Veritone(US:VERI)2025-11-07 21:42Revenue Performance - Revenue for Q3 2025 was $29,118,000, representing a 32.3% increase from $21,993,000 in Q3 2024[23] - Total revenues for the three and nine months ended September 30, 2025, were $29.1 million and $75.6 million, representing increases of 32.4% and 7.7% compared to the same periods in 2024[185] - Revenue from Software Products & Services for the three months ended September 30, 2025, was $22,847,000, up from $14,694,000 in the prior year, representing a growth of 55.5%[122] - Commercial Enterprise Software Products & Services revenue increased by $7.8 million, or 59.3%, in Q3 2025 compared to Q3 2024, primarily due to increased VDR revenue[209] - Public Sector Software Products & Services revenue rose by $0.4 million, or 24.2%, in Q3 2025 compared to the same period last year[211] Loss and Expenses - Operating loss for Q3 2025 was $15,802,000, an improvement from a loss of $22,492,000 in Q3 2024[23] - Net loss for Q3 2025 was $26,880,000 compared to a net loss of $21,746,000 in Q3 2024, reflecting a 23.5% increase in losses[23] - The company reported a net loss of $26.9 million and $73.6 million for the three and nine months ended September 30, 2025, compared to $21.7 million and $69.2 million in 2024[186] - The company recognized $8,453,000 in other expenses for the three months ended September 30, 2025, primarily due to a $7,997,000 loss on revaluation of the Veritone One earnout receivable[124] Assets and Liabilities - Total current assets increased to $84,709,000 as of September 30, 2025, up from $59,406,000 as of December 31, 2024, marking a 42.5% growth[21] - Total liabilities decreased slightly to $184,203,000 as of September 30, 2025, from $184,608,000 as of December 31, 2024[21] - The company reported a total stockholders' equity of $16,018,000 as of September 30, 2025, up from $13,452,000 at the end of 2024, reflecting a 19.0% increase[21] Cash Flow and Financing - Cash and cash equivalents rose to $36,233,000 as of September 30, 2025, compared to $16,911,000 at the end of 2024, indicating a 114.5% increase[21] - The company raised approximately $154.9 million in net proceeds through multiple equity offerings during 2025[39] - The Company intends to repay $36.7 million in cash under the Term Loan Facility, which includes $31.8 million in principal and $0.5 million in accrued interest[40] - The Company raised $70,896 thousand from the issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offerings[30] Strategic Initiatives - The company’s aiWARE platform is designed to transform unstructured data into structured data, enhancing business insights and processes[32] - The divestiture of Veritone One is expected to allow the Company to focus on its core software and applications, reducing dependency on advertising-related services[64] - The company achieved over $50.0 million in net annualized strategic cost reductions since January 1, 2023, through organizational restructuring[179] Customer and Market Insights - Two customers accounted for 27% of the Company's total consolidated revenue during the three months ended September 30, 2025[56] - The public sector sales pipeline has increased to $218 million, reflecting growing demand for AI-driven solutions[181] - The total number of Software Products & Services customers declined to 3,021 as of September 30, 2025, an 8.2% decrease compared to the previous year[180] Stock and Compensation - The total stock-based compensation expense for the nine months ended September 30, 2025, was $5,096, compared to $5,691 for the same period in 2024[157] - As of September 30, 2025, the total unrecognized compensation cost related to all nonvested RSUs was $6,388, expected to be recognized over approximately 1.80 years[156] - The intrinsic value of stock options exercised during the nine months ended September 30, 2025, was $56, compared to $81 for the same period in 2024[151] Debt and Interest - The Company has substantial doubt about its ability to continue as a going concern over the next twelve months due to debt repayment obligations and historical negative cash flows[42] - Interest expense related to the Term Loan for the three months ended September 30, 2025, was $2.385 million, down from $4.141 million for the same period in 2024[83] - As of September 30, 2025, the Company had $91.250 million in aggregate principal amount of Convertible Notes outstanding[87]