Veritone Announces Record Q4 and Full Year 2021 Results
Veritone, Inc. (NASDAQ: VERI) reported a record Q4 2021 revenue of $55.1 million, a 230% increase year-over-year, and full-year revenue of $115.3 million, up 99%. The company achieved its first positive non-GAAP net income of $6.8 million. Customer growth rose by 47% with 529 software customers. Despite a GAAP net loss of $70.6 million for the year, Veritone ended 2021 with $255 million in cash. The outlook for 2022 forecasts revenue growth of over 60%, projecting $180 million to $190 million. Veritone is well-positioned for future investments in AI capabilities.
- Q4 2021 revenue increased 230% year-over-year to $55.1 million.
- Full-year revenue grew 99% to $115.3 million.
- Achieved first positive non-GAAP net income of $6.8 million.
- Cash and cash equivalents totaled $255 million at year-end.
- Customer growth reached 529, up 47% year-over-year.
- GAAP net loss for 2021 was $70.6 million, up from $47.9 million in 2020.
- Q4 2021 GAAP net loss increased to $15.9 million from $12.4 million the previous year.
Increased Revenue
Grew Software Customers to 529 in Q4, Up
Reported Positive non-GAAP Net Income, First Time for the Quarter and Full Year
Held
“Delivering record results with our first profitable quarter and full year on a non-GAAP basis in 2021, we have made significant progress serving our global customers and generating substantial growth,” said
Full Year 2021 Financial Highlights
-
Revenue increased year over year
99% to$115.3 million 41% to$148.1 million -
Gross profit increased year over year
122% to$93.3 million 41% to$124.6 million -
GAAP net loss was
$70.6 million $47.9 million $18.5 million $11.8 million -
First year with positive non-GAAP net income of
$6.8 million $20.6 million -
Raised
$201.3 million 1.75% Convertible Debt Offering, and ended 2021 with$254.7 million $114.8 million
Pro Forma basis assumesVeritone owned PandoLogic since the beginning of 2020.
Fourth Quarter 2021 Financial Highlights
-
Revenue increased to
$55.1 million 230% and30% year over year on a GAAP basis and on a Pro Forma basis, respectively. -
Gross profit increased to
$48.9 million 284% and26% year over year on a GAAP basis and on a Pro Forma basis, respectively. -
GAAP net loss was
$15.9 million $12.4 million -
Non-GAAP net income was
$17.0 million $20.8 million $3.9 million 9% year over year from Pro Forma net income of$15.6 million
(1) Including approximately |
|
Three Months Ended
|
|
|
Twelve Months Ended
|
||||||||||||||||
Unaudited (in |
2021 |
|
|
2020 |
|
|
Percent
|
|
|
2021 |
|
|
2020 |
|
|
Percent
|
||||
Revenue |
$ |
55,149 |
|
|
$ |
16,818 |
|
|
|
|
|
$ |
115,305 |
|
|
$ |
57,708 |
|
|
|
Gross Profit(1) |
$ |
48,883 |
|
|
$ |
12,721 |
|
|
|
|
|
$ |
93,176 |
|
|
$ |
42,045 |
|
|
|
Net Loss |
$ |
(15,867 |
) |
|
$ |
(12,386 |
) |
|
|
|
|
$ |
(70,593 |
) |
|
$ |
(47,876 |
) |
|
NM |
Non-GAAP Net Income (Loss)(1) |
$ |
16,966 |
|
|
$ |
(3,913 |
) |
|
NM |
|
|
$ |
6,832 |
|
|
$ |
(20,593 |
) |
|
NM |
Non-GAAP Net Income (Pro Forma) |
$ |
16,966 |
|
|
$ |
15,567 |
|
|
|
|
|
$ |
18,478 |
|
|
$ |
11,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software Products and Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software Revenue - Pro Forma |
$ |
40,223 |
|
|
$ |
30,869 |
|
|
|
|
|
$ |
92,339 |
|
|
$ |
61,249 |
|
|
|
Ending Customers |
|
529 |
|
|
|
360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAR |
$ |
209 |
|
|
$ |
206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total New Bookings |
$ |
8,181 |
|
|
$ |
1,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See tables for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definition of Software Products and Services Supplemental Financial Information |
Recent Business Highlights
-
Selected by the
Department of Defense to participate in a$249 million - Partnered with Snowflake to deliver an AI-powered data cloud.
- Partnered with iHeartMedia to utilize Veritone’s synthetic voice technology, Veritone Voice, to translate and produce podcasts for new markets.
- Launched AI-driven Intelligent Distributed Energy Resource Management Solution (iDERMS) to enhance reliability, maximize DER investments and meet decarbonization targets.
-
Partnered with iconic voice of The Bert Show host and
Georgia Radio Hall of Fame memberBert Weiss to launch Veritone Voice. -
PandoLogic partnered with
SmartRecruiters to empower hiring efficiency at scale. -
Partnered with
Vixen Labs to accelerate the enterprise adoption of AI-enabled Sonic Identity. - Named Winner in the 2021 Deloitte Technology Fast 500.
- Won 2021 NAB Show Product of the Year Award.
Business Outlook
First Quarter 2022
-
Revenue is expected to be in the range of
$32.5 million $33.5 million $18.3 million -
Non-GAAP net loss is expected to be in the range of
$3.5 million $4.5 million $3.9 million
Full Year 2022
-
Revenue is expected to be in the range of
$180 million $190 million $115.3 million -
Non-GAAP net income is expected to be in the range of
$10 million $20 million $6.8 million
Financial Results for Three Months Ended
Revenue was a record
GAAP net loss was
As of
Financial Results for Twelve Months Ended
Revenue totaled
Conference Call
● Preregister*: |
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● Live audio webcast: |
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|
● Domestic call number: |
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844-200-6205 |
● International call number: |
|
833-950-0062 |
● Call ID: |
|
350425 |
* Callers who pre-register will be emailed, upon registering and again on the day of the call, a conference pass code and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
A replay of the audio webcast will be available on the Company’s website approximately one hour after the call ends. A telephonic replay of the call will be available through
● Replay number: |
866 813 9403 |
|
● International replay number: |
+44 204 525 0658 |
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● Replay ID: |
808515 |
About the Presentation of Supplemental Non-GAAP and Pro Forma Financial Information
In this news release, the Company has supplemented its financial measures prepared in accordance with
The Company has provided these non-GAAP financial measures 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 and budgeting.
These non-GAAP financial measures should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. Other companies (including the Company’s competitors) may define these non-GAAP financial measures differently.
These non-GAAP financial measures may not be indicative of the historical operating results of
In addition, the Company defines the following capitalized terms in this news release as follows:
Core Operations consists of the Company’s aiWARE operating platform of software, SaaS and related services; content licensing and advertising agency services; and their supporting operations, including direct costs of sales as well as operating expenses for sales, marketing and product development and certain general and administrative costs dedicated to these operations.
Corporate principally consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses (including facilities and information technology expenses), other income (expenses) and taxes, and other expenses that support the entire Company, including public company driven costs.
Software Products & Services consists of revenues generated from commercial enterprise and government and regulated industries customers using our aiWARE platform and PandoLogic’s talent acquisition software product solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions.
Managed Services consist of revenues generated from commercial enterprise customers using our content licensing services and advertising agency and related services.
Pro Forma includes historical Software Products & Services revenue from the past six fiscal quarters of each of
About
Safe Harbor Statement
This news release contains forward-looking statements, including without limitation statements regarding the Company’s expectations regarding its rapidly growing pipeline of business, the Company’s expected total revenue and Non-GAAP net income (loss) for Q1 2022 and for full year 2022. In addition, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “should,” “could,” “estimate” 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, beliefs and information. As such, the Company’s 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, the impact of the economic disruption caused by the COVID-19 pandemic and the Russian invasion of
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|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
(in thousands) |
|||||||
|
|
As of |
|||||
|
|
|
|
|
|
||
|
|
2021 |
|
|
2020 |
||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
254,722 |
|
|
$ |
114,817 |
Accounts receivable, net |
|
|
85,063 |
|
|
|
16,666 |
Expenditures billable to clients |
|
|
27,180 |
|
|
|
18,365 |
Prepaid expenses and other current assets |
|
|
12,117 |
|
|
|
6,719 |
Total current assets |
|
|
379,082 |
|
|
|
156,567 |
Property, equipment and improvements, net |
|
|
1,556 |
|
|
|
2,354 |
Intangible assets, net |
|
|
88,247 |
|
|
|
10,744 |
|
|
|
34,058 |
|
|
|
6,904 |
Long-term restricted cash |
|
|
855 |
|
|
|
855 |
Other assets |
|
|
954 |
|
|
|
230 |
Total assets |
|
$ |
504,752 |
|
|
$ |
177,654 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
46,711 |
|
|
$ |
15,632 |
Accrued media payments |
|
|
86,923 |
|
|
|
55,874 |
Client advances |
|
|
10,561 |
|
|
|
6,496 |
Contingent consideration, current |
|
|
19,988 |
|
|
|
— |
Other accrued liabilities |
|
|
27,093 |
|
|
|
10,246 |
Total current liabilities |
|
|
191,276 |
|
|
|
88,248 |
Convertible senior notes, non-current |
|
|
195,082 |
|
|
|
— |
Contingent consideration, non-current |
|
|
24,737 |
|
|
|
— |
Other non-current liabilities |
|
|
13,078 |
|
|
|
1,196 |
Total liabilities |
|
|
424,173 |
|
|
|
89,444 |
Total stockholders' equity |
|
|
80,579 |
|
|
|
88,210 |
Total liabilities and stockholders' equity |
|
$ |
504,752 |
|
|
$ |
177,654 |
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
AND COMPREHENSIVE LOSS |
|||||||||||||||
(in thousands, except per share and share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
$ |
55,149 |
|
|
$ |
16,818 |
|
|
$ |
115,305 |
|
|
$ |
57,708 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
6,267 |
|
|
|
4,097 |
|
|
|
22,129 |
|
|
|
15,663 |
|
Sales and marketing |
|
11,349 |
|
|
|
4,761 |
|
|
|
28,935 |
|
|
|
19,877 |
|
Research and development |
|
10,215 |
|
|
|
3,706 |
|
|
|
25,075 |
|
|
|
14,379 |
|
General and administrative |
|
35,694 |
|
|
|
15,244 |
|
|
|
97,918 |
|
|
|
50,080 |
|
Amortization |
|
4,657 |
|
|
|
1,342 |
|
|
|
8,497 |
|
|
|
5,382 |
|
Total operating expenses |
|
68,182 |
|
|
|
29,150 |
|
|
|
182,554 |
|
|
|
105,381 |
|
Loss from operations |
|
(13,033 |
) |
|
|
(12,332 |
) |
|
|
(67,249 |
) |
|
|
(47,673 |
) |
Other expense, net |
|
(563 |
) |
|
|
(19 |
) |
|
|
(600 |
) |
|
|
(127 |
) |
Loss before provision for income taxes |
|
(13,596 |
) |
|
|
(12,351 |
) |
|
|
(67,849 |
) |
|
|
(47,800 |
) |
Provision for income taxes |
|
2,271 |
|
|
|
35 |
|
|
|
2,744 |
|
|
|
76 |
|
Net loss |
$ |
(15,867 |
) |
|
$ |
(12,386 |
) |
|
$ |
(70,593 |
) |
|
$ |
(47,876 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
$ |
(0.45 |
) |
|
$ |
(0.43 |
) |
|
$ |
(2.12 |
) |
|
$ |
(1.73 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
34,916,927 |
|
|
|
28,881,610 |
|
|
|
33,298,382 |
|
|
|
27,594,911 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
$ |
(15,867 |
) |
|
$ |
(12,386 |
) |
|
$ |
(70,593 |
) |
|
$ |
(47,876 |
) |
Foreign currency translation gain (loss), net of income taxes |
|
(177 |
) |
|
|
9 |
|
|
|
(170 |
) |
|
|
20 |
|
Total comprehensive loss |
$ |
(16,044 |
) |
|
$ |
(12,377 |
) |
|
$ |
(70,763 |
) |
|
$ |
(47,856 |
) |
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(in thousands) |
||||||||
|
||||||||
|
||||||||
|
|
As of |
||||||
|
|
|
||||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(70,593 |
) |
|
$ |
(47,876 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
9,035 |
|
|
|
6,407 |
|
Loss on disposal of fixed assets |
|
|
1,894 |
|
|
|
— |
|
Warrant expense |
|
|
— |
|
|
|
102 |
|
Change in fair value of warrant liability |
|
|
— |
|
|
|
200 |
|
Change in fair value of contingent consideration |
|
|
18,325 |
|
|
|
— |
|
Provision for doubtful accounts |
|
|
172 |
|
|
|
293 |
|
Loss on sublease |
|
|
1,211 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
40,065 |
|
|
|
19,539 |
|
Common stock returned from acquisition escrow |
|
|
— |
|
|
|
(146 |
) |
Other |
|
|
— |
|
|
|
(46 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(47,225 |
) |
|
|
4,393 |
|
Expenditures billable to clients |
|
|
(8,815 |
) |
|
|
(8,079 |
) |
Prepaid expenses and other current assets |
|
|
3,368 |
|
|
|
(1,726 |
) |
Other assets |
|
|
(241 |
) |
|
|
— |
|
Accounts payable |
|
|
17,896 |
|
|
|
(1,382 |
) |
Accrued media payments |
|
|
31,049 |
|
|
|
29,210 |
|
Client advances |
|
|
4,065 |
|
|
|
(2,584 |
) |
Other accrued liabilities |
|
|
8,184 |
|
|
|
3,311 |
|
Other liabilities |
|
|
(1,156 |
) |
|
|
(183 |
) |
Net cash provided by operating activities |
|
|
7,234 |
|
|
|
1,433 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Proceeds from the sale of equipment |
|
|
— |
|
|
|
56 |
|
Capital expenditures |
|
|
(1,016 |
) |
|
|
(175 |
) |
Acquisitions, net of cash acquired |
|
|
(52,827 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(53,843 |
) |
|
|
(119 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from common stock offerings, net |
|
|
— |
|
|
|
66,278 |
|
Proceeds from loan |
|
|
— |
|
|
|
6,491 |
|
Repayment of loan |
|
|
— |
|
|
|
(6,491 |
) |
Proceeds from issuance of convertible senior notes |
|
|
201,250 |
|
|
|
— |
|
Payment of debt issuance costs |
|
|
(6,304 |
) |
|
|
— |
|
Purchases of capped calls related to convertible senior notes |
|
|
(18,616 |
) |
|
|
— |
|
Proceeds from the exercise of warrants |
|
|
2,279 |
|
|
|
2,100 |
|
Proceeds from issuances of stock under employee stock plans, net |
|
|
7,905 |
|
|
|
1,060 |
|
Net cash provided by financing activities |
|
|
186,514 |
|
|
|
69,438 |
|
Net increase in cash and cash equivalents and restricted cash |
|
|
139,905 |
|
|
|
70,752 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
115,672 |
|
|
|
44,920 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
255,577 |
|
|
$ |
115,672 |
|
|
||||||||||
REVENUE DETAIL (UNAUDITED) |
||||||||||
(in thousands) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|||||||||
|
|
|||||||||
|
|
|
|
|
Government & |
|
|
|
|
|
|
Commercial |
|
|
Regulated |
|
|
|
|
||
|
Enterprises |
|
|
Industries |
|
|
Total |
|||
Total Software Products & Services |
$ |
55,484 |
|
|
$ |
4,031 |
|
|
$ |
59,515 |
|
|
|
|
|
|
|
|
|
|
|
Managed Services |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
40,800 |
|
|
|
— |
|
|
|
40,800 |
|
|
14,990 |
|
|
|
— |
|
|
|
14,990 |
Total Managed Services |
|
55,790 |
|
|
|
— |
|
|
|
55,790 |
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
111,274 |
|
|
$ |
4,031 |
|
|
$ |
115,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|||||||||
|
|
|||||||||
|
|
|
|
|
Government & |
|
|
|
|
|
|
Commercial |
|
|
Regulated |
|
|
|
|
||
|
Enterprises |
|
|
Industries |
|
|
Total |
|||
Total Software Products & Services |
$ |
10,712 |
|
|
$ |
3,151 |
|
|
$ |
13,863 |
|
|
|
|
|
|
|
|
|
|
|
Managed Services |
|
|
|
|
|
|
|
|
|
|
Advertising |
|
31,550 |
|
|
|
— |
|
|
|
31,550 |
|
|
12,295 |
|
|
|
— |
|
|
|
12,295 |
Total Managed Services |
|
43,845 |
|
|
|
— |
|
|
|
43,845 |
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
$ |
54,557 |
|
|
$ |
3,151 |
|
|
$ |
57,708 |
|
||||||||||||||||||||||||
RECONCILIATION OF NON-GAAP NET LOSS TO GAAP NET INCOME (LOSS) (UNAUDITED) |
||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
|
|
Core
|
|
Corporate(2) |
|
Total |
|
Core
|
|
Corporate(2) |
|
Total |
||||||||||||
Net loss |
|
$ |
12,231 |
|
$ |
(28,098 |
) |
|
$ |
(15,867 |
) |
|
$ |
(1,297 |
) |
|
$ |
(11,089 |
) |
|
$ |
(12,386 |
) |
|
Provision for (benefit from) income taxes |
|
|
2,267 |
|
|
|
4 |
|
|
|
2,271 |
|
|
|
— |
|
|
|
35 |
|
|
|
35 |
|
Depreciation and amortization |
|
|
4,744 |
|
|
|
102 |
|
|
|
4,846 |
|
|
|
1,348 |
|
|
|
243 |
|
|
|
1,591 |
|
Stock-based compensation expense |
|
|
1,985 |
|
|
|
4,587 |
|
|
|
6,572 |
|
|
|
1,004 |
|
|
|
4,837 |
|
|
|
5,841 |
|
Change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Change in fair value of Contingent consideration |
|
|
— |
|
|
|
18,069 |
|
|
|
18,069 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
State sales tax reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
818 |
|
|
|
818 |
|
Stock offering costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
27 |
|
Lease exit charges(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
16 |
|
Interest expense |
|
|
— |
|
|
|
538 |
|
|
|
538 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and due diligence costs |
|
|
— |
|
|
|
537 |
|
|
|
537 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Business realignment, severance and executive search costs(4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
145 |
|
Non-GAAP Net Income (Loss) |
|
$ |
21,227 |
|
|
$ |
(4,261 |
) |
|
$ |
16,966 |
|
|
$ |
1,055 |
|
|
$ |
(4,968 |
) |
|
$ |
(3,913 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Year Ended |
||||||||||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||||||||||
|
|
Core
|
|
Corporate(2) |
|
Total |
|
Core
|
|
Corporate(2) |
|
Total |
||||||||||||
Net loss |
|
$ |
8,298 |
|
|
$ |
(78,891 |
) |
|
$ |
(70,593 |
) |
|
$ |
(9,060 |
) |
|
$ |
(38,816 |
) |
|
$ |
(47,876 |
) |
Provision for (benefit from) income taxes |
|
|
2,658 |
|
|
|
86 |
|
|
|
2,744 |
|
|
|
— |
|
|
|
76 |
|
|
|
76 |
|
Depreciation and amortization |
|
|
8,609 |
|
|
|
426 |
|
|
|
9,035 |
|
|
|
5,538 |
|
|
|
869 |
|
|
|
6,407 |
|
Stock-based compensation expense |
|
|
6,575 |
|
|
|
33,488 |
|
|
|
40,063 |
|
|
|
2,720 |
|
|
|
16,819 |
|
|
|
19,539 |
|
Change in fair value of warrant liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
|
|
200 |
|
Change in fair value of Contingent consideration |
|
|
— |
|
|
|
18,325 |
|
|
|
18,325 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Warrant expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
102 |
|
|
|
102 |
|
Gain on sale of asset |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(56 |
) |
|
|
(56 |
) |
State sales tax reserve |
|
|
— |
|
|
|
306 |
|
|
|
306 |
|
|
|
— |
|
|
|
818 |
|
|
|
818 |
|
Stock offering costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27 |
|
|
|
27 |
|
Lease exit charges(3) |
|
|
— |
|
|
|
3,367 |
|
|
|
3,367 |
|
|
|
— |
|
|
|
16 |
|
|
|
16 |
|
Interest expense |
|
|
— |
|
|
|
538 |
|
|
|
538 |
|
|
|
— |
|
|
|
9 |
|
|
|
9 |
|
Acquisition and due diligence costs |
|
|
— |
|
|
|
2,698 |
|
|
|
2,698 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Business realignment, severance and executive search costs(4) |
|
|
— |
|
|
|
349 |
|
|
|
349 |
|
|
|
— |
|
|
|
145 |
|
|
|
145 |
|
Non-GAAP Net Income (Loss) |
|
$ |
26,140 |
|
|
$ |
(19,308 |
) |
|
$ |
6,832 |
|
|
$ |
(802 |
) |
|
$ |
(19,791 |
) |
|
$ |
(20,593 |
) |
(1)Core Operations consists of our aiWARE operating platform of software, SaaS and related services; content, licensing and advertising agency services; and their supporting operations, including direct costs of sales as well as operating expenses for sales, marketing and product development and certain general and administrative costs dedicated to these operations. |
(2)Corporate consists of general and administrative functions such as executive, finance, legal, people operations, fixed overhead expenses (including facilities and information technology expenses), other income (expenses) and taxes, and other expenses that support the entire company, including public company driven costs. |
(3)Lease exit charges consists of charges related to a sublease in 2021 and lease termination charges in 2020. |
(4)Business realignment, severance and executive search costs consists of severance and executive search costs in 2021 and business realignment and officer severance costs in 2020. |
|
|||
RECONCILIATION OF EXPECTED NON-GAAP NET LOSS RANGE |
|||
TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED) |
|||
(in millions) |
|||
|
Three Months Ending |
|
Year Ending |
|
|
|
|
Net loss |
( |
|
( |
Provision for GAAP income taxes |
|
|
|
Interest expense |
|
|
|
Depreciation and amortization |
|
|
|
Contingent consideration |
|
|
|
Stock-based compensation expense |
|
|
|
Non-GAAP net income (loss) |
( |
|
|
|
|||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION (UNAUDITED) |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
$ |
55,149 |
|
|
$ |
16,818 |
|
|
$ |
115,305 |
|
|
$ |
57,708 |
|
Cost of revenue |
|
6,267 |
|
|
|
4,097 |
|
|
|
22,129 |
|
|
|
15,663 |
|
Stock-based compensation expense |
|
(116 |
) |
|
|
— |
|
|
|
(116 |
) |
|
|
— |
|
Non-GAAP gross profit |
$ |
48,766 |
|
|
$ |
12,721 |
|
|
$ |
93,292 |
|
|
$ |
42,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP sales and marketing expenses |
|
11,349 |
|
|
|
4,761 |
|
|
|
28,935 |
|
|
|
19,877 |
|
Stock-based compensation expense |
|
(1,716 |
) |
|
|
(235 |
) |
|
|
(1,716 |
) |
|
|
(889 |
) |
Lease exit charges |
|
— |
|
|
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
Business realignment and officer severance costs |
|
— |
|
|
|
— |
|
|
|
(236 |
) |
|
|
— |
|
Non-GAAP sales and marketing expenses |
|
9,633 |
|
|
|
4,521 |
|
|
|
26,983 |
|
|
|
18,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP research and development expenses |
|
10,215 |
|
|
|
3,706 |
|
|
|
25,075 |
|
|
|
14,379 |
|
Stock-based compensation expense |
|
(3,217 |
) |
|
|
(453 |
) |
|
|
(3,217 |
) |
|
|
(1,046 |
) |
Business realignment and officer severance costs |
|
— |
|
|
|
— |
|
|
|
(14 |
) |
|
|
— |
|
Non-GAAP research and development expenses |
|
6,998 |
|
|
|
3,253 |
|
|
|
21,844 |
|
|
|
13,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP general and administrative expenses |
|
35,694 |
|
|
|
15,244 |
|
|
|
97,918 |
|
|
|
50,080 |
|
Depreciation |
|
(189 |
) |
|
|
(249 |
) |
|
|
(538 |
) |
|
|
(1,025 |
) |
Stock-based compensation expense |
|
(1,523 |
) |
|
|
(5,153 |
) |
|
|
(35,014 |
) |
|
|
(17,604 |
) |
Warrant expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(102 |
) |
Change in fair value of contingent consideration |
|
(18,069 |
) |
|
|
— |
|
|
|
(18,325 |
) |
|
|
— |
|
State sales tax reserve |
|
— |
|
|
|
(818 |
) |
|
|
(306 |
) |
|
|
(818 |
) |
Stock offering costs |
|
— |
|
|
|
(27 |
) |
|
|
— |
|
|
|
(27 |
) |
Lease exit charges |
|
— |
|
|
|
— |
|
|
|
(3,367 |
) |
|
|
— |
|
Acquisition and due diligence costs |
|
(537 |
) |
|
|
— |
|
|
|
(2,698 |
) |
|
|
— |
|
Business realignment and officer severance costs |
|
— |
|
|
|
(145 |
) |
|
|
(99 |
) |
|
|
(145 |
) |
Non-GAAP general and administrative expenses |
|
15,376 |
|
|
|
8,852 |
|
|
|
37,571 |
|
|
|
30,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP amortization |
|
(4,657 |
) |
|
|
(1,342 |
) |
|
|
(8,497 |
) |
|
|
(5,382 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP loss from operations |
|
(13,033 |
) |
|
|
(12,332 |
) |
|
|
(67,249 |
) |
|
|
(47,673 |
) |
Total non-GAAP adjustments (1) |
|
30,024 |
|
|
|
8,427 |
|
|
|
74,143 |
|
|
|
27,043 |
|
Non-GAAP net income (loss) from operations |
|
16,991 |
|
|
|
(3,905 |
) |
|
|
6,894 |
|
|
|
(20,630 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP other (expense) income, net |
|
(563 |
) |
|
|
(19 |
) |
|
|
(600 |
) |
|
|
(127 |
) |
Change in fair value of warrant liability |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200 |
|
Interest expense |
|
538 |
|
|
|
— |
|
|
|
538 |
|
|
|
9 |
|
Lease exit charges |
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
Gain on sale of asset |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(56 |
) |
Non-GAAP other income (expense), net |
|
(25 |
) |
|
|
(8 |
) |
|
|
(62 |
) |
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP loss before income taxes |
|
(13,596 |
) |
|
|
(12,351 |
) |
|
|
(67,849 |
) |
|
|
(47,800 |
) |
Total non-GAAP adjustments (1) |
|
30,562 |
|
|
|
8,438 |
|
|
|
74,681 |
|
|
|
27,207 |
|
Non-GAAP net income (loss) before income taxes |
|
16,966 |
|
|
|
(3,913 |
) |
|
|
6,832 |
|
|
|
(20,593 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax provision |
|
2,271 |
|
|
|
35 |
|
|
|
2,744 |
|
|
|
76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
(15,867 |
) |
|
|
(12,386 |
) |
|
|
(70,593 |
) |
|
|
(47,876 |
) |
Total non-GAAP adjustments (1) |
|
32,833 |
|
|
|
8,473 |
|
|
|
77,425 |
|
|
|
27,283 |
|
Non-GAAP net income (loss) |
$ |
16,966 |
|
|
$ |
(3,913 |
) |
|
$ |
6,832 |
|
|
$ |
(20,593 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in computing non-GAAP basic net earnings (loss) per share |
|
34,917 |
|
|
|
28,882 |
|
|
|
33,298 |
|
|
|
27,595 |
|
Shares used in computing non-GAAP diluted net earnings (loss) per share(2) |
|
45,626 |
|
|
|
28,882 |
|
|
|
43,928 |
|
|
|
27,595 |
|
Non-GAAP basic net earnings (loss) per share |
$ |
0.49 |
|
|
$ |
(0.14 |
) |
|
$ |
0.21 |
|
|
$ |
(0.75 |
) |
Non-GAAP diluted net earnings (loss) per share |
$ |
0.37 |
|
|
$ |
(0.14 |
) |
|
$ |
0.16 |
|
|
$ |
(0.75 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Adjustments are comprised of the adjustments to GAAP cost of revenue, sales and marketing expenses, research and development expenses and general and administrative expenses and other (expense) income, net (where applicable) listed above. |
|
(2) In 2021, the shares used in computing non-GAAP diluted net earnings (loss) per share include the dilutive effects of common stock options, RSUs, and warrants as well as the common stock issuable in connection with the convertible notes, which for the purposes of diluted net earnings per share will be presented as if the convertible senior notes were converted to common shares as of |
|
Supplemental Financial Information
We are providing the following unaudited supplemental financial information as a lookback of the trailing twelve months and the comparative quarter for the prior year to help investors better understand our recent historical and year-over-year performance. The Software Products & Services supplemental financial information is presented on a Pro Forma basis, as further described below.
Software Products & Services Supplemental Financial Information
|
|
Quarter Ended |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
2020 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
||||||
Software Revenue - Pro Forma (in 000's)(1) |
|
|
14,154 |
|
|
|
30,869 |
|
|
|
10,183 |
|
|
|
20,072 |
|
|
|
21,860 |
|
|
|
40,223 |
Ending Customers(2) |
|
|
322 |
|
|
|
360 |
|
|
|
385 |
|
|
|
419 |
|
|
|
433 |
|
|
|
529 |
Average Annual Revenue (AAR) (in 000's)(3) |
|
$ |
110 |
|
|
$ |
206 |
|
|
$ |
199 |
|
|
$ |
203 |
|
|
$ |
208 |
|
|
$ |
209 |
Total New Bookings (in 000's)(4) |
|
$ |
2,083 |
|
|
$ |
1,437 |
|
|
$ |
2,442 |
|
|
$ |
4,896 |
|
|
$ |
3,356 |
|
|
$ |
8,317 |
Gross Revenue Retention(5) |
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> |
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> |
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> |
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> |
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> |
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> |
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(1) |
“Software Revenue - Pro Forma” includes historical Software Products & Services revenue from the past six (6) fiscal quarters of each of |
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(2) |
“Ending Customers” includes Software Products & Services customers as of the end of each respective quarter set forth above with trailing twelve-month revenues in excess of |
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(3) |
“Average Annual Revenue (AAR)” is calculated as the aggregate of trailing twelve-month Software Products & Services revenue divided by the average number of customers over the same period for both |
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(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). This also excludes PandoLogic new bookings for Q3 and Q4 2020 as those periods were deemed immaterial and data was not readily available. |
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(5) |
“Gross Revenue Retention”: We calculate our dollar-based gross retention rate as of the period end by starting with the revenue from Ending Customers for Software Products & Services as of the 3 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 Ending Customers who are no longer customers as of the current period end, or Current Period Ending Customer Revenue. We then divide the total Current Period Ending 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 Ending Customers from our Software Products & Services as of the year prior that is not lost to customer churn. |
Managed Services Supplemental Financial Information
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Quarter Ended |
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2020 |
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2020 |
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2021 |
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2021 |
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2021 |
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2021 |
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Avg billings per active Managed Services client (in 000's)(6) |
|
|
522 |
|
|
|
545 |
|
|
|
582 |
|
|
|
622 |
|
|
|
615 |
|
|
|
625 |
Revenue during quarter (in 000's)(7) |
|
$ |
8,764 |
|
|
$ |
9,747 |
|
|
$ |
10,327 |
|
|
$ |
9,968 |
|
|
$ |
9,647 |
|
|
$ |
10,857 |
(6) |
Avg billings per active Managed Services customer for each quarter reflects the average quarterly billings per active Managed Services customer over the twelve-month period through the end of such quarter for Managed Services clients that are active during such quarter. |
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(7) |
Managed Services revenue and metrics exclude content licensing and media services. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220303005962/en/
Company Contact:
SVP, Investor Relations and Capital Markets
(949) 386-4318
investors@veritone.com
Investor Relations Contact:
LHA Investor Relations
(415) 433-3777
veritone@lhai.com
Source:
FAQ
What were Veritone's Q4 2021 financial results?
How did Veritone perform in 2021 compared to 2020?
Did Veritone report a profit in 2021?
What is Veritone's outlook for 2022?
How many customers does Veritone have as of Q4 2021?
