Veritone Reports Second Quarter 2024 Results
Veritone (NASDAQ: VERI) released its Q2 2024 results, reporting total revenue of $31.0 million, up 11% from Q2 2023. The company achieved total new bookings of $14.0 million, a 67% increase year-over-year. However, the annual recurring revenue (ARR) decreased by 37% to $67.9 million, primarily due to a decline in consumption-based revenue.
Veritone experienced a loss from operations of $17.7 million, improving from a loss of $28.2 million in Q2 2023, thanks to increased revenue and reduced operating expenses. The non-GAAP net loss was $6.9 million, an improvement of 47% compared to Q2 2023.
The company highlighted its expanding public sector sales pipeline, exceeding $100 million, and its strategic initiatives, including a partnership with Amazon Web Services and plans to divest a non-software asset to raise substantial cash.
Veritone (NASDAQ: VERI) ha pubblicato i risultati del secondo trimestre del 2024, riportando entrate totali di 31,0 milioni di dollari, in aumento dell'11% rispetto al secondo trimestre del 2023. L'azienda ha ottenuto nuove prenotazioni totali di 14,0 milioni di dollari, con un incremento del 67% rispetto all’anno precedente. Tuttavia, il fatturato ricorrente annuale (ARR) è diminuito del 37%, a 67,9 milioni di dollari, principalmente a causa di un calo delle entrate basate sul consumo.
Veritone ha registrato una perdita operativa di 17,7 milioni di dollari, in miglioramento rispetto a una perdita di 28,2 milioni di dollari nel secondo trimestre del 2023, grazie all’aumento delle entrate e alla riduzione delle spese operative. La perdita netta non-GAAP è stata di 6,9 milioni di dollari, con un miglioramento del 47% rispetto al secondo trimestre del 2023.
L'azienda ha messo in evidenza l'espansione del portafoglio vendite nel settore pubblico, che ha superato i 100 milioni di dollari, e le sue iniziative strategiche, tra cui una partnership con Amazon Web Services e piani per dismettere un attivo non software per raccogliere liquidità sostanziale.
Veritone (NASDAQ: VERI) publicó sus resultados del segundo trimestre de 2024, reportando ingresos totales de 31,0 millones de dólares, un incremento del 11% en comparación con el segundo trimestre de 2023. La compañía logró nuevas reservas totales de 14,0 millones de dólares, un aumento del 67% año tras año. Sin embargo, los ingresos recurrentes anuales (ARR) disminuyeron un 37%, alcanzando los 67,9 millones de dólares, principalmente debido a una caída en los ingresos basados en consumo.
Veritone experimentó una pérdida operativa de 17,7 millones de dólares, mejorando respecto a una pérdida de 28,2 millones de dólares en el segundo trimestre de 2023, gracias al aumento de los ingresos y la reducción de los gastos operativos. La pérdida neta no-GAAP fue de 6,9 millones de dólares, con una mejora del 47% en comparación con el segundo trimestre de 2023.
La compañía destacó su creciente cartera de ventas en el sector público, que superó los 100 millones de dólares, y sus iniciativas estratégicas, incluyendo una asociación con Amazon Web Services y planes para deshacerse de un activo que no es software para generar efectivo sustancial.
Veritone (NASDAQ: VERI)는 2024년 2분기 실적을 발표하며 총 수익이 3,100만 달러로 2023년 2분기 대비 11% 증가했다고 보고했습니다. 회사는 총 신규 예약이 1,400만 달러로 연간 67% 증가했다고 발표했습니다. 그러나 연간 반복 수익(ARR)은 37% 감소하여 6,790만 달러로, 주로 소비 기반 수익의 감소 때문입니다.
Veritone은 운영에서 손실이 1,770만 달러로, 2023년 2분기의 2,820만 달러 손실에서 개선되었으며, 이는 수익 증가와 운영 비용 절감 덕분입니다. 비 GAAP 순 손실은 690만 달러로, 2023년 2분기 대비 47% 개선되었습니다.
회사는 1억 달러를 초과하는 공공 부문 영업 파이프라인의 확장을 강조했으며, Amazon Web Services와의 파트너십, 비소프트웨어 자산 매각 계획 등을 포함한 전략적 이니셔티브에 대해 언급했습니다.
Veritone (NASDAQ: VERI) a publié ses résultats du deuxième trimestre 2024, rapportant des revenus totaux de 31,0 millions de dollars, en hausse de 11 % par rapport au deuxième trimestre 2023. L'entreprise a réalisé des nouvelles réservations totales de 14,0 millions de dollars, soit une augmentation de 67 % d'une année sur l'autre. Cependant, les revenus récurrents annuels (ARR) ont diminué de 37 %, atteignant 67,9 millions de dollars, principalement en raison d'une baisse des revenus basés sur la consommation.
Veritone a enregistré une perte d'exploitation de 17,7 millions de dollars, améliorée par rapport à une perte de 28,2 millions de dollars au deuxième trimestre 2023, grâce à une augmentation des revenus et à une réduction des dépenses d'exploitation. La perte nette non-GAAP s'élevait à 6,9 millions de dollars, soit une amélioration de 47 % par rapport au deuxième trimestre 2023.
L'entreprise a souligné son pipeline de ventes du secteur public en expansion, qui dépasse 100 millions de dollars, ainsi que ses initiatives stratégiques, notamment un partenariat avec Amazon Web Services et des plans pour céder un actif non logiciel afin de lever des fonds substantiels.
Veritone (NASDAQ: VERI) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und meldete gesamte Einnahmen von 31,0 Millionen US-Dollar, was einem Anstieg von 11% im Vergleich zum zweiten Quartal 2023 entspricht. Das Unternehmen erzielte neue Buchungen insgesamt von 14,0 Millionen US-Dollar, ein Anstieg um 67% im Vergleich zum Vorjahr. Allerdings fiel der jährlich wiederkehrende Umsatz (ARR) um 37% auf 67,9 Millionen US-Dollar, was hauptsächlich auf einen Rückgang der verbrauchsabhängigen Einnahmen zurückzuführen ist.
Veritone verzeichnete einen Betriebsverlust von 17,7 Millionen US-Dollar, was eine Verbesserung im Vergleich zu einem Verlust von 28,2 Millionen US-Dollar im zweiten Quartal 2023 darstellt, dank gestiegener Einnahmen und reduzierter Betriebskosten. Der non-GAAP Nettoverlust betrug 6,9 Millionen US-Dollar, was einer Verbesserung von 47% im Vergleich zum zweiten Quartal 2023 entspricht.
Das Unternehmen hob seine wachsende Verkaufspipeline im öffentlichen Sektor hervor, die 100 Millionen US-Dollar übersteigt, sowie seine strategischen Initiativen, einschließlich einer Partnerschaft mit Amazon Web Services und Pläne, ein nicht-softwarebezogenes Vermögen zu veräußern, um erhebliche liquide Mittel zu beschaffen.
- Total revenue increased by 11% to $31.0 million compared to Q2 2023.
- Total new bookings rose by 67% year-over-year to $14.0 million.
- Non-GAAP net loss improved by 47% year-over-year.
- Public sector sales pipeline exceeded $100 million.
- Announced plans to divest a non-software asset to raise cash.
- Annual recurring revenue (ARR) decreased by 37% to $67.9 million.
- Loss from operations remained high at $17.7 million.
- Total software products and services customers decreased by 7% year-over-year.
- Q2 Total Revenue of
- Public Sector Record Sales Pipeline Exceeds
- Total ARR (SaaS and Consumption) of
- Q2 Total New Bookings of
- Continued Organizational and Cost Restructuring Actions Driving Year over Year Improvements of
- Announced Formal Process to Divest Non-software Asset; expected to raise substantial cash proceeds, in 2024, to be used to retire a portion of existing term debt and to fund future operations -
“Veritone delivered a strong performance in the second quarter, driven by accelerated growth across our AI software products and services and advertising managed services. During the quarter, we secured 17 new Public Sector customers and saw our Public Sector sales pipeline reach unprecedented levels, and completed a landmark deal with the NCAA, representing our largest contract to date based on run rate,” said Ryan Steelberg, CEO & President of Veritone. “Our strategic partnership with Amazon Web Services continues to expand rapidly through our Strategic Collaboration Agreement, unlocking new opportunities and driving innovation. The focused execution of our strategic initiatives, including cost reductions and resource alignment, is yielding tangible results. We also announced we are in a formal process and are progressing towards divesting one of our non-software assets, advancing our objectives to improve our balance sheet and overall liquidity, and enhance our operational efficiency. As we transition our focus from cost reductions back to growth, we are confident in our ability to capitalize on the demand for AI-driven solutions and deliver long-term value to our shareholders."
Second Quarter 2024 Financial Highlights
Calculated on a Pro Forma basis where noted; for additional information on these calculations, see “Note Regarding Pro Forma Information” and the definitions provided for each metric cited.
-
Revenue of
$31.0 million 11% compared to Q2 2023. -
Software Products and Services revenues of
$15.6 million 11% compared to GAAP revenue of$14.1 million 25% when compared to Pro Forma Software Revenue for Q2 2023 driven by the decline in consumption-based revenue from customers, including Amazon. -
Managed Services revenue of
$15.4 million 11% compared to Q2 2023 driven by an increase in advertising year over year. -
Total Software Products & Services Customers of 3,437, down
7% year over year, as compared to June 30, 2023 on a pro forma basis, largely driven by planned migration of legacy CareerBuilder customers off the Broadbean software platform. -
Total New Bookings of
$14.0 million 67% from$8.4 million -
Annual Recurring Revenue (“ARR”) of
$67.9 million $107.9 million 3% increase from recurring subscription-based SaaS revenue customers. -
Loss from Operations of
$17.7 million $28.2 million -
Non-GAAP gross profit of
$24.4 million 21% or$4.2 million 78.8% as compared to72.2% in Q2 2023. -
Net Loss of
$22.2 million $23.3 million -
Non-GAAP Net Loss of
$6.9 million 47% as compared to Q2 2023.
About Our Sales Pipeline
Our sales pipeline represents revenue we expect to receive based on the total fees payable during the full contract term for new contracts outstanding at the end of the quarter and contracts that we believe have a high probability of closing in the next three to twelve months. We include in our sales pipeline fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term and we do not include any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services) and any fees payable after contract renewals or extensions that are at the discretion of our client. Many of our contracts require us to provide services over more than one year and may include professional fees required to enable our technology in certain environments we do not host or have direct control over. In some cases, our customers may have the ability to terminate our agreements on short notice and our pipeline does not consider the potential impact of any early termination. No assurance can be given that we will ultimately realize our full sales pipeline.
Note Regarding Pro Forma Information
"Pro Forma” information provided in this press release represents the historical information of Veritone combined with the historical information of Broadbean (as defined below) for the applicable period on a Pro Forma basis as if Veritone had acquired Broadbean on January 1, 2022. Veritone completed its acquisition of (i) all of the issued and outstanding share capital of (a) Broadbean Technology Pty Ltd ACN 116 011 959 / ABN 79 116 011 959, a limited company incorporated under the laws of
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Three Months Ended
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Six Months Ended
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Unaudited |
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Percent |
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Percent |
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(in |
2024 |
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2023 |
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|
Change |
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|
2024 |
|
|
2023 |
|
|
Change |
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||||||
Revenue |
$ |
30,992 |
|
|
$ |
27,967 |
|
|
|
11 |
% |
|
$ |
62,628 |
|
|
$ |
58,230 |
|
|
|
8 |
% |
Loss from operations |
$ |
(17,662 |
) |
|
$ |
(28,180 |
) |
|
|
(37 |
)% |
|
$ |
(39,502 |
) |
|
$ |
(51,769 |
) |
|
|
(24 |
)% |
Net income (loss) |
$ |
(22,231 |
) |
|
$ |
(23,296 |
) |
|
|
(5 |
)% |
|
$ |
(47,429 |
) |
|
$ |
(46,259 |
) |
|
|
3 |
% |
Non-GAAP gross profit* |
$ |
24,412 |
|
|
$ |
20,202 |
|
|
|
21 |
% |
|
$ |
49,002 |
|
|
$ |
43,656 |
|
|
|
12 |
% |
Non-GAAP net income (loss)* |
$ |
(6,850 |
) |
|
$ |
(13,026 |
) |
|
|
(47 |
)% |
|
$ |
(14,469 |
) |
|
$ |
(22,581 |
) |
|
|
(36 |
)% |
|
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|
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Three Months Ended
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Six Months Ended
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Unaudited |
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Percent |
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Percent |
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||||||
(in |
2024 |
|
|
2023(1) |
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|
Change |
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|
2024 |
|
|
2023(1) |
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Change |
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Software Products & Services |
|
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|
|
|
|
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||||||
Pro Forma Software Revenue(2)* |
$ |
15,632 |
|
|
$ |
20,859 |
|
|
|
(25 |
)% |
|
$ |
30,855 |
|
|
$ |
43,282 |
|
|
|
(29 |
)% |
Total Software Products & Services Customers(3) |
|
3,437 |
|
|
|
3,705 |
|
|
|
(7 |
)% |
|
|
3,437 |
|
|
|
3,705 |
|
|
|
(7 |
)% |
Annual Recurring Revenue(4)* |
$ |
67,924 |
|
|
$ |
107,949 |
|
|
|
(37 |
)% |
|
$ |
67,924 |
|
|
$ |
107,949 |
|
|
|
(37 |
)% |
Total New Bookings(5) |
$ |
14,047 |
|
|
$ |
8,388 |
|
|
|
67 |
% |
|
$ |
14,047 |
|
|
$ |
8,388 |
|
|
|
67 |
% |
Gross Revenue Retention(6) |
> |
|
|
> |
|
|
|
|
|
> |
|
|
> |
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(1)All of the supplemental financial information for this period is presented on a Pro Forma basis inclusive of Broadbean.
(2)“Pro Forma Software Revenue” is a non-GAAP measure that represents Software Products & Services revenue, including on a Pro Forma basis where indicated.
(3)“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
(4) “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 on a Pro Forma basis where indicated, 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.
(5)“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), in each case on a Pro Forma basis where indicated.
(6) “Gross Revenue Retention” represents our dollar-based gross 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. All numbers used to determine Gross Revenue Retention are calculated on a Pro Forma basis where indicated.
* 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.
Recent Business Highlights
- Public Sector closed 17 new public safety and government customers, including the Defense Logistics Agency, a division of US Department of Defense and the US Senate, and announced the appointment of Gus Hunt, former CIA Chief Technology Officer, as an advisor.
-
Signed over 23 new Media & Entertainment deals in the second quarter, including a multi-year contract with the NCAA, which is expected to generate up to
$40 million -
Veritone Hire signed significant new enterprise programmatic advertising and job distribution software deals, including global brands such as Sevita, Whole Foods, Best Buy, and Harrods and completed the beta launch of programmatic advertising solution and programmatic publisher network in
Australia . - Announced Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS), which will leverage Veritone’s and AWS’ unique strengths to accelerate cloud-native enterprise AI and generative AI innovation for new and existing customers across sectors.
-
Continued strong advertising momentum, with top-line media bookings increasing
12% year-over-year from Veritone One and saw substantial growth from key customers such as Mint Mobile, LinkedIn, DraftKings, and Quince. - Announced formal process to divest a non-software asset with multiple qualified bidders, which, if consummated, is expected to generate substantial cash proceeds to be used to repay a portion of the Company’s term debt and fund future operations.
Financial Results for Three Months Ended June 30, 2024
Delivered second quarter revenue of
Loss from operations of
As of June 30, 2024, Total Software Product & Services Customers of 3,437 was down
As of June 30, 2024, the Company had cash and cash equivalents of
Business Outlook
Third Quarter 2024
-
Revenue is expected to be in the range of
$34.0 million $35.0 million $35.1 million -
Non-GAAP net loss is expected to be in the range of
$2.6 million $4.0 million $7.9 million
Full Year 2024
-
Revenue is expected to be in the range of
$136.0 million $142.0 million $127.6 million -
Non-GAAP net loss is expected to be in the range of
$11.0 million $15.0 million $37.3 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 August 8, 2024, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its second quarter 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 August 15, 2024. The full webcast replay will be available through August 8, 2025. 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: 7195217
* 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
Pro Forma Software Revenue represents Software Products & Services revenue on a Pro Forma basis. Non-GAAP gross profit is defined as revenue less cost of revenue. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue. Non-GAAP net income (loss) and non-GAAP net income (loss) per share, respectively, is the Company’s net income (loss) and net income (loss) per share, 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. 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 between the Company’s Core Operations and Corporate, 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, 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. 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:
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 Hiring 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 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 prospects for the remainder of 2024, our ability to deliver AI solutions to our customers and serve customer demand, our expectations about customer demand for our products, our ability to capitalize on actual or potential acceleration of enterprise-wide generative AI, our ability to divest non-software assets in a manner that improves our balance sheet and overall liquidity, our ability to realize annualized cost-savings including from our recent restructuring, our ability to drive long-term shareholder value, our ability to achieve our annual cost savings forecast, our ability to achieve cash flow profitability as early as Q4 2024, our expected total revenue from our contract with the NCAA, and our expected total revenue and non-GAAP net loss for Q2 2024 and for full year 2024. 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 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; declines in customers’ usage of our products and other offerings; our ability to realize the intended benefits of our acquisitions, divestitures, and other planned or ongoing cost-saving measures, including our ability to successfully integrate our recent acquisition of Broadbean; our identification of existing material weaknesses in our internal control over financial reporting; 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 our third party service providers; the impact of the continuing economic disruption caused by macroeconomic and geopolitical factors, including the
VERITONE, INC. |
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|
||
ASSETS |
|
|
|
|
|
||
|
|
|
|
|
|
||
Cash and cash equivalents |
$ |
46,024 |
|
|
$ |
79,439 |
|
Accounts receivable, net |
|
53,927 |
|
|
|
69,266 |
|
Expenditures billable to clients |
|
28,949 |
|
|
|
19,608 |
|
Prepaid expenses and other current assets |
|
13,010 |
|
|
|
14,457 |
|
Total current assets |
|
141,910 |
|
|
|
182,770 |
|
Property, equipment and improvements, net |
|
9,788 |
|
|
|
8,656 |
|
Intangible assets, net |
|
71,447 |
|
|
|
83,423 |
|
Goodwill |
|
79,828 |
|
|
|
80,247 |
|
Long-term restricted cash |
|
933 |
|
|
|
867 |
|
Other assets |
|
17,896 |
|
|
|
19,851 |
|
Total assets |
$ |
321,802 |
|
|
$ |
375,814 |
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
|
|
|
||
|
|
|
|
|
|
||
Accounts payable |
$ |
33,366 |
|
|
$ |
32,756 |
|
Accrued media payments |
|
69,300 |
|
|
|
93,896 |
|
Client advances |
|
33,341 |
|
|
|
15,452 |
|
Deferred revenue |
|
13,466 |
|
|
|
12,813 |
|
Term Loan, current portion |
|
7,750 |
|
|
|
5,813 |
|
Accrued purchase consideration, current |
|
919 |
|
|
|
1,000 |
|
Other accrued liabilities |
|
23,516 |
|
|
|
27,095 |
|
Total current liabilities |
|
181,658 |
|
|
|
188,825 |
|
Convertible Notes, non-current |
|
89,846 |
|
|
|
89,572 |
|
Term Loan, non-current |
|
43,890 |
|
|
|
45,012 |
|
Accrued purchase consideration, non-current |
|
600 |
|
|
|
633 |
|
Other non-current liabilities |
|
11,502 |
|
|
|
13,625 |
|
Total liabilities |
|
327,496 |
|
|
|
337,667 |
|
Total stockholders' equity (deficit) |
|
(5,694 |
) |
|
|
38,147 |
|
Total liabilities and stockholders' equity (deficit) |
$ |
321,802 |
|
|
$ |
375,814 |
|
VERITONE, INC. |
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|
||||||||||||||
AND COMPREHENSIVE INCOME (LOSS) |
|
||||||||||||||
(in thousands, except per share and share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
$ |
30,992 |
|
|
$ |
27,967 |
|
|
$ |
62,628 |
|
|
$ |
58,230 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue |
|
6,580 |
|
|
|
7,765 |
|
|
|
13,626 |
|
|
|
14,574 |
|
Sales and marketing |
|
12,674 |
|
|
|
13,124 |
|
|
|
24,478 |
|
|
|
25,814 |
|
Research and development |
|
6,645 |
|
|
|
10,519 |
|
|
|
15,860 |
|
|
|
22,046 |
|
General and administrative |
|
16,765 |
|
|
|
19,025 |
|
|
|
36,185 |
|
|
|
36,422 |
|
Amortization |
|
5,990 |
|
|
|
5,714 |
|
|
|
11,981 |
|
|
|
11,143 |
|
Total operating expenses |
|
48,654 |
|
|
|
56,147 |
|
|
|
102,130 |
|
|
|
109,999 |
|
Loss from operations |
|
(17,662 |
) |
|
|
(28,180 |
) |
|
|
(39,502 |
) |
|
|
(51,769 |
) |
Other income (expense), net |
|
(4,612 |
) |
|
|
3,510 |
|
|
|
(9,015 |
) |
|
|
3,865 |
|
Loss before provision for income taxes |
|
(22,274 |
) |
|
|
(24,670 |
) |
|
|
(48,517 |
) |
|
|
(47,904 |
) |
(Benefit from) provision for income taxes |
|
(43 |
) |
|
|
(1,374 |
) |
|
|
(1,088 |
) |
|
|
(1,645 |
) |
Net loss |
$ |
(22,231 |
) |
|
$ |
(23,296 |
) |
|
$ |
(47,429 |
) |
|
$ |
(46,259 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
$ |
(0.59 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.26 |
) |
|
$ |
(1.26 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic and diluted |
|
37,814,019 |
|
|
|
36,848,602 |
|
|
|
37,583,623 |
|
|
|
36,718,994 |
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss |
$ |
(22,231 |
) |
|
$ |
(23,296 |
) |
|
$ |
(47,429 |
) |
|
$ |
(46,259 |
) |
Foreign currency translation (loss) gain, net of income taxes |
|
(220 |
) |
|
|
(997 |
) |
|
|
(1 |
) |
|
|
(1,763 |
) |
Total comprehensive loss |
$ |
(22,451 |
) |
|
$ |
(24,293 |
) |
|
$ |
(47,430 |
) |
|
$ |
(48,022 |
) |
VERITONE, INC. |
|
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
|
||||||
(in thousands) |
|
||||||
|
|
|
|
|
|
||
|
Six Months Ended
|
|
|||||
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
||
Net loss |
$ |
(47,429 |
) |
|
$ |
(46,259 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
||
Depreciation and amortization |
|
14,460 |
|
|
|
12,296 |
|
Provision for credit losses |
|
548 |
|
|
|
(15 |
) |
Stock-based compensation expense |
|
3,747 |
|
|
|
6,614 |
|
Gain on sale of energy group |
|
— |
|
|
|
(2,572 |
) |
Change in fair value of contingent consideration |
|
— |
|
|
|
651 |
|
Change in deferred taxes |
|
(2,464 |
) |
|
|
(1,828 |
) |
Amortization of debt issuance costs |
|
3,027 |
|
|
|
432 |
|
Amortization of right-of-use assets |
|
237 |
|
|
|
649 |
|
Imputed non-cash interest income |
|
(194 |
) |
|
|
(65 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
||
Accounts receivable |
|
14,792 |
|
|
|
16,308 |
|
Expenditures billable to clients |
|
(9,341 |
) |
|
|
70 |
|
Prepaid expenses and other assets |
|
1,641 |
|
|
|
(3,501 |
) |
Other assets |
|
187 |
|
|
|
(1,613 |
) |
Accounts payable |
|
609 |
|
|
|
(7,286 |
) |
Deferred revenue |
|
653 |
|
|
|
8 |
|
Accrued media payments |
|
(24,596 |
) |
|
|
(34,592 |
) |
Client advances |
|
17,889 |
|
|
|
(2,264 |
) |
Other accrued liabilities |
|
(898 |
) |
|
|
6,652 |
|
Other liabilities |
|
341 |
|
|
|
(2,218 |
) |
Net cash used in operating activities |
|
(26,791 |
) |
|
|
(58,533 |
) |
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
||
Proceeds from divestiture |
|
1,800 |
|
|
|
504 |
|
Capital expenditures |
|
(3,399 |
) |
|
|
(2,697 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
(50,195 |
) |
Settlement of deferred consideration for acquisitions |
|
— |
|
|
|
(2,690 |
) |
Net cash used in investing activities |
|
(1,599 |
) |
|
|
(55,078 |
) |
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
||
Payment of debt principal |
|
(1,938 |
) |
|
|
— |
|
Payment of purchase consideration |
|
(1,000 |
) |
|
|
(7,772 |
) |
Taxes paid related to net share settlement of equity awards |
|
(456 |
) |
|
|
(1,003 |
) |
Proceeds from issuances of stock under employee stock plans, net |
|
235 |
|
|
|
643 |
|
Settlement of deferred consideration for acquisitions |
|
(1,800 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(4,959 |
) |
|
|
(8,132 |
) |
|
|
|
|
|
|
||
Net decrease in cash and cash equivalents and restricted cash |
|
(33,349 |
) |
|
|
(121,743 |
) |
Cash and cash equivalents and restricted cash, beginning of period |
|
80,306 |
|
|
|
185,282 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
46,957 |
|
|
$ |
63,539 |
|
VERITONE, INC. |
|
||||||||||||||||||||||
REVENUE DETAIL (UNAUDITED) |
|
||||||||||||||||||||||
(in thousands) |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended June 30, |
|
|||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
Commercial |
|
|
Public |
|
|
|
|
|
Commercial |
|
|
Public |
|
|
|
|
||||||
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|
Enterprise |
|
|
Sector |
|
|
Total |
|
||||||
Total Software Products & Services |
$ |
14,510 |
|
|
$ |
1,122 |
|
|
$ |
15,632 |
|
|
$ |
12,492 |
|
|
$ |
1,601 |
|
|
$ |
14,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Advertising |
|
10,475 |
|
|
|
— |
|
|
|
10,475 |
|
|
|
8,417 |
|
|
|
— |
|
|
|
8,417 |
|
Licensing |
|
4,885 |
|
|
|
— |
|
|
|
4,885 |
|
|
|
5,457 |
|
|
|
— |
|
|
|
5,457 |
|
Total Managed Services |
|
15,360 |
|
|
|
— |
|
|
|
15,360 |
|
|
|
13,874 |
|
|
|
— |
|
|
|
13,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Revenue |
$ |
29,870 |
|
|
$ |
1,122 |
|
|
$ |
30,992 |
|
|
$ |
26,366 |
|
|
$ |
1,601 |
|
|
$ |
27,967 |
|
VERITONE, INC. |
|
||||||||||||||||||||||
REVENUE DETAIL (UNAUDITED) |
|
||||||||||||||||||||||
(in thousands) |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, |
|
|||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
Commercial |
|
|
Public |
|
|
|
|
|
Commercial |
|
|
Public |
|
|
|
|
||||||
|
Enterprise |
|
|
Sector |
|
|
Total |
|
|
Enterprise |
|
|
Sector |
|
|
Total |
|
||||||
Total Software Products & Services |
$ |
28,212 |
|
|
$ |
2,640 |
|
|
$ |
30,852 |
|
|
$ |
25,224 |
|
|
$ |
2,996 |
|
|
$ |
28,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Advertising |
|
21,450 |
|
|
|
— |
|
|
|
21,450 |
|
|
|
18,952 |
|
|
|
— |
|
|
|
18,952 |
|
Licensing |
|
10,326 |
|
|
|
— |
|
|
|
10,326 |
|
|
|
11,058 |
|
|
|
— |
|
|
|
11,058 |
|
Total Managed Services |
|
31,776 |
|
|
|
— |
|
|
|
31,776 |
|
|
|
30,010 |
|
|
|
— |
|
|
|
30,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Revenue |
$ |
59,988 |
|
|
$ |
2,640 |
|
|
$ |
62,628 |
|
|
$ |
55,234 |
|
|
$ |
2,996 |
|
|
$ |
58,230 |
|
VERITONE, INC. |
|
||||||||||||||||||||||
RECONCILIATION OF NON-GAAP NET INCOME (LOSS) TO GAAP NET LOSS (UNAUDITED) |
|
||||||||||||||||||||||
(in thousands) |
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended June 30, |
|
|||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
Core Operations(1) |
|
|
Corporate(2) |
|
|
Total |
|
|
Core Operations(1) |
|
|
Corporate(2) |
|
|
Total |
|
||||||
Net loss |
$ |
(9,026 |
) |
|
$ |
(13,205 |
) |
|
$ |
(22,231 |
) |
|
$ |
(15,205 |
) |
|
$ |
(8,091 |
) |
|
$ |
(23,296 |
) |
(Benefit from) provision for income taxes |
|
(43 |
) |
|
|
— |
|
|
|
(43 |
) |
|
|
(742 |
) |
|
|
(632 |
) |
|
|
(1,374 |
) |
Depreciation and amortization |
|
6,835 |
|
|
|
123 |
|
|
|
6,958 |
|
|
|
5,818 |
|
|
|
571 |
|
|
|
6,389 |
|
Stock-based compensation expense |
|
698 |
|
|
|
1,441 |
|
|
|
2,139 |
|
|
|
1,929 |
|
|
|
768 |
|
|
|
2,697 |
|
Purchase consideration expense(3) |
|
— |
|
|
|
568 |
|
|
|
568 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense, net |
|
— |
|
|
|
4,497 |
|
|
|
4,497 |
|
|
|
— |
|
|
|
720 |
|
|
|
720 |
|
Foreign currency impact |
|
— |
|
|
|
(49 |
) |
|
|
(49 |
) |
|
|
(1,631 |
) |
|
|
(28 |
) |
|
|
(1,659 |
) |
Gain on debt extinguishment |
|
— |
|
|
|
(8 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and due diligence costs(4) |
|
— |
|
|
|
241 |
|
|
|
241 |
|
|
|
— |
|
|
|
4,271 |
|
|
|
4,271 |
|
Loss (gain) on sale |
|
— |
|
|
|
172 |
|
|
|
172 |
|
|
|
— |
|
|
|
(2,572 |
) |
|
|
(2,572 |
) |
Contribution of business held for sale(5) |
|
(5 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
872 |
|
|
|
— |
|
|
|
872 |
|
Variable consultant performance bonus expense (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
237 |
|
|
|
— |
|
|
|
237 |
|
Severance and executive transition costs |
|
831 |
|
|
|
80 |
|
|
|
911 |
|
|
|
474 |
|
|
|
215 |
|
|
|
689 |
|
Non-GAAP net loss |
$ |
(710 |
) |
|
$ |
(6,140 |
) |
|
$ |
(6,850 |
) |
|
$ |
(8,248 |
) |
|
$ |
(4,778 |
) |
|
$ |
(13,026 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, |
|
|||||||||||||||||||||
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
Core Operations(1) |
|
|
Corporate(2) |
|
|
Total |
|
|
Core Operations(1) |
|
|
Corporate(2) |
|
|
Total |
|
||||||
Net loss |
$ |
(20,018 |
) |
|
$ |
(27,411 |
) |
|
$ |
(47,429 |
) |
|
$ |
(27,775 |
) |
|
$ |
(18,484 |
) |
|
$ |
(46,259 |
) |
(Benefit from) provision for income taxes |
|
(1,088 |
) |
|
|
— |
|
|
|
(1,088 |
) |
|
|
(1,246 |
) |
|
|
(399 |
) |
|
|
(1,645 |
) |
Depreciation and amortization |
|
14,244 |
|
|
|
216 |
|
|
|
14,460 |
|
|
|
11,572 |
|
|
|
724 |
|
|
|
12,296 |
|
Stock-based compensation expense |
|
1,738 |
|
|
|
2,009 |
|
|
|
3,747 |
|
|
|
4,264 |
|
|
|
2,350 |
|
|
|
6,614 |
|
Change in fair value of contingent consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
651 |
|
|
|
651 |
|
Purchase consideration expense(3) |
|
— |
|
|
|
885 |
|
|
|
885 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense, net |
|
— |
|
|
|
8,488 |
|
|
|
8,488 |
|
|
|
9 |
|
|
|
1,516 |
|
|
|
1,525 |
|
Foreign currency impact |
|
— |
|
|
|
363 |
|
|
|
363 |
|
|
|
(2,777 |
) |
|
|
(43 |
) |
|
|
(2,820 |
) |
Gain on debt extinguishment |
|
— |
|
|
|
(8 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Acquisition and due diligence costs(4) |
|
140 |
|
|
|
1,042 |
|
|
|
1,182 |
|
|
|
— |
|
|
|
5,076 |
|
|
|
5,076 |
|
Loss (gain) on sale |
|
— |
|
|
|
172 |
|
|
|
172 |
|
|
|
— |
|
|
|
(2,572 |
) |
|
|
(2,572 |
) |
Contribution of business held for sale(5) |
|
(2 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
1,789 |
|
|
|
— |
|
|
|
1,789 |
|
Variable consultant performance bonus expense (6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
631 |
|
|
|
— |
|
|
|
631 |
|
Severance and executive transition costs |
|
3,098 |
|
|
|
1,663 |
|
|
|
4,761 |
|
|
|
1,501 |
|
|
|
632 |
|
|
|
2,133 |
|
Non-GAAP net loss |
$ |
(1,888 |
) |
|
$ |
(12,581 |
) |
|
$ |
(14,469 |
) |
|
$ |
(12,032 |
) |
|
$ |
(10,549 |
) |
|
$ |
(22,581 |
) |
(1) Core operations consists of our consolidated Software Products & Services and Managed Services that include our content licensing and advertising 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) Purchase consideration expense includes consideration related to acquisitions. |
(4) For the three and six months ended June 30, 2024, acquisition and due diligence costs are comprised of professional fees related to our acquisitions and divestitures. |
(5) 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. |
(6) 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 EXPECTED NON-GAAP NET INCOME (LOSS) RANGE |
|||
TO EXPECTED GAAP NET LOSS RANGE (UNAUDITED) |
|||
(in millions) |
|||
|
Three Months Ended |
|
Year Ended |
|
September 30, 2024 |
|
December 31, 2024 |
Net loss |
( |
|
( |
Provision for (benefit from) income taxes |
( |
|
( |
Interest expense, net |
|
|
|
Depreciation and amortization |
|
|
|
Stock-based compensation expense |
|
|
|
Purchase consideration expense |
|
|
|
Severance and executive transition costs |
|
|
|
Non-GAAP net income (loss) |
( |
|
( |
VERITONE, INC. |
|
||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION (UNAUDITED) |
|
||||||||||||||
(in thousands, except per share data) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
$ |
30,992 |
|
|
$ |
27,967 |
|
|
$ |
62,628 |
|
|
$ |
58,230 |
|
Cost of revenue |
|
6,580 |
|
|
|
7,765 |
|
|
|
13,626 |
|
|
|
14,574 |
|
Non-GAAP gross profit |
|
24,412 |
|
|
|
20,202 |
|
|
|
49,002 |
|
|
|
43,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP cost of revenue |
|
6,580 |
|
|
|
7,765 |
|
|
|
13,626 |
|
|
|
14,574 |
|
Stock-based compensation expense |
|
— |
|
|
|
(17 |
) |
|
|
1 |
|
|
|
(37 |
) |
Non-GAAP cost of revenue |
|
6,580 |
|
|
|
7,748 |
|
|
|
13,627 |
|
|
|
14,537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP sales and marketing expenses |
|
12,674 |
|
|
|
13,124 |
|
|
|
24,478 |
|
|
|
25,814 |
|
Depreciation |
|
(24 |
) |
|
|
(6 |
) |
|
|
(48 |
) |
|
|
(12 |
) |
Stock-based compensation expense |
|
(306 |
) |
|
|
(529 |
) |
|
|
(482 |
) |
|
|
(705 |
) |
Contribution of business held for sale (2) |
|
— |
|
|
|
(221 |
) |
|
|
— |
|
|
|
(484 |
) |
Severance and executive transition costs |
|
(477 |
) |
|
|
(190 |
) |
|
|
(980 |
) |
|
|
(503 |
) |
Non-GAAP sales and marketing expenses |
|
11,867 |
|
|
|
12,178 |
|
|
|
22,968 |
|
|
|
24,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP research and development expenses |
|
6,645 |
|
|
|
10,519 |
|
|
|
15,860 |
|
|
|
22,046 |
|
Depreciation |
|
(562 |
) |
|
|
(292 |
) |
|
|
(1,352 |
) |
|
|
(519 |
) |
Stock-based compensation expense |
|
(96 |
) |
|
|
(1,127 |
) |
|
|
(628 |
) |
|
|
(2,669 |
) |
Contribution of business held for sale (2) |
|
— |
|
|
|
(559 |
) |
|
|
— |
|
|
|
(1,117 |
) |
Severance and executive transition costs |
|
(265 |
) |
|
|
(151 |
) |
|
|
(1,457 |
) |
|
|
(680 |
) |
Non-GAAP research and development expenses |
|
5,722 |
|
|
|
8,390 |
|
|
|
12,423 |
|
|
|
17,061 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP general and administrative expenses |
|
16,765 |
|
|
|
19,025 |
|
|
|
36,185 |
|
|
|
36,422 |
|
Depreciation |
|
(382 |
) |
|
|
(377 |
) |
|
|
(1,079 |
) |
|
|
(622 |
) |
Stock-based compensation expense |
|
(1,737 |
) |
|
|
(1,024 |
) |
|
|
(2,638 |
) |
|
|
(3,203 |
) |
Change in fair value of contingent consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(651 |
) |
Purchase consideration expense (3) |
|
(568 |
) |
|
|
— |
|
|
|
(885 |
) |
|
|
— |
|
Variable consultant performance bonus expense (4) |
|
— |
|
|
|
(237 |
) |
|
|
— |
|
|
|
(631 |
) |
Contribution of business held for sale (2) |
|
5 |
|
|
|
(92 |
) |
|
|
2 |
|
|
|
(188 |
) |
Acquisition and due diligence costs (5) |
|
(241 |
) |
|
|
(4,271 |
) |
|
|
(1,182 |
) |
|
|
(5,076 |
) |
Severance and executive transition costs |
|
(169 |
) |
|
|
(348 |
) |
|
|
(2,324 |
) |
|
|
(950 |
) |
Non-GAAP general and administrative expenses |
|
13,673 |
|
|
|
12,676 |
|
|
|
28,079 |
|
|
|
25,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP amortization |
|
(5,990 |
) |
|
|
(5,714 |
) |
|
|
(11,981 |
) |
|
|
(11,143 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP loss from operations |
|
(17,662 |
) |
|
|
(28,180 |
) |
|
|
(39,502 |
) |
|
|
(51,769 |
) |
Total non-GAAP adjustments (1) |
|
10,812 |
|
|
|
15,155 |
|
|
|
25,033 |
|
|
|
29,190 |
|
Non-GAAP loss from operations |
|
(6,850 |
) |
|
|
(13,025 |
) |
|
|
(14,469 |
) |
|
|
(22,579 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP other income (expense), net |
|
(4,612 |
) |
|
|
3,510 |
|
|
|
(9,015 |
) |
|
|
3,865 |
|
Gain on debt extinguishment |
|
(8 |
) |
|
|
— |
|
|
|
(8 |
) |
|
|
— |
|
Loss (gain) on sale |
|
172 |
|
|
|
(2,572 |
) |
|
|
172 |
|
|
|
(2,572 |
) |
Foreign currency impact |
|
(49 |
) |
|
|
(1,659 |
) |
|
|
363 |
|
|
|
(2,820 |
) |
Interest expense, net |
|
4,497 |
|
|
|
720 |
|
|
|
8,488 |
|
|
|
1,525 |
|
Non-GAAP other expense, net |
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP loss before income taxes |
|
(22,274 |
) |
|
|
(24,670 |
) |
|
|
(48,517 |
) |
|
|
(47,904 |
) |
Total non-GAAP adjustments (1) |
|
15,424 |
|
|
|
11,644 |
|
|
|
34,048 |
|
|
|
25,323 |
|
Non-GAAP loss before income taxes |
|
(6,850 |
) |
|
|
(13,026 |
) |
|
|
(14,469 |
) |
|
|
(22,581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
(Benefit from) provision for income taxes |
|
(43 |
) |
|
|
(1,374 |
) |
|
|
(1,088 |
) |
|
|
(1,645 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
GAAP net loss |
|
(22,231 |
) |
|
|
(23,296 |
) |
|
|
(47,429 |
) |
|
|
(46,259 |
) |
Total non-GAAP adjustments (1) |
|
15,381 |
|
|
|
10,270 |
|
|
|
32,960 |
|
|
|
23,678 |
|
Non-GAAP net loss |
$ |
(6,850 |
) |
|
$ |
(13,026 |
) |
|
$ |
(14,469 |
) |
|
$ |
(22,581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in computing non-GAAP basic and diluted net loss per share (in 000's) |
|
37,814 |
|
|
|
36,849 |
|
|
|
37,584 |
|
|
|
36,719 |
|
Non-GAAP basic and diluted net loss per share |
$ |
(0.18 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.61 |
) |
(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 income (expense), net (where applicable) listed above. |
(2) Contribution of business held for sale relates to the net loss for the periods presented for our Energy Group that we divested during Q2 2023. |
(3) Purchase consideration expense includes consideration related to acquisitions. |
(4) 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. |
(5) For the three and six months ended June 30, 2024, acquisition and due diligence costs are comprised of professional fees related to our acquisitions and divestitures. |
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. 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 |
|
|||||||||||||||||||||||||||||||||||||
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
||||||||||
|
|
2022 (1) |
|
|
2022 (1) |
|
|
2022 (1) |
|
|
2022 (1) |
|
|
2023 (1) |
|
|
2023 (1) |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||||||
Pro Forma Software Revenue (in 000's) (2) |
|
$ |
26,319 |
|
|
$ |
26,650 |
|
|
$ |
28,603 |
|
|
$ |
35,612 |
|
|
$ |
22,423 |
|
|
$ |
20,859 |
|
|
$ |
20,361 |
|
|
$ |
19,824 |
|
|
$ |
15,223 |
|
|
$ |
15,632 |
|
Total Software Products & Services Customers (3) |
|
|
3,673 |
|
|
|
3,718 |
|
|
|
3,787 |
|
|
|
3,824 |
|
|
|
3,773 |
|
|
|
3,705 |
|
|
|
3,536 |
|
|
|
3,459 |
|
|
|
3,384 |
|
|
|
3,437 |
|
Annual Recurring Revenue (SaaS) (in 000's) (4) |
|
$ |
48,392 |
|
|
$ |
44,465 |
|
|
$ |
43,925 |
|
|
$ |
46,248 |
|
|
$ |
45,453 |
|
|
$ |
47,720 |
|
|
$ |
47,756 |
|
|
$ |
49,122 |
|
|
$ |
49,064 |
|
|
$ |
49,223 |
|
Annual Recurring Revenue (Consumption) (in 000's) (5) |
|
$ |
87,445 |
|
|
$ |
85,901 |
|
|
$ |
85,091 |
|
|
$ |
71,754 |
|
|
$ |
67,242 |
|
|
$ |
60,229 |
|
|
$ |
41,543 |
|
|
$ |
30,967 |
|
|
$ |
23,510 |
|
|
$ |
18,701 |
|
Total New Bookings (in 000's) (6) |
|
$ |
16,643 |
|
|
$ |
22,009 |
|
|
$ |
23,793 |
|
|
$ |
26,342 |
|
|
$ |
22,794 |
|
|
$ |
8,388 |
|
|
$ |
15,501 |
|
|
$ |
17,457 |
|
|
$ |
12,964 |
|
|
$ |
14,047 |
|
Gross Revenue Retention (7) |
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
||||||||||
(1) All of the supplemental financial information for this period is presented on a Pro Forma basis inclusive of Broadbean. |
(2) “Pro Forma Software Revenue” is a non-GAAP measure that represents Software Products & Services revenue on a Pro Forma basis. |
(3) “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 |
(4) “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 each case on a Pro Forma basis. 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. |
(5) “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 each case, on a Pro Forma basis. 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. |
(6) “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), in each case on a Pro Forma basis. |
(7) “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. All numbers used to determine Gross Revenue Retention are calculated on a Pro Forma basis. |
The following table sets forth the reconciliation of revenue to pro forma revenue and the calculation of pro forma annual recurring revenue.
|
|
Quarter Ended |
|
|||||||||||||||||||||||||||||||||||||
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
||||||||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||||||
Software Products & Services Revenue (in 000’s) |
|
$ |
18,167 |
|
|
$ |
18,379 |
|
|
$ |
20,812 |
|
|
$ |
27,220 |
|
|
$ |
14,127 |
|
|
$ |
14,093 |
|
|
$ |
20,361 |
|
|
$ |
19,820 |
|
|
$ |
15,220 |
|
|
$ |
15,632 |
|
Broadbean Revenue (in 000’s) (1) |
|
|
6,204 |
|
|
|
6,974 |
|
|
|
7,639 |
|
|
|
8,230 |
|
|
|
8,156 |
|
|
|
8,374 |
|
|
|
8,739 |
|
|
|
8,662 |
|
|
|
8,517 |
|
|
|
8,690 |
|
Broadbean Revenue included in Software Products & Services Revenue (in 000’s) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,716 |
) |
|
|
(8,739 |
) |
|
|
(8,662 |
) |
|
|
(8,517 |
) |
|
|
(8,690 |
) |
Pro Forma Software Revenue (in 000’s) |
|
$ |
24,371 |
|
|
$ |
25,353 |
|
|
$ |
28,451 |
|
|
$ |
35,450 |
|
|
$ |
22,283 |
|
|
$ |
20,751 |
|
|
$ |
20,361 |
|
|
$ |
19,820 |
|
|
$ |
15,220 |
|
|
$ |
15,632 |
|
Managed Services Revenue (in 000’s) |
|
|
16,240 |
|
|
|
15,856 |
|
|
|
16,384 |
|
|
|
16,670 |
|
|
|
16,136 |
|
|
|
13,874 |
|
|
|
14,772 |
|
|
|
14,377 |
|
|
|
16,416 |
|
|
|
15,360 |
|
Total Pro Forma Revenue (in 000’s) |
|
$ |
40,611 |
|
|
$ |
41,209 |
|
|
$ |
44,835 |
|
|
$ |
52,120 |
|
|
$ |
38,419 |
|
|
$ |
34,625 |
|
|
$ |
35,133 |
|
|
$ |
34,197 |
|
|
$ |
31,636 |
|
|
$ |
30,992 |
|
|
|
Trailing Twelve Months Ended |
|
|||||||||||||||||||||||||||||||||||||
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
||||||||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||||||
Software Products & Services Revenue (in 000’s) |
|
$ |
72,997 |
|
|
$ |
85,796 |
|
|
$ |
97,581 |
|
|
$ |
84,578 |
|
|
$ |
80,538 |
|
|
$ |
76,252 |
|
|
$ |
75,801 |
|
|
$ |
68,401 |
|
|
$ |
69,494 |
|
|
$ |
71,033 |
|
Broadbean Revenue (in 000’s) (1) |
|
|
29,599 |
|
|
|
30,006 |
|
|
|
30,136 |
|
|
|
29,047 |
|
|
|
30,999 |
|
|
|
32,399 |
|
|
|
33,499 |
|
|
|
33,931 |
|
|
|
34,292 |
|
|
|
34,608 |
|
Broadbean Revenue included in Software Products & Services Revenue (in 000’s) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,716 |
) |
|
|
(10,455 |
) |
|
|
(19,117 |
) |
|
|
(27,634 |
) |
|
|
(34,608 |
) |
Pro Forma Software Revenue (in 000’s) |
|
$ |
102,596 |
|
|
$ |
115,802 |
|
|
$ |
127,717 |
|
|
$ |
113,625 |
|
|
$ |
111,537 |
|
|
$ |
106,935 |
|
|
$ |
98,845 |
|
|
$ |
83,215 |
|
|
$ |
76,152 |
|
|
$ |
71,033 |
|
Managed Services Revenue (in 000’s) |
|
|
58,419 |
|
|
|
60,546 |
|
|
|
63,406 |
|
|
|
65,150 |
|
|
|
65,046 |
|
|
|
63,064 |
|
|
|
61,452 |
|
|
|
59,159 |
|
|
|
59,439 |
|
|
|
60,925 |
|
Total Pro Forma Revenue (in 000’s) |
|
$ |
161,015 |
|
|
$ |
176,348 |
|
|
$ |
191,123 |
|
|
$ |
178,775 |
|
|
$ |
176,583 |
|
|
$ |
169,999 |
|
|
$ |
160,297 |
|
|
$ |
142,374 |
|
|
$ |
135,591 |
|
|
$ |
131,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pro Forma Total Number of Customers |
|
|
3,673 |
|
|
|
3,718 |
|
|
|
3,787 |
|
|
|
3,824 |
|
|
|
3,773 |
|
|
|
3,705 |
|
|
|
3,536 |
|
|
|
3,459 |
|
|
|
3,384 |
|
|
|
3,437 |
|
Pro Forma Annual Recurring Revenue (in 000’s) (2) |
|
$ |
135,837 |
|
|
$ |
130,366 |
|
|
$ |
129,016 |
|
|
$ |
118,002 |
|
|
$ |
112,695 |
|
|
$ |
107,949 |
|
|
$ |
89,299 |
|
|
$ |
80,089 |
|
|
$ |
72,574 |
|
|
$ |
67,924 |
|
(1) “Pro Forma Software Revenue” includes historical Software Products & Services Revenue from the past eight (8) fiscal quarters of each of Veritone, Inc. and Broadbean and presents such revenue on a combined pro forma basis treating Broadbean as owned by Veritone, Inc. since January 1, 2022. |
(2) “Pro Forma Annual Recurring Revenue” represents an annualized calculation of the monthly recurring revenue in the last period of the calculated quarter, combined with the trailing twelve month calculation for all non-recurring and/or consumption based revenue for all active customers. |
Managed Services Supplemental Financial Information
The following table sets forth the results for each of the key performance indicators for Managed Services.
|
|
Quarter Ended |
|
|||||||||||||||||||||||||||||||||||||
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
|
Sept 30, |
|
|
Dec 31, |
|
|
Mar 31, |
|
|
Jun 30, |
|
||||||||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2024 |
|
||||||||||
Avg billings per active Managed Services client (in 000's)(1) |
|
$ |
684 |
|
|
$ |
736 |
|
|
$ |
747 |
|
|
$ |
823 |
|
|
$ |
771 |
|
|
$ |
576 |
|
|
$ |
620 |
|
|
$ |
647 |
|
|
$ |
793 |
|
|
$ |
727 |
|
Revenue during quarter (in 000's)(2) |
|
$ |
10,735 |
|
|
$ |
9,625 |
|
|
$ |
10,035 |
|
|
$ |
11,074 |
|
|
$ |
9,337 |
|
|
$ |
6,876 |
|
|
$ |
8,827 |
|
|
$ |
8,612 |
|
|
$ |
9,333 |
|
|
$ |
8,402 |
|
(1) 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 customers that are active during such quarter. |
(2) Managed Services revenue and metrics exclude content licensing and media services and Table Rock Management. |
VERITONE, INC. |
|||||||||||||||
RECONCILIATION OF NON-GAAP GROSS PROFIT TO LOSS FROM OPERATIONS |
|||||||||||||||
(in thousands) |
|||||||||||||||
(dollars in thousands) |
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Loss from operations |
$ |
(17,662 |
) |
|
$ |
(28,180 |
) |
|
$ |
(39,502 |
) |
|
$ |
(51,769 |
) |
Sales and marketing |
|
12,674 |
|
|
|
13,124 |
|
|
|
24,478 |
|
|
|
25,814 |
|
Research and development |
|
6,645 |
|
|
|
10,519 |
|
|
|
15,860 |
|
|
|
22,046 |
|
General and administrative |
|
16,765 |
|
|
|
19,025 |
|
|
|
36,185 |
|
|
|
36,422 |
|
Amortization |
|
5,990 |
|
|
|
5,714 |
|
|
|
11,981 |
|
|
|
11,143 |
|
Non-GAAP gross profit |
$ |
24,412 |
|
|
$ |
20,202 |
|
|
$ |
49,002 |
|
|
$ |
43,656 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808718004/en/
Company Contact:
Mike Zemetra
Chief Financial Officer
Veritone, Inc.
investors@veritone.com
IR Agency Contact:
Stefan Norbom
Prosek Partners
203-644-5475
snorbom@prosek.com
Source: Veritone, Inc.
FAQ
What was Veritone's revenue for Q2 2024?
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