- Q2 Total Revenue of $31.0 Million, In Line
with Guidance -
- Public Sector Record Sales Pipeline Exceeds
$100 Million, Highlighted by iDEMs Solutions across the US Federal
Government -
- Total ARR (SaaS and Consumption) of $67.9
Million from 3,437 Total Software Products & Services
Customers, Including ARR (SaaS) of $49.2 Million, Representing 72%
of Total ARR from Subscription-Based Customers -
- Q2 Total New Bookings of $14.0 Million, up
67% Year over Year -
- Continued Organizational and Cost
Restructuring Actions Driving Year over Year Improvements of 37%
and 47% in Q2 Operating Loss and Non-GAAP Net Loss, respectively,
compared to Q2 2023 -
- Announced Formal Process to Divest
Non-software Asset; expected to raise substantial cash proceeds, in
2024, to be used to retire a portion of existing term debt and to
fund future operations -
Veritone, Inc. (NASDAQ:VERI), a leader in designing
human-centered AI solutions, today reported results for the second
quarter ended June 30, 2024.
“Veritone delivered a strong performance in the second quarter,
driven by accelerated growth across our AI software products and
services and advertising managed services. During the quarter, we
secured 17 new Public Sector customers and saw our Public Sector
sales pipeline reach unprecedented levels, and completed a landmark
deal with the NCAA, representing our largest contract to date based
on run rate,” said Ryan Steelberg, CEO & President of Veritone.
“Our strategic partnership with Amazon Web Services continues to
expand rapidly through our Strategic Collaboration Agreement,
unlocking new opportunities and driving innovation. The focused
execution of our strategic initiatives, including cost reductions
and resource alignment, is yielding tangible results. We also
announced we are in a formal process and are progressing towards
divesting one of our non-software assets, advancing our objectives
to improve our balance sheet and overall liquidity, and enhance our
operational efficiency. As we transition our focus from cost
reductions back to growth, we are confident in our ability to
capitalize on the demand for AI-driven solutions and deliver
long-term value to our shareholders."
Second Quarter 2024 Financial
Highlights
Calculated on a Pro Forma basis where noted; for additional
information on these calculations, see “Note Regarding Pro Forma
Information” and the definitions provided for each metric
cited.
- Revenue of $31.0 million, an increase of 11% compared to Q2
2023.
- Software Products and Services revenues of $15.6 million, an
increase of 11% compared to GAAP revenue of $14.1 million in Q2
2023, and a decrease of 25% when compared to Pro Forma Software
Revenue for Q2 2023 driven by the decline in consumption-based
revenue from customers, including Amazon.
- Managed Services revenue of $15.4 million, an increase of 11%
compared to Q2 2023 driven by an increase in advertising year over
year.
- Total Software Products & Services Customers of 3,437, down
7% year over year, as compared to June 30, 2023 on a pro forma
basis, largely driven by planned migration of legacy CareerBuilder
customers off the Broadbean software platform.
- Total New Bookings of $14.0 million, up 67% from $8.4 million
in Q2 2023 driven by an increase in subscription-based customer
bookings.
- Annual Recurring Revenue (“ARR”) of $67.9 million, down from
$107.9 million in Q2 2023 on a Pro Forma basis driven by declines
in consumption-based revenue principally from our largest customer,
offset by a 3% increase from recurring subscription-based SaaS
revenue customers.
- Loss from Operations of $17.7 million, as compared to a loss of
$28.2 million in Q2 2023 driven by the increase in revenue and
lower overall operating expenses resulting from our past cost
reduction plans and lower professional fees related to past
acquisitions and divestitures.
- Non-GAAP gross profit of $24.4 million, an increase of 21% or
$4.2 million as compared to Q2 2023 primarily due to an increase in
revenue and improved Non-GAAP gross margins of 78.8% as compared to
72.2% in Q2 2023.
- Net Loss of $22.2 million, as compared to $23.3 million in Q2
2023.
- Non-GAAP Net Loss of $6.9 million, improving 47% as compared to
Q2 2023.
About Our Sales Pipeline
Our sales pipeline represents revenue we expect to receive based
on the total fees payable during the full contract term for new
contracts outstanding at the end of the quarter and contracts that
we believe have a high probability of closing in the next three to
twelve months. We include in our sales pipeline fees payable during
any cancellable portion and an estimate of license fees that may
fluctuate over the term and we do not include any variable fees
under the contract (e.g., fees for cognitive processing, storage,
professional services and other variable services) and any fees
payable after contract renewals or extensions that are at the
discretion of our client. Many of our contracts require us to
provide services over more than one year and may include
professional fees required to enable our technology in certain
environments we do not host or have direct control over. In some
cases, our customers may have the ability to terminate our
agreements on short notice and our pipeline does not consider the
potential impact of any early termination. No assurance can be
given that we will ultimately realize our full sales pipeline.
Note Regarding Pro Forma
Information
"Pro Forma” information provided in this press release
represents the historical information of Veritone combined with the
historical information of Broadbean (as defined below) for the
applicable period on a Pro Forma basis as if Veritone had acquired
Broadbean on January 1, 2022. Veritone completed its acquisition of
(i) all of the issued and outstanding share capital of (a)
Broadbean Technology Pty Ltd ACN 116 011 959 / ABN 79 116 011 959,
a limited company incorporated under the laws of Australia, (b)
Broadbean Technology Limited, a limited company incorporated under
the laws of England and Wales, (c) Broadbean, Inc., a Delaware
corporation and (d) CareerBuilder France S.A.R.L., a limited
liability company organized (société à responsabilité limitée)
under the laws of France, and (ii) certain assets and liabilities
related thereto (the foregoing clauses (i) and (ii) together,
“Broadbean”) on June 13, 2023. Periods commencing after June 13,
2023 are not presented on a Pro Forma basis."
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited
Percent
Percent
(in $000s)
2024
2023
Change
2024
2023
Change
Revenue
$
30,992
$
27,967
11
%
$
62,628
$
58,230
8
%
Loss from operations
$
(17,662
)
$
(28,180
)
(37
)%
$
(39,502
)
$
(51,769
)
(24
)%
Net income (loss)
$
(22,231
)
$
(23,296
)
(5
)%
$
(47,429
)
$
(46,259
)
3
%
Non-GAAP gross profit*
$
24,412
$
20,202
21
%
$
49,002
$
43,656
12
%
Non-GAAP net income (loss)*
$
(6,850
)
$
(13,026
)
(47
)%
$
(14,469
)
$
(22,581
)
(36
)%
Three Months Ended June
30,
Six Months Ended June
30,
Unaudited
Percent
Percent
(in $000s, except customers)
2024
2023(1)
Change
2024
2023(1)
Change
Software Products & Services
Pro Forma Software Revenue(2)*
$
15,632
$
20,859
(25
)%
$
30,855
$
43,282
(29
)%
Total Software Products & Services
Customers(3)
3,437
3,705
(7
)%
3,437
3,705
(7
)%
Annual Recurring Revenue(4)*
$
67,924
$
107,949
(37
)%
$
67,924
$
107,949
(37
)%
Total New Bookings(5)
$
14,047
$
8,388
67
%
$
14,047
$
8,388
67
%
Gross Revenue Retention(6)
>90%
>90%
>90%
>90%
(1)All of the supplemental financial information for this period
is presented on a Pro Forma basis inclusive of Broadbean. (2)“Pro
Forma Software Revenue” is a non-GAAP measure that represents
Software Products & Services revenue, including on a Pro Forma
basis where indicated. (3)“Total Software Products & Services
Customers” includes Software Products & Services customers as
of the end of each respective quarter set forth above with net
revenues in excess of $10 and also excludes any customers
categorized by us as trial or pilot status. In prior periods, we
provided “Ending Software Customers,” which represented Software
Products & Services customers as of the end of each fiscal
quarter with trailing twelve-month revenues in excess of $2,400 for
both Veritone, Inc. and PandoLogic Ltd. and/or deemed by Veritone
to be under an active contract for the applicable periods. Total
Software Products & Services Customers is not comparable to
Ending Software Customers. Total Software Products & Services
Customers includes customers based on revenues in the last month of
the quarter rather than on a trailing twelve month basis and
excludes any customers that are on trial or pilot status with us
rather than including customers with active contracts. Management
uses Total Software Products & Services Customers and we
believe Total Software Products & Services Customers are useful
to investors because it more accurately reflects our total
customers for our Software Products & Services inclusive of
Broadbean. (4) “Annual Recurring Revenue” is calculated as Annual
Recurring Revenue (SaaS), which is an annualized calculation of the
monthly recurring revenue in the last month of the calculated
quarter for all active Software Products & Services customers,
combined with Annual Recurring Revenue (Consumption) which is the
trailing twelve month calculation of all non-recurring and/or
consumption-based revenue for all active Software Products &
Services customers. In prior periods, we provided “Average Annual
Revenue,” which was calculated as the aggregate of trailing
twelve-month Software Products & Services revenue divided by
the average number of customers over the same period for both
Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue is not
comparable to Average Annual Revenue. Annual Recurring Revenue is
on a Pro Forma basis where indicated, is not averaged among active
customers and uses a calculation of recurring revenue as described
above instead of annual revenue. Management uses “Annual Recurring
Revenue” and we believe Annual Recurring Revenue is useful to
investors because Broadbean significantly increases our mix of
subscription-based SaaS revenues as compared to non-recurring
and/or consumption-based revenues. (5)“Total New Bookings”
represents the total fees payable during the full contract term for
new contracts received in the quarter (including fees payable
during any cancellable portion and an estimate of license fees that
may fluctuate over the term), excluding any variable fees under the
contract (e.g., fees for cognitive processing, storage,
professional services and other variable services), in each case on
a Pro Forma basis where indicated. (6) “Gross Revenue Retention”
represents our dollar-based gross retention rate as of the period
end by starting with the revenue from Software Products &
Services Customers as of the 3 months in the prior year quarter to
such period, or Prior Year Quarter Revenue. We then deduct from the
Prior Year Quarter Revenue any revenue from Software Products &
Services Customers who are no longer customers as of the current
period end, or Current Period Ending Software Customer Revenue. We
then divide the total Current Period Ending Software Customer
Revenue by the total Prior Year Quarter Revenue to arrive at our
dollar-based gross retention rate, which is the percentage of
revenue from all Software Products & Services Customers from
our Software Products & Services as of the year prior that is
not lost to customer churn. All numbers used to determine Gross
Revenue Retention are calculated on a Pro Forma basis where
indicated. * See tables below for reconciliation of non-GAAP
financial measures to directly comparable GAAP measures and for the
definitions used for Software Products & Services Supplemental
Financial Information.
Recent Business
Highlights
- Public Sector closed 17 new public safety and government
customers, including the Defense Logistics Agency, a division of US
Department of Defense and the US Senate, and announced the
appointment of Gus Hunt, former CIA Chief Technology Officer, as an
advisor.
- Signed over 23 new Media & Entertainment deals in the
second quarter, including a multi-year contract with the NCAA,
which is expected to generate up to $40 million over the term, new
deals with Tennis Australia and notable renewals and deal
expansions with NBC Universal, CNBC, CNN, and Bloomberg.
- Veritone Hire signed significant new enterprise programmatic
advertising and job distribution software deals, including global
brands such as Sevita, Whole Foods, Best Buy, and Harrods and
completed the beta launch of programmatic advertising solution and
programmatic publisher network in Australia.
- Announced Strategic Collaboration Agreement (SCA) with Amazon
Web Services (AWS), which will leverage Veritone’s and AWS’ unique
strengths to accelerate cloud-native enterprise AI and generative
AI innovation for new and existing customers across sectors.
- Continued strong advertising momentum, with top-line media
bookings increasing 12% year-over-year from Veritone One and saw
substantial growth from key customers such as Mint Mobile,
LinkedIn, DraftKings, and Quince.
- Announced formal process to divest a non-software asset with
multiple qualified bidders, which, if consummated, is expected to
generate substantial cash proceeds to be used to repay a portion of
the Company’s term debt and fund future operations.
Financial Results for Three Months
Ended June 30, 2024
Delivered second quarter revenue of $31.0 million, an increase
of $3.0 million or 11% from $28.0 million in the second quarter of
2023. Software Products & Services revenue of $15.6 million
increased $1.5 million or 11% year over year driven by the Q2 2023
acquisition of Broadbean, which generated $8.7 million in revenue
in Q2 2024, offset by the decline in legacy Veritone Hire revenue
over the same period, including declines in revenue from Amazon.
Managed Services revenue of $15.4 million increased $1.5 million or
11% year over year principally due to an improvement in advertising
services.
Loss from operations of $17.7 million improved by $10.5 million
as compared to a loss of $28.2 million in Q2 2023 driven in part by
a net $7.5 million decrease in operating expenses including the
impact of the Q2 2023 Broadbean Acquisition, and the $3.0 million
increase in revenue. The $7.5 million net decline in operating
expenses was driven by legacy cost reductions, coupled with lower
professional fees related to acquisitions and divestitures of $4.0
million year over year driven by the second quarter 2023 Broadbean
acquisition. Non-GAAP gross margin of 78.8% improved by 660 basis
points from 72.2% in the second quarter of 2023. GAAP net loss was
$22.2 million, compared to GAAP net loss of $23.3 million in the
second quarter of 2023, driven by the $10.5 million improvement in
loss from operations, offset by (i) an increase of $3.8 million in
net interest expense largely associated with the Company’s December
2023 term loan, which included $1.4 million of non-cash
amortization associated with the initial discount and issuance
costs of the term loan, (ii) a one-time gain of $2.6 million from
the divestiture of the Company’s energy division in the second
quarter of 2023, (iii) a $1.6 million decline in foreign currency
gains and (iv) a $1.3 million decline in the Company's tax benefit.
Non-GAAP net loss of $6.9 million improved by 47% when compared to
Non-GAAP net loss of $13.0 million in the second quarter of 2023,
largely driven by the increase in Non-GAAP gross profit, coupled
with reductions in our cost structure since the first quarter of
2023.
As of June 30, 2024, Total Software Product & Services
Customers of 3,437 was down 7% year over year relative to Total
Software Product & Services Customers on a Pro Forma basis as
of June 30, 2023, principally due to planned migration of legacy
CareerBuilder customers off the Broadbean software platform. Total
New Bookings on a Pro Forma basis increased by 67% to $14.0 million
versus the comparable period a year ago largely driven by an
increase in subscription-based customer bookings, offset by a
reduction in revenue from consumption-based customers, including
Amazon. Annual Recurring Revenue on a Pro Forma basis of $67.9
million decreased 37% year over year driven in large part by the
decline in consumption spending from customers, offset by a 3% year
over year increase in Annual Recurring Revenue from
subscription-based SaaS customers. Excluding the decline in
consumption-based spending from Amazon, Software Products &
Services revenue growth would have increased over 50% year over
year.
As of June 30, 2024, the Company had cash and cash equivalents
of $46.0 million, including approximately $39.3 million of cash
received from advertising customers for future payments to
vendors.
Business Outlook
Third Quarter 2024
- Revenue is expected to be in the range of $34.0 million to
$35.0 million, as compared to $35.1 million in the third quarter of
2023.
- Non-GAAP net loss is expected to be in the range of $2.6
million to $4.0 million, compared to non-GAAP net loss of $7.9
million in the third quarter of 2023.
Full Year 2024
- Revenue is expected to be in the range of $136.0 million to
$142.0 million, as compared to $127.6 million for fiscal 2023.
- Non-GAAP net loss is expected to be in the range of $11.0
million to $15.0 million, compared to non-GAAP net loss of $37.3
million for fiscal 2023.
These updated financial guidance ranges supersede any previously
disclosed financial guidance and investors should not rely on any
previously disclosed financial guidance.
Conference Call
Veritone will hold a conference call to deliver management’s
prepared remarks on August 8, 2024, at 5:00 p.m. Eastern Time (2:00
p.m. Pacific Time) to discuss its second quarter 2024 results,
provide an update on the business and conduct a question-and-answer
session. To participate, please join the audio webcast or dial-in
and ask to be connected to the Veritone earnings conference call.
To avoid a delay, if dialing in, please pre-register or join the
live audio webcast.
- Pre-Registration*
- Live Audio Webcast
- Domestic Call Number: (844) 750-4897
- International Call Number: (412) 317-5293
A replay of the conference call can be accessed one hour after
the end of the conference call through August 15, 2024. The full
webcast replay will be available through August 8, 2025. To access
the earnings webcast replay please visit the Veritone Investor
Relations website.
- Domestic Replay Number: (877) 344-7529
- International Replay Number: (412) 317-0088
- Replay Access Code: 7195217
* Please note that pre-registered participants will receive
their dial-in number and unique PIN upon registration.
About the Presentation of Supplemental
Non-GAAP Financial Information and Key Performance
Indicators
In this news release, the Company has supplemented its financial
measures prepared in accordance with U.S. generally accepted
accounting principles (GAAP) with certain non-GAAP financial
measures, including Pro Forma Software Revenue, Non-GAAP gross
profit, Non-GAAP gross margin, Non-GAAP net income (loss) and
Non-GAAP net income (loss) per share. The Company also provides
certain key performance indicators (KPIs), including Total Software
Products & Services Customers, Annual Recurring Revenue, Annual
Recurring Revenue (SaaS), Annual Recurring Revenue (Consumption),
Total New Bookings and Gross Revenue Retention. The Company has
posted additional supplemental financial information on its website
at investors.veritone.com concurrently with this press release.
Pro Forma Software Revenue represents Software Products &
Services revenue on a Pro Forma basis. Non-GAAP gross profit is
defined as revenue less cost of revenue. Non-GAAP gross margin is
defined as Non-GAAP gross profit divided by revenue. Non-GAAP net
income (loss) and non-GAAP net income (loss) per share,
respectively, is the Company’s net income (loss) and net income
(loss) per share, adjusted to exclude provision for income taxes,
depreciation expense, amortization expense, stock-based
compensation expense, changes in fair value of warrant liability,
changes in fair value of contingent consideration, interest income,
interest expense, foreign currency gains and losses, acquisition
and due diligence costs, gain on sale of energy group, contribution
of business held for sale, variable consultant performance bonus
expense, and severance and executive transition costs. The items
excluded from these non-GAAP financial measures, as well as a
breakdown of GAAP net income (loss), non-GAAP net income (loss) and
these excluded items between the Company’s Core Operations and
Corporate, are detailed in the reconciliations included following
the financial statements attached to this news release. In
addition, following the financial statements attached to this news
release, the Company has provided additional supplemental non-GAAP
measures of operating expenses, loss from operations, other income
(expense), net, and loss before income taxes, excluding the items
excluded from non-GAAP net loss as noted above, and reconciling
such non-GAAP measures to the most directly comparable GAAP
measures.
The Company has provided these non-GAAP financial measures and
KPIs because management believes such information to be important
supplemental measures of performance that are commonly used by
securities analysts, investors and other interested parties in the
evaluation of companies in its industry. Management also uses this
information internally for forecasting and budgeting. The non-GAAP
financial measures should not be considered as an alternative to
revenue, net income (loss), operating income (loss) or any other
financial measures so calculated and presented, nor as an
alternative to cash flow from operating activities as a measure of
liquidity. Other companies (including the Company’s competitors)
may define these non-GAAP financial measures differently. The
non-GAAP financial measures may not be indicative of the historical
operating results of Veritone or predictive of potential future
results. Investors should not consider these non-GAAP financial
measures in isolation or as a substitute for analysis of the
Company’s results as reported in accordance with GAAP.
In addition, the Company defines the following capitalized terms
in this news release as follows:
Core Operations consists of the Company’s aiWARE operating
platform of software, SaaS and related services; content licensing
and advertising agency services; and their supporting operations,
including direct costs of sales as well as operating expenses for
sales, marketing and product development and certain general and
administrative costs dedicated to these operations.
Corporate principally consists of general and administrative
functions such as executive, finance, legal, people operations,
fixed overhead expenses (including facilities and information
technology expenses), other income (expenses) and taxes, and other
expenses that support the entire Company, including public company
driven costs.
Software Products & Services consists of revenues generated
from commercial enterprise and government and regulated industries
customers using our aiWARE platform and Hiring Solutions, any
related support and maintenance services, and any related
professional services associated with the deployment and/or
implementation of such solutions.
Managed Services consist of revenues generated from commercial
enterprise customers using our content licensing services and
advertising agency and related services.
About Veritone
Veritone (NASDAQ: VERI) builds human-centered enterprise AI
solutions. Serving customers in the media, entertainment, public
sector and talent acquisition industries, Veritone’s software and
services empower individuals at the world’s largest and most
recognizable brands to run more efficiently, accelerate decision
making and increase profitability. Veritone’s leading enterprise AI
platform, aiWARE™, orchestrates an ever-growing ecosystem of
machine learning models, transforming data sources into actionable
intelligence. By blending human expertise with AI technology,
Veritone advances human potential to help organizations solve
problems and achieve more than ever before, enhancing lives
everywhere.
To learn more, visit Veritone.com.
Safe Harbor Statement
This news release contains forward-looking statements, including
without limitation, statements regarding our prospects for the
remainder of 2024, our ability to deliver AI solutions to our
customers and serve customer demand, our expectations about
customer demand for our products, our ability to capitalize on
actual or potential acceleration of enterprise-wide generative AI,
our ability to divest non-software assets in a manner that improves
our balance sheet and overall liquidity, our ability to realize
annualized cost-savings including from our recent restructuring,
our ability to drive long-term shareholder value, our ability to
achieve our annual cost savings forecast, our ability to achieve
cash flow profitability as early as Q4 2024, our expected total
revenue from our contract with the NCAA, and our expected total
revenue and non-GAAP net loss for Q2 2024 and for full year 2024.
In addition, words such as “may,” “will,” “expect,” “believe,”
“anticipate,” “intend,” “plan,” “outlook,” “should,” “could,”
“estimate,” “confident” or “continue” or the plural, negative or
other variations thereof or comparable terminology are intended to
identify forward-looking statements, and any statements that refer
to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements. These
forward-looking statements speak only as of the date hereof, and
are based on management’s current assumptions, expectations,
beliefs and information. As such, our actual results could differ
materially and adversely from those expressed in any
forward-looking statement as a result of various factors. Important
factors that could cause such differences include, among other
things, our ability to expand our aiWARE SaaS business; declines or
limited growth in the market for AI-based software applications and
concerns over the use of AI that may hinder the adoption of AI
technologies; our requirements for additional capital and liquidity
to support our operations, our business growth, service our debt
obligations and refinance maturing debt obligations, and the
availability of such capital on acceptable terms, if at all; our
reliance upon a limited number of key customers for a significant
portion of our revenue; declines in customers’ usage of our
products and other offerings; our ability to realize the intended
benefits of our acquisitions, divestitures, and other planned or
ongoing cost-saving measures, including our ability to successfully
integrate our recent acquisition of Broadbean; our identification
of existing material weaknesses in our internal control over
financial reporting; fluctuations in our results over time; the
impact of seasonality on our business; our ability to manage our
growth, including through acquisitions and expansion into
international markets; our ability to enhance our existing products
and introduce new products that achieve market acceptance and keep
pace with technological developments; actions by our competitors,
partners and others that may block us from using third party
technologies in our aiWARE platform, offering it for free to the
public or making it cost prohibitive to continue to incorporate
such technologies into our platform; interruptions, performance
problems or security issues with our technology and infrastructure,
or that of our third party service providers; the impact of the
continuing economic disruption caused by macroeconomic and
geopolitical factors, including the Russia-Ukraine conflict, the
war in Israel, financial instability, high interest rates,
inflationary pressures and the responses by central banking
authorities to control inflation, monetary supply shifts and the
threat of recession in the United States and around the world on
our business operations and those of our existing and potential
customers; and future business decisions, all of which are
difficult or impossible to predict accurately and many of which are
beyond our control. Certain of these judgments and risks are
discussed in more detail in our most recently-filed Annual Report
on Form 10-K, and our most recently-filed Quarterly Report on Form
10-Q and other periodic reports filed from time to time with the
Securities and Exchange Commission. In light of the significant
uncertainties inherent in the forward-looking information included
herein, the inclusion of such information should not be regarded as
a representation by us or any other person that our objectives or
plans will be achieved. The forward-looking statements contained
herein reflect our beliefs, estimates and predictions as of the
date hereof, and we undertake no obligation to revise or update the
forward-looking statements contained herein to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events for any reason, except as required by law.
VERITONE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(in thousands)
As of
June 30, 2024
December 31, 2023
ASSETS
Cash and cash equivalents
$
46,024
$
79,439
Accounts receivable, net
53,927
69,266
Expenditures billable to clients
28,949
19,608
Prepaid expenses and other current
assets
13,010
14,457
Total current assets
141,910
182,770
Property, equipment and improvements,
net
9,788
8,656
Intangible assets, net
71,447
83,423
Goodwill
79,828
80,247
Long-term restricted cash
933
867
Other assets
17,896
19,851
Total assets
$
321,802
$
375,814
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
Accounts payable
$
33,366
$
32,756
Accrued media payments
69,300
93,896
Client advances
33,341
15,452
Deferred revenue
13,466
12,813
Term Loan, current portion
7,750
5,813
Accrued purchase consideration,
current
919
1,000
Other accrued liabilities
23,516
27,095
Total current liabilities
181,658
188,825
Convertible Notes, non-current
89,846
89,572
Term Loan, non-current
43,890
45,012
Accrued purchase consideration,
non-current
600
633
Other non-current liabilities
11,502
13,625
Total liabilities
327,496
337,667
Total stockholders' equity (deficit)
(5,694
)
38,147
Total liabilities and stockholders' equity
(deficit)
$
321,802
$
375,814
VERITONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
AND COMPREHENSIVE INCOME
(LOSS)
(in thousands, except per
share and share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
30,992
$
27,967
$
62,628
$
58,230
Operating expenses:
Cost of revenue
6,580
7,765
13,626
14,574
Sales and marketing
12,674
13,124
24,478
25,814
Research and development
6,645
10,519
15,860
22,046
General and administrative
16,765
19,025
36,185
36,422
Amortization
5,990
5,714
11,981
11,143
Total operating expenses
48,654
56,147
102,130
109,999
Loss from operations
(17,662
)
(28,180
)
(39,502
)
(51,769
)
Other income (expense), net
(4,612
)
3,510
(9,015
)
3,865
Loss before provision for income taxes
(22,274
)
(24,670
)
(48,517
)
(47,904
)
(Benefit from) provision for income
taxes
(43
)
(1,374
)
(1,088
)
(1,645
)
Net loss
$
(22,231
)
$
(23,296
)
$
(47,429
)
$
(46,259
)
Net loss per share:
Basic and diluted
$
(0.59
)
$
(0.63
)
$
(1.26
)
$
(1.26
)
Weighted average shares outstanding:
Basic and diluted
37,814,019
36,848,602
37,583,623
36,718,994
Comprehensive loss:
Net loss
$
(22,231
)
$
(23,296
)
$
(47,429
)
$
(46,259
)
Foreign currency translation (loss) gain,
net of income taxes
(220
)
(997
)
(1
)
(1,763
)
Total comprehensive loss
$
(22,451
)
$
(24,293
)
$
(47,430
)
$
(48,022
)
VERITONE, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(47,429
)
$
(46,259
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
14,460
12,296
Provision for credit losses
548
(15
)
Stock-based compensation expense
3,747
6,614
Gain on sale of energy group
—
(2,572
)
Change in fair value of contingent
consideration
—
651
Change in deferred taxes
(2,464
)
(1,828
)
Amortization of debt issuance costs
3,027
432
Amortization of right-of-use assets
237
649
Imputed non-cash interest income
(194
)
(65
)
Changes in assets and liabilities:
Accounts receivable
14,792
16,308
Expenditures billable to clients
(9,341
)
70
Prepaid expenses and other assets
1,641
(3,501
)
Other assets
187
(1,613
)
Accounts payable
609
(7,286
)
Deferred revenue
653
8
Accrued media payments
(24,596
)
(34,592
)
Client advances
17,889
(2,264
)
Other accrued liabilities
(898
)
6,652
Other liabilities
341
(2,218
)
Net cash used in operating activities
(26,791
)
(58,533
)
Cash flows from investing
activities:
Proceeds from divestiture
1,800
504
Capital expenditures
(3,399
)
(2,697
)
Acquisitions, net of cash acquired
—
(50,195
)
Settlement of deferred consideration for
acquisitions
—
(2,690
)
Net cash used in investing activities
(1,599
)
(55,078
)
Cash flows from financing
activities:
Payment of debt principal
(1,938
)
—
Payment of purchase consideration
(1,000
)
(7,772
)
Taxes paid related to net share settlement
of equity awards
(456
)
(1,003
)
Proceeds from issuances of stock under
employee stock plans, net
235
643
Settlement of deferred consideration for
acquisitions
(1,800
)
—
Net cash used in financing activities
(4,959
)
(8,132
)
Net decrease in cash and cash equivalents
and restricted cash
(33,349
)
(121,743
)
Cash and cash equivalents and restricted
cash, beginning of period
80,306
185,282
Cash and cash equivalents and restricted
cash, end of period
$
46,957
$
63,539
VERITONE, INC.
REVENUE DETAIL
(UNAUDITED)
(in thousands)
Three Months Ended June
30,
2024
2023
Commercial
Public
Commercial
Public
Enterprise
Sector
Total
Enterprise
Sector
Total
Total Software Products &
Services
$
14,510
$
1,122
$
15,632
$
12,492
$
1,601
$
14,093
Managed Services
Advertising
10,475
—
10,475
8,417
—
8,417
Licensing
4,885
—
4,885
5,457
—
5,457
Total Managed Services
15,360
—
15,360
13,874
—
13,874
Total Revenue
$
29,870
$
1,122
$
30,992
$
26,366
$
1,601
$
27,967
VERITONE, INC.
REVENUE DETAIL
(UNAUDITED)
(in thousands)
Six Months Ended June
30,
2024
2023
Commercial
Public
Commercial
Public
Enterprise
Sector
Total
Enterprise
Sector
Total
Total Software Products &
Services
$
28,212
$
2,640
$
30,852
$
25,224
$
2,996
$
28,220
Managed Services
Advertising
21,450
—
21,450
18,952
—
18,952
Licensing
10,326
—
10,326
11,058
—
11,058
Total Managed Services
31,776
—
31,776
30,010
—
30,010
Total Revenue
$
59,988
$
2,640
$
62,628
$
55,234
$
2,996
$
58,230
VERITONE, INC.
RECONCILIATION OF NON-GAAP NET
INCOME (LOSS) TO GAAP NET LOSS (UNAUDITED)
(in thousands)
Three Months Ended June
30,
2024
2023
Core
Operations(1)
Corporate(2)
Total
Core
Operations(1)
Corporate(2)
Total
Net loss
$
(9,026
)
$
(13,205
)
$
(22,231
)
$
(15,205
)
$
(8,091
)
$
(23,296
)
(Benefit from) provision for income
taxes
(43
)
—
(43
)
(742
)
(632
)
(1,374
)
Depreciation and amortization
6,835
123
6,958
5,818
571
6,389
Stock-based compensation expense
698
1,441
2,139
1,929
768
2,697
Purchase consideration expense(3)
—
568
568
—
—
—
Interest expense, net
—
4,497
4,497
—
720
720
Foreign currency impact
—
(49
)
(49
)
(1,631
)
(28
)
(1,659
)
Gain on debt extinguishment
—
(8
)
(8
)
—
—
—
Acquisition and due diligence costs(4)
—
241
241
—
4,271
4,271
Loss (gain) on sale
—
172
172
—
(2,572
)
(2,572
)
Contribution of business held for
sale(5)
(5
)
—
(5
)
872
—
872
Variable consultant performance bonus
expense (6)
—
—
—
237
—
237
Severance and executive transition
costs
831
80
911
474
215
689
Non-GAAP net loss
$
(710
)
$
(6,140
)
$
(6,850
)
$
(8,248
)
$
(4,778
)
$
(13,026
)
Six Months Ended June
30,
2024
2023
Core
Operations(1)
Corporate(2)
Total
Core
Operations(1)
Corporate(2)
Total
Net loss
$
(20,018
)
$
(27,411
)
$
(47,429
)
$
(27,775
)
$
(18,484
)
$
(46,259
)
(Benefit from) provision for income
taxes
(1,088
)
—
(1,088
)
(1,246
)
(399
)
(1,645
)
Depreciation and amortization
14,244
216
14,460
11,572
724
12,296
Stock-based compensation expense
1,738
2,009
3,747
4,264
2,350
6,614
Change in fair value of contingent
consideration
—
—
—
—
651
651
Purchase consideration expense(3)
—
885
885
—
—
—
Interest expense, net
—
8,488
8,488
9
1,516
1,525
Foreign currency impact
—
363
363
(2,777
)
(43
)
(2,820
)
Gain on debt extinguishment
—
(8
)
(8
)
—
—
—
Acquisition and due diligence costs(4)
140
1,042
1,182
—
5,076
5,076
Loss (gain) on sale
—
172
172
—
(2,572
)
(2,572
)
Contribution of business held for
sale(5)
(2
)
—
(2
)
1,789
—
1,789
Variable consultant performance bonus
expense (6)
—
—
—
631
—
631
Severance and executive transition
costs
3,098
1,663
4,761
1,501
632
2,133
Non-GAAP net loss
$
(1,888
)
$
(12,581
)
$
(14,469
)
$
(12,032
)
$
(10,549
)
$
(22,581
)
(1) Core operations consists of our
consolidated Software Products & Services and Managed Services
that include our content licensing and advertising services, and
their supporting operations, including direct costs of sales as
well as operating expenses for sales, marketing and product
development and certain general and administrative costs dedicated
to these operations.
(2) Corporate consists of general and
administrative functions such as executive, finance, legal, people
operations, fixed overhead expenses (including facilities and
information technology expenses), other income (expenses) and
taxes, and other expenses that support the entire company,
including public company driven costs.
(3) Purchase consideration expense
includes consideration related to acquisitions.
(4) For the three and six months ended
June 30, 2024, acquisition and due diligence costs are comprised of
professional fees related to our acquisitions and divestitures.
(5) Contribution of business held for sale
relates to the net loss for the periods presented for our Energy
Group that we divested during the second quarter of 2023.
(6) Variable consultant performance bonus
expense represents the bonus payments paid to Mr. Chad Steelberg as
a result of his achievement of the performance goals pursuant to
his consulting agreement with us.
VERITONE, INC.
RECONCILIATION OF EXPECTED
NON-GAAP NET INCOME (LOSS) RANGE
TO EXPECTED GAAP NET LOSS
RANGE (UNAUDITED)
(in millions)
Three Months Ended
Year Ended
September 30, 2024
December 31, 2024
Net loss
($15.9) to ($14.9)
($72.2) to ($68.2)
Provision for (benefit from) income
taxes
($0.5)
($0.8)
Interest expense, net
$4.1
$16.6
Depreciation and amortization
$7.0
$30.0
Stock-based compensation expense
$1.5
$6.7
Purchase consideration expense
$0.0
$1.0
Severance and executive transition
costs
$0.0
$3.7
Non-GAAP net income (loss)
($4.0) to ($2.6)
($15.0) to ($11.0)
VERITONE, INC.
RECONCILIATION OF NON-GAAP TO
GAAP FINANCIAL INFORMATION (UNAUDITED)
(in thousands, except per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
30,992
$
27,967
$
62,628
$
58,230
Cost of revenue
6,580
7,765
13,626
14,574
Non-GAAP gross profit
24,412
20,202
49,002
43,656
GAAP cost of revenue
6,580
7,765
13,626
14,574
Stock-based compensation expense
—
(17
)
1
(37
)
Non-GAAP cost of revenue
6,580
7,748
13,627
14,537
GAAP sales and marketing expenses
12,674
13,124
24,478
25,814
Depreciation
(24
)
(6
)
(48
)
(12
)
Stock-based compensation expense
(306
)
(529
)
(482
)
(705
)
Contribution of business held for sale
(2)
—
(221
)
—
(484
)
Severance and executive transition
costs
(477
)
(190
)
(980
)
(503
)
Non-GAAP sales and marketing expenses
11,867
12,178
22,968
24,110
GAAP research and development expenses
6,645
10,519
15,860
22,046
Depreciation
(562
)
(292
)
(1,352
)
(519
)
Stock-based compensation expense
(96
)
(1,127
)
(628
)
(2,669
)
Contribution of business held for sale
(2)
—
(559
)
—
(1,117
)
Severance and executive transition
costs
(265
)
(151
)
(1,457
)
(680
)
Non-GAAP research and development
expenses
5,722
8,390
12,423
17,061
GAAP general and administrative
expenses
16,765
19,025
36,185
36,422
Depreciation
(382
)
(377
)
(1,079
)
(622
)
Stock-based compensation expense
(1,737
)
(1,024
)
(2,638
)
(3,203
)
Change in fair value of contingent
consideration
—
—
—
(651
)
Purchase consideration expense (3)
(568
)
—
(885
)
—
Variable consultant performance bonus
expense (4)
—
(237
)
—
(631
)
Contribution of business held for sale
(2)
5
(92
)
2
(188
)
Acquisition and due diligence costs
(5)
(241
)
(4,271
)
(1,182
)
(5,076
)
Severance and executive transition
costs
(169
)
(348
)
(2,324
)
(950
)
Non-GAAP general and administrative
expenses
13,673
12,676
28,079
25,101
GAAP amortization
(5,990
)
(5,714
)
(11,981
)
(11,143
)
GAAP loss from operations
(17,662
)
(28,180
)
(39,502
)
(51,769
)
Total non-GAAP adjustments (1)
10,812
15,155
25,033
29,190
Non-GAAP loss from operations
(6,850
)
(13,025
)
(14,469
)
(22,579
)
GAAP other income (expense), net
(4,612
)
3,510
(9,015
)
3,865
Gain on debt extinguishment
(8
)
—
(8
)
—
Loss (gain) on sale
172
(2,572
)
172
(2,572
)
Foreign currency impact
(49
)
(1,659
)
363
(2,820
)
Interest expense, net
4,497
720
8,488
1,525
Non-GAAP other expense, net
—
(1
)
—
(2
)
GAAP loss before income taxes
(22,274
)
(24,670
)
(48,517
)
(47,904
)
Total non-GAAP adjustments (1)
15,424
11,644
34,048
25,323
Non-GAAP loss before income taxes
(6,850
)
(13,026
)
(14,469
)
(22,581
)
(Benefit from) provision for income
taxes
(43
)
(1,374
)
(1,088
)
(1,645
)
GAAP net loss
(22,231
)
(23,296
)
(47,429
)
(46,259
)
Total non-GAAP adjustments (1)
15,381
10,270
32,960
23,678
Non-GAAP net loss
$
(6,850
)
$
(13,026
)
$
(14,469
)
$
(22,581
)
Shares used in computing non-GAAP basic
and diluted net loss per share (in 000's)
37,814
36,849
37,584
36,719
Non-GAAP basic and diluted net loss per
share
$
(0.18
)
$
(0.35
)
$
(0.38
)
$
(0.61
)
(1) Adjustments are comprised of the
adjustments to GAAP cost of revenue, sales and marketing expenses,
research and development expenses and general and administrative
expenses and other income (expense), net (where applicable) listed
above.
(2) Contribution of business held for sale
relates to the net loss for the periods presented for our Energy
Group that we divested during Q2 2023.
(3) Purchase consideration expense
includes consideration related to acquisitions.
(4) Variable consultant performance bonus
expense represents the bonus payments paid to Mr. Chad Steelberg as
a result of his achievement of the performance goals pursuant to
his consulting agreement with us.
(5) For the three and six months ended
June 30, 2024, acquisition and due diligence costs are comprised of
professional fees related to our acquisitions and divestitures.
VERITONE, INC. SUPPLEMENTAL FINANCIAL
INFORMATION
We are providing the following unaudited supplemental financial
information as a lookback of prior years to explain our recent
historical and year-over-year performance. The Software Products
& Services supplemental financial information is presented on a
Pro Forma basis, as further described below.
Software Products & Services Supplemental Financial
Information
Quarter Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
2022 (1)
2022 (1)
2022 (1)
2022 (1)
2023 (1)
2023 (1)
2023
2023
2024
2024
Pro Forma Software Revenue (in
000's) (2)
$
26,319
$
26,650
$
28,603
$
35,612
$
22,423
$
20,859
$
20,361
$
19,824
$
15,223
$
15,632
Total Software Products &
Services Customers (3)
3,673
3,718
3,787
3,824
3,773
3,705
3,536
3,459
3,384
3,437
Annual Recurring Revenue (SaaS)
(in 000's) (4)
$
48,392
$
44,465
$
43,925
$
46,248
$
45,453
$
47,720
$
47,756
$
49,122
$
49,064
$
49,223
Annual Recurring Revenue
(Consumption) (in 000's) (5)
$
87,445
$
85,901
$
85,091
$
71,754
$
67,242
$
60,229
$
41,543
$
30,967
$
23,510
$
18,701
Total New Bookings (in 000's)
(6)
$
16,643
$
22,009
$
23,793
$
26,342
$
22,794
$
8,388
$
15,501
$
17,457
$
12,964
$
14,047
Gross Revenue Retention (7)
>90%
>90%
>90%
>90%
>90%
>90%
>90%
>90%
>90%
>90%
(1) All of the supplemental financial
information for this period is presented on a Pro Forma basis
inclusive of Broadbean.
(2) “Pro Forma Software Revenue” is a
non-GAAP measure that represents Software Products & Services
revenue on a Pro Forma basis.
(3) “Total Software Products &
Services Customers” includes Software Products & Services
customers as of the end of each respective quarter set forth above
with net revenues in excess of $10 and also excludes any customers
categorized by us as trial or pilot status. In prior periods, we
provided “Ending Software Customers,” which represented Software
Products & Services customers as of the end of each fiscal
quarter with trailing twelve-month revenues in excess of $2,400 for
both Veritone, Inc. and PandoLogic Ltd. and/or deemed by the
Company to be under an active contract for the applicable periods.
Total Software Products & Services Customers is not comparable
to Ending Software Customers. Total Software Products &
Services Customers includes customers based on revenues in the last
month of the quarter rather than on a trailing twelve-month basis.
Total Software Products & Services Customers includes customers
based on revenues in the last month of the quarter rather than on a
trailing twelve-month basis and excludes any customers that are on
trial or pilot status with us rather than including customers with
active contracts. Management uses Total Software Products &
Services Customers and we believe Total Software Products &
Services Customers are useful to investors because it more
accurately reflects our total customers for our Software Products
& Services customers inclusive of Broadbean.
(4) “Annual Recurring Revenue (SaaS)”
represents an annualized calculation of monthly recurring revenue
during the last month of the applicable quarter for all Total
Software Products & Services customers, in each case on a Pro
Forma basis. In prior periods, we provided “Average Annual
Revenue,” which was calculated as the aggregate of trailing
twelve-month Software Products & Services revenue divided by
the average number of customers over the same period for both
Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue is not
comparable to Average Annual Revenue (SaaS). Annual Recurring
Revenue (SaaS) includes only subscription-based SaaS revenue, is
not averaged among active customers and uses a calculation of
recurring revenue as described above instead of annual revenue.
Management uses “Annual Recurring Revenue (SaaS)” and we believe
Annual Recurring Revenue (SaaS) is useful to investors because
Broadbean significantly increases our mix of subscription-based
SaaS revenues as compared to Consumption revenues and the split
between the two allows the reader to delineate between predictable
recurring SaaS revenues and more volatile Consumption revenues.
(5) “Annual Recurring Revenue
(Consumption)” represents the trailing twelve months of all
non-recurring and/or consumption-based revenue for all active Total
Software Products & Services customers, in each case, on a Pro
Forma basis. In prior periods, we provided “Average Annual
Revenue,” which was calculated as the aggregate of trailing
twelve-month Software Products & Services revenue divided by
the average number of customers over the same period for both
Veritone, Inc. and PandoLogic Ltd. Annual Recurring Revenue
(Consumption) is not comparable to Average Annual Revenue. Annual
Recurring Revenue (Consumption) includes only non-recurring and/or
consumption-based revenue, is not averaged among active customers
and uses a calculation of recurring revenue as described above
instead of annual revenue. Management uses “Annual Recurring
Revenue (Consumption)” and we believe Annual Recurring Revenue
(Consumption) is useful to investors because Broadbean
significantly increases our mix of subscription-based SaaS revenues
as compared to Consumption revenues and the split between the two
allows the reader to delineate between predictable recurring SaaS
revenues and more volatile Consumption revenues.
(6) “Total New Bookings” represents the
total fees payable during the full contract term for new contracts
received in the quarter (including fees payable during any
cancellable portion and an estimate of license fees that may
fluctuate over the term), excluding any variable fees under the
contract (e.g., fees for cognitive processing, storage,
professional services and other variable services), in each case on
a Pro Forma basis.
(7) “Gross Revenue Retention” represents a
calculation of our dollar-based gross revenue retention rate as of
the period end by starting with the revenue from Software Products
& Services Customers as of the 3 months in the prior year
quarter to such period, or Prior Year Quarter Revenue. We then
deduct from the Prior Year Quarter Revenue any revenue from
Software Products & Services Customers who are no longer
customers as of the current period end, or Current Period Ending
Software Customer Revenue. We then divide the total Current Period
Ending Software Customer Revenue by the total Prior Year Quarter
Revenue to arrive at our dollar-based gross retention rate, which
is the percentage of revenue from all Software Products &
Services Customers from our Software Products & Services as of
the year prior that is not lost to customer churn. All numbers used
to determine Gross Revenue Retention are calculated on a Pro Forma
basis.
The following table sets forth the reconciliation of revenue to
pro forma revenue and the calculation of pro forma annual recurring
revenue.
Quarter Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
2022
2022
2022
2022
2023
2023
2023
2023
2024
2024
Software Products & Services Revenue
(in 000’s)
$
18,167
$
18,379
$
20,812
$
27,220
$
14,127
$
14,093
$
20,361
$
19,820
$
15,220
$
15,632
Broadbean Revenue (in 000’s) (1)
6,204
6,974
7,639
8,230
8,156
8,374
8,739
8,662
8,517
8,690
Broadbean Revenue included in Software
Products & Services Revenue (in 000’s)
—
—
—
—
—
(1,716
)
(8,739
)
(8,662
)
(8,517
)
(8,690
)
Pro Forma Software Revenue (in 000’s)
$
24,371
$
25,353
$
28,451
$
35,450
$
22,283
$
20,751
$
20,361
$
19,820
$
15,220
$
15,632
Managed Services Revenue (in 000’s)
16,240
15,856
16,384
16,670
16,136
13,874
14,772
14,377
16,416
15,360
Total Pro Forma Revenue (in 000’s)
$
40,611
$
41,209
$
44,835
$
52,120
$
38,419
$
34,625
$
35,133
$
34,197
$
31,636
$
30,992
Trailing Twelve Months
Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
2022
2022
2022
2022
2023
2023
2023
2023
2024
2024
Software Products & Services Revenue
(in 000’s)
$
72,997
$
85,796
$
97,581
$
84,578
$
80,538
$
76,252
$
75,801
$
68,401
$
69,494
$
71,033
Broadbean Revenue (in 000’s) (1)
29,599
30,006
30,136
29,047
30,999
32,399
33,499
33,931
34,292
34,608
Broadbean Revenue included in Software
Products & Services Revenue (in 000’s)
—
—
—
—
—
(1,716
)
(10,455
)
(19,117
)
(27,634
)
(34,608
)
Pro Forma Software Revenue (in 000’s)
$
102,596
$
115,802
$
127,717
$
113,625
$
111,537
$
106,935
$
98,845
$
83,215
$
76,152
$
71,033
Managed Services Revenue (in 000’s)
58,419
60,546
63,406
65,150
65,046
63,064
61,452
59,159
59,439
60,925
Total Pro Forma Revenue (in 000’s)
$
161,015
$
176,348
$
191,123
$
178,775
$
176,583
$
169,999
$
160,297
$
142,374
$
135,591
$
131,958
Pro Forma Total Number of Customers
3,673
3,718
3,787
3,824
3,773
3,705
3,536
3,459
3,384
3,437
Pro Forma Annual Recurring Revenue (in
000’s) (2)
$
135,837
$
130,366
$
129,016
$
118,002
$
112,695
$
107,949
$
89,299
$
80,089
$
72,574
$
67,924
(1) “Pro Forma Software Revenue” includes
historical Software Products & Services Revenue from the past
eight (8) fiscal quarters of each of Veritone, Inc. and Broadbean
and presents such revenue on a combined pro forma basis treating
Broadbean as owned by Veritone, Inc. since January 1, 2022.
(2) “Pro Forma Annual Recurring Revenue”
represents an annualized calculation of the monthly recurring
revenue in the last period of the calculated quarter, combined with
the trailing twelve month calculation for all non-recurring and/or
consumption based revenue for all active customers.
Managed Services Supplemental Financial Information
The following table sets forth the results for each of the key
performance indicators for Managed Services.
Quarter Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
Jun 30,
2022
2022
2022
2022
2023
2023
2023
2023
2024
2024
Avg billings per active Managed Services
client (in 000's)(1)
$
684
$
736
$
747
$
823
$
771
$
576
$
620
$
647
$
793
$
727
Revenue during quarter (in 000's)(2)
$
10,735
$
9,625
$
10,035
$
11,074
$
9,337
$
6,876
$
8,827
$
8,612
$
9,333
$
8,402
(1) Avg billings per active Managed
Services customer for each quarter reflects the average quarterly
billings per active Managed Services customer over the twelve-month
period through the end of such quarter for Managed Services
customers that are active during such quarter.
(2) Managed Services revenue and metrics
exclude content licensing and media services and Table Rock
Management.
VERITONE, INC.
RECONCILIATION OF NON-GAAP
GROSS PROFIT TO LOSS FROM OPERATIONS
(in thousands)
(dollars in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Loss from operations
$
(17,662
)
$
(28,180
)
$
(39,502
)
$
(51,769
)
Sales and marketing
12,674
13,124
24,478
25,814
Research and development
6,645
10,519
15,860
22,046
General and administrative
16,765
19,025
36,185
36,422
Amortization
5,990
5,714
11,981
11,143
Non-GAAP gross profit
$
24,412
$
20,202
$
49,002
$
43,656
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240808718004/en/
Company Contact: Mike Zemetra Chief Financial Officer
Veritone, Inc. investors@veritone.com
IR Agency Contact: Stefan Norbom Prosek Partners
203-644-5475 snorbom@prosek.com
Veritone (NASDAQ:VERI)
Historical Stock Chart
From Dec 2024 to Jan 2025
Veritone (NASDAQ:VERI)
Historical Stock Chart
From Jan 2024 to Jan 2025
