Veritone(VERI) - 2024 Q1 - Quarterly Report

Financial Performance - Revenue for Q1 2024 increased to $31,636,000, up 4.5$30,263,000 in Q1 2023[19] - Net loss for Q1 2024 was $25,198,000, compared to a net loss of$22,963,000 in Q1 2023, representing a 9.6% increase in loss[19] - The company reported a comprehensive loss of $24,979,000 for Q1 2024, compared to a comprehensive loss of$23,729,000 in Q1 2023[19] - The company reported a net loss of $25,198 for the three months ended March 31, 2024, compared to a net loss of$22,963 for the same period in 2023, resulting in a basic and diluted net loss per share of $(0.67) and$(0.63), respectively[89] - Non-GAAP net loss for Q1 2024 was $7.618 million, compared to a non-GAAP net loss of$9.555 million in Q1 2023, reflecting a reduction of approximately 20.3%[186] - The company reported a GAAP net loss of $25.198 million for Q1 2024, compared to a GAAP net loss of$22.963 million in Q1 2023, indicating a decline in overall profitability[191] Assets and Liabilities - Total current assets decreased to $172,369,000 as of March 31, 2024, down from$182,770,000 as of December 31, 2023[17] - Cash and cash equivalents increased to $90,733,000 as of March 31, 2024, compared to$79,439,000 as of December 31, 2023, reflecting a 14.5% increase[17] - Total liabilities increased to $344,776,000 as of March 31, 2024, up from$337,667,000 as of December 31, 2023[17] - Accounts receivable decreased to $45,749,000 as of March 31, 2024, down from$69,266,000 as of December 31, 2023[17] - The company had an accumulated deficit of $455,094 and cash and cash equivalents of$91,662 as of March 31, 2024[32][35] Revenue Breakdown - Revenue from Commercial Enterprise increased from $28,868 million in Q1 2023 to$30,119 million in Q1 2024, reflecting a growth of 4.3%[115] - Software Products & Services revenue increased by 7.8% year over year to $15.2 million, driven by the acquisition of Broadbean, which contributed$8.5 million in Q1 2024[159][165] - Managed Services revenue was $16.4 million, representing a slight increase from$16.1 million in Q1 2023, accounting for 52% of total revenue[159] Operating Expenses - Operating expenses for Q1 2024 totaled $53,476,000, slightly down from$53,852,000 in Q1 2023[19] - The total loss from operations decreased to $21.8 million in Q1 2024 from$23.6 million in Q1 2023, indicating improved operational efficiency[189] - Total operating expenses for Q1 2024 were $53,476,000, a slight decrease from$53,852,000 in Q1 2023[211] Acquisitions and Investments - The Company acquired Broadbean, a leader in talent acquisition software, for a total purchase consideration of $53,301, which was paid in cash at closing[50] - The identifiable intangible assets acquired from Broadbean include customer relationships valued at$17,200 and developed technology valued at $10,300[57] - The Company acquired VocaliD, Inc. for a total purchase consideration of$2,000, with the first payment of $1,000 made in Q2 2023[132] - The Company acquired assets of Vision Semantics Limited for a purchase consideration of$300, to be paid in March 2024[134] Cash Flow and Financing - For the three months ended March 31, 2024, the Company generated cash flows from operations of $15,931, while incurring a net loss of$25,198[32][33] - The Company used cash in investing activities of $1,901 during the three months ended March 31, 2024, primarily for capital expenditures[34] - The Company entered into a$77,500 senior secured term loan on December 13, 2023, fully drawn on the closing date, with a one-time gain of 30,000 recognized on the extinguishment of convertible debt[63] Market and Economic Conditions - The company is facing challenges due to macroeconomic factors, including high inflation and geopolitical tensions, which have affected customer spending[166][177] - The company continues to face risks from economic uncertainty, which may impact customer spending on software and technology solutions[180] Customer Metrics - As of March 31, 2024, total Software Products & Services customers decreased to 3,384, a decline of 10.3% compared to the previous year[167] - 32.9% of consolidated revenue in Q1 2024 came from customers outside the U.S., a significant increase from less than 10% in Q1 2023[176] Stock and Compensation - The total stock-based compensation expense for the three months ended March 31, 2024 was 1,608, a decrease of 59% from $3,917 in 2023[140] - The Company had 1,612,869 unvested restricted stock units as of March 31, 2024, with a total unrecognized compensation cost of$5,729 expected to be recognized over 2.1 years[146]