Latest news with #Veritone
Yahoo
3 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.
Business Wire
3 days ago
- Business
- Business Wire
Veritone Reports Second Quarter 2025 Results
DENVER--(BUSINESS WIRE)--Veritone, Inc. (NASDAQ: VERI), a leader in building human-centered enterprise AI solutions, today announced results for the second quarter ended June 30, 2025. 'In the second quarter, we achieved the top end of our updated June revenue guidance of $24 million, grew our core AI software revenue 45%, and remain on track to achieve profitability by the second half of 2026,' said President and Chief Executive Officer, Ryan Steelberg. 'Our second quarter results were driven by continued demand for our products and services underpinned by our new contract with the United States Air Force and by the expansion of our Veritone Data Refinery pipeline to $20 million. These accomplishments are a testament to the strength of the Veritone platform and the growing demand for our solutions in key verticals.' Second Quarter 2025 Financial Highlights Revenue of $24.0 million, flat compared to Q2 2024. Software Products and Services revenues of $17.5 million, an increase of $1.8 million, or 11.8%, year over year. Excluding Veritone Hire revenue, Software Products and Services grew over 45% year over year driven by larger deals executed in Q2 2025 across the Public Sector and Commercial Enterprise VDR. Managed Services revenue of $6.5 million, a decrease of $1.9 million, or 22.3%, year over year. GAAP gross profit of $15.3 million, a decrease of $1.1 million, or 6.5%, year over year; GAAP gross margin of 63.9% as compared to 68.2% in Q2 2024, largely driven by the higher mix of lower margin revenue. Non-GAAP gross profit of $16.5 million, a decrease of $1.2 million, or 6.7% year over year; non-GAAP gross margin of 68.9% as compared to 73.6% in Q2 2024. Operating loss of $19.3 million, a decrease of $1.0 million, or 4.9%, year over year. Net loss of $26.8 million, an increase of $4.6 million, or 21%, year over year. The year-over-year increase was principally driven by a $2.9 million non-cash change in the estimated fair value of earnout from the divestiture of Veritone One recorded in Q2 2025. Non-GAAP net loss from continuing operations of $8.7 million, a decrease of $1.0 million, or 10.2%, year-over-year. Subsequent to the end of the quarter, closed a registered direct offering for the definitive purchase and sale of 6,452,293 shares of common stock and pre-funded warrants to purchase up to 1,804,587 shares of common stock for aggregate gross proceeds of approximately $9.0 million, and announced a concurrent $1.0 million private placement of up to 709,220 shares to the CEO's affiliated trust, with net proceeds intended for working capital and general corporate purposes including, but not limited to, capital expenditures, debt service, and other business opportunities and to further develop and market the AI platform and applications. (1) Veritone Hire revenue in the quarter ended June 30, 2025 was relatively flat year over year. Expand About Our Sales Pipeline Our sales pipeline represents revenue we expect to receive based on the total fees payable during the full contract term for new contracts outstanding at the end of the quarter and contracts that we believe have a high probability of closing in the next three to twelve months. We include in our sales pipeline fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term and we do not include any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services) and any fees payable after contract renewals or extensions that are at the discretion of our customer. Many of our contracts require us to provide services over more than one year and may include professional fees required to enable our technology in certain environments we do not host or have direct control over. In some cases, our customers may have the ability to terminate our agreements on short notice and our pipeline does not consider the potential impact of any early termination. No assurance can be given that we will ultimately realize our full sales pipeline. Unaudited Three Months Ended Six Months Ended (in $000s) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change Revenue $ 24,013 $ 24,058 (0 )% $ 46,476 $ 48,211 (4 )% Operating loss $ (19,318 ) $ (20,306 ) (5 )% $ (40,952 ) $ (44,676 ) (8 )% Net loss from continuing operations $ (26,798 ) $ (23,377 ) 15 % $ (46,673 ) $ (49,577 ) (6 )% Net loss $ (26,798 ) $ (22,231 ) 21 % $ (46,673 ) $ (47,429 ) (2 )% GAAP gross profit $ 15,344 $ 16,415 (7 )% $ 29,058 $ 32,742 (11 )% Non-GAAP gross profit* $ 16,535 $ 17,716 (7 )% $ 31,164 $ 34,922 (11 )% Non-GAAP net loss from continuing operations* $ (8,713 ) $ (9,703 ) (10 )% $ (19,843 ) $ (20,047 ) (1 )% Non-GAAP net loss* $ (8,713 ) $ (6,850 ) 27 % $ (19,843 ) $ (14,469 ) 37 % Expand Three Months Ended Six Months Ended Unaudited June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change Software Products & Services Revenue (in 000's) $ 17,469 $ 15,632 12 % $ 31,952 $ 30,852 4 % Total Software Products & Services Customers(1) 3,067 3,437 (11 )% 3,067 3,437 (11 )% Annual Recurring Revenue (in 000's)(2) $ 62,599 $ 67,924 (8 )% $ 62,599 $ 67,924 (8 )% Total New Bookings (in 000's)(3) $ 15,766 $ 14,047 12 % $ 15,766 $ 14,047 12 % Gross Revenue Retention(4) >90% >90% >90% >90% Expand (1) 'Total Software Products & Services Customers' includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean. (2) 'Annual Recurring Revenue' is calculated as Annual Recurring Revenue (SaaS), which is an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers, combined with Annual Recurring Revenue (Consumption), which is the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses 'Annual Recurring Revenue' and we believe Annual Recurring Revenue is useful to investors because it demonstrates our mix of subscription-based SaaS revenues as compared to consumption-based revenues. (3) 'Total New Bookings' represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services). (4) 'Gross Revenue Retention' represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Quarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn. * See tables below for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definitions used for these and additional Software Products & Services Supplemental Financial Information. Expand Commercial Enterprise Veritone Data Refinery ('VDR') solution which helps enterprises transform unstructured data into AI-ready assets, has a qualified and near-term pipeline of over $20.0 million, up 33% from June 2025 estimates and up 100% from Q1 2025. Veritone aiWARE processed an estimated 5 trillion tokens, derived from several million hours of audio and video in Q2 2025. Closed 11 software enterprise deals with clients such as Inter Milan, Laver Cup, United States Soccer Federation, Alpha Media, St. Louis Zoo, ESPN, and Big Ten Network. Public Sector Public Sector solutions gained meaningful traction domestically and globally, with new customer acquisitions and a qualified and near-term pipeline of $189 million, up from $110 million in Q1 2025. Signed 35 new Public Sector customers, including the Riverside County Sheriff's Department and a top 5 police agency in the US. Additionally, we signed 95 renewal contracts in the quarter, further validating the critical nature of our AI software and strong customer retention. Awarded sole source (one year plus four years) contract with the United States Air Force to provide advanced investigative, intelligence and counterintelligence capabilities in support of the DoD and inter-agency mission requirements through Veritone's aiWARE platform, Intelligent Digital Evidence Management System ("iDEMS"), and professional services. Executed agreement with Riverside County Sheriff's Office for the deployment of Veritone's industry-leading redaction software, part of its iDEMS product suite. Financial Results for Three Months Ended June 30, 2025 Delivered second quarter revenue of $24.0 million, flat from the second quarter of 2024 driven by an improvement in Software Products and Services offset by a decline in Managed Services. Software Products & Services revenue of $17.5 million increased by $1.8 million, or 11.8%, year over year, principally due to growth from our Public Sector, which grew 90% or by $1.0 million and from our commercial software products and services, which grew by $0.8 million driven by VDR. Managed Services declined $1.9 million, or 22.3%, year over year principally driven by a decline in representation services, and by a one-time live representation campaign of $1.0 million in Q2 2024, that did not recur in Q2 2025, offset by a $0.1 million improvement in content licensing. GAAP gross profit of $15.3 million decreased $1.1 million from $16.4 million in the second quarter of 2024 largely driven by a higher mix of lower-margin revenue, including VDR in Q2 2025 as compared to Q2 2024. GAAP gross margin of 63.9% declined 430 basis points from 68.2% in the second quarter of 2024 largely for the same reason. Non-GAAP gross margin was 68.9% as compared to 73.6% in the second quarter of 2024, a decline of 470 basis points. Operating loss of $19.3 million improved by $1.0 million, or 4.9%, from a loss of $20.3 million in Q2 2024, principally driven by improvements made to the operating expense structure over the trailing twelve months, offset by lower GAAP gross profit. Net loss from continuing operations of $26.8 million increased from a net loss of $23.4 million for the second quarter of 2024 principally due to a $2.9 million non-cash charge recorded in Q2 2025 as the result of the change in estimated fair value of an earnout associated with our media divestiture in October 2024. Non-GAAP net loss from continuing operations of $8.7 million improved by 10%, or $1.0 million, from a loss of $9.7 million for the second quarter of 2024, principally due to lower operating losses driven by increased discipline on cost management, offset by lower gross profit due to a higher mix of lower-margin revenue. Total Software Product & Services Customers of 3,067 as of June 30, 2025 decreased 10.8% compared to June 30, 2024. This decline was principally due to fewer consumption-based customers across Veritone Hire and the continuing impact of sunsetting legacy Career Builder customers, offset by an increase in public safety customers. Annual Recurring Revenue of $62.6 million decreased 7.8% year over year, driven by the expected decline in Commercial Enterprise consumption spending from customers. Financial Results for Six Months Ended June 30, 2025 During the six months ended June 30, 2025, revenue of $46.5 million was down $1.7 million from $48.2 million in the six months ended June 30, 2024 principally due to a $2.8 million decline in Managed Services offset by a $1.1 million increase in Software Products and Services. The decline in Managed Services was principally driven by a $2.7 million decline in representation services, including our VeriAds services and by declines in live event services and VeriAds as a result of the more challenging macro environment. The increase in Software Products & Services revenue was due to growth from our Public Sector of $0.8 million and from our Commercial Software Products and Services of $0.3 million, which included growth from our VDR offerings offset by a decline in consumption based revenue across Veritone Hire. GAAP gross profit of $29.1 million decreased $3.6 million from $32.7 million during the six months ended June 30, 2024 largely driven by the higher mix of lower margin revenue, including VDR in Q2 2025 as compared to Q2 2024. GAAP gross margin of 62.5% declined 540 basis points from 67.9% in the six months ended June 30,2024. Non-GAAP gross margin was 67.1% as compared to 72.4%, a decline of 530 basis points. Operating loss of $41.0 million improved by $3.7 million or 8% from $44.7 million during the six months ended June 30, 2024, principally driven by improvements made to the operating expense structure over the past two years and a one-time expense of $1.5 million in Q1 2024 associated with our former CEO, offset by lower GAAP gross profit. Net loss from continuing operations of $46.7 million improved from a net loss of $49.6 million during the six months ended June 30, 2024 principally due to the improvement in operating loss. Non-GAAP net loss from continuing operations of $19.8 million was relatively flat when compared to the six months ended June 30, 2024 of $20.0 million. Business Outlook Third Quarter of 2025 Revenue is expected to be in the range of $28.0 million to $30.0 million, as compared to $22.0 million for the third quarter of 2024. Non-GAAP net loss is expected to be in the range of $6.5 million to $6.0 million, as compared to non-GAAP net loss of $11.1 million for the third quarter of 2024. Full Year 2025 Revenue is expected to be in the range of $108 million to $115 million, as compared to $92.6 million for fiscal 2024, a 20% implied annual increase at the midpoint. Non-GAAP net loss is expected to be in the range of $30.0 million to $25.0 million, as compared to non-GAAP net loss of $40.8 million for fiscal 2024, a 33% implied annual decrease at the midpoint. These updated financial guidance ranges supersede any previously disclosed financial guidance and investors should not rely on any previously disclosed financial guidance. Conference Call Veritone will hold a conference call to deliver management's prepared remarks on August 7, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its second quarter 2025 results, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call. Conference Call Live Audio Webcast Domestic Call Number: (844) 750-4897 International Call Number: (412) 317-5293 A replay of the conference call can be accessed one hour after the end of the conference call through August 14, 2025. The full webcast replay will be available through August 7, 2026. To access the earnings webcast replay please visit the Veritone Investor Relations website. Domestic Replay Number: (877) 344-7529 International Replay Number: (412) 317-0088 Replay Access Code: 5416612 About the Presentation of Supplemental Non-GAAP Financial Information and Key Performance Indicators In this news release, the Company has supplemented its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP net income (loss), Non-GAAP net income (loss) from continuing operations, and Non-GAAP net income from discontinued operations. The Company also provides certain key performance indicators (KPIs), including Total Software Products & Services Customers, Annual Recurring Revenue, Annual Recurring Revenue (SaaS), Annual Recurring Revenue (Consumption), Total New Bookings and Gross Revenue Retention. The Company has posted additional supplemental financial information on its website at concurrently with this press release. Non-GAAP net income (loss) is the Company's net income (loss), adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, other non-recurring items, and non-GAAP net income from discontinued operations. Non-GAAP net income (loss) from continuing operations is net loss from continuing operations adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, and other non-recurring items. Non-GAAP net income from discontinued operations is net income from discontinued operations adjusted to exclude interest expense, net, income taxes, depreciation and amortization, stock-based compensation, acquisition due diligence costs, and severance and executive transition costs. Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization related to cost of revenue. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue. Reconciliations of each of these non-GAAP financial measures to the most closely comparable GAAP financial measure, including a breakdown of the excluded items noted above are included following the financial statements attached to this news release. These non-GAAP financial measures are not calculated and presented in accordance with GAAP and should not be considered as an alternative to net income (loss), operating income (loss), net income (loss) from continuing operations, net income (loss) from discontinued operations, gross profit, gross margin or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The Company has provided these non-GAAP financial measures and KPIs because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting, budgeting and measuring annual bonus compensation targets for executive personnel, including the Company's named executive officers. Non-GAAP net income (loss) provides management and investors consistency and comparability with the Company's past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of items that are often unrelated to overall operating performance. Non-GAAP gross profit and Non-GAAP gross margin allow investors and management to analyze the Company's operating performance by excluding expenses that are not directly related to the cost of providing goods and services. Other companies (including the Company's competitors) may define these non-GAAP financial measures differently. The non-GAAP financial measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of the Company's results as reported in accordance with GAAP. In addition, the Company defines the following capitalized terms in this news release as follows: Software Products & Services consists of revenue generated from the Company's aiWARE platform and Veritone Hire solutions' talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions. Managed Services consists of revenues generated from content licensing customers, representation services, and, to a lesser extent, from advertising customers and related services. About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit Safe Harbor Statement This news release contains forward-looking statements, including without limitation, statements regarding our expected total revenue and non-GAAP net loss for Q3 2025 and for full year 2025, the performance and function of Veritone Data Refinery, customer acquisition, customer transaction pipelines and the estimated values thereof, our cost reduction and restructuring initiatives, and our ability to achieve profitability by the later portion of 2026. In addition, words such as 'may,' 'will,' 'expect,' 'believe,' 'anticipate,' 'intend,' 'plan,' 'outlook,' 'should,' 'could,' 'estimate,' 'confident' or 'continue' or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based on management's current assumptions, expectations, beliefs and information. As such, our actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include, among other things: our ability to continue as a going concern, including our ability to service our debt obligations as they come due over the next twelve months and beyond; our ability to expand our aiWARE SaaS business; declines or limited growth in the market for AI-based software applications and concerns over the use of AI that may hinder the adoption of AI technologies; our requirements for additional capital and liquidity to support our operations, our business growth, service our debt obligations and refinance maturing debt obligations, and the availability of such capital on acceptable terms, if at all; declines in key customers' usage of our products and other offerings; our ability to realize the intended benefits of our acquisitions, sales, divestitures, and other existing or planned cost-saving measures, including the sale of our full service advertising agency, Veritone One, LLC, and our ability to successfully integrate our acquisition of Broadbean; our identification of existing material weaknesses in our internal control over financial reporting and plans for remediation; fluctuations in our results over time; the impact of seasonality on our business; our ability to manage our growth, including through acquisitions and expansion into international markets; our ability to enhance our existing products and introduce new products that achieve market acceptance and keep pace with technological developments; actions by our competitors, partners and others that may block us from using third party technologies in our aiWARE platform, offering it for free to the public or making it cost prohibitive to continue to incorporate such technologies into our platform; interruptions, performance problems or security issues with our technology and infrastructure, or that of third parties with whom we work; the impact of the continuing economic disruption caused by macroeconomic and geopolitical factors, including the Russia-Ukraine conflict, the Israel-Hamas war and conflict in the surrounding regions, financial instability, inflation and the responses by central banking authorities to control inflation, monetary supply shifts, high interest rates, the imposition of tariffs, trade tensions, and global trade disputes, and the threat of recession in the United States and around the world on our business operations and those of our existing and potential customers; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Certain of these judgments and risks are discussed in more detail in our most recently-filed Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. The forward-looking statements contained herein reflect our beliefs, estimates and predictions as of the date hereof, and we undertake no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law. Veritone, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 13,568 $ 16,911 Accounts receivable, net 31,859 31,997 Prepaid expenses and other current assets 12,513 10,498 Total current assets 57,940 59,406 Property, equipment, and improvements, net 10,676 10,052 Intangible assets, net 47,732 59,500 Goodwill 53,110 53,110 Restricted cash 288 407 Other assets 17,060 15,585 Total assets $ 186,806 $ 198,060 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,088 $ 11,023 Deferred revenue 12,345 12,056 Term Loan, current portion 7,750 7,750 Accrued purchase compensation, current portion 1,213 1,200 Accrued expenses and other current liabilities 28,446 28,928 Total current liabilities 64,842 60,957 Convertible Notes 90,428 90,135 Term Loan, non-current portion 18,669 21,316 Accrued purchase compensation, non-current portion — 900 Other non-current liabilities 11,649 11,300 Total liabilities 185,588 184,608 Commitments and contingencies Stockholders' equity (deficit): Common stock, par value $0.001 per share; 150,000,000 shares authorized; 47,583,142 and 40,217,628 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 55 41 Additional paid-in capital 515,982 480,477 Accumulated other comprehensive income (loss) (866 ) 214 Accumulated deficit (513,953 ) (467,280 ) Total stockholders' equity 1,218 13,452 Total liabilities and stockholders' equity $ 186,806 $ 198,060 Expand Veritone, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 24,013 $ 24,058 $ 46,476 $ 48,211 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 7,478 6,342 15,312 13,289 Sales and marketing 11,096 11,208 21,201 21,156 Research and development 4,932 6,082 10,138 14,507 General and administrative 12,653 13,855 26,657 29,633 Depreciation and amortization 7,172 6,877 14,120 14,302 Total operating expenses 43,331 44,364 87,428 92,887 Operating loss (19,318 ) (20,306 ) (40,952 ) (44,676 ) Interest expense, net 3,434 3,034 6,062 5,496 Other expense (income), net 3,162 115 (899 ) 528 Loss from continuing operations before income taxes (25,914 ) (23,455 ) (46,115 ) (50,700 ) Income taxes 884 (78 ) 558 (1,123 ) Net loss from continuing operations (26,798 ) (23,377 ) (46,673 ) (49,577 ) Net income from discontinued operations, net of income taxes — 1,146 — 2,148 Net loss $ (26,798 ) $ (22,231 ) $ (46,673 ) $ (47,429 ) Earnings (Loss) per share: Loss per share from continuing operations, basic and diluted $ (0.54 ) $ (0.62 ) $ (0.95 ) $ (1.32 ) Earnings per share from discontinued operations, basic and diluted $ — $ 0.03 $ — $ 0.06 Loss per share, basic and diluted $ (0.54 ) $ (0.59 ) $ (0.95 ) $ (1.26 ) Weighted-average common shares outstanding used in computing loss per share, basic and diluted 49,626,642 37,814,019 48,988,604 37,583,623 Expand Veritone, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net loss $ (46,673 ) $ (47,429 ) Less: net income from discontinued operations, net of income taxes — (2,148 ) Net loss from continuing operations (46,673 ) (49,577 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 14,120 14,302 Stock-based compensation 3,453 3,593 Non-cash interest expense 2,507 2,833 Deferred income taxes (315 ) (2,464 ) Provision for credit losses 668 548 Reduction in carrying amount of operating lease right-of-use assets 489 237 Change in fair value of earnout receivable (784 ) — Changes in operating assets and liabilities: Accounts receivable (530 ) 3,339 Prepaid expenses and other current assets 815 2,065 Other assets (11 ) 30 Accounts payable 3,570 (7,738 ) Deferred revenue 289 653 Accrued expenses and other current liabilities (2,797 ) 500 Other non-current liabilities (78 ) 341 Net cash used in operating activities – continuing operations (25,277 ) (31,338 ) Net cash provided by operating activities – discontinued operations — 3,547 Net cash used in operating activities (25,277 ) (27,791 ) Cash flows from investing activities: Capital expenditures (2,311 ) (3,247 ) Sale of non-marketable equity investment — 1,800 Net cash used in investing activities – continuing operations (2,311 ) (1,447 ) Net cash used in investing activities – discontinued operations — (152 ) Net cash used in investing activities (2,311 ) (1,599 ) Cash flows from financing activities: Repayment of senior secured term loan (3,875 ) (1,938 ) Proceeds from issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offering, net of offering costs 29,449 — Debt issuance costs (114 ) — Proceeds from issuance of stock under employee stock plans, net 140 235 Taxes paid related to net share settlement of equity awards (341 ) (456 ) Settlement of deferred consideration for acquisitions — (1,800 ) Net cash provided by (used in) financing activities – continuing operations 25,259 (3,959 ) Net cash provided by financing activities – discontinued operations — — Net cash provided by (used in) financing activities 25,259 (3,959 ) Effect of exchange rates on cash, cash equivalents, and restricted cash (1,133 ) — Net change in cash, cash equivalents, and restricted cash (3,462 ) (33,349 ) Cash, cash equivalents, and restricted cash, beginning of period 17,318 80,306 Cash, cash equivalents, and restricted cash, end of period 13,856 46,957 Less: cash, cash equivalents, restricted cash included in discontinued operations — (39,357 ) Cash, cash equivalents, and restricted cash included in continuing operations $ 13,856 $ 7,600 Expand Veritone, Inc. Revenue Detail (unaudited) (in thousands) Three Months Ended June 30, 2025 June 30, 2024 Commercial Enterprise Public Sector Total Commercial Enterprise Public Sector Total Software Products & Services $ 15,334 $ 2,135 $ 17,469 $ 14,510 $ 1,122 $ 15,632 Managed Services: Representation Services 1,529 — 1,529 3,541 — 3,541 Licensing 5,015 — 5,015 4,885 — 4,885 Total Managed Services 6,544 — 6,544 8,426 — 8,426 Total revenue $ 21,878 $ 2,135 $ 24,013 $ 22,936 $ 1,122 $ 24,058 Expand Six Months Ended June 30, 2025 June 30, 2024 Commercial Enterprise Public Sector Total Commercial Enterprise Public Sector Total Software Products & Services $ 28,483 $ 3,469 $ 31,952 $ 28,212 $ 2,640 $ 30,852 Managed Services: Representation Services 4,301 — 4,301 7,033 — 7,033 Licensing 10,223 — 10,223 10,326 — 10,326 Total Managed Services 14,524 — 14,524 17,359 — 17,359 Total revenue $ 43,007 $ 3,469 $ 46,476 $ 45,571 $ 2,640 $ 48,211 Expand Veritone, Inc. Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net loss $ (26,798 ) $ (22,231 ) $ (46,673 ) $ (47,429 ) Net income from discontinued operations, net of income taxes — (1,146 ) — (2,148 ) Interest expense, net 3,434 3,034 6,062 5,496 Income taxes 884 (78 ) 558 (1,123 ) Depreciation and amortization 7,172 6,877 14,120 14,302 Stock-based compensation 1,710 2,059 3,453 3,593 Change in fair value of earnout receivable 2,870 — (784 ) — Contingent purchase compensation expense 138 568 213 885 Foreign currency impact and other 254 (61 ) (162 ) 355 Acquisition and due diligence costs 588 202 856 1,105 (Gain) Loss on asset disposition — 170 — 170 Severance and executive transition costs 1,035 903 1,500 4,747 Other non-recurring items(1) — — 1,014 — Non-GAAP net loss from continuing operations (8,713 ) (9,703 ) (19,843 ) (20,047 ) Non-GAAP net income from discontinued operations(2) — 2,853 — 5,578 Non-GAAP net loss $ (8,713 ) $ (6,850 ) $ (19,843 ) $ (14,469 ) Expand (1) Other non-recurring items for the six months ended June 30, 2025 consists of fees paid to the lenders of our senior secured term loan in connection with the Limited Consent to the Credit Agreement entered into on March 13, 2025. (2) A reconciliation of non-GAAP net income from discontinued operations to GAAP net income from discontinued operations for the three and six months ended June 30, 2024 is set forth in the table below. Expand Veritone, Inc. Reconciliation of GAAP Net Income from Discontinued Operations to Non-GAAP Net Income from Discontinued Operations (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Net income from discontinued operations, net of income taxes $ 1,146 $ 2,148 Interest expense, net 1,463 2,991 Income taxes 35 35 Depreciation and amortization 82 159 Stock-based compensation 80 154 Acquisition and due diligence costs 39 77 Severance and executive transition costs 8 14 Non-GAAP net income from discontinued operations $ 2,853 $ 5,578 Expand Veritone, Inc. Reconciliation of Expected Non-GAAP Net Loss Range to Expected GAAP Net Loss Range (unaudited) (in millions) Three Months Ending Year Ending September 30, 2025 December 31, 2025 Net loss $(19.0) to $(16.5) $(80.0) to $(67.0) Interest expense, net $3.0 to $2.5 $12.0 to $10.0 Income taxes $— to $(0.5) $— to $(2.0) Depreciation and amortization $7.5 to $7.0 $30.0 to $28.0 Stock-based compensation $2.0 to $1.5 $8.0 to $6.0 Non-GAAP net loss $(6.5) to $(6.0) $(30.0) to $(25.0) Expand Veritone, Inc. Supplemental Financial Information (unaudited) We are providing the following unaudited supplemental financial information as a lookback of prior years to explain our recent historical and year-over-year performance. Quarter Ended June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total Software Products & Services Customers(1) 3,437 3,291 3,237 3,156 3,067 Annual Recurring Revenue (SaaS) (in 000's)(2) $ 49,223 $ 48,269 $ 47,549 $ 47,494 $ 50,350 Annual Recurring Revenue (Consumption) (in 000's)(3) $ 18,701 $ 15,011 $ 11,245 $ 11,223 $ 12,249 Total New Bookings (in 000's)(4) $ 14,047 $ 16,471 $ 13,228 $ 15,835 $ 15,766 Gross Revenue Retention(5) >90% >90% >90% > 90% > 90% Expand (1) 'Total Software Products & Services Customers' includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean. (2) 'Annual Recurring Revenue (SaaS)' represents an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers. Management uses 'Annual Recurring Revenue (SaaS)' and we believe Annual Recurring Revenue (SaaS) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. (3) 'Annual Recurring Revenue (Consumption)' represents the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses 'Annual Recurring Revenue (Consumption)' and we believe Annual Recurring Revenue (Consumption) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. (4) 'Total New Bookings' represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services). (5) 'Gross Revenue Retention' represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Quarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn. Expand Veritone, Inc. Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 24,013 $ 24,058 $ 46,476 $ 48,211 Operating expenses: Cost of revenue (exclusive of depreciation and amortization) 7,478 6,342 15,312 13,289 Depreciation and amortization related to cost of revenue 1,191 1,301 2,106 2,180 GAAP gross profit 15,344 16,415 29,058 32,742 Depreciation and amortization related to cost of revenue 1,191 1,301 2,106 2,180 Non-GAAP gross profit $ 16,535 $ 17,716 $ 31,164 $ 34,922 GAAP gross margin 63.9 % 68.2 % 62.5 % 67.9 % Non-GAAP gross margin 68.9 % 73.6 % 67.1 % 72.4 % Expand
Business Wire
29-07-2025
- Business
- Business Wire
Guinness World Records Teams with Veritone to Launch New Archive of Record-Breaking Footage
DENVER--(BUSINESS WIRE)-- Veritone, Inc. (NASDAQ: VERI), a leader in human-centered enterprise AI solutions, today announced its partnership with Guinness World Records to launch an online platform featuring exclusive record-breaking clips and images. Powered by Veritone's AI-driven Digital Media Hub (DMH), the platform enables broadcasters, publishers, brands and content creators to easily search, access and license content from Guinness World Records' iconic archive. Designed for today's dynamic content ecosystem, Guinness World Records' DMH features captivating record-breaking footage from TV archives and user-generated submissions. Users can seamlessly preview, share and license both video and award-winning high-resolution stills. 'The launch of our digital content hub is a key moment for us, as it allows us to share and celebrate record-breaking achievements with a broader audience in a new and innovative way,' said Katie Forde, SVP TV & Digital at Guinness World Records. 'We now have the ability to efficiently manage and monetize our extensive archive, bringing extraordinary moments from our 70-year history to creators, producers, advertisers, and publishers around the world.' This AI-powered platform is the first of its kind for Guinness World Records, representing an impactful leap forward in how its global audience engages and interacts with its renowned collection. By leveraging Veritone's DMH, Guinness World Records will broaden access to its record-breaking content and monetize this footage, helping the company reach new markets and capitalize on growing demand. 'Veritone's advanced AI technology is enabling Guinness World Records to deliver a new level of accessibility and usability for their iconic content,' said Sean King, Chief Revenue Officer and GM of Veritone Commercial. 'The launch of this content hub demonstrates how Veritone's AI solutions can transform traditional media libraries into dynamic, revenue-generating platforms that serve diverse and growing audiences.' Veritone's cloud-native, AI-powered Digital Media Hub allows organizations to enable media management, distribution and monetization activities. It uses advanced AI to ingest, index and organize digital assets, making it easy for users to search, preview and license specific clips. The collaboration between Veritone and Guinness World Records comes at a critical time as the media landscape continues to undergo rapid digital transformation. This partnership underscores how AI is helping content rights holders tap into new revenue streams and amplify their media assets. As demand for fresh, engaging content grows across broadcast, digital and branded platforms, Guinness World Records' new content hub offers creators, advertisers and producers a powerful resource to bring their storytelling to life. About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit About Guinness World Records What's the fastest game bird in Europe? This was the question that inspired the founding of Guinness World Records back in 1955. Starting with a single book published from a room above a gym, GWR has grown to become a global multi-media brand, with offices in London, New York, Beijing, Tokyo and Dubai. Today, we deliver world-class content, not just through books, but via TV shows, social media and live events. Our in-house consultancy works closely with brands and businesses around the world to harness the power of record-breaking and deliver award-winning campaigns and business solutions. Through our in-house production arm, GWR Studios, we create standout content for broadcasters, brand partners and digital platforms. GWR Entertainment brings the best of the GWR brand to life in a diverse range of live experiences where visitors can discover and even attempt official world records. Whatever the medium, our ultimate purpose is to make the world a more interesting, fun and positive place. To join this record-breaking community – and find out the answer to that original question – visit Safe Harbor Statement This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the capabilities and performance of Veritone's offerings and anticipated trends in artificial intelligence and media markets. Words such as 'anticipates,' 'believes,' 'could,' 'estimates,' 'expects,' 'intends,' 'continue,' 'can,' 'may,' 'plans,' 'potential,' 'projects,' 'seeks,' 'should,' 'will,' 'would' or similar expressions and the negatives of those expressions may identify forward-looking statements. These statements are based on current expectations, estimates, assumptions, and projections and involve known and unknown risks and uncertainties that may cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements. These risks and uncertainties include, but are not limited to, those described in Veritone's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Although Veritone believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by Veritone or any other person that their objectives or plans will be achieved. Veritone undertakes no obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Globe and Mail
24-07-2025
- Business
- Globe and Mail
Veritone to Hold Second Quarter 2025 Results Conference Call on August 7th
Veritone, Inc. (NASDAQ: VERI), a leader in building human-centered enterprise AI solutions, today announced the details of its second quarter 2025 financial results conference call. Veritone will hold a conference call on Thursday, August 7, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss its results for the second quarter 2025, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call. Conference Call Live Audio Webcast Domestic Call Number: (844) 750-4897 International Call Number: (412) 317-5293 About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit
Business Wire
24-07-2025
- Business
- Business Wire
Veritone to Hold Second Quarter 2025 Results Conference Call on August 7 th
DENVER--(BUSINESS WIRE)-- Veritone, Inc. (NASDAQ: VERI), a leader in building human-centered enterprise AI solutions, today announced the details of its second quarter 2025 financial results conference call. Veritone will hold a conference call on Thursday, August 7, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), to discuss its results for the second quarter 2025, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call. Conference Call Live Audio Webcast Domestic Call Number: (844) 750-4897 International Call Number: (412) 317-5293 About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit
