Core Insights - Veritone, Inc. reported a net loss from continuing operations of $26.9 million in Q3 2025, which is an increase of 20% compared to Q3 2024, primarily due to an $8.0 million non-cash expense related to the divestiture of Veritone One [3][4] - The company achieved a non-GAAP net loss from continuing operations of $5.8 million, reflecting a 47.8% improvement from $11.1 million in Q3 2024, with adjusted loss per share improving from $(0.29) to $(0.09) [4][5] - Veritone anticipates a non-GAAP net loss for Q4 2025 to be between $1.5 million and $5.0 million, indicating a 66% improvement at the midpoint compared to Q4 2024 [6] Financial Performance - In Q3 2025, Veritone's revenue was $29.1 million, up from $22.0 million in Q3 2024, marking a significant growth in core AI software revenue of over 200% [21] - The company reported a non-GAAP gross profit of $20.6 million for Q3 2025, compared to $15.7 million in Q3 2024, with non-GAAP gross margins of 70.6% [20] - Full-year 2025 non-GAAP net loss is projected to be between $31.6 million and $26.0 million, representing a 29% year-over-year improvement at the midpoint [6] Operational Highlights - Veritone's management emphasized improved cost management and operational discipline as key factors in the reduction of operating losses [4] - The company remains confident in its bottom line outlook, projecting a path to profitability by late 2026 [5][21] - Recent contract wins for the Veritone Data Refinery (VDR) product with leading hyperscalers indicate strong market momentum and expansion [24]

Revenue Performance - Revenue for Q3 2025 was $29,118,000, representing a 32.3% increase from $21,993,000 in Q3 2024[23] - Total revenues for the three and nine months ended September 30, 2025, were $29.1 million and $75.6 million, representing increases of 32.4% and 7.7% compared to the same periods in 2024[185] - Revenue from Software Products & Services for the three months ended September 30, 2025, was $22,847,000, up from $14,694,000 in the prior year, representing a growth of 55.5%[122] - Commercial Enterprise Software Products & Services revenue increased by $7.8 million, or 59.3%, in Q3 2025 compared to Q3 2024, primarily due to increased VDR revenue[209] - Public Sector Software Products & Services revenue rose by $0.4 million, or 24.2%, in Q3 2025 compared to the same period last year[211] Loss and Expenses - Operating loss for Q3 2025 was $15,802,000, an improvement from a loss of $22,492,000 in Q3 2024[23] - Net loss for Q3 2025 was $26,880,000 compared to a net loss of $21,746,000 in Q3 2024, reflecting a 23.5% increase in losses[23] - The company reported a net loss of $26.9 million and $73.6 million for the three and nine months ended September 30, 2025, compared to $21.7 million and $69.2 million in 2024[186] - The company recognized $8,453,000 in other expenses for the three months ended September 30, 2025, primarily due to a $7,997,000 loss on revaluation of the Veritone One earnout receivable[124] Assets and Liabilities - Total current assets increased to $84,709,000 as of September 30, 2025, up from $59,406,000 as of December 31, 2024, marking a 42.5% growth[21] - Total liabilities decreased slightly to $184,203,000 as of September 30, 2025, from $184,608,000 as of December 31, 2024[21] - The company reported a total stockholders' equity of $16,018,000 as of September 30, 2025, up from $13,452,000 at the end of 2024, reflecting a 19.0% increase[21] Cash Flow and Financing - Cash and cash equivalents rose to $36,233,000 as of September 30, 2025, compared to $16,911,000 at the end of 2024, indicating a 114.5% increase[21] - The company raised approximately $154.9 million in net proceeds through multiple equity offerings during 2025[39] - The Company intends to repay $36.7 million in cash under the Term Loan Facility, which includes $31.8 million in principal and $0.5 million in accrued interest[40] - The Company raised $70,896 thousand from the issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offerings[30] Strategic Initiatives - The company’s aiWARE platform is designed to transform unstructured data into structured data, enhancing business insights and processes[32] - The divestiture of Veritone One is expected to allow the Company to focus on its core software and applications, reducing dependency on advertising-related services[64] - The company achieved over $50.0 million in net annualized strategic cost reductions since January 1, 2023, through organizational restructuring[179] Customer and Market Insights - Two customers accounted for 27% of the Company's total consolidated revenue during the three months ended September 30, 2025[56] - The public sector sales pipeline has increased to $218 million, reflecting growing demand for AI-driven solutions[181] - The total number of Software Products & Services customers declined to 3,021 as of September 30, 2025, an 8.2% decrease compared to the previous year[180] Stock and Compensation - The total stock-based compensation expense for the nine months ended September 30, 2025, was $5,096, compared to $5,691 for the same period in 2024[157] - As of September 30, 2025, the total unrecognized compensation cost related to all nonvested RSUs was $6,388, expected to be recognized over approximately 1.80 years[156] - The intrinsic value of stock options exercised during the nine months ended September 30, 2025, was $56, compared to $81 for the same period in 2024[151] Debt and Interest - The Company has substantial doubt about its ability to continue as a going concern over the next twelve months due to debt repayment obligations and historical negative cash flows[42] - Interest expense related to the Term Loan for the three months ended September 30, 2025, was $2.385 million, down from $4.141 million for the same period in 2024[83] - As of September 30, 2025, the Company had $91.250 million in aggregate principal amount of Convertible Notes outstanding[87]

Core Viewpoint - Veritone, Inc. (VERI) has seen a 21.7% increase in share price over the past four weeks, closing at $6.39, with analysts suggesting a potential upside of 65.9% based on a mean price target of $10.6 [1][11]. Price Targets - The average price target for VERI ranges from a low of $3.00 to a high of $25.00, with a standard deviation of $8.5, indicating significant variability among analyst estimates [2]. - The lowest estimate suggests a decline of 53.1% from the current price, while the highest estimate indicates a potential upside of 291.2% [2]. Analyst Consensus - There is strong agreement among analysts regarding VERI's ability to report better earnings than previously predicted, which supports the view of potential upside [4][11]. - The Zacks Consensus Estimate for the current year has increased by 1.4% over the past month, with no negative revisions, indicating positive sentiment [12]. Zacks Rank - VERI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential for upside in the near term [13]. Caution on Price Targets - While price targets are a common metric for investors, relying solely on them can be misleading, as analysts may set overly optimistic targets due to business incentives [3][8][10].

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Core Insights - Veritone, Inc. reported a quarterly loss of $0.08 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and improved from a loss of $0.19 per share a year ago, resulting in an earnings surprise of +27.27% [1] - The company achieved revenues of $29.12 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.81% and showing a year-over-year increase from $21.99 million [2] - Veritone shares have increased approximately 104% year-to-date, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of Veritone's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $33.32 million, and for the current fiscal year, it is -$0.54 on revenues of $108.39 million [7] Industry Context - The Technology Services industry, to which Veritone belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Veritone reported Q3 2025 revenue of over $29 million, representing a 32% year-over-year increase [10][20] - The annual debt service burden has decreased from over $14 million to approximately $800,000, significantly improving the financial foundation [5][30] - Non-GAAP net loss from continuing operations improved by 48% year-over-year, from $11.1 million in Q3 2024 to $5.8 million in Q3 2025 [25] Business Line Data and Key Metrics Changes - Revenue from software products and services grew by 55% during the quarter, with a more than 200% increase when excluding Veritone Hire [10][20] - The Veritone Data Refinery (VDR) business saw a 100% growth in its qualified pipeline and bookings, now exceeding $40 million [11][12] - Managed services revenue declined by $1 million, primarily due to a decrease in representation services [21] Market Data and Key Metrics Changes - The public sector pipeline has grown to approximately $218 million in qualified opportunities, up from $110 million earlier this year [15] - International pipeline now exceeds $28 million, reflecting strong demand for AI solutions in global markets [16] - The global tokenized asset market is projected to reach $13.5 trillion by 2030, indicating significant market potential for Veritone [9] Company Strategy and Development Direction - Veritone is focused on its AIware-first mission and aims to achieve operating profitability in late 2026 [6][7] - The company is positioned as a leading semantic token factory for video and audio, with plans to roll out major monetization initiatives starting in Q1 2026 [8][10] - The strategy includes expanding partnerships and securing contracts with major hyperscalers to enhance its market position [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the successful transformation and strategic positioning for growth [4][18] - The company anticipates continued growth in both public sector and commercial enterprise segments, despite challenges from the federal government shutdown [40][42] - Management remains optimistic about the potential for a strong recovery in the public sector once the government reopens [44] Other Important Information - Veritone completed an underwritten equity offering, raising a total of $103.8 million in September and October 2025 [28][29] - The company has agreed to pay off 100% of its term debt and buy back 50% of its convertible notes, significantly improving liquidity [30] Q&A Session Summary Question: What factors could drive revenue to the high end of Q4 guidance? - Management indicated that timing and velocity of larger VDR deals would influence revenue expectations [35][36] Question: What is being done to drive VDR pipeline growth? - Management noted that they are expanding go-to-market efforts and have a mature pipeline to support growth [36][39] Question: How is the federal government shutdown affecting public sector revenue? - Management acknowledged some delays but remains optimistic about growth in the public sector [42][44] Question: What is the strategy for Veritone Hire? - Management described Veritone Hire as stable and a meaningful contributor to cash flow, despite being flat or slightly down [46][47]

Investor Presentation November 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 Copyright © 2025 Veritone, Inc. All rights reserved. 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 ...

Core Insights - Veritone, Inc. reported a significant growth in core AI software revenue, exceeding 200% in the third quarter of 2025 [1] - The company has strengthened its liquidity position through two equity offerings [1] - Veritone remains on track to achieve profitability by the latter part of 2026 [1]

Core Insights - Veritone, Inc. is expected to report its third-quarter 2025 earnings on November 6, with a projected loss of 11 cents per share, reflecting a year-over-year increase of 42.1% in losses [1] - Revenue estimates for the same quarter are set at $28.6 million, indicating a year-over-year rise of 30.1% [1] Revenue and Earnings Expectations - The anticipated revenue for the third quarter of 2025 is expected to be between $28 million and $30 million, with a net loss projected to be between $6 million and $6.5 million, an improvement from a non-GAAP net loss of $11.1 million in the third quarter of 2024 [4] - For the full year 2025, revenues are expected to range from $108 million to $115 million, compared to $92.6 million in 2024, with net losses projected to improve to between $30 million and $25 million from a non-GAAP net loss of $40.8 million at the end of 2024 [5] Segment Performance - The revenue growth in the upcoming quarter is anticipated to be driven by improvements in the Software Products and Services segment, particularly from strong growth in public-sector and commercial software products and services [3] Earnings Prediction Model - The Zacks model indicates that Veritone is not expected to beat earnings this season, with an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - Veritone Inc. (NASDAQ:VERI) is highlighted as a promising AI stock under $20, with a recent 'Buy' rating initiated by Needham and a price target of $10, following a significant stock rally of 180% over the past six months [1][2]. Company Overview - Veritone Inc. is an enterprise AI company that specializes in developing software and services aimed at transforming unstructured data, such as audio and video, into actionable intelligence [4]. - The company's core platform, aiWARE, functions as an AI operating system that integrates various AI models to automate tasks and enhance efficiency across multiple industries, including media and entertainment, public sector, legal, and talent acquisition [4]. Market Opportunities - Needham anticipates that Veritone will continue to outperform the market, driven by growth in several segments as the company targets specific market opportunities [2]. - The expected momentum is attributed to advancements in the aiWARE platform, which allows customers to convert unstructured data into structured business outcomes [2]. - Additionally, Veritone is projected to benefit from growth in the AI data training market, public sector application sales, and aiWARE platform sales across diverse end markets [3].