VERITONE。 Investor Presentation | May 2023 Copyright © 2023 Veritone, Inc. All rights reserved. CONFIDENTIAL. Trademarks are the property of their respective owners. NASDAQ: VERI Copyright © 2023 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 substan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38093 Veritone, Inc. (Exact name of registrant as specified in its charter) | Delaware | 47-1161641 | | --- | --- | | (State or other ...

Financial Performance - FY 2022 revenue reached $163 million, a 30% year-over-year growth[5,16] - Software Product & Services grew by 42% year-over-year in FY 2022[5] - The company has $184 million in cash and cash equivalents[5,19] - Total new bookings increased by 141% year-over-year[5] - Gross Revenue Retention is over 90%[5,16] Customer Base - The company has 642 ending software customers[5,16] Market Opportunity - The global AI market is expected to reach $900 billion by 2026, with a 19% compound annual growth rate (CAGR)[8] - The global enterprise AI/ML market is forecasted to reach $110 billion by 2030, with a 36% CAGR[8] - Global corporate investment in AI increased by 48% year-over-year to $176 billion in 2021[8] Product and Platform - Veritone's aiWARE platform orchestrates machine learning models to transform unstructured data into actionable intelligence[4] - AI/ML was the top spending priority in 2023 in emerging software[8]

Veritone, Inc. (NASDAQ:VERI) Q4 2022 Earnings Conference Call March 2, 2023 4:30 PM ET Company Participants Brian Alger - SVP, Investor Relations, and Capital Markets Ryan Steelberg - Chief Executive Officer and President Mike Zemetra - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH MKM Koji Ikeda - Bank of America Aaron Kimson - JMP Securities Nick Mattiacci - Craig-Hallum Operator Good afternoon and welcome to the Veritone Inc. Fourth Quarter and Full-Year 2022 Financial Results ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements show significant revenue growth, a narrowed net loss, and decreased cash from operations and acquisitions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of September 30, 2022, reflects a decrease in total assets and liabilities, primarily due to reduced cash and contingent consideration Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | Sep 30, 2022 ($ millions) | Dec 31, 2021 ($ millions) | Change ($ millions) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 196.071 | 254.722 | (58.651) | | Total current assets | 322.770 | 379.082 | (56.312) | | Goodwill | 46.465 | 42.028 | 4.437 | | Total assets | 469.791 | 518.347 | (48.556) | | Total current liabilities | 185.808 | 191.341 | (5.533) | | Contingent consideration (non-current) | 0.546 | 31.533 | (30.987) | | Total liabilities | 399.018 | 431.847 | (32.829) | | Total stockholders' equity | 70.773 | 86.500 | (15.727) | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statements show significant revenue growth and a narrowed net loss for both Q3 and the nine-month period ended September 30, 2022 Condensed Consolidated Statements of Operations Highlights | Metric ($ millions) | Q3 2022 | Q3 2021 | YoY Change | 9 Months 2022 | 9 Months 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 37.196 | 22.655 | +64.2% | 105.838 | 60.156 | +76.0% | | Cost of revenue | 7.097 | 5.808 | +22.2% | 20.725 | 15.862 | +30.7% | | Loss from operations | (3.611) | (11.080) | +67.4% | (28.044) | (54.264) | +48.3% | | Net loss | (4.886) | (11.491) | +57.5% | (30.268) | (54.773) | +44.7% | | Net loss per share (basic & diluted) | $(0.13) | $(0.34) | - | $(0.84) | $(1.67) | - | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased due to net loss and tax settlements on equity awards, partially offset by stock-based compensation and issuances - The primary drivers for the change in stockholders' equity during the first nine months of 2022 were the net loss of **$30.3 million** and stock-based compensation of **$14.7 million**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show a significant net decrease in cash, primarily from increased cash used in operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Highlights | Cash Flow Activity ($ millions) | Nine Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | (24.630) | (3.528) | | Net cash used in investing activities | (11.116) | (48.050) | | Net cash (used in) provided by financing activities | (22.903) | 9.406 | | **Net decrease in cash** | **(58.649)** | **(42.172)** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's AI business, recent acquisitions, convertible notes, revenue disaggregation, stock-based compensation, and a corrected accounting error - The company provides artificial intelligence (AI) computing solutions through its proprietary AI operating system, aiWARE, and operates a full-service advertising agency. Recent acquisitions include VSL, VocaliD, an influencer-based management company, and PandoLogic[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) - In November 2021, the company issued **$201.3 million** in 1.75% convertible senior notes due 2026. The initial conversion price is approximately **$36.76 per share**[77](index=77&type=chunk)[80](index=80&type=chunk) - The company identified and corrected an immaterial error related to the fair value calculation of contingent consideration for the PandoLogic acquisition, which affected goodwill, intangible assets, and subsequent fair value changes[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth driven by software and acquisitions, improved non-GAAP gross margin, and challenges from macroeconomic conditions and customer concentration - Software Products & Services revenue grew **197%** during the nine months ended September 30, 2022, compared to the same period in 2021, while Managed Services grew **19%**[146](index=146&type=chunk)[150](index=150&type=chunk) - The company is experiencing a reduction in hiring consumption from its largest customer, Amazon, due to the macroeconomic environment. To mitigate this, it is focused on diversifying its customer base[153](index=153&type=chunk)[154](index=154&type=chunk) Non-GAAP Financial Highlights | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Non-GAAP Gross Profit | $30.1M | $16.8M | | Non-GAAP Gross Margin | 80.9% | 74.4% | | Non-GAAP Net Loss | ($5.7M) | ($2.3M) | - The company's acquisition strategy focuses on increasing scale, accelerating growth in new markets, and promoting aiWARE adoption[159](index=159&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q3 2022 revenue increased significantly, driven by software and managed services, while operating expenses rose, offset by a decrease in G&A due to contingent consideration adjustments Revenue by Stream | Revenue Stream ($ millions) | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Software Products & Services | 20.812 | 9.027 | +11.785 | | Managed Services | 16.384 | 13.628 | +2.756 | | **Total Revenue** | **37.196** | **22.655** | **+14.541** | Operating Expenses | Operating Expense ($ millions) | Q3 2022 | Q3 2021 | Change | | :--- | :--- | :--- | :--- | | Sales and marketing | 13.920 | 5.906 | +8.014 | | Research and development | 11.784 | 5.254 | +6.530 | | General and administrative | 2.502 | 15.084 | (12.582) | - The decrease in General and Administrative expenses was principally due to a **$14.6 million** decrease in the estimated fair value of contingent consideration[201](index=201&type=chunk) [Supplemental Financial Information](index=35&type=section&id=Supplemental%20Financial%20Information) Supplemental data indicates growth in software customers, a decline in Average Annual Revenue per customer due to reduced spending from a major client, and strong new bookings Key Software Metrics | Metric | Q3 2022 | Q3 2021 | | :--- | :--- | :--- | | Ending Software Customers | 618 | 433 | | Average Annual Revenue (AAR) | $170k | $208k | | Total New Bookings | $16.5M | $3.4M | | Gross Revenue Retention | >90% | >90% | - The decline in Average Annual Revenue (AAR) was almost entirely driven by a reduction in hiring consumption from the company's largest customer, Amazon[153](index=153&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity decreased due to cash used in operations, investing, and financing activities, though management believes current cash is sufficient for the next twelve months - Cash and cash equivalents decreased by **$58.6 million** during the first nine months of 2022 to a balance of **$196.1 million**[205](index=205&type=chunk) - Key cash outflows for the nine months ended Sep 30, 2022 included **$14.4 million** for the PandoLogic earnout and **$9.7 million** for taxes related to net share settlement of equity awards[205](index=205&type=chunk)[212](index=212&type=chunk) - Management believes that the current cash balance of **$196.1 million** is sufficient to fund operations for at least the next twelve months[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from providing market risk disclosures as it qualifies as a smaller reporting company - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a smaller reporting company[218](index=218&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management identified a material weakness in internal controls related to third-party specialist oversight for acquisition valuation, with remediation efforts underway - A material weakness was identified in internal control over financial reporting as of September 30, 2022[219](index=219&type=chunk)[220](index=220&type=chunk) - The weakness relates to the oversight of third-party specialists used in the valuation of contingent consideration and intangible assets for the PandoLogic acquisition, which led to a restatement of the Q1 2022 financials[220](index=220&type=chunk) - Management has implemented remediation efforts to enhance the evaluation, scope definition, and review of work performed by third-party specialists[221](index=221&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially impact its financial position or operations - As of the report date, the company is not involved in any material legal proceedings[227](index=227&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported for the period - No material changes to the company's risk factors were reported for the period[228](index=228&type=chunk)

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Financial Data and Key Metrics Changes - For Q3 2022, Veritone reported revenue of $37.1 million, representing a year-over-year growth of 64% on a GAAP basis and 5% on a pro forma basis [9][32] - Bookings reached a record high, up nearly 400% year-over-year, and customer count grew by 43% on a pro forma basis [9][10] - Non-GAAP gross profit for Q3 2022 was $30.1 million, improving by 79% from Q3 2021, with gross margins expanding to 81% [39][40] - Non-GAAP net loss for Q3 2022 was $5.7 million, compared to a non-GAAP net loss of $2.3 million in Q3 2021 [42][44] Business Line Data and Key Metrics Changes - Commercial enterprise revenues for Q3 2022 were $36.2 million, increasing 67% year-over-year, accounting for 97% of total business [20] - Managed Services revenue grew by 20% year-over-year, while Software Products & Services revenue increased by 145% year-over-year [20][32] - Average gross billings per active customer in Managed Services reached a record $747,000, up 21% year-over-year [19][37] Market Data and Key Metrics Changes - In the government and regulated industries (GRI), revenues grew both sequentially and year-over-year, although they still account for less than 3% of total revenues [28] - The customer base in the commercial enterprise segment grew by 43%, with PandoLogic recording a 70% year-over-year growth in its customer base [21][27] Company Strategy and Development Direction - Veritone plans to leverage partnerships to expand offerings into new markets such as healthcare and fintech [11] - The company is focused on building an ecosystem to endure, with confidence in the long-term strategy under the new CEO Ryan Steelberg [14][106] - Investments in aiWARE and use case-specific applications are expected to continue driving growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the commercial business, stating that AI will thrive in both good and bad economic times [12] - The company anticipates challenges due to Amazon's hiring slowdown but remains optimistic about growth opportunities in non-Amazon business [50][51] - The guidance for Q4 2022 expects revenue between $44 million and $46 million, with full-year revenue projected between $150 million and $152 million [50][52] Other Important Information - Veritone acquired Vision Semantics Ltd. for $2 million, which is expected to enhance video tracking services [38] - The company held cash and restricted cash of $196.1 million as of September 30, 2022, down from $254.7 million at the end of 2021 [45] Q&A Session Summary Question: How to think about debt in the context of cash flow? - Management highlighted the convertible notes of $201 million due in four years, emphasizing confidence in growth and profitability [56][58] Question: Insights on PandoLogic revenue outlook? - Management noted a 70% growth in non-Amazon customers and over 100% revenue growth, expecting this trend to continue despite hiring slowdowns [64][66] Question: What needs to happen in 2023 for growth? - Management mentioned multiple growth levers, including new product offerings and continued growth in non-Amazon business for PandoLogic [95][97]

aiWARE : The Leading Enterprise AI Platform Investor Presentation | August 2022 NASDAQ: VERI Copyright © 2022 Veritone, Inc. All rights reserved. CONFIDENTIAL. Trademarks are the property of their respective owners. Copyright © 2022 Veritone, Inc. All rights reserved. CONFIDENTIAL. Trademarks are the property of their respective owners. All information as of June 30, 2022, unless otherwise noted. Forward Looking Statements & Disclaimers This presentation of Veritone, Inc. (the "Company") contains forward-lo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38093 Veritone, Inc. (Exact name of registrant as specified in its charter) Delaware 47-1161641 (State or other jurisdiction of ...

aiWARE : The Leading Enterprise AI Platform Investor Presentation | August 2022 NASDAQ: VERI Copyright © 2022 Veritone, Inc. All rights reserved. CONFIDENTIAL. Trademarks are the property of their respective owners. Copyright © 2022 Veritone, Inc. All rights reserved. CONFIDENTIAL. Trademarks are the property of their respective owners. All information as of June 30, 2022, unless otherwise noted. Forward Looking Statements & Disclaimers This presentation of Veritone, Inc. (the "Company") contains forward-lo ...