Veritone(VERI)2024-08-08 20:37Revenue Growth and Performance - Q2 Total Revenue of 15.6 million, an 11% increase year over year, despite a 25% decline in Pro Forma Software Revenue[3][8] - Managed Services revenue of 30.992 million, up from 62.628 million, compared to 30.992 million, up 10.8% from 15.632 million, showing a slight increase from Q1 2024's 30.992 million, down from Q1 2024's 8.690 million, consistent with previous quarters[44] - Managed Services Revenue for Q2 2024 was 16.416 million[44] Customer Metrics and Bookings - Public Sector sales pipeline exceeds 100 million, with 17 new Public Sector customers added in Q2[1][10] - Total Software Products & Services Customers decreased by 7% year over year to 3,437[4][8] - Total Software Product & Services Customers decreased by 7% year-over-year to 3,437 as of June 30, 2024[13] - Total New Bookings increased by 67% to 14.0 million on a Pro Forma basis compared to the same period last year[13] - Total New Bookings for Q2 2024 were 12.964 million in Q1 2024[41] - Pro Forma Total Number of Customers in Q2 2024 was 3,437, slightly up from Q1 2024's 3,384[44] - Average billings per active Managed Services client in Q2 2024 was 793,000[47] Financial Performance and Losses - Operating Loss improved by 37% year over year to 6.9 million[1][4] - Operating loss improved to 10.5 million reduction compared to Q2 2023, driven by a 3.0 million increase in revenue[12] - Non-GAAP gross margin improved by 660 basis points to 78.8% from 72.2% in Q2 2023[12] - Non-GAAP net loss improved by 47% to 13.0 million in Q2 2023[12] - Net loss for Q2 2024 was 23.296 million in Q2 2023[30] - Net loss for the three months ended June 30, 2024, was 23.3 million for the same period in 2023[34] - Non-GAAP net loss for the three months ended June 30, 2024, was 13.0 million for the same period in 2023[34] - Net loss for the year ended December 31, 2024, is projected to be between 68.2 million[37] - Non-GAAP net income (loss) for the year ended December 31, 2024, is projected to be between 11.0 million loss[37] - GAAP net loss for Q2 2024 was 23.296 million in Q2 2023[38] - Non-GAAP net loss for Q2 2024 improved to 13.026 million in Q2 2023[38] - Loss from operations for Q2 2024 was 28.180 million[48] Cash and Liabilities - Cash and cash equivalents totaled 39.3 million from advertising customers for future vendor payments[14] - Total current liabilities decreased to 188.825 million in Q2 2023[29] - Total stockholders' equity deficit worsened to 38.147 million in Q2 2023[29] - Net cash used in operating activities for the first six months of 2024 was 58.533 million in the same period of 2023[31] - Cash and cash equivalents and restricted cash decreased to 63.539 million at the end of Q2 2023[31] Annual Recurring Revenue (ARR) - Total ARR (SaaS and Consumption) of 67.9 million[13] - Annual Recurring Revenue (SaaS) for Q2 2024 was 49.064 million in Q1 2024[41] - Annual Recurring Revenue (Consumption) for Q2 2024 dropped to 23.510 million in Q1 2024[41] - Pro Forma Annual Recurring Revenue (SaaS) for Q2 2024 was 72.574 million[44] Strategic Initiatives and Collaborations - Announced formal process to divest a non-software asset, expected to generate substantial cash proceeds in 2024[1][10] - Strategic Collaboration Agreement with Amazon Web Services (AWS) to accelerate cloud-native enterprise AI and generative AI innovation[10] Expenses and Costs - Depreciation and amortization for the three months ended June 30, 2024, was 6.4 million for the same period in 2023[34] - Stock-based compensation expense for the three months ended June 30, 2024, was 2.7 million for the same period in 2023[34] - Interest expense, net for the three months ended June 30, 2024, was 0.7 million for the same period in 2023[34] - Severance and executive transition costs for the three months ended June 30, 2024, were 0.7 million for the same period in 2023[34] - Variable consultant performance bonus expense for the three months ended June 30, 2024, was 0.2 million for the same period in 2023[34][36] - Purchase consideration expense for the three months ended June 30, 2024, was 0.0 million for the same period in 2023[34] - Research and Development expenses for Q2 2024 were 10.519 million[48] Gross Profit and Margins - Non-GAAP gross profit for Q2 2024 was 20.202 million in Q2 2023, reflecting a 20.8% increase[38] - Non-GAAP gross profit for Q2 2024 was 20.202 million[48] Revenue Projections - Q3 2024 revenue is expected to be between 35.0 million, compared to 136.0 million to 127.6 million in 2023[16] - Full-year 2024 Non-GAAP net loss is expected to be between 15.0 million, compared to $37.3 million in 2023[16] Customer Retention - Gross Revenue Retention remained above 90% for all quarters from Q1 2022 to Q2 2024[41]