Veritone(VERI)2025-05-12 20:16Financial Performance - Revenue for Q1 2025 was $22,463,000, a decrease of 7% compared to $24,153,000 in Q1 2024[19] - Operating loss for Q1 2025 was $21,634,000, an improvement from a loss of $24,370,000 in Q1 2024[19] - Net loss from continuing operations for Q1 2025 was $19,875,000, compared to a net loss of $26,200,000 in Q1 2024, reflecting a 24% reduction[19] - The company reported a comprehensive loss of $20,295,000 for Q1 2025, compared to a comprehensive loss of $24,979,000 in Q1 2024[19] - The Company reported a net loss of $(19,875,000) for the three months ended March 31, 2025, compared to a net loss of $(25,198,000) for the same period in 2024, reflecting a reduction in losses[47] - A net loss of $19.9 million was reported for Q1 2025, an improvement from a net loss of $25.2 million in Q1 2024[161] - Non-GAAP net loss for the three months ended March 31, 2025, was $11.13 million, compared to a non-GAAP net loss of $7.62 million for the same period in 2024, representing an increase of 46.5%[171] Assets and Liabilities - Total current assets increased to $61,289,000 as of March 31, 2025, up from $59,406,000 as of December 31, 2024[18] - Total liabilities remained relatively stable at $184,893,000 as of March 31, 2025, compared to $184,608,000 as of December 31, 2024[18] - Cash and cash equivalents decreased to $16,082,000 as of March 31, 2025, down from $16,911,000 as of December 31, 2024[18] - Stockholders' equity increased to $14,754,000 as of March 31, 2025, compared to $13,452,000 as of December 31, 2024[18] - As of March 31, 2025, the company had cash and cash equivalents of $16.1 million and outstanding debt obligations of $39.2 million under the Term Loan and $91.3 million under Convertible Notes[198][199] Revenue Breakdown - Software Products & Services revenue was $14.5 million, down from $15.2 million year-over-year, while Managed Services revenue decreased from $8.9 million to $8.0 million[144] - Commercial Enterprise Software Products & Services revenue decreased by $0.6 million, or 4.0%, to $13.149 million for the three months ended March 31, 2025, compared to $13.703 million in the prior year[187] - Public Sector Software Products & Services revenue decreased by $0.2 million, or 12.1%, to $1.334 million for the three months ended March 31, 2025, compared to the prior year[188] - Total revenue for the three months ended March 31, 2025, was $22.463 million, a decrease from $24.153 million in the prior year, reflecting a decline of 7.0%[186] Cash Flow and Financing - Cash used in operating activities for continuing operations was $17,044,000 in Q1 2025, compared to $15,898,000 in Q1 2024[24] - Net cash used in operating activities was $17.0 million for the three months ended March 31, 2025, an increase of $1.1 million from $15.9 million in the prior year[203] - Net cash provided by financing activities was $17.9 million for the three months ended March 31, 2025, an increase of $19.6 million compared to net cash used of $1.7 million in the prior year[205] - The Company raised approximately $20,300 in gross proceeds from a registered direct offering on January 2, 2025, selling 4,414,878 shares at $2.53 each[119] Strategic Actions and Future Outlook - The Company is evaluating additional strategies to obtain funding for future operations, which may include equity financing and operational restructuring[34] - The Company has substantial doubt about its ability to continue as a going concern over the next twelve months due to current debt service obligations and historical negative cash flows[33] - The Company expects substantial growth in 2025 from new product launches, including the Intelligent Digital Evidence Management System and Veritone Data Refinery[156] - The company achieved $40.0 million in net annualized strategic cost reductions since January 1, 2023, due to organizational restructuring efforts[154] Divestitures and Acquisitions - The divestiture of Veritone One has been classified as discontinued operations, impacting the Company's financial results and operations significantly[30] - The Company completed the divestiture of its subsidiary Veritone One for a cash proceeds of $59,053, reflecting an aggregate purchase price of $104,000, subject to adjustments and earnout provisions[53] - The divestiture of Veritone One allowed the Company to focus on its core software and applications, reducing dependency on advertising-related services[51] - The acquisition of Broadbean in June 2023 expanded the customer base throughout Europe and Asia Pacific, with plans for further international expansion[162] Internal Controls and Compliance - As of March 31, 2025, the company's disclosure controls and procedures were not effective at the reasonable assurance level due to material weaknesses in internal control over financial reporting[212] - A material weakness was identified during the preparation of the Quarterly Report for the quarter ended June 30, 2024, related to ineffective information and communication processes[214] - The identified material weaknesses have not been remediated as of March 31, 2025[215] - Management is taking remediation actions, emphasizing the importance of internal controls and a strong control environment[216]