As the artificial intelligence (AI) sector continues to expand, investors are closely monitoring companies specializing in voice AI technologies. Two notable players in this space are SoundHound AI Inc. (SOUN) and Veritone Inc. (VERI) .  While both companies are relatively small players in the broader artificial intelligence market, they operate at the intersection of voice interfaces, generative AI, and enterprise AI applications—an area increasingly gaining investor attention. Given the recent advancement ...

Veritone (VERI) FY Conference May 15, 2025 08:00 AM ET Speaker0 Hi, everybody. I'm John Hutchison, executive director from JPMorgan's Investment Bank, Here to introduce Ryan Stielberg, the co founder, CEO and Chairman of Veritone. Veritone was started in 2014, about eleven years ago. Ryan started it with his brother. And Ryan has since grown the business to $100,000,000 IPO ed the business and overseen the execution for the past eleven years. Ryan has twenty five years of experience in executive management ...

Financial Performance - Revenue for Q1 2025 was $22,463,000, a decrease of 7% compared to $24,153,000 in Q1 2024[19] - Operating loss for Q1 2025 was $21,634,000, an improvement from a loss of $24,370,000 in Q1 2024[19] - Net loss from continuing operations for Q1 2025 was $19,875,000, compared to a net loss of $26,200,000 in Q1 2024, reflecting a 24% reduction[19] - The company reported a comprehensive loss of $20,295,000 for Q1 2025, compared to a comprehensive loss of $24,979,000 in Q1 2024[19] - The Company reported a net loss of $(19,875,000) for the three months ended March 31, 2025, compared to a net loss of $(25,198,000) for the same period in 2024, reflecting a reduction in losses[47] - A net loss of $19.9 million was reported for Q1 2025, an improvement from a net loss of $25.2 million in Q1 2024[161] - Non-GAAP net loss for the three months ended March 31, 2025, was $11.13 million, compared to a non-GAAP net loss of $7.62 million for the same period in 2024, representing an increase of 46.5%[171] Assets and Liabilities - Total current assets increased to $61,289,000 as of March 31, 2025, up from $59,406,000 as of December 31, 2024[18] - Total liabilities remained relatively stable at $184,893,000 as of March 31, 2025, compared to $184,608,000 as of December 31, 2024[18] - Cash and cash equivalents decreased to $16,082,000 as of March 31, 2025, down from $16,911,000 as of December 31, 2024[18] - Stockholders' equity increased to $14,754,000 as of March 31, 2025, compared to $13,452,000 as of December 31, 2024[18] - As of March 31, 2025, the company had cash and cash equivalents of $16.1 million and outstanding debt obligations of $39.2 million under the Term Loan and $91.3 million under Convertible Notes[198][199] Revenue Breakdown - Software Products & Services revenue was $14.5 million, down from $15.2 million year-over-year, while Managed Services revenue decreased from $8.9 million to $8.0 million[144] - Commercial Enterprise Software Products & Services revenue decreased by $0.6 million, or 4.0%, to $13.149 million for the three months ended March 31, 2025, compared to $13.703 million in the prior year[187] - Public Sector Software Products & Services revenue decreased by $0.2 million, or 12.1%, to $1.334 million for the three months ended March 31, 2025, compared to the prior year[188] - Total revenue for the three months ended March 31, 2025, was $22.463 million, a decrease from $24.153 million in the prior year, reflecting a decline of 7.0%[186] Cash Flow and Financing - Cash used in operating activities for continuing operations was $17,044,000 in Q1 2025, compared to $15,898,000 in Q1 2024[24] - Net cash used in operating activities was $17.0 million for the three months ended March 31, 2025, an increase of $1.1 million from $15.9 million in the prior year[203] - Net cash provided by financing activities was $17.9 million for the three months ended March 31, 2025, an increase of $19.6 million compared to net cash used of $1.7 million in the prior year[205] - The Company raised approximately $20,300 in gross proceeds from a registered direct offering on January 2, 2025, selling 4,414,878 shares at $2.53 each[119] Strategic Actions and Future Outlook - The Company is evaluating additional strategies to obtain funding for future operations, which may include equity financing and operational restructuring[34] - The Company has substantial doubt about its ability to continue as a going concern over the next twelve months due to current debt service obligations and historical negative cash flows[33] - The Company expects substantial growth in 2025 from new product launches, including the Intelligent Digital Evidence Management System and Veritone Data Refinery[156] - The company achieved $40.0 million in net annualized strategic cost reductions since January 1, 2023, due to organizational restructuring efforts[154] Divestitures and Acquisitions - The divestiture of Veritone One has been classified as discontinued operations, impacting the Company's financial results and operations significantly[30] - The Company completed the divestiture of its subsidiary Veritone One for a cash proceeds of $59,053, reflecting an aggregate purchase price of $104,000, subject to adjustments and earnout provisions[53] - The divestiture of Veritone One allowed the Company to focus on its core software and applications, reducing dependency on advertising-related services[51] - The acquisition of Broadbean in June 2023 expanded the customer base throughout Europe and Asia Pacific, with plans for further international expansion[162] Internal Controls and Compliance - As of March 31, 2025, the company's disclosure controls and procedures were not effective at the reasonable assurance level due to material weaknesses in internal control over financial reporting[212] - A material weakness was identified during the preparation of the Quarterly Report for the quarter ended June 30, 2024, related to ineffective information and communication processes[214] - The identified material weaknesses have not been remediated as of March 31, 2025[215] - Management is taking remediation actions, emphasizing the importance of internal controls and a strong control environment[216]

Veritone, Inc. (VERI) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.21, delivering a surprise of 4.55%.Over the last four quarters, the company has surpassed ...

Veritone (VERI) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Ryan Steelberg - Co-Founder, CEO, President & ChairmanMike Zemetra - CFOSeth Gilbert - Director - Equity ResearchJesse Sobelson - VP - Equity Research Conference Call Participants Scott Buck - Managing Director & Senior Technology AnalystGlenn Mattson - Analyst Operator Thank you, and good afternoon. After the market closed today, Veritone issued a press release announcing results for the first quarter twenty twenty five end ...

Financial Data and Key Metrics Changes - Q1 2025 revenue was $22.5 million, down $1.7 million from Q1 2024, primarily due to a decline in managed services and software products [22][21] - Q1 GAAP gross profit was $13.9 million, compared to $16.6 million in Q1 2024, resulting in a GAAP gross margin of 61.9%, down from 68.8% [25][26] - Non-GAAP net loss from continuing operations was $11.1 million, compared to $10.3 million in Q4 2024, reflecting lower non-GAAP gross profit [27][28] Business Line Data and Key Metrics Changes - Managed services revenue in Q1 2025 was $8 million, down $900,000, driven by declines in campaigns and slightly lower licensing [22] - Software products and services revenue saw a decline of $600,000 year over year, largely due to decreased consumption-based revenue [23] - Veritone Data Refinery (VDR) generated approximately $900,000 in revenue in Q1 2025, with expectations for substantial year-over-year growth [23][10] Market Data and Key Metrics Changes - The public sector pipeline now exceeds $110 million, indicating increasing demand for AI-based applications and services [20] - The global training data market is expected to grow from $2.4 billion in 2023 to over $17 billion by 2032, positioning Veritone strategically to capitalize on this demand [9] - The company anticipates public sector revenue growth of 100% to 150% year over year, driven by near-term deals across the Department of Defense [34] Company Strategy and Development Direction - Veritone is focused on expanding its reseller network, enhancing ATS integrations, and growing its Media Services solution to drive growth in Veritone Hire [12] - The company is leveraging its AI-driven solutions to address challenges in the media and entertainment industry, which is experiencing significant growth [6][11] - VDR is expected to generate significant revenue for the remainder of the year, with a near-term pipeline of over $10 million, up from $5 million [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for the public sector and VDR initiatives, despite some delays in larger public sector deals [21][44] - The company is optimistic about maintaining leadership in the AI space and delivering strong sustained growth in 2025 and beyond [11] - Management highlighted the importance of timing in revenue generation from public sector deals, indicating readiness to deploy once contracts are signed [54] Other Important Information - The company completed a registered direct offering, raising approximately $20.3 million, which will support its liquidity position [28] - As of Q1 2025, Veritone held cash and restricted cash of $16.4 million, down from $17.3 million at the end of 2024 [27] - The company is currently in discussions to further improve its cash position and balance sheet [28] Q&A Session Summary Question: What portion of the public pipeline is new customers versus expansions? - Management indicated that the majority is customer expansion, with executed revenue-based contracts for larger pipeline customers expected soon [42] Question: Can you provide more granularity on the second quarter and annual revenue guidance? - Management stated that the second half revenue is expected to be driven by VDR and public sector deals, with good visibility on the size and contribution of these deals [44] Question: When could public safety deals start generating revenue? - Management confirmed that some high-visibility contracts are ready to deploy and will begin generating revenue almost immediately after contract release [54] Question: What steps are being taken to address challenges in Veritone Hire? - Management outlined a three-pronged approach focusing on expanding the reseller network, enhancing media services, and optimizing algorithms for better ROI [58] Question: How will margins flow throughout the year? - Management expects margins to improve as public sector deals come in and VDR matures, with a gradual increase anticipated each quarter [66]

Investor Presentation May 2025 Copyright © 2025 Veritone, Inc. All rights reserved. Copyright © 2025 Veritone, Inc. All rights reserved. Trademarks are the property of their respective owners. Forward-Looking Statements & Disclaimers This presentation of Veritone, Inc. (the "Company") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. Without limiting the generality of the foregoing, words such as " ...

Revenue and Loss - Preliminary revenue for Q1 2025 is $22.5 million, a decrease of 7.0% from $24.2 million in Q1 2024[12] - Operating loss for Q1 2025 is between $21.1 million and $20.5 million, compared to a loss of $27.2 million in Q1 2024[12] - Net loss from continuing operations for Q1 2025 is estimated to be between $21.1 million and $19.9 million, compared to a loss of $26.2 million in Q1 2024[12] - Non-GAAP net loss from continuing operations for Q1 2025 is projected at $11.4 million, compared to $10.3 million in Q1 2024[16] Operating Expenses - Total operating expenses for Q1 2025 are $44.6 million, down from $48.6 million in Q1 2024, reflecting a reduction of 8.2%[12] - Interest expense for Q1 2025 is $2.8 million, an increase from $2.4 million in Q1 2024[16] Discontinued Operations - The company reported net income from discontinued operations of $1.0 million in Q1 2024, which is not applicable for Q1 2025[12] - The company completed the sale of its subsidiary Veritone One in October 2024, classifying it as discontinued operations[5] Business Strategy and Outlook - The company is focused on expanding its aiWARE SaaS business and enhancing existing products while introducing new ones[10] - Forward-looking statements indicate potential challenges including reliance on key customers and macroeconomic factors affecting business operations[10]

AI Technology and Platform - Veritone's proprietary AI operating system, aiWARE, enables the transformation of unstructured data into structured data, enhancing business processes and insights [31]. - The aiWARE platform offers over 20 cognitive categories, allowing users to quickly analyze and optimize large volumes of data [39]. - aiWARE's capabilities include advanced analytics, intelligent data lakes, and generative AI, which are being integrated into industry-specific applications [45][46]. - The company has integrated its Veritone Hire solutions with over 120 applicant tracking systems, optimizing hiring processes through predictive AI algorithms [46]. - aiWARE is deployed in various environments, including cloud-based, on-premises, and hybrid models, ensuring flexibility for customers [41]. - The company is focused on expanding its aiWARE SaaS business, which requires increasing its customer base and revenue from existing customers [88]. - The company plans to continue significant investments in developing AI technologies and expanding the functionality of the aiWARE platform [66]. Revenue and Financial Performance - The company generated revenue primarily through Software Products & Services and Managed Services, with a focus on Commercial Enterprise and Public Sector divisions [33]. - The company reported that no single customer accounted for 10% or more of total revenues from Software Products & Services in 2024, compared to one customer accounting for 22% in 2023 [59]. - One customer accounted for 20% of total Managed Services revenues in both 2024 and 2023 [60]. - The company experienced a year-over-year decline in consumption-based revenue from a single customer across Veritone Hire in fiscal 2024 [69]. - The company experienced net losses of $37.4 million and $58.6 million in fiscal years 2024 and 2023, respectively, with an accumulated deficit of $467.3 million as of December 31, 2024 [94]. - The company expects to continue incurring significant losses for the foreseeable future, which may hinder its ability to achieve and sustain profitability [95]. - The company has a history of operating losses and negative cash flows, raising concerns about its ability to achieve profitability in the future [134]. - The ten largest customers accounted for approximately 22% of net revenues in fiscal year 2024, down from 36% in fiscal year 2023, with Amazon's contribution dropping from 25% to less than 1% [147]. Divestiture and Acquisitions - The divestiture of Veritone One, a full-service advertising agency, is expected to have a material effect on operations and financial results, with historical results classified as discontinued operations [34]. - The company sold Veritone One, which represented approximately 25% of its revenue for the twelve months ended December 31, 2024, leading to reduced revenue and less diversification [87]. - The company received net proceeds of $55.9 million from the divestiture of Veritone One, using $30.5 million to repay principal on its outstanding term loan [83]. - The company closed its acquisition of Broadbean in June 2023, as part of its growth strategy to enhance its aiWARE platform and expand its product offerings [96]. - The company expanded its international operations into Europe and Asia Pacific following the Broadbean acquisition, with plans for further international expansion [98]. Market and Competitive Landscape - The company faces competition from major technology firms such as Google, Microsoft, and Amazon in the AI-enabled solutions market [61]. - The market for AI-based software applications is relatively new and unproven, with significant uncertainty regarding its growth potential [90]. - Regulatory scrutiny over AI technologies may hinder the adoption of the company's products, impacting future growth potential [90]. - The company plans to expand into new vertical markets, including the Public Sector, but faces challenges in compliance with regulations such as FedRAMP and CJIS [145]. Risks and Challenges - The company faces substantial doubt about its ability to continue as a going concern due to historical negative cash flows and recurring losses [82]. - The company faces risks related to macroeconomic and geopolitical factors, including inflation and the threat of recession, which could negatively impact its business and financial performance [103]. - The company relies on third parties to develop AI models for its platform, which may pose risks if those third parties cease to provide their technologies [108]. - The company is vulnerable to cybersecurity risks, including supply-chain attacks, which have increased in frequency and severity [114]. - The company may experience increased state taxes due to limitations on the use of net operating loss carryforwards under new California legislation [131]. - The company may require additional capital to service its debt obligations and refinance maturing debt, which may not be available on acceptable terms [135]. - The company has experienced volatility in revenue due to reliance on a limited number of key customers, which may affect future revenue predictability [148]. Compliance and Regulatory Issues - The company is subject to stringent data privacy and security obligations, including compliance with GDPR and CCPA, which may impose additional costs and operational changes [169][171]. - Non-compliance with privacy regulations could result in financial penalties up to €20 million or 4% of annual global revenue under the EU GDPR [171]. - The evolving regulatory framework regarding data protection may require the company to fundamentally change its business model [170]. - The company faces significant challenges in transferring personal data from the EEA and UK to the United States due to stringent privacy laws, which could lead to operational disruptions and increased regulatory scrutiny [172]. - Increased regulatory scrutiny on facial recognition technology could limit market demand for the company's IDentify solution, particularly in jurisdictions with enacted bans [182]. Internal Controls and Governance - Management identified multiple material weaknesses in internal control over financial reporting, including insufficient qualified resources and ineffective risk assessment [198]. - The company has not remediated certain material weaknesses as of December 31, 2024, which could lead to misstatements in financial reporting [198]. - The company faces potential adverse regulatory consequences, including investigations or penalties by the SEC or NASDAQ, due to identified material weaknesses [202]. - The board of directors oversees the company's cybersecurity risk management processes, ensuring effective mitigation of cybersecurity threats [222]. Employee and Organizational Aspects - The company has implemented employee engagement surveys to improve company culture and employee satisfaction [76]. - As of December 31, 2024, the company had a total of 487 employees, with 469 being full-time employees [75]. - The company must attract and retain highly skilled personnel to manage its business effectively, facing intense competition for talent in its industry [106]. Cybersecurity Measures - The company has implemented various information security processes to manage material risks from cybersecurity threats to its critical data and systems [216]. - The Chief Information Officer (CIO) and Chief Information Security Officer (CISO) lead the cybersecurity risk management efforts, utilizing both manual and automated tools for threat assessment [217]. - The company maintains a vendor management program to assess and manage cybersecurity risks associated with third-party service providers [220]. - The incident response plan includes escalation procedures for significant cybersecurity incidents to key management personnel and the board of directors [225].

If there’s one thing that stands out about a potential recession, it’s that the pressure grip will tighten on companies that were already doing poorly heading into it. The tech sector, in particular, has seen a group of smaller-cap tech companies rideWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a ...