stock is down significantly so far in 2025 after it reported declining revenues and widening losses in its Q3 2024 results. The company posted $21.7 million in net losses and a gross profit margin decline. It also has had a high historical volatility and hasn't been anywhere near profitable. Veritone is also dilutive as it raised $20.3 million recently. The consensus price target of $4.06 implies 47.73% upside. Veritone, Inc. (NASDAQ:VERI) is down 16.31% year-to-date. Overall VERI ranks 11th on our list of the AI stocks that are plunging so far in 2025. While we acknowledge the potential of VERI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VERI but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks to Buy Now and Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
