Veritone(VERI)2025-03-14 03:56Financial Data and Key Metrics Changes - For fiscal year 2024, revenue was $92.6 million, down 7% year-over-year from $100 million in 2023, primarily due to a decline in software products and services [48][50] - GAAP gross profit for 2024 reached $62.7 million, compared to $70.3 million in 2023, reflecting a decline of $7.6 million [50] - Non-GAAP net loss from continuing operations was $48.8 million, an improvement of $5.4 million compared to 2023 [51] Business Line Data and Key Metrics Changes - Software products and services revenue decreased by 10.8% to $61.5 million, driven by a decline in commercial enterprise [48][50] - Managed service revenue remained flat year-over-year at $31.6 million [48] - In Q4 2024, revenue from continuing operations was $22.4 million, down 17.3% from Q4 2023, largely due to a decline in software products and services [52] Market Data and Key Metrics Changes - The public sector is expected to grow year-over-year by 100% to 150%, driven by IDEMS applications [60][72] - The global unstructured data solution market size is estimated to exceed $30 billion in 2024 and is projected to grow to over $90 billion by 2033 [18] - The sales pipeline for public sector opportunities now exceeds $110 million [42] Company Strategy and Development Direction - The company aims to become a leading provider of enterprise AI software applications and services across commercial and public sectors [9][10] - The divestiture of VeritoneOne focused operations on advanced AI solutions, strengthening the financial foundation and reducing debt servicing [15][16] - The launch of Veritone Data Refinery is expected to significantly contribute to revenue growth in 2025 and beyond [27][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth due to trends in enterprise-wide AI adoption and the increasing volume of unstructured data [8][21] - The company is optimistic about the public sector's growth prospects, particularly with ongoing contracts and deployments in the Department of Defense [35][60] - Management highlighted the importance of cost structure improvements and strategic focus on AI solutions as key to achieving profitability by fiscal 2026 [60][78] Other Important Information - The company appointed Francisco J. Morales to the board of directors, replacing Chad Steelberg [44] - The divestiture of VeritoneOne resulted in a gain of $69.6 million, included in discontinued operations for Q4 and fiscal 2024 results [62] - As of December 31, 2024, the company held cash and restricted cash of $17.3 million, down from $47.5 million at the end of 2023 [63] Q&A Session Summary Question: When will the consumption customer headwinds fully anniversary? - Management indicated that Q1 2024 will mark the end of the consumption comparison [82] Question: Are there any disruptions due to the new administration in the federal government? - Management stated that they are not experiencing disruptions for contracts awarded previously, as current deployments are primarily funded by approved 2025 dollars [84][85] Question: What is the potential upsell opportunity from new commercial customers? - Management noted that initial contracts may have lower margins but expect upsell opportunities to normalize over the year, particularly with the VDR segment [88][90]