UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-38093 Veritone, Inc. (Exact name of registrant as specified in its charter) Delaware ...

Veritone, Inc. (VERI) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.18. This compares to loss of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.21, delivering a surprise of 4.55%.Over the last four quarters, the company has surpassed ...

Veritone (VERI) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Thank you, and good afternoon. After the market closed today, Veritone issued a press release announcing results for the first quarter twenty twenty five ending 03/31/2025. The press release and other supplemental information are available on the Investor Relations section of Veritone's website. Joining us for today's call are Veritone's President and Chief Executive Officer, Ryan Stielberg and Chief Financial Officer, Mike Zometra, who ...

Investor Presentation May 2025 Copyright © 2025 Veritone, Inc. All rights reserved. Copyright © 2025 Veritone, Inc. All rights reserved. Trademarks are the property of their respective owners. Forward-Looking Statements & Disclaimers This presentation of Veritone, Inc. (the "Company") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. Without limiting the generality of the foregoing, words such as " ...

Revenue and Loss - Preliminary revenue for Q1 2025 is $22.5 million, a decrease of 7.0% from $24.2 million in Q1 2024[12] - Operating loss for Q1 2025 is between $21.1 million and $20.5 million, compared to a loss of $27.2 million in Q1 2024[12] - Net loss from continuing operations for Q1 2025 is estimated to be between $21.1 million and $19.9 million, compared to a loss of $26.2 million in Q1 2024[12] - Non-GAAP net loss from continuing operations for Q1 2025 is projected at $11.4 million, compared to $10.3 million in Q1 2024[16] Operating Expenses - Total operating expenses for Q1 2025 are $44.6 million, down from $48.6 million in Q1 2024, reflecting a reduction of 8.2%[12] - Interest expense for Q1 2025 is $2.8 million, an increase from $2.4 million in Q1 2024[16] Discontinued Operations - The company reported net income from discontinued operations of $1.0 million in Q1 2024, which is not applicable for Q1 2025[12] - The company completed the sale of its subsidiary Veritone One in October 2024, classifying it as discontinued operations[5] Business Strategy and Outlook - The company is focused on expanding its aiWARE SaaS business and enhancing existing products while introducing new ones[10] - Forward-looking statements indicate potential challenges including reliance on key customers and macroeconomic factors affecting business operations[10]

AI Technology and Platform - Veritone's proprietary AI operating system, aiWARE, enables the transformation of unstructured data into structured data, enhancing business processes and insights [31]. - The aiWARE platform offers over 20 cognitive categories, allowing users to quickly analyze and optimize large volumes of data [39]. - aiWARE's capabilities include advanced analytics, intelligent data lakes, and generative AI, which are being integrated into industry-specific applications [45][46]. - The company has integrated its Veritone Hire solutions with over 120 applicant tracking systems, optimizing hiring processes through predictive AI algorithms [46]. - aiWARE is deployed in various environments, including cloud-based, on-premises, and hybrid models, ensuring flexibility for customers [41]. - The company is focused on expanding its aiWARE SaaS business, which requires increasing its customer base and revenue from existing customers [88]. - The company plans to continue significant investments in developing AI technologies and expanding the functionality of the aiWARE platform [66]. Revenue and Financial Performance - The company generated revenue primarily through Software Products & Services and Managed Services, with a focus on Commercial Enterprise and Public Sector divisions [33]. - The company reported that no single customer accounted for 10% or more of total revenues from Software Products & Services in 2024, compared to one customer accounting for 22% in 2023 [59]. - One customer accounted for 20% of total Managed Services revenues in both 2024 and 2023 [60]. - The company experienced a year-over-year decline in consumption-based revenue from a single customer across Veritone Hire in fiscal 2024 [69]. - The company experienced net losses of $37.4 million and $58.6 million in fiscal years 2024 and 2023, respectively, with an accumulated deficit of $467.3 million as of December 31, 2024 [94]. - The company expects to continue incurring significant losses for the foreseeable future, which may hinder its ability to achieve and sustain profitability [95]. - The company has a history of operating losses and negative cash flows, raising concerns about its ability to achieve profitability in the future [134]. - The ten largest customers accounted for approximately 22% of net revenues in fiscal year 2024, down from 36% in fiscal year 2023, with Amazon's contribution dropping from 25% to less than 1% [147]. Divestiture and Acquisitions - The divestiture of Veritone One, a full-service advertising agency, is expected to have a material effect on operations and financial results, with historical results classified as discontinued operations [34]. - The company sold Veritone One, which represented approximately 25% of its revenue for the twelve months ended December 31, 2024, leading to reduced revenue and less diversification [87]. - The company received net proceeds of $55.9 million from the divestiture of Veritone One, using $30.5 million to repay principal on its outstanding term loan [83]. - The company closed its acquisition of Broadbean in June 2023, as part of its growth strategy to enhance its aiWARE platform and expand its product offerings [96]. - The company expanded its international operations into Europe and Asia Pacific following the Broadbean acquisition, with plans for further international expansion [98]. Market and Competitive Landscape - The company faces competition from major technology firms such as Google, Microsoft, and Amazon in the AI-enabled solutions market [61]. - The market for AI-based software applications is relatively new and unproven, with significant uncertainty regarding its growth potential [90]. - Regulatory scrutiny over AI technologies may hinder the adoption of the company's products, impacting future growth potential [90]. - The company plans to expand into new vertical markets, including the Public Sector, but faces challenges in compliance with regulations such as FedRAMP and CJIS [145]. Risks and Challenges - The company faces substantial doubt about its ability to continue as a going concern due to historical negative cash flows and recurring losses [82]. - The company faces risks related to macroeconomic and geopolitical factors, including inflation and the threat of recession, which could negatively impact its business and financial performance [103]. - The company relies on third parties to develop AI models for its platform, which may pose risks if those third parties cease to provide their technologies [108]. - The company is vulnerable to cybersecurity risks, including supply-chain attacks, which have increased in frequency and severity [114]. - The company may experience increased state taxes due to limitations on the use of net operating loss carryforwards under new California legislation [131]. - The company may require additional capital to service its debt obligations and refinance maturing debt, which may not be available on acceptable terms [135]. - The company has experienced volatility in revenue due to reliance on a limited number of key customers, which may affect future revenue predictability [148]. Compliance and Regulatory Issues - The company is subject to stringent data privacy and security obligations, including compliance with GDPR and CCPA, which may impose additional costs and operational changes [169][171]. - Non-compliance with privacy regulations could result in financial penalties up to €20 million or 4% of annual global revenue under the EU GDPR [171]. - The evolving regulatory framework regarding data protection may require the company to fundamentally change its business model [170]. - The company faces significant challenges in transferring personal data from the EEA and UK to the United States due to stringent privacy laws, which could lead to operational disruptions and increased regulatory scrutiny [172]. - Increased regulatory scrutiny on facial recognition technology could limit market demand for the company's IDentify solution, particularly in jurisdictions with enacted bans [182]. Internal Controls and Governance - Management identified multiple material weaknesses in internal control over financial reporting, including insufficient qualified resources and ineffective risk assessment [198]. - The company has not remediated certain material weaknesses as of December 31, 2024, which could lead to misstatements in financial reporting [198]. - The company faces potential adverse regulatory consequences, including investigations or penalties by the SEC or NASDAQ, due to identified material weaknesses [202]. - The board of directors oversees the company's cybersecurity risk management processes, ensuring effective mitigation of cybersecurity threats [222]. Employee and Organizational Aspects - The company has implemented employee engagement surveys to improve company culture and employee satisfaction [76]. - As of December 31, 2024, the company had a total of 487 employees, with 469 being full-time employees [75]. - The company must attract and retain highly skilled personnel to manage its business effectively, facing intense competition for talent in its industry [106]. Cybersecurity Measures - The company has implemented various information security processes to manage material risks from cybersecurity threats to its critical data and systems [216]. - The Chief Information Officer (CIO) and Chief Information Security Officer (CISO) lead the cybersecurity risk management efforts, utilizing both manual and automated tools for threat assessment [217]. - The company maintains a vendor management program to assess and manage cybersecurity risks associated with third-party service providers [220]. - The incident response plan includes escalation procedures for significant cybersecurity incidents to key management personnel and the board of directors [225].

If there’s one thing that stands out about a potential recession, it’s that the pressure grip will tighten on companies that were already doing poorly heading into it. The tech sector, in particular, has seen a group of smaller-cap tech companies rideWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a ...

Veritone, Inc. (NASDAQ:VERI) Q4 2024 Earnings Conference Call March 13, 2025 5:00 PM ET Company Participants Cate Goldsmith - Investor Relations Ryan Steelberg - Chairman and Chief Executive Officer Mike Zemetra - Chief Financial Officer Conference Call Participants Scott Buck - H.C. Wainwright & Co. Jesse Sobelson - D. Boral Capital Glenn Mattson - Ladenburg Thalmann Operator Good day, and welcome to the Veritone, Inc. Fourth Quarter 2024 Financial Results Conference Call. All participants will be in liste ...

March 2025 Copyright © 2025 Veritone, Inc. All rights reserved. Trademarks are the property of their respective owners. Copyright © 2025 Veritone, Inc. All rights reserved. Forward-Looking Statements & Disclaimers This presentation of Veritone, Inc. (the "Company") contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. Without limiting the generality of the foregoing, words such as "anticipates," "belie ...

Financial 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 revenue [31][32] - GAAP gross profit for 2024 reached $62.7 million, a decline of $7.6 million from 2023, with a GAAP gross margin of 67.6%, down from 70.4% in 2023 [32] - Non-GAAP net loss from continuing operations was $48.8 million, an improvement of $5.4 million compared to 2023 [33] Business Line Data and Key Metrics Changes - Software products and services revenue decreased by $7.4 million or 10.8%, while managed service revenue remained flat at $31.6 million year-over-year [31] - In Q4 2024, revenue from continuing operations was $22.4 million, down $4.7 million from Q4 2023, primarily due to a decline in software products and services [34] - Annual Recurring Revenue (ARR) was $58.8 million, down year-over-year, with 81% of ARR coming from subscription-based customers, up from 61.3% in Q4 2023 [35] Market Data and Key Metrics Changes - The global unstructured data solution market is estimated to be over $30 billion in 2024 and expected to expand to over $90 billion by 2033 [13] - The public sector is projected to grow year-over-year by 100% to 150%, driven by IDEMS applications [47] Company Strategy and Development Direction - The company aims to become a leading enterprise AI software provider across commercial and public sectors, focusing on advanced AI solutions [7][11] - The divestiture of Veritone One was a significant strategic move to concentrate resources on AI solutions, strengthening the financial foundation and reducing debt [11][39] - The launch of Veritone Data Refinery (VDR) is expected to be a major contributor to revenue growth in 2025 and beyond [18][19] 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 [6][7] - The company anticipates a breakout year in 2025 for its public sector business, with significant opportunities in government contracts [24][47] - Management highlighted the importance of maintaining a diversified revenue base, with no single customer accounting for more than 5% of total revenue [12][33] Other Important Information - The company appointed Francisco J. Morales to the board of directors, replacing Chad Steelberg [28] - The company has executed over $40 million in annualized cost savings, including a 15% reduction in global workforce [38][50] 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 [54] Question: Are there any disruptions due to administration turnover in the federal government? - Management stated that they are not experiencing disruptions for awarded contracts and are closely monitoring the budget cycle [55] Question: What is the potential for upsell opportunities with new commercial customers? - Management noted that initial contracts may have lower margins but expect normalization over the year, with significant upsell opportunities anticipated [56][57]