Veritone(VERI) - 2024 Q4 - Annual Results

Revenue Performance - Fiscal Year 2024 revenue was $92.6 million, a decrease of$ 7.3 million or 7% year over year[5]. - Total revenue for fiscal year 2024 was $92.6 million, down 7% from$ 100.0 million in fiscal year 2023[21]. - Total revenue for the year ended December 31, 2024, was $92,637,000, a decrease of 7.5% compared to$ 99,986,000 in 2023[44]. - Revenue for Q4 2024 was $22.433 million, a decrease of 17.8% compared to$ 27.103 million in Q4 2023[61]. - Revenue guidance for Q1 2025 is expected to be between $23.0 million and$ 24.0 million, compared to $24.2 million in Q1 2024[25]. - Full year 2025 revenue is projected to be in the range of$ 107 million to $122 million, representing a 23.7% implied annual increase at the midpoint compared to fiscal 2024[24]. Customer Metrics - Annual Recurring Revenue (ARR) was$ 58.8 million, down from $80.1 million in Q4 2023, representing a decline of 27%[5][7]. - Total Software Products & Services Customers decreased by 6% year over year to 3,237[5][7]. - Total Software Product & Services Customers decreased by 6% year over year to 3,237 as of December 31, 2024, mainly due to the planned migration of legacy customers[20]. - Total software products and services customers decreased to 3,237 in Q4 2024 from 3,459 in Q4 2023, reflecting a decline of 6.4%[56]. - Gross revenue retention rate remained above 90% for all quarters reported, indicating strong customer retention[56]. Profitability and Loss - Loss from operations for fiscal year 2024 was$ 19.7 million, flat year over year, primarily due to improved operating expense structure offset by revenue decline[19]. - Net loss from continuing operations was $24.3 million for Q4 2024, compared to net income of$ 10.0 million in Q4 2023, largely due to a one-time gain in Q4 2023 that did not recur[19]. - Non-GAAP net loss for fiscal year 2024 was $40.8 million, an improvement of$ 5.3 million from $46.1 million in 2023[23]. - The net loss for the year ended December 31, 2024, was$ 37,384,000, compared to a net loss of $58,625,000 in 2023, indicating an improvement of 36.1%[46]. - The company reported a non-GAAP net loss from continuing operations of$ (9,703) thousand for Q4 2024, compared to $(9,258) thousand in Q4 2023[49]. Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled$ 179,486,000, down from $199,556,000 in 2023, reflecting a reduction of 10.1%[44]. - Research and development expenses for the year ended December 31, 2024, were$ 26,817,000, down from $40,591,000 in 2023, a decrease of 33.9%[44]. - Acquisition and due diligence costs for the year ended December 31, 2024, amounted to$ 4,090 thousand, down from $9,125 thousand in 2023[50]. Gross Profit and Margins - GAAP gross profit for Q4 was$ 15.3 million, a decrease of $4.6 million or 23% year over year, with a GAAP gross margin of 68.1%[9][18]. - GAAP gross profit decreased to$ 62.7 million in 2024 from $70.3 million in 2023, with a GAAP gross margin of 67.6%, down 280 basis points year over year[22]. - Year-end GAAP gross profit for 2024 was$ 62.666 million, down from $70.343 million in 2023, a decrease of 10.9%[61]. - Non-GAAP gross profit for Q4 2024 was$ 15.746 million, compared to $20.739 million in Q4 2023, representing a decrease of 24.0%[61]. - Year-end non-GAAP gross profit for 2024 was$ 66.335 million, compared to $72.273 million in 2023, reflecting a decline of 8.2%[61]. Strategic Developments - The divestiture of the media agency was completed for total consideration of up to$ 104 million, including $59.1 million in cash at closing[1]. - The launch of the Veritone Data Refinery solution has attracted 13 enterprise customers since its introduction[16]. - The company achieved Platinum-level status within Workday's partnership program, enhancing collaboration opportunities[16]. - The company processed over 10.5 petabytes of data in 2024, leveraging over 862 unique AI models[2].