Veritone(VERI) - 2024 Q2 - Quarterly Results

Revenue Growth and Performance - Q2 Total Revenue of $31.0 million, an 11% increase compared to Q2 2023[1][3] - Software Products & Services 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 $15.4 million, an 11% increase year over year driven by advertising growth[3][11] - Total revenue for Q2 2024 increased to $30.992 million, up from $27.967 million in Q2 2023, representing a growth of 10.8%[30] - Total revenue for the first six months of 2024 reached $62.628 million, compared to $58.230 million in the same period of 2023, a 7.5% increase[30] - Revenue for Q2 2024 increased to $30.992 million, up 10.8% from $27.967 million in Q2 2023[38] - Pro Forma Software Revenue for Q2 2024 was $15.632 million, showing a slight increase from Q1 2024's $15.220 million[44] - Total Pro Forma Revenue for Q2 2024 was $30.992 million, down from Q1 2024's $31.636 million[44] - Broadbean Revenue for Q2 2024 was $8.690 million, consistent with previous quarters[44] - Managed Services Revenue for Q2 2024 was $15.360 million, down from Q1 2024's $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 $14.047 million, up from $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 $727,000, down from Q1 2024's $793,000[47] Financial Performance and Losses - Operating Loss improved by 37% year over year to $17.7 million, and Non-GAAP Net Loss improved by 47% to $6.9 million[1][4] - Operating loss improved to $17.7 million, a $10.5 million reduction compared to Q2 2023, driven by a $7.5 million decrease in operating expenses and 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 $6.9 million compared to $13.0 million in Q2 2023[12] - Net loss for Q2 2024 was $22.231 million, slightly improved from a net loss of $23.296 million in Q2 2023[30] - Net loss for the three months ended June 30, 2024, was $22.2 million, compared to $23.3 million for the same period in 2023[34] - Non-GAAP net loss for the three months ended June 30, 2024, was $6.9 million, compared to $13.0 million for the same period in 2023[34] - Net loss for the year ended December 31, 2024, is projected to be between $72.2 million and $68.2 million[37] - Non-GAAP net income (loss) for the year ended December 31, 2024, is projected to be between $15.0 million loss and $11.0 million loss[37] - GAAP net loss for Q2 2024 was $22.231 million, compared to $23.296 million in Q2 2023[38] - Non-GAAP net loss for Q2 2024 improved to $6.850 million from $13.026 million in Q2 2023[38] - Loss from operations for Q2 2024 was $17.662 million, an improvement from Q2 2023's $28.180 million[48] Cash and Liabilities - Cash and cash equivalents totaled $46.0 million as of June 30, 2024, including $39.3 million from advertising customers for future vendor payments[14] - Total current liabilities decreased to $181.658 million in Q2 2024 from $188.825 million in Q2 2023[29] - Total stockholders' equity deficit worsened to $(5.694) million in Q2 2024 from $38.147 million in Q2 2023[29] - Net cash used in operating activities for the first six months of 2024 was $26.791 million, improved from $58.533 million in the same period of 2023[31] - Cash and cash equivalents and restricted cash decreased to $46.957 million at the end of Q2 2024 from $63.539 million at the end of Q2 2023[31] Annual Recurring Revenue (ARR) - Total ARR (SaaS and Consumption) of $67.9 million, with SaaS ARR representing 72% of total ARR[1] - Annual Recurring Revenue on a Pro Forma basis decreased by 37% year-over-year to $67.9 million[13] - Annual Recurring Revenue (SaaS) for Q2 2024 was $49.223 million, slightly up from $49.064 million in Q1 2024[41] - Annual Recurring Revenue (Consumption) for Q2 2024 dropped to $18.701 million from $23.510 million in Q1 2024[41] - Pro Forma Annual Recurring Revenue (SaaS) for Q2 2024 was $67.924 million, a decrease from Q1 2024's $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 $7.0 million, compared to $6.4 million for the same period in 2023[34] - Stock-based compensation expense for the three months ended June 30, 2024, was $2.1 million, compared to $2.7 million for the same period in 2023[34] - Interest expense, net for the three months ended June 30, 2024, was $4.5 million, compared to $0.7 million for the same period in 2023[34] - Severance and executive transition costs for the three months ended June 30, 2024, were $0.9 million, compared to $0.7 million for the same period in 2023[34] - Variable consultant performance bonus expense for the three months ended June 30, 2024, was $0.0 million, compared to $0.2 million for the same period in 2023[34][36] - Purchase consideration expense for the three months ended June 30, 2024, was $0.6 million, compared to $0.0 million for the same period in 2023[34] - Research and Development expenses for Q2 2024 were $6.645 million, significantly lower than Q2 2023's $10.519 million[48] Gross Profit and Margins - Non-GAAP gross profit for Q2 2024 was $24.412 million, compared to $20.202 million in Q2 2023, reflecting a 20.8% increase[38] - Non-GAAP gross profit for Q2 2024 was $24.412 million, up from Q2 2023's $20.202 million[48] Revenue Projections - Q3 2024 revenue is expected to be between $34.0 million and $35.0 million, compared to $35.1 million in Q3 2023[15] - Full-year 2024 revenue is expected to range from $136.0 million to $142.0 million, compared to $127.6 million in 2023[16] - Full-year 2024 Non-GAAP net loss is expected to be between $11.0 million and $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]