Veritone(US:VERI)2022-11-09 01:43Financial Data and Key Metrics Changes - For Q3 2022, Veritone reported revenue of $37.1 million, representing a year-over-year growth of 64% on a GAAP basis and 5% on a pro forma basis [9][32] - Bookings reached a record high, up nearly 400% year-over-year, and customer count grew by 43% on a pro forma basis [9][10] - Non-GAAP gross profit for Q3 2022 was $30.1 million, improving by 79% from Q3 2021, with gross margins expanding to 81% [39][40] - Non-GAAP net loss for Q3 2022 was $5.7 million, compared to a non-GAAP net loss of $2.3 million in Q3 2021 [42][44] Business Line Data and Key Metrics Changes - Commercial enterprise revenues for Q3 2022 were $36.2 million, increasing 67% year-over-year, accounting for 97% of total business [20] - Managed Services revenue grew by 20% year-over-year, while Software Products & Services revenue increased by 145% year-over-year [20][32] - Average gross billings per active customer in Managed Services reached a record $747,000, up 21% year-over-year [19][37] Market Data and Key Metrics Changes - In the government and regulated industries (GRI), revenues grew both sequentially and year-over-year, although they still account for less than 3% of total revenues [28] - The customer base in the commercial enterprise segment grew by 43%, with PandoLogic recording a 70% year-over-year growth in its customer base [21][27] Company Strategy and Development Direction - Veritone plans to leverage partnerships to expand offerings into new markets such as healthcare and fintech [11] - The company is focused on building an ecosystem to endure, with confidence in the long-term strategy under the new CEO Ryan Steelberg [14][106] - Investments in aiWARE and use case-specific applications are expected to continue driving growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the commercial business, stating that AI will thrive in both good and bad economic times [12] - The company anticipates challenges due to Amazon's hiring slowdown but remains optimistic about growth opportunities in non-Amazon business [50][51] - The guidance for Q4 2022 expects revenue between $44 million and $46 million, with full-year revenue projected between $150 million and $152 million [50][52] Other Important Information - Veritone acquired Vision Semantics Ltd. for $2 million, which is expected to enhance video tracking services [38] - The company held cash and restricted cash of $196.1 million as of September 30, 2022, down from $254.7 million at the end of 2021 [45] Q&A Session Summary Question: How to think about debt in the context of cash flow? - Management highlighted the convertible notes of $201 million due in four years, emphasizing confidence in growth and profitability [56][58] Question: Insights on PandoLogic revenue outlook? - Management noted a 70% growth in non-Amazon customers and over 100% revenue growth, expecting this trend to continue despite hiring slowdowns [64][66] Question: What needs to happen in 2023 for growth? - Management mentioned multiple growth levers, including new product offerings and continued growth in non-Amazon business for PandoLogic [95][97]