Veritone Reports Fourth Quarter and Fiscal Year 2024 Results
Veritone (NASDAQ:VERI) reported its Q4 and fiscal year 2024 results with annual revenue of $92.6 million, down 7% year-over-year. The company's Q4 revenue was $22.4 million, a 17% decrease from Q4 2023.
Key financial highlights include:
- Software Products & Services revenue: $61.1 million (down 11% YoY)
- Annual Recurring Revenue (ARR): $58.8 million from 3,237 customers
- Net loss for 2024: $37.4 million, improved from $58.6 million in 2023
Notable developments include:
- Completed divestiture of media agency for up to $104 million
- Raised $20.3 million through common stock offering in January 2025
- Processed over 10.5 petabytes of data in 2024
- 2025 revenue guidance: $107-122 million
Veritone (NASDAQ:VERI) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, con un fatturato annuale di 92,6 milioni di dollari, in calo del 7% rispetto all'anno precedente. Il fatturato del quarto trimestre dell'azienda è stato di 22,4 milioni di dollari, con una diminuzione del 17% rispetto al quarto trimestre del 2023.
Le principali evidenze finanziarie includono:
- Fatturato da Software Prodotti e Servizi: 61,1 milioni di dollari (in calo dell'11% su base annua)
- Ricavi Annuali Ricorrenti (ARR): 58,8 milioni di dollari da 3.237 clienti
- Perdita netta per il 2024: 37,4 milioni di dollari, migliorata rispetto ai 58,6 milioni di dollari del 2023
Sviluppi notevoli includono:
- Completata la dismissione dell'agenzia media per un massimo di 104 milioni di dollari
- Raccolti 20,3 milioni di dollari attraverso un'offerta di azioni ordinarie a gennaio 2025
- Elaborati oltre 10,5 petabyte di dati nel 2024
- Previsioni di fatturato per il 2025: 107-122 milioni di dollari
Veritone (NASDAQ:VERI) informó sus resultados del cuarto trimestre y del año fiscal 2024, con ingresos anuales de 92.6 millones de dólares, una disminución del 7% interanual. Los ingresos del cuarto trimestre de la empresa fueron de 22.4 millones de dólares, lo que representa una disminución del 17% en comparación con el cuarto trimestre de 2023.
Los aspectos financieros clave incluyen:
- Ingresos por Productos y Servicios de Software: 61.1 millones de dólares (bajo un 11% interanual)
- Ingresos Anuales Recurrentes (ARR): 58.8 millones de dólares de 3,237 clientes
- Pérdida neta para 2024: 37.4 millones de dólares, mejorada desde los 58.6 millones de dólares en 2023
Desarrollos notables incluyen:
- Completada la desinversión de la agencia de medios por hasta 104 millones de dólares
- Se recaudaron 20.3 millones de dólares a través de una oferta de acciones ordinarias en enero de 2025
- Se procesaron más de 10.5 petabytes de datos en 2024
- Guía de ingresos para 2025: 107-122 millones de dólares
Veritone (NASDAQ:VERI)는 2024 회계연도 4분기 및 연간 실적을 발표했으며, 연간 수익은 9260만 달러로 전년 대비 7% 감소했습니다. 회사의 4분기 수익은 2240만 달러로, 2023년 4분기 대비 17% 감소했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 소프트웨어 제품 및 서비스 수익: 6110만 달러 (전년 대비 11% 감소)
- 연간 반복 수익 (ARR): 3237명의 고객으로부터 5880만 달러
- 2024년 순손실: 3740만 달러, 2023년 5860만 달러에서 개선됨
주요 발전 사항은 다음과 같습니다:
- 최대 1억 400만 달러에 미디어 에이전시 매각 완료
- 2025년 1월 일반 주식 공모를 통해 2030만 달러 조달
- 2024년에 10.5 페타바이트 이상의 데이터 처리
- 2025년 수익 가이드: 1억 700만 달러에서 1억 2200만 달러
Veritone (NASDAQ:VERI) a publié ses résultats du quatrième trimestre et de l'année fiscale 2024, avec un chiffre d'affaires annuel de 92,6 millions de dollars, en baisse de 7 % par rapport à l'année précédente. Le chiffre d'affaires du quatrième trimestre de l'entreprise s'élevait à 22,4 millions de dollars, soit une baisse de 17 % par rapport au quatrième trimestre 2023.
Les points financiers clés incluent :
- Chiffre d'affaires des Produits et Services Logiciels : 61,1 millions de dollars (en baisse de 11 % par rapport à l'année précédente)
- Revenu Annuel Récurrent (ARR) : 58,8 millions de dollars provenant de 3 237 clients
- Perte nette pour 2024 : 37,4 millions de dollars, améliorée par rapport à 58,6 millions de dollars en 2023
Les développements notables incluent :
- Achèvement de la cession de l'agence média pour jusqu'à 104 millions de dollars
- Collecte de 20,3 millions de dollars par le biais d'une offre d'actions ordinaires en janvier 2025
- Traitement de plus de 10,5 pétaoctets de données en 2024
- Prévisions de chiffre d'affaires pour 2025 : 107-122 millions de dollars
Veritone (NASDAQ:VERI) hat seine Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 bekannt gegeben, mit einem Jahresumsatz von 92,6 Millionen Dollar, was einem Rückgang von 7% im Vergleich zum Vorjahr entspricht. Der Umsatz des Unternehmens im vierten Quartal betrug 22,4 Millionen Dollar, ein Rückgang von 17% im Vergleich zum vierten Quartal 2023.
Wichtige finanzielle Highlights sind:
- Umsatz aus Softwareprodukten und -dienstleistungen: 61,1 Millionen Dollar (Rückgang um 11% im Jahresvergleich)
- Jährlicher wiederkehrender Umsatz (ARR): 58,8 Millionen Dollar von 3.237 Kunden
- Nettoverlust für 2024: 37,4 Millionen Dollar, verbessert von 58,6 Millionen Dollar im Jahr 2023
Bemerkenswerte Entwicklungen sind:
- Abschluss der Veräußerung der Medienagentur für bis zu 104 Millionen Dollar
- Erhöhung von 20,3 Millionen Dollar durch ein Angebot von Stammaktien im Januar 2025
- Verarbeitung von über 10,5 Petabyte Daten im Jahr 2024
- Umsatzprognose für 2025: 107-122 Millionen Dollar
- Improved net loss to $37.4M in 2024 from $58.6M in 2023
- Received $59.1M cash from media agency divestiture with potential $18M earnout
- Raised $20.3M through stock offering and $4.7M through ATM facility
- Projects 23.7% revenue growth at midpoint for 2025
- Maintained high gross margins of 71.6% (non-GAAP)
- Revenue declined 7% YoY to $92.6M in 2024
- Q4 revenue dropped 17% YoY to $22.4M
- ARR decreased 27% YoY to $58.8M
- Software Products & Services revenue fell 11% YoY
- Customer base decreased 6% YoY
Insights
Veritone's Q4 and FY 2024 results present a transitional financial picture with mixed signals for investors. The company reported FY2024 revenue of $92.6 million, down 7% year-over-year, with Q4 revenue declining more sharply at 17%. The revenue deterioration was primarily driven by a 22% drop in Software Products & Services revenue in Q4, attributable to reduced consumption across Commercial Enterprise customers, particularly Amazon.
The divestiture of Veritone One for up to $104 million ($59.1 million in cash at closing plus potential earnouts) represents a significant strategic pivot and immediate capital infusion. This transaction, combined with the $20.3 million common stock offering and $35 million ATM facility, substantially strengthens Veritone's balance sheet during a challenging revenue period.
Concerning metrics include the 27% decline in Annual Recurring Revenue to $58.8 million and 6% reduction in customer count. Gross margins deteriorated 280 basis points to 67.6% on a GAAP basis. While operating loss improved by 13% to $86.8 million, the continuing operations net loss worsened significantly to $96.3 million versus $66 million in 2023.
The forward guidance suggests a potential inflection point, projecting FY2025 revenue growth of 15.7% to 31.7% ($107-122 million) and substantial improvement in Non-GAAP net loss from $40.8 million to a range of $27-17 million. The company's strategic emphasis on the Veritone Data Refinery solution and DoD/public sector opportunities indicates a deliberate realignment toward higher-potential market segments after divesting its media agency business.
Veritone's performance reflects both the challenges and opportunities in the enterprise AI market. Their launch of Veritone Data Refinery addresses a critical market need for transforming unstructured data into AI-ready assets - a foundational capability as organizations struggle with data preparation for AI implementation. The early traction with 13 enterprise customers suggests market validation of this approach.
The company's processing of 10.5 petabytes of data and leveraging 862 unique AI models in 2024 demonstrates genuinely substantial scale for their AI operations. Their platform architecture combining proprietary technology with third-party models represents a pragmatic approach in the rapidly evolving AI ecosystem.
The revenue decline in Software Products & Services (down 11% YoY) signals significant headwinds in commercial enterprise adoption, particularly concerning the consumption-based model with major customers like Amazon pulling back. This suggests enterprises may be recalibrating AI investments or seeking alternative solutions.
Veritone's public sector momentum appears promising, having achieved "Awardable" status on the DoD's Tradewinds Solutions Marketplace and securing new deployments across multiple government agencies. The federal sector, with its extensive unstructured data challenges and scaled budgets, represents a potentially more stable revenue stream than commercial markets currently experiencing volatility in AI spending.
The strategic pivot toward data preparation and public sector opportunities, coupled with the significant operational restructuring following the Veritone One divestiture, positions the company to potentially capture value in specific high-need AI market segments rather than competing broadly across the increasingly competitive enterprise AI landscape.
Fiscal Year 2024 Revenue of
Q4 Software and Managed Services Revenue of
ARR of
Completed divestiture of media agency in October 2024 for total consideration of up to
Completed a
“Veritone delivered solid topline performance in the fourth quarter of 2024 and is entering 2025 with strong momentum underpinned by our disruptive Veritone Data Refinery offering and opportunity to drive Public Sector growth,” said Ryan Steelberg, Chairman, President and Chief Executive Officer of Veritone. “With Veritone Data Refinery, we are offering a clear solution to one of the market’s most pressing challenges—turning raw, unstructured data into high-value AI-ready assets through a secure and scalable process that allows organizations to maintain full control over proprietary data sets. In parallel, our Public Sector strategy is set for a breakout year, as we are now actively deploying aiWARE and associated iDEMS applications in multiple DoD environments, in addition to our FedRAMP deployments for DoJ, DHS and other Fed Civ agencies.”
“In 2024 alone, we processed over 10.5 petabytes of data, including more than 58 million hours of video and audio. At this scale, we leveraged over 862 unique AI models—combining proprietary Veritone technology with models from leading third-party partners. This is AI at scale, delivering real-world impact by empowering our customers to unleash the power of AI with confidence and foster a more capable, confident society in 2025 and beyond."
Full Year 2024 Financial Highlights
-
Revenue of
, a decrease of$92.6 million or$7.3 million 7% year over year. -
Software Products and Services revenues of
, a decrease of$61.1 million 11% compared to year over year, driven by lower consumption across our Commercial Enterprise customer base, including Amazon, and declines in one-time non-recurring software revenue.$68.4 million -
Managed Services revenue of
, flat year over year.$31.6 million -
GAAP gross profit of
, a decrease of$62.7 million or$7.6 million 10.9% , year over year; GAAP gross margin of67.6% as compared to70.4% in 2023. -
Non-GAAP gross profit of
, a decrease of$66.3 million , or$6.0 million 8.2% , year over year; Non-GAAP gross margin of71.6% as compared to72.3% in 2023. -
Total Software Products & Services Customers of 3,237, down
6% year over year, largely driven by planned migration of legacy CareerBuilder customers off the Broadbean software platform. -
Annual Recurring Revenue (“ARR”) (as defined below) of
, down from$58.8 million in Q4 2023, driven largely by declines in consumption-based revenue, including Amazon.$80.1 million -
Loss from operations of
, an improvement of$86.8 million , or$12.8 million 13% year over year. -
Net loss of
, as compared to$37.4 million in fiscal year 2023.$58.6 million -
Non-GAAP net loss from continuing operations of
, an improvement of$40.8 million as compared to$5.3 million in fiscal year 2023.$46.1 million
Fourth Quarter 2024 Financial Highlights
-
Revenue of
, a decrease of$22.4 million 17% compared to Q4 2023. -
Software Products and Services revenues of
, a decrease of$15.5 million or$4.3 million 22% year over year, driven by lower consumption across our Commercial Enterprise customer base, including Amazon. -
Managed Services revenue of
, flat year over year.$6.9 million -
GAAP gross profit of
, a decrease of$15.3 million , or$4.6 million 23.3% , year over year; GAAP gross margin of68.1% as compared to73.5% in 2023, driven largely by the decline in consumption-based revenue, including Amazon, which has higher gross margin. -
Non-GAAP gross profit of
, a decrease of$15.7 million , or$5.0 million 24.1% year over year; Non-GAAP gross margin of70.2% as compared to76.5% in 2023, driven largely by a decline in higher margin revenue from consumption-based revenue customers. -
Loss from operations of
, flat year over year.$19.7 million -
Net Income of
, as compared to$31.8 million in Q4 2023.$12.2 million -
Non-GAAP net loss from continuing operations of
, which was relatively flat as compared to Q4 2023.$9.7 million -
Subsequent to the end of the quarter, announced registered direct offering for the definitive purchase and sale of 4,414,878 shares of common stock and pre-funded warrants to purchase up to 3,608,838 shares of common stock for aggregate gross proceeds of approximately
for use in the repayment of debt and general corporate purposes.$20.3 million
Divestiture of Veritone One, LLC
Through October 17, 2024, we operated Veritone One, LLC (“Veritone One”), a full-service advertising agency, to provide differentiated Managed Services to our customers. On October 17, 2024, we sold all of the issued and outstanding equity of Veritone One to an affiliate of Insignia Capital Group L.P. (such transaction, the “Divestiture”). Veritone One’s services include media planning and strategy, advertisement buying and placement, campaign messaging, clearance verification and attribution, and custom analytics, specializing in host-endorsed and influencer advertising across primarily radio, podcasting, streaming audio, social media and other digital media channels. We determined that the Divestiture represents a strategic shift that will have a material effect on our operations and financial results. Therefore, the historical financial results of Veritone One are reflected in this earnings release as discontinued operations and, as such, have been excluded from continuing operations for all periods presented on a retrospective basis, unless otherwise stated.
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Three Months Ended December 31, |
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|
Year Ended December 31, |
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Unaudited |
|
|
|
|
|
|
Percent |
|
|
|
|
|
|
|
|
Percent |
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|||||||
(in |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|||||||
Revenue |
$ |
22,433 |
|
|
$ |
27,103 |
|
|
|
(17 |
)% |
|
$ |
92,637 |
|
|
$ |
99,986 |
|
|
|
(7 |
)% |
|
Loss from operations |
$ |
(19,681 |
) |
|
$ |
(19,797 |
) |
|
|
(1 |
)% |
|
$ |
(86,849 |
) |
|
$ |
(99,570 |
) |
|
|
(13 |
)% |
|
Net income (loss) from continuing operations |
$ |
(24,258 |
) |
|
$ |
10,024 |
|
|
|
(342 |
)% |
|
$ |
(96,332 |
) |
|
$ |
(65,988 |
) |
|
|
46 |
% |
|
Net income (loss) |
$ |
31,793 |
|
|
$ |
12,175 |
|
|
|
161 |
% |
|
$ |
(37,384 |
) |
|
$ |
(58,625 |
) |
|
|
(36 |
)% |
|
GAAP gross profit |
$ |
15,269 |
|
|
$ |
19,911 |
|
|
|
(23 |
)% |
|
$ |
62,666 |
|
|
$ |
70,343 |
|
|
|
(11 |
)% |
|
Non-GAAP gross profit* |
$ |
15,746 |
|
|
$ |
20,739 |
|
|
|
(24 |
)% |
|
$ |
66,335 |
|
|
$ |
72,273 |
|
|
|
(8 |
)% |
|
Non-GAAP net loss from continuing operations |
$ |
(9,703 |
) |
|
$ |
(9,258 |
) |
|
|
5 |
% |
|
$ |
(40,844 |
) |
|
$ |
(46,091 |
) |
|
|
(11 |
)% |
|
Non-GAAP net loss |
$ |
(9,093 |
) |
|
$ |
(6,808 |
) |
|
|
34 |
% |
|
$ |
(30,674 |
) |
|
$ |
(37,331 |
) |
|
|
(18 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||||||||||
Unaudited |
|
|
|
|
|
|
Percent |
|
|
|
|
|
|
|
|
Percent |
|
|||||||
(in |
2024 |
|
|
2023 |
|
|
Change |
|
|
2024 |
|
|
2023 |
|
|
Change |
|
|||||||
Software Products & Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Software Products & Services Revenue* |
$ |
15,522 |
|
|
$ |
19,820 |
|
|
|
(22 |
)% |
|
$ |
61,068 |
|
|
$ |
68,401 |
|
|
|
(11 |
)% |
|
Total Software Products & Services Customers(1) |
|
3,237 |
|
|
|
3,459 |
|
|
|
(6 |
)% |
|
|
3,237 |
|
|
|
3,459 |
|
|
|
(6 |
)% |
|
Annual Recurring Revenue(2)* |
$ |
58,794 |
|
|
$ |
80,089 |
|
|
|
(27 |
)% |
|
$ |
58,794 |
|
|
$ |
80,089 |
|
|
|
(27 |
)% |
|
Total New Bookings(3) |
$ |
13,228 |
|
|
$ |
17,457 |
|
|
|
(24 |
)% |
|
$ |
13,228 |
|
|
$ |
17,457 |
|
|
|
(24 |
)% |
|
Gross Revenue Retention(4) |
> |
|
|
> |
|
|
|
|
|
> |
|
|
> |
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(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 |
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(2) “Annual Recurring Revenue” is calculated as Annual Recurring Revenue (SaaS), which is an annualized calculation of the monthly recurring revenue in the last month of the calculated quarter for all active Software Products & Services customers, combined with Annual Recurring Revenue (Consumption), which is the trailing twelve-month calculation of all non-recurring and/or consumption-based revenue for all active Software Products & Services customers. In prior periods, we provided “Average Annual Revenue,” which was 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 Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue is not comparable to Average Annual Revenue. Annual Recurring Revenue is not averaged among active customers and uses a calculation of recurring revenue as described above instead of annual revenue. Management uses “Annual Recurring Revenue” and we believe Annual Recurring Revenue is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to non-recurring and/or consumption-based revenues. |
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(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). |
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(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 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 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. |
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* 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. |
Commercial Enterprise
- Launched the Veritone Data Refinery (“VDR”) solution to help enterprises transform unstructured data into AI-ready assets, empowering organizations to transform and manage their video, audio and text data for training sophisticated AI models and optimize revenue opportunities through data monetization. 13 enterprise customers have signed agreements to harness VDR’s capabilities since its launch.
- Executed over 42 Media & Entertainment deals in the fourth quarter, including 28 renewals, 3 upsells, and 11 new customers.
- Signed a multi-year renewal of our exclusive global licensing agreement with CBS News and expanded our partnership to include exclusive local news content from CBS-owned stations.
-
Launched Veritone Hire programmatic advertising solutions in both the
UK andAustralia , with plans to enter the German market in the coming months. -
Signed a strategic partnership with CBRE, expanding the reach of Veritone Hire platform services beyond
North America . - Achieved Platinum-level status within Workday's partnership program, strengthening our collaboration with Workday.
- Launched major integration with Bullhorn for Salesforce, enhancing our ability to work alongside the leading software provider in the staffing industry.
Public Sector
- Added 19 new public safety and government customers, including the Bureau of Alcohol, Tobacco and Firearms.
-
Launched product enhancements to Veritone Contact solution with Contact Analytics for
California law enforcement to their efforts to comply with California’s Racial and Identity Profile Act (RIPA). - Achieved “Awardable” status on the Department of Defense’s Tradewinds Solutions Marketplace, the premiere suite of tools and services designed to accelerate the procurement and adoption of AI/ML, data and analytics capabilities, for three AI solutions: Veritone’s Illuminate, Redact and Track applications.
Governance Updates
- Announced the appointment of Francisco Morales, the Co-founder and Executive Chairman of 5.11 Tactical and its former CEO, to our Board of Directors, effective March 20, 2025.
- Subsequent to quarter end, Chad Steelberg resigned from Veritone's Board to pursue other business and philanthropic endeavors. Mr. Steelberg will continue to serve as a strategic advisor to Veritone.
Financial Results for Three Months Ended December 31, 2024
Delivered fourth quarter revenue of
GAAP gross profit of
Loss from operations of
Financial Results for the Year Ended December 31, 2024
Delivered revenue of
GAAP gross profit of
Loss from operations of
Business Outlook
First quarter of 2025
-
Revenue is expected to be in the range of
to$23.0 million , as compared to$24.0 million for the first quarter of 2024.$24.2 million -
Non-GAAP net loss is expected to be in the range of
to$9.5 million , as compared to non-GAAP net loss of$8.5 million for the first quarter of 2024.$10.4 million
Full Year 2025
-
Revenue is expected to be in the range of
to$107 million , as compared to$122 million for fiscal 2024, and a$92.6 million 23.7% implied annual increase at the midpoint. -
Non-GAAP net loss is expected to be in the range of
to$27.0 million , as compared to non-GAAP net loss of$17.0 million for fiscal 2024.$40.8 million
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 March 13, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its fourth quarter and full year 2024 results, provide an update on the business and conduct a question-and-answer session. To participate, please join the audio webcast or dial-in and ask to be connected to the Veritone earnings conference call. To avoid a delay, if dialing in, please pre-register or join the live audio webcast.
- Pre-Registration*
- 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 March 20, 2025. The full webcast replay will be available through March 13, 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: 5366460
* Please note that pre-registered participants will receive their dial-in number and unique PIN upon registration.
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
Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization and stock-based compensation expense. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue. Non-GAAP net income (loss) is the Company’s net income (loss), adjusted to exclude provision for income taxes, depreciation expense, amortization expense, stock-based compensation expense, changes in fair value of warrant liability, changes in fair value of contingent consideration, interest income, interest expense, foreign currency gains and losses, acquisition and due diligence costs, gain on sale of energy group, contribution of business held for sale, variable consultant performance bonus expense, and severance and executive transition costs. Non-GAAP net income (loss) from continuing operations is Non-GAAP net income (loss) attributable to continuing operations]. Non-GAAP net income from discontinued operations is [Non-GAAP net income (loss) attributable to discontinued operations. The items excluded from these non-GAAP financial measures, as well as a breakdown of GAAP net income (loss), non-GAAP net income (loss) and these excluded items, are detailed in the reconciliations included following the financial statements attached to this news release. In addition, following the financial statements attached to this news release, the Company has provided additional supplemental non-GAAP measures of operating expenses, loss from operations, other income (expense), net, and loss before income taxes, excluding the items excluded from non-GAAP net loss as noted above, and reconciling such non-GAAP measures to the most directly comparable GAAP measures.
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 and budgeting. The non-GAAP financial measures should not be considered as an alternative to revenue, gross profit, net income (loss), operating income (loss), net income (loss) from continuing operations, net income (loss) from discontinued operations 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. 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 revenues generated from the Company’s aiWARE platform and Veritone Hire solutions’ talent acquisition solutions (inclusive of Broadbean), 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 content licensing customers and advertising agency 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 Veritone.com.
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 Q1 2025 and for full year 2025, the performance and function of Veritone Data Refinery, the impacts of AI at scale, the success of our Public Sector strategy, and the impact of the sale of Veritone One on our operations and financial results. 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; our reliance upon a limited number of key customers for a significant portion of our revenue, including 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, 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 continuing economic disruption caused by macroeconomic and geopolitical factors, including the
VERITONE, INC. |
||||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
(in thousands) |
|
|||||
ASSETS |
|
|||||||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
16,911 |
|
|
$ |
46,609 |
|
Accounts receivable, net |
|
|
31,997 |
|
|
|
33,895 |
|
Prepaid expenses and other current assets |
|
|
10,498 |
|
|
|
7,864 |
|
Current assets of discontinued operations |
|
|
— |
|
|
|
97,446 |
|
Total current assets |
|
|
59,406 |
|
|
|
185,814 |
|
Property, equipment and improvements, net |
|
|
10,052 |
|
|
|
8,079 |
|
Intangible assets, net |
|
|
59,500 |
|
|
|
83,423 |
|
Goodwill |
|
|
53,110 |
|
|
|
53,529 |
|
Long-term restricted cash |
|
|
407 |
|
|
|
867 |
|
Other assets |
|
|
15,585 |
|
|
|
9,164 |
|
Non-current assets of discontinued operations |
|
|
— |
|
|
|
37,982 |
|
Total assets |
|
$ |
198,060 |
|
|
$ |
378,858 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|||||||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
11,023 |
|
|
$ |
16,620 |
|
Deferred revenue |
|
|
12,056 |
|
|
|
12,813 |
|
Term Loan, current portion |
|
|
7,750 |
|
|
|
5,813 |
|
Accrued purchase consideration, current |
|
|
1,200 |
|
|
|
1,000 |
|
Accrued media payments |
|
|
2,226 |
|
|
|
2,220 |
|
Other accrued liabilities |
|
|
26,702 |
|
|
|
26,510 |
|
Current liabilities of discontinued operations |
|
|
— |
|
|
|
126,893 |
|
Total current liabilities |
|
|
60,957 |
|
|
|
191,869 |
|
Convertible Notes |
|
|
90,135 |
|
|
|
89,572 |
|
Term Loan, non-current |
|
|
21,316 |
|
|
|
45,012 |
|
Accrued purchase consideration, non-current |
|
|
900 |
|
|
|
633 |
|
Other non-current liabilities |
|
|
11,300 |
|
|
|
13,625 |
|
Total liabilities |
|
|
184,608 |
|
|
|
340,711 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders' equity: |
|
|
|
|
|
|
||
Common stock |
|
|
41 |
|
|
|
38 |
|
Additional paid-in capital |
|
|
480,477 |
|
|
|
468,015 |
|
Accumulated deficit |
|
|
(467,280 |
) |
|
|
(429,896 |
) |
Accumulated other comprehensive income (loss) |
|
|
214 |
|
|
|
(10 |
) |
Total stockholders' equity |
|
|
13,452 |
|
|
|
38,147 |
|
Total liabilities and stockholders' equity |
|
$ |
198,060 |
|
|
$ |
378,858 |
VERITONE, INC. |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||
|
Three Months Ended
|
|
|
Year Ended
|
|
|||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Revenue |
$ |
22,433 |
|
|
$ |
27,103 |
|
|
$ |
92,637 |
|
|
$ |
99,986 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
|
6,688 |
|
|
|
6,384 |
|
|
|
26,302 |
|
|
|
27,765 |
|
|
Sales and marketing |
|
9,389 |
|
|
|
11,667 |
|
|
|
40,789 |
|
|
|
44,543 |
|
|
Research and development |
|
5,548 |
|
|
|
8,989 |
|
|
|
26,817 |
|
|
|
40,591 |
|
|
General and administrative |
|
13,432 |
|
|
|
13,983 |
|
|
|
57,068 |
|
|
|
61,465 |
|
|
Depreciation and amortization |
|
7,057 |
|
|
|
5,877 |
|
|
|
28,510 |
|
|
|
25,192 |
|
|
Total operating expenses |
|
42,114 |
|
|
|
46,900 |
|
|
|
179,486 |
|
|
|
199,556 |
|
|
Loss from operations |
|
(19,681 |
) |
|
|
(19,797 |
) |
|
|
(86,849 |
) |
|
|
(99,570 |
) |
|
Gain on extinguishment of debt |
|
— |
|
|
|
30,023 |
|
|
|
— |
|
|
|
30,023 |
|
|
Interest expense, net |
|
(3,586 |
) |
|
|
(483 |
) |
|
|
(12,071 |
) |
|
|
(2,767 |
) |
|
Other income (expense), net |
|
(1,139) |
|
|
|
(94 |
) |
|
|
(1,273 |
) |
|
|
3,278 |
|
|
Income (Loss) from continuing operations before provision for income taxes |
|
(24,406 |
) |
|
|
9,649 |
|
|
|
(100,193 |
) |
|
|
(69,036 |
) |
|
Benefit from income taxes |
|
(148 |
) |
|
|
(375 |
) |
|
|
(3,861 |
) |
|
|
(3,048 |
) |
|
Net income (loss) from continuing operations |
|
(24,258 |
) |
|
|
10,024 |
|
|
|
(96,332 |
) |
|
|
(65,988 |
) |
|
Net income from discontinued operations |
|
56,051 |
|
|
|
2,151 |
|
|
|
58,948 |
|
|
|
7,363 |
|
|
Net income (loss) |
$ |
31,793 |
|
|
$ |
12,175 |
|
|
$ |
(37,384 |
) |
|
$ |
(58,625 |
) |
|
Net income (loss) used for calculating diluted net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) from continuing operations - diluted |
$ |
(24,258 |
) |
|
$ |
(16,507 |
) |
|
$ |
(96,332 |
) |
|
$ |
(65,988 |
) |
|
Net income from discontinued operations - diluted |
$ |
56,051 |
|
|
$ |
2,151 |
|
|
$ |
58,948 |
|
|
$ |
7,363 |
|
|
Net income (loss) - diluted |
$ |
31,793 |
|
|
$ |
(14,356 |
) |
|
$ |
(37,384 |
) |
|
$ |
(58,625 |
) |
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic net income (loss) per share from continuing operations |
$ |
(0.55 |
) |
|
$ |
0.23 |
|
|
$ |
(2.53 |
) |
|
$ |
(1.79 |
) |
|
Basic net income per share from discontinued operations |
$ |
1.26 |
|
|
$ |
0.05 |
|
|
$ |
1.55 |
|
|
$ |
0.20 |
|
|
Basic net income (loss) per share |
$ |
0.72 |
|
|
$ |
0.28 |
|
|
$ |
(0.98 |
) |
|
$ |
(1.59 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Diluted net loss per share from continuing operations |
$ |
(0.55 |
) |
|
$ |
(0.38 |
) |
|
$ |
(2.53 |
) |
|
$ |
(1.79 |
) |
|
Diluted net income per share from discontinued operations |
$ |
1.26 |
|
|
$ |
0.05 |
|
|
$ |
1.55 |
|
|
$ |
0.20 |
|
|
Diluted net income (loss) per share |
$ |
0.72 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.98 |
) |
|
$ |
(1.59 |
) |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
38,086,765 |
|
|
|
37,169,048 |
|
|
|
38,034,546 |
|
|
|
36,909,919 |
|
|
Diluted |
|
44,318,858 |
|
|
|
43,599,411 |
|
|
|
38,034,546 |
|
|
|
36,909,919 |
|
VERITONE, INC. |
|
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|
|||||||
(in thousands) |
|
|||||||
|
|
|
|
|
|
|||
|
Year Ended
|
|
||||||
|
2024 |
|
|
2023 |
|
|||
Cash flows from operating activities: |
|
|
|
|
|
|||
Net loss |
$ |
(37,384 |
) |
|
$ |
(58,625 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|||
Depreciation and amortization |
|
28,510 |
|
|
|
26,102 |
|
|
Provision for credit losses |
|
1,144 |
|
|
|
272 |
|
|
Stock-based compensation expense |
|
8,127 |
|
|
|
10,950 |
|
|
Gain on sale of subsidiary |
|
(69,539 |
) |
|
|
(2,572 |
) |
|
Change in fair value of contingent consideration |
|
(1,357 |
) |
|
|
2,284 |
|
|
Change in deferred taxes |
|
(4,892 |
) |
|
|
(4,984 |
) |
|
Amortization of debt issuance costs and debt discounts |
|
15,128 |
|
|
|
1,082 |
|
|
Amortization of right-of-use assets |
|
829 |
|
|
|
1,561 |
|
|
Imputed non-cash interest income |
|
(315 |
) |
|
|
(439 |
) |
|
Gain on debt extinguishment |
|
— |
|
|
|
(30,023 |
) |
|
Changes in assets and liabilities: |
|
|
|
|
|
|||
Accounts receivable |
|
(9,496 |
) |
|
|
(5,720 |
) |
|
Expenditures billable to clients |
|
5,552 |
|
|
|
2,731 |
|
|
Prepaid expenses and other current assets |
|
1,436 |
|
|
|
2,276 |
|
|
Other assets |
|
1,813 |
|
|
|
(2,204 |
) |
|
Accounts payable |
|
12,132 |
|
|
|
(5,449 |
) |
|
Deferred revenue |
|
(757 |
) |
|
|
184 |
|
|
Accrued media payments |
|
(1,119 |
) |
|
|
(8,168 |
) |
|
Client advances |
|
13,088 |
|
|
|
(982 |
) |
|
Other accrued liabilities |
|
3,387 |
|
|
|
(2,877 |
) |
|
Other liabilities |
|
2,504 |
|
|
|
(1,820 |
) |
|
Net cash used in operating activities |
|
(31,209 |
) |
|
|
(76,421 |
) |
|
|
|
|
|
|
|
|||
Cash flows from investing activities: |
|
|
|
|
|
|||
Proceeds from sale of energy group |
|
1,800 |
|
|
|
504 |
|
|
Sale of subsidiary, net of cash disposed of |
|
6,069 |
|
|
|
— |
|
|
Capital expenditures |
|
(6,042 |
) |
|
|
(5,120 |
) |
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
(50,268 |
) |
|
Net cash provided by (used in) investing activities |
|
1,827 |
|
|
|
(54,884 |
) |
|
|
|
|
|
|
|
|||
Cash flows from financing activities: |
|
|
|
|
|
|||
Proceeds from issuance of Common Stock |
|
4,501 |
|
|
|
— |
|
|
Proceeds from issuance of Senior Secured Term Loan |
|
— |
|
|
|
77,500 |
|
|
Payment of debt issuance costs |
|
— |
|
|
|
(3,120 |
) |
|
Repurchase of convertible senior notes |
|
— |
|
|
|
(37,500 |
) |
|
Payment of purchase consideration |
|
— |
|
|
|
(7,772 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
(943 |
) |
|
|
(1,153 |
) |
|
Proceeds from issuances of stock under employee stock plans, net |
|
555 |
|
|
|
1,064 |
|
|
Earnout and contingent consideration paid |
|
(1,800 |
) |
|
|
(2,690 |
) |
|
Payment of term loan principal |
|
(36,324 |
) |
|
|
— |
|
|
Net cash provided by (used in) financing activities |
|
(34,011 |
) |
|
|
26,329 |
|
|
Effect of exchange rates on cash, cash equivalents, and restricted cash |
|
405 |
|
|
|
- |
|
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(63,393 |
) |
|
|
(104,976 |
) |
|
Cash, cash equivalents, and restricted cash, beginning of period |
|
80,306 |
|
|
|
185,282 |
|
|
Cash, cash equivalents, and restricted cash, end of period |
|
17,318 |
|
|
|
80,306 |
|
|
Less: Cash, cash equivalents, and restricted cash included in discontinued operations |
|
— |
|
|
|
32,830 |
|
|
Cash, cash equivalents, and restricted cash included in continuing operations |
$ |
17,318 |
|
|
$ |
47,476 |
VERITONE, INC. |
|
|||||||||||||||||||||||
REVENUE DETAIL (UNAUDITED) |
|
|||||||||||||||||||||||
(in thousands) |
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended December 31, |
|
||||||||||||||||||||||
|
2024 |
|
|
2023 |
|
|||||||||||||||||||
|
Commercial |
|
|
Public |
|
|
|
|
|
Commercial |
|
|
Public |
|
|
|
|
|||||||
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|||||||
Total Software Products & Services |
$ |
14,123 |
|
|
$ |
1,399 |
|
|
$ |
15,522 |
|
|
$ |
18,301 |
|
|
$ |
1,519 |
|
|
$ |
19,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Managed Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Representation Services |
|
2,788 |
|
|
|
— |
|
|
|
2,788 |
|
|
|
2,782 |
|
|
|
— |
|
|
|
2,782 |
|
|
Licensing |
|
4,124 |
|
|
|
— |
|
|
|
4,124 |
|
|
|
4,501 |
|
|
|
— |
|
|
|
4,501 |
|
|
Total Managed Services |
|
6,912 |
|
|
|
— |
|
|
|
6,912 |
|
|
|
7,283 |
|
|
|
— |
|
|
|
7,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue |
$ |
21,035 |
|
|
$ |
1,399 |
|
|
$ |
22,434 |
|
|
$ |
25,584 |
|
|
$ |
1,519 |
|
|
$ |
27,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Year Ended December 31, |
|
||||||||||||||||||||||
|
2024 |
|
|
2023 |
|
|||||||||||||||||||
|
Commercial |
|
|
Public |
|
|
|
|
|
Commercial |
|
|
Public |
|
|
|
|
|||||||
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|||||||
Total Software Products & Services |
$ |
55,433 |
|
|
$ |
5,635 |
|
|
$ |
61,068 |
|
|
$ |
62,410 |
|
|
$ |
5,991 |
|
|
$ |
68,401 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Managed Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Representation Services |
|
12,551 |
|
|
|
— |
|
|
|
12,551 |
|
|
|
11,247 |
|
|
|
— |
|
|
|
11,247 |
|
|
Licensing |
|
19,019 |
|
|
|
— |
|
|
|
19,019 |
|
|
|
20,338 |
|
|
|
— |
|
|
|
20,338 |
|
|
Total Managed Services |
|
31,570 |
|
|
|
— |
|
|
|
31,570 |
|
|
|
31,585 |
|
|
|
— |
|
|
|
31,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Revenue |
$ |
87,003 |
|
|
$ |
5,635 |
|
|
$ |
92,638 |
|
|
$ |
93,995 |
|
|
$ |
5,991 |
|
|
$ |
99,986 |
|
VERITONE, INC. |
||||||||||||||||
RECONCILIATION OF NON-GAAP NET INCOME TO GAAP NET INCOME (UNAUDITED) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net income (loss) |
$ |
31,793 |
|
|
$ |
12,175 |
|
|
$ |
(37,384 |
) |
|
$ |
(58,625 |
) |
|
Net income from discontinued operations, net of income taxes |
|
(56,051 |
) |
|
|
(2,151 |
) |
|
|
(58,948 |
) |
|
|
(7,363 |
) |
|
Benefit from income taxes |
|
(148 |
) |
|
|
(375 |
) |
|
|
(3,861 |
) |
|
|
(3,048 |
) |
|
Depreciation and amortization |
|
7,056 |
|
|
|
5,877 |
|
|
|
28,510 |
|
|
|
25,193 |
|
|
Stock-based compensation expense |
|
2,014 |
|
|
|
2,094 |
|
|
|
7,705 |
|
|
|
10,297 |
|
|
Change in fair value of contingent consideration |
|
(990 |
) |
|
|
817 |
|
|
|
262 |
|
|
|
2,284 |
|
|
Interest expense, net |
|
3,586 |
|
|
|
513 |
|
|
|
12,071 |
|
|
|
2,577 |
|
|
Foreign currency impact and other |
|
1,140 |
|
|
|
392 |
|
|
|
1,111 |
|
|
|
(134 |
) |
|
Gain on extinguishment of debt |
|
— |
|
|
|
(30,023 |
) |
|
|
(8 |
) |
|
|
(30,023 |
) |
|
Acquisition and due diligence costs |
|
833 |
|
|
|
872 |
|
|
|
4,090 |
|
|
|
9,125 |
|
|
(Gain) Loss on asset disposition |
|
(2 |
) |
|
|
— |
|
|
|
170 |
|
|
|
(2,572 |
) |
|
Contribution of business held for sale(1) |
|
— |
|
|
|
(98 |
) |
|
|
— |
|
|
|
1,691 |
|
|
Variable consultant performance bonus expense(2) |
|
64 |
|
|
|
(77 |
) |
|
|
64 |
|
|
|
951 |
|
|
Severance and executive transition costs |
|
1,002 |
|
|
|
726 |
|
|
|
5,374 |
|
|
|
3,556 |
|
|
Non-GAAP net loss from continuing operations |
|
(9,703 |
) |
|
|
(9,258 |
) |
|
|
(40,844 |
) |
|
|
(46,091 |
) |
|
Non-GAAP net income from discontinued operations |
|
610 |
|
|
|
2,450 |
|
|
|
10,170 |
|
|
|
8,760 |
|
|
Non-GAAP net loss |
$ |
(9,093 |
) |
|
$ |
(6,808 |
) |
|
$ |
(30,674 |
) |
|
$ |
(37,331 |
) |
|
(1) Contribution of business held for sale relates to the net loss for the periods presented for our energy group that we divested during the second quarter of 2023. |
||||||||||||||||
(2) Variable consultant performance bonus expense represents the bonus payments paid to Mr. Chad Steelberg as a result of his achievement of the performance goals pursuant to his consulting agreement with us. |
VERITONE, INC. |
||||||||||||||||
RECONCILIATION OF NON-GAAP NET INCOME FROM DISCONTINUED OPERATIONS TO GAAP NET INCOME FROM DISCONTINUED OPERATIONS (UNAUDITED) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net income from discontinued operations |
$ |
56,051 |
|
|
$ |
2,151 |
|
|
$ |
58,948 |
|
|
$ |
7,363 |
|
|
Provision for (Benefit from) income taxes |
|
— |
|
|
|
(51 |
) |
|
|
76 |
|
|
|
- |
|
|
Depreciation and amortization |
|
15 |
|
|
|
72 |
|
|
|
260 |
|
|
|
909 |
|
|
Stock-based compensation expense |
|
185 |
|
|
|
86 |
|
|
|
422 |
|
|
|
529 |
|
|
Gain on sale |
|
(69,539 |
) |
|
|
— |
|
|
|
(69,539 |
) |
|
|
— |
|
|
Interest expense (income), net(1) |
|
12,252 |
|
|
|
192 |
|
|
16,941 |
|
|
|
(129 |
) |
||
Acquisition and due diligence costs(2) |
|
1,637 |
|
|
|
— |
|
|
|
3,006 |
|
|
|
— |
|
|
Severance and executive transition costs |
|
9 |
|
|
|
— |
|
|
|
56 |
|
|
|
88 |
|
|
Non-GAAP net income from discontinued operations |
$ |
610 |
|
|
$ |
2,450 |
|
|
$ |
10,170 |
|
|
$ |
8,760 |
|
|
(1) Interest expense, net for the three months and year ended December 31, 2024 includes allocated interest expense of |
||||||||||||||||
(2) For the three months and year ended December 31, 2024, acquisition and due diligence costs are comprised of professional fees related to our acquisitions and divestitures. |
VERITONE, INC. |
||||
RECONCILIATION OF EXPECTED NON-GAAP NET LOSS RANGE |
||||
TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED) |
||||
(in millions) |
||||
|
Three Months Ended |
|
Year Ended |
|
|
March 31, 2025 |
|
December 31, 2025 |
|
Net loss |
|
|
|
|
Provision for (benefit from) income taxes |
|
|
|
|
Interest expense, net |
|
|
|
|
Depreciation and amortization |
|
|
|
|
Stock-based compensation expense |
|
|
|
|
Non-GAAP net loss |
|
|
|
VERITONE, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
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.
Software Products & Services Supplemental Financial Information
|
|
|
|
|
Quarter Ended |
|
|
|
|
||||||
|
Dec 31, |
|
Mar 31, |
|
Jun 30, |
|
Sep 30, |
|
Dec 31, |
||||||
|
2023 |
|
2024 |
|
2024 |
|
2024 |
|
2024 |
||||||
Total Software Products & Services Customers (1) |
|
3,459 |
|
3,384 |
|
3,437 |
|
3,291 |
|
3,237 |
|||||
Annual Recurring Revenue (SaaS) (in 000's) (2) |
$ |
49,122 |
$ |
49,064 |
$ |
49,223 |
$ |
48,269 |
$ |
47,549 |
|||||
Annual Recurring Revenue (Consumption) (in 000's) (3) |
$ |
30,967 |
$ |
23,510 |
$ |
18,701 |
$ |
15,011 |
$ |
11,245 |
|||||
Total New Bookings (in 000's) (4) |
$ |
17,457 |
$ |
12,964 |
$ |
14,047 |
$ |
16,471 |
$ |
13,228 |
|||||
Gross Revenue Retention (5) |
> |
> |
> |
> |
> |
||||||||||
(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 |
|||||||||||||||
(2) “Annual Recurring Revenue (SaaS)” represents an annualized calculation of monthly recurring revenue during the last month of the applicable quarter for all Total Software Products & Services customers. In prior periods, we provided “Average Annual Revenue,” which was 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 Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue is not comparable to Average Annual Revenue (SaaS). Annual Recurring Revenue (SaaS) includes only subscription-based SaaS revenue, is not averaged among active customers and uses a calculation of recurring revenue as described above instead of annual revenue. 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 revenues and the split between the two allows the reader to delineate between predictable recurring SaaS revenues and more volatile Consumption 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. In prior periods, we provided “Average Annual Revenue,” which was 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 Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue (Consumption) is not comparable to Average Annual Revenue. Annual Recurring Revenue (Consumption) includes only non-recurring and/or consumption-based revenue, is not averaged among active customers and uses a calculation of recurring revenue as described above instead of annual revenue. 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 revenues and the split between the two allows the reader to delineate between predictable recurring SaaS revenues and more volatile Consumption 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 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 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. |
VERITONE, INC. |
|||||||||||||||||
RECONCILIATION OF NON-GAAP GROSS PROFIT TO GAAP GROSS PROFIT (UNAUDITED) |
|||||||||||||||||
(in thousands) |
|||||||||||||||||
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||
Revenue |
$ |
22,433 |
|
|
$ |
27,103 |
|
|
$ |
92,637 |
|
|
$ |
99,986 |
|
||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of revenue (exclusive of depreciation and amortization) |
|
6,688 |
|
|
|
6,384 |
|
|
|
26,302 |
|
|
|
27,765 |
|
||
Depreciation and amortization related to cost of revenue |
|
476 |
|
|
|
808 |
|
|
|
3,669 |
|
|
|
1,878 |
|
||
GAAP gross profit |
|
15,269 |
|
|
|
19,911 |
|
|
|
62,666 |
|
|
|
70,343 |
|
||
Depreciation and amortization related to cost of revenue |
|
476 |
|
|
|
808 |
|
|
|
3,669 |
|
|
|
1,878 |
|
||
Stock-based compensation expense |
|
1 |
|
|
|
20 |
|
|
|
— |
|
|
|
52 |
|
||
Non-GAAP gross profit |
$ |
15,746 |
|
|
$ |
20,739 |
|
|
$ |
66,335 |
|
|
$ |
72,273 |
|
||
GAAP gross margin |
|
68.1 |
% |
|
|
73.5 |
% |
|
|
67.6 |
% |
|
|
70.4 |
% |
||
Non-GAAP gross margin |
|
70.2 |
% |
|
|
76.5 |
% |
|
|
71.6 |
% |
|
|
72.3 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313546267/en/
Company Contact:
Mike Zemetra
Chief Financial Officer
Veritone, Inc.
investors@veritone.com
IR Agency Contact:
Cate Goldsmith
Prosek Partners
914-815-7678
cgoldsmith@prosek.com
Source: Veritone, Inc.