Veritone Reports Fourth Quarter and Fiscal Year 2022 Results
Veritone reported a 30% increase in fiscal year 2022 revenue to $149.7 million. Ending software customers grew by 21% to 642, while Q4 new bookings surged 141% year over year, reaching $20 million. The company retired $60 million of debt for $39 million in cash and ended 2022 with $184 million in cash and equivalents. However, Q4 revenue fell 20% to $43.9 million, and the loss from operations increased 40% to $10 million. Full-year net loss improved to $25.2 million. Looking ahead, Q1 2023 revenue is projected between $29.5 million and $30.5 million.
- Fiscal year 2022 revenue increased by 30% to $149.7 million.
- Q4 2022 new bookings reached $20 million, up 141% year over year.
- Ending software customers grew by 21% to 642.
- Retired $60 million of debt for $39 million in cash, improving balance sheet flexibility.
- Ended 2022 with $184 million in cash and cash equivalents.
- Q4 revenue declined by 20% to $43.9 million.
- Loss from operations increased by 40% to $10 million in Q4 2022.
- Software Products & Services revenue dropped 32% year over year in Q4.
- Fiscal Year 2022 Revenue of
- Grew Ending Software Customers to 642, Up
- Record New Bookings in Q4 2022 of
- Retired
- Ended 2022 with
Full Year 2022 Financial Highlights:
-
Revenue of
$149.7 million $34.4 million 30% year over year on a GAAP basis and1% on a Pro Forma basis. -
Loss from operations of
$38.0 million $23.4 million 38% year over year. -
Non-GAAP gross profit of
$122.3 million $29.1 million 31% year over year. -
Net loss of
$25.2 million $39.4 million 61% year over year on a GAAP basis. -
Non-GAAP Net Loss of
$15.9 million $6.8 million -
Cash and cash equivalents(1) were
$184.4 million December 31, 2022 , as compared to$254.7 million December 31, 2021 .
-
Revenues of
$43.9 million $11.3 million 20% year over year. -
Loss from operations of
$10.0 million $2.9 million 40% year over year. -
Non-GAAP gross profit of
$37.2 million $11.7 million 24% year over year. -
On a GAAP basis, Net Income was
$5.0 million $14.9 million $9.9 million $21.0 million -
Non-GAAP Net Income was
$2.2 million $17.0 million -
Repurchased
$60.0 million $39.0 million $21.0 million
(1) Including approximately
Pro Forma basis assumes
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||||||||
Unaudited |
|
|
|
|
Percent |
|
|
|
|
|
Percent |
|||||||||||
(in |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|||
Revenue |
$ |
43,890 |
|
$ |
55,149 |
|
(20 |
)% |
$ |
149,728 |
|
$ |
115,305 |
|
30 |
% |
||||||
Loss from operations |
$ |
(9,951 |
) |
$ |
(7,109 |
) |
40 |
% |
$ |
(37,995 |
) |
$ |
(61,373 |
) |
(38 |
)% |
||||||
Net income (loss) |
$ |
5,032 |
|
$ |
(9,899 |
) |
NM |
|
$ |
(25,236 |
) |
$ |
(64,672 |
) |
(61 |
)% |
||||||
Non-GAAP gross profit(1) |
$ |
37,183 |
|
$ |
48,882 |
|
(24 |
)% |
$ |
122,296 |
|
$ |
93,176 |
|
31 |
% |
||||||
Non-GAAP net income (loss)(1) |
$ |
2,190 |
|
$ |
16,967 |
|
(87 |
)% |
$ |
(15,880 |
) |
$ |
6,832 |
|
NM |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||||||||
Software Products & Services |
|
|
|
|
Percent |
|
|
|
|
|
Percent |
|||||||||||
Supplemental Financial Information(1) |
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|||
Software Products & Services Revenue (in 000s) |
$ |
27,220 |
|
$ |
40,223 |
|
(32 |
)% |
$ |
84,578 |
|
$ |
92,338 |
|
(8 |
)% |
||||||
Ending Software Customers |
|
642 |
|
|
529 |
|
21 |
% |
|
|
|
|||||||||||
Average Annual Revenue (AAR) (in 000's)(1) |
$ |
140 |
|
$ |
209 |
|
(33 |
)% |
|
|
|
|||||||||||
Total New Bookings (in 000s) |
$ |
20,047 |
|
$ |
8,317 |
|
141 |
% |
|
|
|
|||||||||||
(1) See tables below for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definitions used for Software Products & Services Supplemental Financial Information.
NM = [Not meaningful]
Recent Business Highlights
- Launched Veritone Generative AI on aiWARE, enhancing offerings to immediately deliver robust, orchestrated cognitive and generative AI workflows and solutions across a variety of target industries.
-
Announced strategic cost reduction initiatives that will result in net annualized savings of
$12 $15 million -
Announced the launch of Veritone Redaction Managed Service, enabling organizations with limited dedicated resources to lean on
Veritone to automate the process of obscuring sensitive media evidence, significantly improving the manual and time-intensive redaction workflows. - Unveiled new strategic partnerships with Cameo Kids and Moonbug, the creators of Cocomelon, leveraging Veritone’s AI voice capabilities to enable greater scale by removing the need to manually record each Cameo message, while diversifying revenue streams and upholding brand safety standards.
-
Repurchased approximately
$60 million 30% of the outstanding principal amount, of our1.75% Convertible Senior Notes dueNovember 2026 for an aggregate cash repurchase price of approximately$39 million -
In addition to
Ryan Steelberg assuming the role of CEO,Veritone made strategic hires ofSeth Greenberg as Chief Marketing & Strategy Officer andFleming Meng as Chief Information Officer, both seasoned executives who bring deep sector expertise in the technology industry with proven track records of elevating strong businesses as innovative decision-makers. - Audacy selects Veritone Attribute to provide advertisers with additional analytics capabilities for campaign planning, performance monitoring and optimization.
Financial Results for Three Months Ended
Delivered fourth quarter revenue of
Loss from operations increased
GAAP net income of
Financial Results for Full Year Ended
Delivered fiscal year 2022 revenue of
Loss from operations decreased
GAAP net loss was
As of
Business Outlook
First Quarter 2023
-
Revenue is expected to be in the range of
$29.5 million $30.5 million $34.4 million -
Non-GAAP net loss is expected to be in the range of
$8.5 million $9.5 million $5.2 million
Full Year 2023
-
Revenue is expected to be in the range of
$158 million $168 million $149.7 million -
Non-GAAP net loss is expected to be in the range of
$7.0 million $1.0 million $15.9 million
These updated financial targets supersede any previously disclosed financial targets and investors should not rely on any previously disclosed financial targets.
Conference Call
- Pre-Registration*
- Live Audio Webcast
- Domestic Dial-In: 844-750-4897
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* Please note that pre-registered participants will receive their dial-in number and unique PIN upon registration.
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
Pro Forma Revenue includes historical Software Products & Services revenue from the past eight fiscal quarters of each of
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 revenue, 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.
About
To learn more, visit Veritone.com.
Safe Harbor Statement
This news release contains forward-looking statements, including without limitation statements regarding the Company’s expectations regarding its plan to capitalize on customer-based momentum and the Company’s expected total revenue and Non-GAAP net loss for Q1 2023 and for full year 2023. 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, 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 to support our business growth, and the availability of such capital on acceptable terms, if at all, our reliance upon a limited number of key customers for a significant portion of our revenue, fluctuations in our results over time, the impact of seasonality on our business, our ability to manage our growth, including through acquisitions and our further 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 the technology in our aiWARE platform, offering it for free to the public or making it cost prohibitive to continue to incorporate their technologies into our platform, interruptions, performance problems or security issues with our technology and infrastructure, or that of our third party service providers, the impact of the continuing economic disruption caused by the COVID-19 pandemic and the Russian invasion of
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||
(in thousands) |
||||||
|
|
|
||||
|
As of |
|||||
|
2022 |
2021 |
||||
ASSETS |
|
|
||||
|
|
|
||||
Cash and cash equivalents |
$ |
184,423 |
$ |
254,722 |
||
Accounts receivable, net |
|
56,001 |
|
85,063 |
||
Expenditures billable to clients |
|
22,339 |
|
27,180 |
||
Prepaid expenses and other current assets |
|
15,242 |
|
12,117 |
||
Total current assets |
|
278,005 |
|
379,082 |
||
Property, equipment and improvements, net |
|
5,291 |
|
1,556 |
||
Intangible assets, net |
|
79,664 |
|
93,872 |
||
|
|
46,498 |
|
42,028 |
||
Long-term restricted cash |
|
859 |
|
855 |
||
Other assets |
|
14,435 |
|
954 |
||
Total assets |
$ |
424,752 |
$ |
518,347 |
||
|
|
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
||||
|
|
|
||||
Accounts payable |
$ |
36,738 |
$ |
46,711 |
||
Accrued media payments |
|
102,064 |
|
86,923 |
||
Client advances |
|
19,042 |
|
10,561 |
||
Contingent consideration, current |
|
8,067 |
|
20,053 |
||
Other accrued liabilities |
|
27,020 |
|
27,093 |
||
Total current liabilities |
|
192,931 |
|
191,341 |
||
Convertible senior notes, non-current |
|
137,767 |
|
195,082 |
||
Contingent consideration, non-current |
|
— |
|
31,533 |
||
Other non-current liabilities |
|
13,882 |
|
13,891 |
||
Total liabilities |
|
344,580 |
|
431,847 |
||
Total stockholders' equity |
|
80,172 |
|
86,500 |
||
Total liabilities and stockholders' equity |
$ |
424,752 |
$ |
518,347 |
||
|
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||
AND COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||
(in thousands, except per share and share data) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||||
Revenue |
$ |
43,890 |
|
$ |
55,149 |
|
$ |
149,728 |
|
$ |
115,305 |
|
||||
Operating expenses: |
|
|
|
|
||||||||||||
Cost of revenue |
|
6,707 |
|
|
6,267 |
|
|
27,432 |
|
|
22,129 |
|
||||
Sales and marketing |
|
13,780 |
|
|
11,349 |
|
|
51,345 |
|
|
28,935 |
|
||||
Research and development |
|
10,854 |
|
|
10,215 |
|
|
43,589 |
|
|
25,075 |
|
||||
General and administrative |
|
17,050 |
|
|
29,395 |
|
|
44,177 |
|
|
91,667 |
|
||||
Amortization |
|
5,450 |
|
|
5,032 |
|
|
21,180 |
|
|
8,872 |
|
||||
Total operating expenses |
|
53,841 |
|
|
62,258 |
|
|
187,723 |
|
|
176,678 |
|
||||
Loss from operations |
|
(9,951 |
) |
|
(7,109 |
) |
|
(37,995 |
) |
|
(61,373 |
) |
||||
Other expense, net |
|
18,413 |
|
|
(563 |
) |
|
14,747 |
|
|
(600 |
) |
||||
Income (loss) before provision for income taxes |
|
8,462 |
|
|
(7,672 |
) |
|
(23,248 |
) |
|
(61,973 |
) |
||||
Provision for (benefit from) income taxes |
|
3,430 |
|
|
2,227 |
|
|
1,988 |
|
|
2,699 |
|
||||
Net income (loss) |
$ |
5,032 |
|
$ |
(9,899 |
) |
$ |
(25,236 |
) |
$ |
(64,672 |
) |
||||
Net income (loss) used for calculating net income (loss) per share: |
|
|
|
|
||||||||||||
Basic |
$ |
5,032 |
|
$ |
(9,899 |
) |
$ |
(25,236 |
) |
$ |
(64,672 |
) |
||||
Diluted |
$ |
(9,096 |
) |
$ |
(9,899 |
) |
$ |
(25,236 |
) |
$ |
(64,672 |
) |
||||
Net income (loss) per share: |
|
|
|
|
||||||||||||
Basic |
$ |
0.14 |
|
$ |
(0.28 |
) |
$ |
(0.70 |
) |
$ |
(1.94 |
) |
||||
Diluted |
$ |
(0.21 |
) |
$ |
(0.28 |
) |
$ |
(0.70 |
) |
$ |
(1.94 |
) |
||||
Weighted average shares outstanding: |
|
|
|
|
||||||||||||
Basic |
|
36,359,618 |
|
|
34,916,927 |
|
|
36,033,560 |
|
|
33,298,382 |
|
||||
Diluted |
|
42,487,004 |
|
|
34,916,927 |
|
|
36,033,560 |
|
|
33,298,382 |
|
||||
Comprehensive income (loss): |
|
|
|
|
||||||||||||
Net income (loss) |
$ |
5,032 |
|
$ |
(9,899 |
) |
$ |
(25,236 |
) |
$ |
(64,672 |
) |
||||
Foreign currency translation gain, net of income taxes |
|
(614 |
) |
|
(177 |
) |
|
28 |
|
|
(170 |
) |
||||
Total comprehensive income (loss) |
$ |
4,418 |
|
$ |
(10,076 |
) |
$ |
(25,208 |
) |
$ |
(64,842 |
) |
||||
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(in thousands) |
||||||||
|
|
|
||||||
|
Year Ended
|
|||||||
|
2022 |
|
2021 |
|||||
Cash flows from operating activities: |
|
|
||||||
Net loss |
$ |
(25,236 |
) |
$ |
(64,672 |
) |
||
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
||||||
Depreciation and amortization |
|
22,493 |
|
|
9,410 |
|
||
Loss on disposal of fixed assets |
|
— |
|
|
1,894 |
|
||
Provision for doubtful accounts |
|
549 |
|
|
172 |
|
||
Loss on sublease |
|
— |
|
|
1,211 |
|
||
Stock-based compensation expense |
|
19,115 |
|
|
40,065 |
|
||
Change in fair value of contingent consideration |
|
(22,721 |
) |
|
12,074 |
|
||
Change in deferred taxes |
|
1,482 |
|
|
(45 |
) |
||
Amortization of debt issuance costs |
|
1,191 |
|
|
— |
|
||
Amortization of right-of-use assets |
|
1,053 |
|
|
— |
|
||
Gain on debt extinguishment |
|
(19,097 |
) |
|
— |
|
||
Changes in assets and liabilities: |
|
|
||||||
Accounts receivable |
|
29,658 |
|
|
(47,225 |
) |
||
Expenditures billable to clients |
|
4,841 |
|
|
(8,815 |
) |
||
Prepaid expenses and other assets |
|
(2,938 |
) |
|
3,368 |
|
||
Other assets |
|
(9,558 |
) |
|
(241 |
) |
||
Accounts payable |
|
(9,997 |
) |
|
17,896 |
|
||
Accrued media payments |
|
14,507 |
|
|
31,049 |
|
||
Client advances |
|
8,481 |
|
|
4,065 |
|
||
Other accrued liabilities |
|
(1,992 |
) |
|
8,184 |
|
||
Other liabilities |
|
(8,094 |
) |
|
(1,156 |
) |
||
Net cash provided by operating activities |
|
3,737 |
|
|
7,234 |
|
||
|
|
|
||||||
Cash flows from investing activities: |
|
|
||||||
Minority investment |
|
(2,750 |
) |
|
— |
|
||
Capital expenditures |
|
(4,765 |
) |
|
(1,016 |
) |
||
Acquisitions, net of cash acquired |
|
(4,589 |
) |
|
(52,827 |
) |
||
Net cash used in investing activities |
|
(12,104 |
) |
|
(53,843 |
) |
||
|
|
|
||||||
Cash flows from financing activities: |
|
|
||||||
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 |
) |
||
Repurchase of convertible senior notes |
|
(39,029 |
) |
|
— |
|
||
Payment of debt repurchase costs |
|
(380 |
) |
|
— |
|
||
Unwinding of capped calls related to debt repurchase |
|
276 |
|
|
— |
|
||
Payment of contingent considerations |
|
(14,376 |
) |
|
— |
|
||
Taxes paid related to net share settlement of equity awards |
|
(9,765 |
) |
|
— |
|
||
Proceeds from the exercise of warrants |
|
— |
|
|
2,279 |
|
||
Proceeds from issuances of stock under employee stock plans, net |
|
1,346 |
|
|
7,905 |
|
||
Net cash (used in) provided by financing activities |
|
(61,928 |
) |
|
186,514 |
|
||
|
|
|
||||||
Net (decrease) increase in cash and cash equivalents and restricted cash |
|
(70,295 |
) |
|
139,905 |
|
||
Cash and cash equivalents and restricted cash, beginning of period |
|
255,577 |
|
|
115,672 |
|
||
Cash and cash equivalents and restricted cash, end of period |
$ |
185,282 |
|
$ |
255,577 |
|
||
|
||||||||||||||||||
REVENUE DETAIL (UNAUDITED) |
||||||||||||||||||
(in thousands) |
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended
|
Year Ended
|
||||||||||||||||
|
|
Government & |
|
|
Government & |
|
||||||||||||
|
Commercial |
Regulated |
|
Commercial |
Regulated |
|
||||||||||||
|
Enterprise |
Industries |
Total |
Enterprise |
Industries |
Total |
||||||||||||
Total Software Products & Services |
$ |
26,055 |
$ |
1,165 |
$ |
27,220 |
$ |
80,749 |
$ |
3,829 |
$ |
84,578 |
||||||
|
|
|
|
|
|
|
||||||||||||
Managed Services |
|
|
|
|
|
|
||||||||||||
Advertising |
|
12,045 |
|
— |
|
12,045 |
|
44,665 |
|
— |
|
44,665 |
||||||
Licensing |
|
4,625 |
|
— |
|
4,625 |
|
20,485 |
|
— |
|
20,485 |
||||||
Total Managed Services |
|
16,670 |
|
— |
|
16,670 |
|
65,150 |
|
— |
|
65,150 |
||||||
|
|
|
|
|
|
|
||||||||||||
Total Revenue |
$ |
42,725 |
$ |
1,165 |
$ |
43,890 |
$ |
145,899 |
$ |
3,829 |
$ |
149,728 |
||||||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||||
|
Three Months Ended
|
Year Ended
|
||||||||||||||||
|
|
Government & |
|
|
Government & |
|
||||||||||||
|
Commercial |
Regulated |
|
Commercial |
Regulated |
|
||||||||||||
|
Enterprise |
Industries |
Total |
Enterprise |
Industries |
Total |
||||||||||||
Total Software Products & Services |
$ |
38,888 |
$ |
1,335 |
$ |
40,223 |
$ |
55,484 |
$ |
4,031 |
$ |
59,515 |
||||||
|
|
|
|
|
|
|
||||||||||||
Managed Services |
|
|
|
|
|
|
||||||||||||
Advertising |
|
10,857 |
|
— |
|
10,857 |
|
40,800 |
|
— |
|
40,800 |
||||||
Licensing |
|
4,069 |
|
— |
|
4,069 |
|
14,990 |
|
— |
|
14,990 |
||||||
Total Managed Services |
|
14,926 |
|
— |
|
14,926 |
|
55,790 |
|
— |
|
55,790 |
||||||
|
|
|
|
|
|
|
||||||||||||
Total Revenue |
$ |
53,814 |
$ |
1,335 |
$ |
55,149 |
$ |
111,274 |
$ |
4,031 |
$ |
115,305 |
||||||
|
|||||||||||||||||||||||
RECONCILIATION OF NON-GAAP NET INCOME (LOSS) TO GAAP NET LOSS (UNAUDITED) |
|||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||
|
2022 |
|
2021 |
||||||||||||||||||||
|
Core Operations(1) |
|
Corporate(2) |
|
Total |
|
Core Operations(1) |
|
Corporate(2) |
|
Total |
||||||||||||
Net income (loss) |
$ |
3,466 |
|
$ |
1,566 |
|
$ |
5,032 |
|
$ |
12,231 |
$ |
(22,130 |
) |
$ |
(9,899 |
) |
||||||
Provision for income taxes |
|
2,310 |
|
|
1,120 |
|
|
3,430 |
|
|
2,268 |
|
4 |
|
|
2,272 |
|
||||||
Depreciation and amortization |
|
5,882 |
|
|
117 |
|
|
5,999 |
|
|
5,119 |
|
102 |
|
|
5,221 |
|
||||||
Stock-based compensation expense |
|
2,526 |
|
|
2,010 |
|
|
4,536 |
|
|
1,986 |
|
4,586 |
|
|
6,572 |
|
||||||
Change in fair value of contingent consideration |
|
— |
|
|
355 |
|
|
355 |
|
|
— |
|
11,771 |
|
|
11,771 |
|
||||||
State sales tax reserve |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
||||||
Interest expense, net |
|
— |
|
|
680 |
|
|
680 |
|
|
— |
|
493 |
|
|
493 |
|
||||||
Gain on debt extinguishment |
|
— |
|
|
(19,097 |
) |
|
(19,097 |
) |
|
— |
|
— |
|
|
— |
|
||||||
Acquisition and due diligence costs |
|
— |
|
|
1,080 |
|
|
1,080 |
|
|
— |
|
537 |
|
|
537 |
|
||||||
Charges related to sublease |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
||||||
Severance and executive search |
|
175 |
|
|
— |
|
|
175 |
|
|
— |
|
— |
|
|
— |
|
||||||
Non-GAAP Net Income (Loss) |
$ |
14,359 |
|
$ |
(12,169 |
) |
$ |
2,190 |
|
$ |
21,604 |
$ |
(4,637 |
) |
$ |
16,967 |
|
||||||
|
|
|
|
|
|
|
|||||||||||||||||
|
Year Ended |
||||||||||||||||||||||
|
2022 |
|
2021 |
||||||||||||||||||||
|
Core Operations(1) |
|
Corporate(2) |
|
Total |
|
Core Operations(1) |
|
Corporate(2) |
|
Total |
||||||||||||
Net income (loss) |
$ |
(18,706 |
) |
$ |
(6,530 |
) |
$ |
(25,236 |
) |
$ |
8,298 |
$ |
(72,970 |
) |
$ |
(64,672 |
) |
||||||
(Benefit from) provision for income taxes |
|
1,484 |
|
|
504 |
|
|
1,988 |
|
|
2,658 |
|
86 |
|
|
2,744 |
|
||||||
Depreciation and amortization |
|
21,936 |
|
|
557 |
|
|
22,493 |
|
|
8,984 |
|
426 |
|
|
9,410 |
|
||||||
Stock-based compensation expense |
|
10,138 |
|
|
8,977 |
|
|
19,115 |
|
|
6,575 |
|
33,488 |
|
|
40,063 |
|
||||||
Change in fair value of contingent consideration |
|
— |
|
|
(22,721 |
) |
|
(22,721 |
) |
|
— |
|
12,074 |
|
|
12,074 |
|
||||||
State sales tax reserve |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
306 |
|
|
306 |
|
||||||
Interest expense, net |
|
— |
|
|
4,350 |
|
|
4,350 |
|
|
— |
|
493 |
|
|
493 |
|
||||||
Gain on debt extinguishment |
|
— |
|
|
(19,097 |
) |
|
(19,097 |
) |
|
— |
|
— |
|
|
— |
|
||||||
Acquisition and due diligence costs |
|
— |
|
|
2,688 |
|
|
2,688 |
|
|
— |
|
2,698 |
|
|
2,698 |
|
||||||
Charges related to sublease |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
3,367 |
|
|
3,367 |
|
||||||
Severance and executive search |
|
512 |
|
|
28 |
|
|
540 |
|
|
— |
|
349 |
|
|
349 |
|
||||||
Non-GAAP Net Income (Loss) |
$ |
15,364 |
|
$ |
(31,244 |
) |
$ |
(15,880 |
) |
$ |
26,515 |
$ |
(19,683 |
) |
$ |
6,832 |
|
||||||
(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. |
|||||||||||||||||||||||
|
||||
RECONCILIATION OF EXPECTED NON-GAAP NET INCOME (LOSS) RANGE |
||||
TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED) |
||||
(in millions) |
||||
|
Three Months Ending |
Year Ending |
||
|
2023 |
2023 |
||
Net loss |
( |
|
( |
|
Provision for income taxes |
|
|
|
|
Interest expense |
|
|
|
|
Depreciation and amortization |
|
|
|
|
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
|
|||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Revenue |
$ |
43,890 |
|
$ |
55,149 |
|
$ |
149,728 |
|
$ |
115,305 |
|
||||
Cost of revenue |
|
6,707 |
|
|
6,267 |
|
|
27,432 |
|
|
22,129 |
|
||||
Non-GAAP gross profit |
|
37,183 |
|
|
48,882 |
|
|
122,296 |
|
|
93,176 |
|
||||
|
|
|
|
|
||||||||||||
GAAP cost of revenue |
|
6,707 |
|
|
6,267 |
|
|
27,432 |
|
|
22,129 |
|
||||
Stock-based compensation expense |
|
(26 |
) |
|
(116 |
) |
|
(116 |
) |
|
(116 |
) |
||||
Non-GAAP cost of revenue |
|
6,681 |
|
|
6,151 |
|
|
27,316 |
|
|
22,013 |
|
||||
|
|
|
|
|
||||||||||||
GAAP sales and marketing expenses |
|
13,780 |
|
|
11,349 |
|
|
51,345 |
|
|
28,935 |
|
||||
Stock-based compensation expense |
|
(535 |
) |
|
(358 |
) |
|
(2,263 |
) |
|
(1,716 |
) |
||||
Severance and executive search |
|
— |
|
|
— |
|
|
(86 |
) |
|
(236 |
) |
||||
Non-GAAP sales and marketing expenses |
|
13,245 |
|
|
10,991 |
|
|
48,996 |
|
|
26,983 |
|
||||
|
|
|
|
|
||||||||||||
GAAP research and development expenses |
|
10,854 |
|
|
10,215 |
|
|
43,589 |
|
|
25,075 |
|
||||
Stock-based compensation expense |
|
(1,273 |
) |
|
(1,201 |
) |
|
(5,056 |
) |
|
(3,217 |
) |
||||
Severance and executive search |
|
— |
|
|
— |
|
|
(198 |
) |
|
(14 |
) |
||||
Non-GAAP research and development expenses |
|
9,581 |
|
|
9,014 |
|
|
38,335 |
|
|
21,844 |
|
||||
|
|
|
|
|
||||||||||||
GAAP general and administrative expenses |
|
17,050 |
|
|
29,395 |
|
|
44,177 |
|
|
91,667 |
|
||||
Depreciation |
|
(549 |
) |
|
(189 |
) |
|
(1,313 |
) |
|
(538 |
) |
||||
Stock-based compensation expense |
|
(2,702 |
) |
|
(4,897 |
) |
|
(11,680 |
) |
|
(35,014 |
) |
||||
Change in fair value of contingent consideration |
|
(355 |
) |
|
(11,771 |
) |
|
22,721 |
|
|
(12,074 |
) |
||||
Charges related to sublease |
|
— |
|
|
— |
|
|
— |
|
|
(3,367 |
) |
||||
State sales tax reserve |
|
— |
|
|
— |
|
|
— |
|
|
(306 |
) |
||||
Acquisition and due diligence costs |
|
(1,080 |
) |
|
(537 |
) |
|
(2,688 |
) |
|
(2,698 |
) |
||||
Severance and executive search |
|
(175 |
) |
|
— |
|
|
(256 |
) |
|
(99 |
) |
||||
Non-GAAP general and administrative expenses |
|
12,189 |
|
|
12,001 |
|
|
50,961 |
|
|
37,571 |
|
||||
|
|
|
|
|
||||||||||||
GAAP amortization |
|
(5,450 |
) |
|
(5,032 |
) |
|
(21,180 |
) |
|
(8,872 |
) |
||||
|
|
|
|
|
||||||||||||
GAAP loss from operations |
|
(9,951 |
) |
|
(7,109 |
) |
|
(37,995 |
) |
|
(61,373 |
) |
||||
Total non-GAAP adjustments (1) |
|
12,145 |
|
|
24,101 |
|
|
22,115 |
|
|
68,267 |
|
||||
Non-GAAP income (loss) from operations |
|
2,194 |
|
|
16,992 |
|
|
(15,880 |
) |
|
6,894 |
|
||||
|
|
|
|
|
||||||||||||
GAAP other income (expense), net |
|
18,413 |
|
|
(563 |
) |
|
14,747 |
|
|
(600 |
) |
||||
Gain on debt extinguishment |
|
(19,097 |
) |
|
— |
|
|
(19,097 |
) |
|
— |
|
||||
Interest expense, net |
|
680 |
|
|
538 |
|
|
4,350 |
|
|
538 |
|
||||
Non-GAAP other expense, net |
|
(4 |
) |
|
(25 |
) |
|
— |
|
|
(62 |
) |
||||
|
|
|
|
|
||||||||||||
GAAP income (loss) before income taxes |
|
8,462 |
|
|
(7,672 |
) |
|
(23,248 |
) |
|
(61,973 |
) |
||||
Total non-GAAP adjustments (1) |
|
(6,272 |
) |
|
24,639 |
|
|
7,368 |
|
|
68,805 |
|
||||
Non-GAAP income (loss) before income taxes |
|
2,190 |
|
|
16,967 |
|
|
(15,880 |
) |
|
6,832 |
|
||||
|
|
|
|
|
||||||||||||
Income tax provision |
|
3,430 |
|
|
2,227 |
|
|
1,988 |
|
|
2,699 |
|
||||
|
|
|
|
|
||||||||||||
GAAP net income (loss) |
|
5,032 |
|
|
(9,899 |
) |
|
(25,236 |
) |
|
(64,672 |
) |
||||
Total non-GAAP adjustments (1) |
|
(2,842 |
) |
|
26,866 |
|
|
9,356 |
|
|
71,504 |
|
||||
Non-GAAP net income (loss) |
$ |
2,190 |
|
$ |
16,967 |
|
$ |
(15,880 |
) |
$ |
6,832 |
|
||||
|
|
|
|
|
||||||||||||
Shares used in computing non-GAAP basic net income (loss) per share |
|
36,360 |
|
|
34,917 |
|
|
36,034 |
|
|
33,298 |
|
||||
Shares used in computing non-GAAP diluted net income (loss) per share (2) |
|
42,487 |
|
|
45,626 |
|
|
36,034 |
|
|
43,928 |
|
||||
Non-GAAP basic net income (loss) per share |
$ |
0.06 |
|
$ |
0.49 |
|
$ |
(0.44 |
) |
$ |
0.21 |
|
||||
Non-GAAP diluted net income (loss) per share |
$ |
0.05 |
|
$ |
0.37 |
|
$ |
(0.44 |
) |
$ |
0.16 |
|
||||
|
|
|
|
|
||||||||||||
(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) Shares used in computing non-GAAP diluted net income (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 |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|||||||||
Software Revenue - Pro Forma (in 000's) (1) |
$ |
10,183 |
$ |
20,072 |
$ |
21,860 |
$ |
40,223 |
$ |
18,167 |
$ |
18,379 |
$ |
20,812 |
$ |
27,220 |
||||||||
Ending Software Customers (2) |
|
385 |
|
419 |
|
433 |
|
529 |
|
559 |
|
594 |
|
618 |
|
642 |
||||||||
Average Annual Revenue (AAR) (in 000's) (3) |
$ |
199 |
$ |
203 |
$ |
208 |
$ |
209 |
$ |
207 |
$ |
187 |
$ |
170 |
$ |
140 |
||||||||
Total New Bookings (in 000's) (4) |
$ |
2,442 |
$ |
4,896 |
$ |
3,356 |
$ |
8,317 |
$ |
9,574 |
$ |
14,658 |
$ |
16,548 |
$ |
20,047 |
||||||||
Gross Revenue Retention (5) |
> |
> |
> |
> |
> |
> |
> |
> |
||||||||||||||||
(1) “Software Revenue - Pro Forma” includes historical Software Products & Services revenue from the past eight (8) fiscal quarters of each of
(2) “Ending Software 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
(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
(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”: We calculate our dollar-based gross retention rate as of the period end by starting with the revenue from Ending Software 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 Software 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 Ending Software Customers from our Software Products & Services as of the year prior that is not lost to customer churn
Managed Services Supplemental Financial Information
|
Quarter Ended |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
|
2022 |
|
2022 |
||||||||
Avg billings per active Managed Services client (in 000's) (6) |
$ |
582 |
|
$ |
622 |
|
$ |
615 |
|
$ |
625 |
|
$ |
684 |
|
$ |
736 |
|
$ |
747 |
|
$ |
823 |
|
Revenue during quarter (in 000's) (7) |
$ |
10,327 |
|
$ |
9,968 |
|
$ |
9,647 |
|
$ |
10,857 |
|
$ |
10,735 |
|
$ |
9,625 |
|
$ |
10,035 |
|
$ |
11,074 |
|
(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.
(7) Managed Services revenue and metrics exclude content licensing and media services.
RECONCILIATION OF PRO FORMA REVENUE TO REVENUE AND CALCULATION OF AAR
(in thousands)
|
Quarter Ended |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|||||||||
Software Products & Services Revenue |
$ |
4,685 |
$ |
5,580 |
$ |
9,027 |
$ |
40,223 |
$ |
18,167 |
$ |
18,379 |
$ |
20,812 |
$ |
27,220 |
||||||||
PandoLogic Revenue (1) |
|
5,498 |
|
14,492 |
|
12,833 |
|
— |
|
— |
|
— |
|
— |
|
— |
||||||||
Software Revenue - Pro Forma |
$ |
10,183 |
$ |
20,072 |
$ |
21,860 |
$ |
40,223 |
$ |
18,167 |
$ |
18,379 |
$ |
20,812 |
$ |
27,220 |
||||||||
Managed Services Revenue |
|
13,610 |
|
13,626 |
|
13,628 |
|
14,926 |
|
16,240 |
|
15,856 |
|
16,384 |
|
16,670 |
||||||||
Total Pro Forma Revenue |
$ |
23,793 |
$ |
33,698 |
$ |
35,488 |
$ |
55,149 |
$ |
34,407 |
$ |
34,235 |
$ |
37,196 |
$ |
43,890 |
||||||||
(1)
|
Trailing Twelve Months Ended |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2021 |
|
2021 |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
2022 |
|
2022 |
|||||||||
Software Products & Services Revenue |
$ |
15,439 |
$ |
18,017 |
$ |
23,693 |
$ |
59,515 |
$ |
72,997 |
$ |
85,796 |
$ |
97,581 |
$ |
84,578 |
||||||||
PandoLogic Revenue (1) |
|
50,283 |
|
57,262 |
|
59,292 |
|
32,824 |
|
27,325 |
|
12,833 |
|
— |
|
— |
||||||||
Software Revenue - Pro Forma |
$ |
65,722 |
$ |
75,279 |
$ |
82,985 |
$ |
92,339 |
$ |
100,322 |
$ |
98,629 |
$ |
97,581 |
$ |
84,578 |
||||||||
Managed Services Revenue |
|
43,845 |
|
52,019 |
|
53,279 |
|
55,789 |
|
58,419 |
|
60,546 |
|
63,406 |
|
65,150 |
||||||||
Total Pro Forma Revenue |
$ |
109,567 |
$ |
127,298 |
$ |
136,264 |
$ |
148,128 |
$ |
158,741 |
$ |
159,175 |
$ |
160,987 |
$ |
149,728 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
Average Number of Customers - Pro Forma |
|
330 |
|
372 |
|
399 |
|
442 |
|
485 |
|
529 |
|
575 |
|
603 |
||||||||
Average Annual Revenue (AAR) |
$ |
199 |
$ |
203 |
$ |
208 |
$ |
209 |
$ |
207 |
$ |
187 |
$ |
170 |
$ |
140 |
||||||||
(1)
RECONCILIATION OF NON-GAAP GROSS PROFIT TO LOSS FROM OPERATIONS
(in thousands)
|
Three Months Ended
|
|
Year Ended
|
|||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Loss from operations |
$ |
(9,951 |
) |
|
$ |
(7,109 |
) |
|
$ |
(37,995 |
) |
|
$ |
(61,373 |
) |
|
Sales and marketing |
|
13,780 |
|
|
|
11,349 |
|
|
|
51,345 |
|
|
|
28,935 |
|
|
Research and development |
|
10,854 |
|
|
|
10,215 |
|
|
|
43,589 |
|
|
|
25,075 |
|
|
General and administrative |
|
17,050 |
|
|
|
29,395 |
|
|
|
44,177 |
|
|
|
91,667 |
|
|
Amortization |
|
5,450 |
|
|
|
5,032 |
|
|
|
21,180 |
|
|
|
8,872 |
|
|
Non-GAAP gross profit |
$ |
37,183 |
|
|
$ |
48,882 |
|
|
$ |
122,296 |
|
|
$ |
93,176 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230302005778/en/
Company Contact:
SVP, Investor Relations and Capital Markets
415-203-8265
investors@veritone.com
IR Agency Contact:
203-644-5475
snorbom@prosek.com
Source:
FAQ
What were Veritone's revenue and growth figures for fiscal year 2022?
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