Veritone Reports Second Quarter 2025 Results
– Q2 Total Revenue of
– Software Products & Services revenue grew
– Veritone Data Refinery exited the quarter with a qualified and near-term pipeline of over
– Awarded Sole Source Contract with the United States Air Force, deploying and launching aiWARE & iDEMS across portions of the Department of Defense –
– Initiated Cost Reduction and Restructuring Initiatives in June 2025, Anticipated to Provide Annualized Savings of up to
– Announced
“In the second quarter, we achieved the top end of our updated June revenue guidance of
Second Quarter 2025 Financial Highlights
-
Revenue of
$24.0 million -
Software Products and Services revenues of
$17.5 million $1.8 million 11.8% , year over year. Excluding Veritone Hire revenue, Software Products and Services grew over45% year over year driven by larger deals executed in Q2 2025 across the Public Sector and Commercial Enterprise VDR. -
Managed Services revenue of
$6.5 million $1.9 million 22.3% , year over year. -
GAAP gross profit of
$15.3 million $1.1 million 6.5% , year over year; GAAP gross margin of63.9% as compared to68.2% in Q2 2024, largely driven by the higher mix of lower margin revenue. -
Non-GAAP gross profit of
$16.5 million $1.2 million 6.7% year over year; non-GAAP gross margin of68.9% as compared to73.6% in Q2 2024. -
Operating loss of
$19.3 million $1.0 million 4.9% , year over year. -
Net loss of
$26.8 million $4.6 million 21% , year over year. The year-over-year increase was principally driven by a$2.9 million -
Non-GAAP net loss from continuing operations of
$8.7 million $1.0 million 10.2% , year-over-year. -
Subsequent to the end of the quarter, closed a registered direct offering for the definitive purchase and sale of 6,452,293 shares of common stock and pre-funded warrants to purchase up to 1,804,587 shares of common stock for aggregate gross proceeds of approximately
$9.0 million $1.0 million
(1) Veritone Hire revenue in the quarter ended June 30, 2025 was relatively flat year over year. |
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 customer. 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.
Unaudited |
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||
(in |
|
June 30,
|
|
|
June 30,
|
|
|
Change |
|
|
June 30,
|
|
|
June 30,
|
|
|
Change |
|
||||||
Revenue |
|
$ |
24,013 |
|
|
$ |
24,058 |
|
|
|
(0 |
)% |
|
$ |
46,476 |
|
|
$ |
48,211 |
|
|
|
(4 |
)% |
Operating loss |
|
$ |
(19,318 |
) |
|
$ |
(20,306 |
) |
|
|
(5 |
)% |
|
$ |
(40,952 |
) |
|
$ |
(44,676 |
) |
|
|
(8 |
)% |
Net loss from continuing operations |
|
$ |
(26,798 |
) |
|
$ |
(23,377 |
) |
|
|
15 |
% |
|
$ |
(46,673 |
) |
|
$ |
(49,577 |
) |
|
|
(6 |
)% |
Net loss |
|
$ |
(26,798 |
) |
|
$ |
(22,231 |
) |
|
|
21 |
% |
|
$ |
(46,673 |
) |
|
$ |
(47,429 |
) |
|
|
(2 |
)% |
GAAP gross profit |
|
$ |
15,344 |
|
|
$ |
16,415 |
|
|
|
(7 |
)% |
|
$ |
29,058 |
|
|
$ |
32,742 |
|
|
|
(11 |
)% |
Non-GAAP gross profit* |
|
$ |
16,535 |
|
|
$ |
17,716 |
|
|
|
(7 |
)% |
|
$ |
31,164 |
|
|
$ |
34,922 |
|
|
|
(11 |
)% |
Non-GAAP net loss from continuing operations* |
|
$ |
(8,713 |
) |
|
$ |
(9,703 |
) |
|
|
(10 |
)% |
|
$ |
(19,843 |
) |
|
$ |
(20,047 |
) |
|
|
(1 |
)% |
Non-GAAP net loss* |
|
$ |
(8,713 |
) |
|
$ |
(6,850 |
) |
|
|
27 |
% |
|
$ |
(19,843 |
) |
|
$ |
(14,469 |
) |
|
|
37 |
% |
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||||||||||
Unaudited |
|
June 30,
|
|
|
June 30,
|
|
|
Change |
|
|
June 30,
|
|
|
June 30,
|
|
|
Change |
|
||||||
Software Products & Services Revenue (in 000's) |
|
$ |
17,469 |
|
|
$ |
15,632 |
|
|
|
12 |
% |
|
$ |
31,952 |
|
|
$ |
30,852 |
|
|
|
4 |
% |
Total Software Products & Services Customers(1) |
|
|
3,067 |
|
|
|
3,437 |
|
|
|
(11 |
)% |
|
|
3,067 |
|
|
|
3,437 |
|
|
|
(11 |
)% |
Annual Recurring Revenue (in 000's)(2) |
|
$ |
62,599 |
|
|
$ |
67,924 |
|
|
|
(8 |
)% |
|
$ |
62,599 |
|
|
$ |
67,924 |
|
|
|
(8 |
)% |
Total New Bookings (in 000's)(3) |
|
$ |
15,766 |
|
|
$ |
14,047 |
|
|
|
12 |
% |
|
$ |
15,766 |
|
|
$ |
14,047 |
|
|
|
12 |
% |
Gross Revenue Retention(4) |
|
> |
|
|
> |
|
|
|
|
|
> |
|
|
> |
|
|
|
|
||||||
(1) |
|
“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 |
(2) |
|
“Annual Recurring Revenue” is calculated as Annual Recurring Revenue (SaaS), which is an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers, combined with Annual Recurring Revenue (Consumption), which is the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses “Annual Recurring Revenue” and we believe Annual Recurring Revenue is useful to investors because it demonstrates our mix of subscription-based SaaS revenues as compared to consumption-based revenues. |
(3) |
|
“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). |
(4) |
|
“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 three 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. |
* |
|
See tables below for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definitions used for these and additional Software Products & Services Supplemental Financial Information. |
Commercial Enterprise
-
Veritone Data Refinery (“VDR”) solution which helps enterprises transform unstructured data into AI-ready assets, has a qualified and near-term pipeline of over
$20.0 million 33% from June 2025 estimates and up100% from Q1 2025. - Veritone aiWARE processed an estimated 5 trillion tokens, derived from several million hours of audio and video in Q2 2025.
- Closed 11 software enterprise deals with clients such as Inter Milan, Laver Cup, United States Soccer Federation, Alpha Media, St. Louis Zoo, ESPN, and Big Ten Network.
Public Sector
-
Public Sector solutions gained meaningful traction domestically and globally, with new customer acquisitions and a qualified and near-term pipeline of
$189 million $110 million - Signed 35 new Public Sector customers, including the Riverside County Sheriff's Department and a top 5 police agency in the US. Additionally, we signed 95 renewal contracts in the quarter, further validating the critical nature of our AI software and strong customer retention.
- Awarded sole source (one year plus four years) contract with the United States Air Force to provide advanced investigative, intelligence and counterintelligence capabilities in support of the DoD and inter-agency mission requirements through Veritone’s aiWARE platform, Intelligent Digital Evidence Management System ("iDEMS"), and professional services.
- Executed agreement with Riverside County Sheriff’s Office for the deployment of Veritone’s industry-leading redaction software, part of its iDEMS product suite.
Financial Results for Three Months Ended June 30, 2025
Delivered second quarter revenue of
GAAP gross profit of
Operating loss of
Total Software Product & Services Customers of 3,067 as of June 30, 2025 decreased
Financial Results for Six Months Ended June 30, 2025
During the six months ended June 30, 2025, revenue of
GAAP gross profit of
Operating loss of
Business Outlook
Third Quarter of 2025
-
Revenue is expected to be in the range of
$28.0 million $30.0 million $22.0 million -
Non-GAAP net loss is expected to be in the range of
$6.5 million $6.0 million $11.1 million
Full Year 2025
-
Revenue is expected to be in the range of
$108 million $115 million $92.6 million 20% implied annual increase at the midpoint. -
Non-GAAP net loss is expected to be in the range of
$30.0 million $25.0 million $40.8 million 33% implied annual decrease at the midpoint.
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 7, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its second quarter 2025 results, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call.
- Conference Call
- 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 14, 2025. The full webcast replay will be available through August 7, 2026. 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: 5416612
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
Non-GAAP net income (loss) is the Company’s net income (loss), adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, other non-recurring items, and non-GAAP net income from discontinued operations. Non-GAAP net income (loss) from continuing operations is net loss from continuing operations adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, and other non-recurring items. Non-GAAP net income from discontinued operations is net income from discontinued operations adjusted to exclude interest expense, net, income taxes, depreciation and amortization, stock-based compensation, acquisition due diligence costs, and severance and executive transition costs.
Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization related to cost of revenue. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue.
Reconciliations of each of these non-GAAP financial measures to the most closely comparable GAAP financial measure, including a breakdown of the excluded items noted above are included following the financial statements attached to this news release. These non-GAAP financial measures are not calculated and presented in accordance with GAAP and should not be considered as an alternative to net income (loss), operating income (loss), net income (loss) from continuing operations, net income (loss) from discontinued operations, gross profit, gross margin or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity.
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, budgeting and measuring annual bonus compensation targets for executive personnel, including the Company’s named executive officers. Non-GAAP net income (loss) provides management and investors consistency and comparability with the Company’s past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of items that are often unrelated to overall operating performance. Non-GAAP gross profit and Non-GAAP gross margin allow investors and management to analyze the Company’s operating performance by excluding expenses that are not directly related to the cost of providing goods and services. 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:
Software Products & Services consists of revenue generated from the Company’s aiWARE platform and Veritone Hire solutions’ talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions.
Managed Services consists of revenues generated from content licensing customers, representation services, and, to a lesser extent, from advertising customers 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 expected total revenue and non-GAAP net loss for Q3 2025 and for full year 2025, the performance and function of Veritone Data Refinery, customer acquisition, customer transaction pipelines and the estimated values thereof, our cost reduction and restructuring initiatives, and our ability to achieve profitability by the later portion of 2026. 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 continue as a going concern, including our ability to service our debt obligations as they come due over the next twelve months and beyond; 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; declines in key customers’ usage of our products and other offerings; our ability to realize the intended benefits of our acquisitions, sales, divestitures, and other existing or planned cost-saving measures, including the sale of our full service advertising agency, Veritone One, LLC, and our ability to successfully integrate our acquisition of Broadbean; our identification of existing material weaknesses in our internal control over financial reporting and plans for remediation; 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 third parties with whom we work; the impact of the continuing economic disruption caused by macroeconomic and geopolitical factors, including the
Veritone, Inc. |
||||||||
Condensed Consolidated Balance Sheets (unaudited) |
||||||||
(in thousands) |
||||||||
|
|
June 30,
|
|
|
December 31,
|
|
||
ASSETS |
|
|||||||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
13,568 |
|
|
$ |
16,911 |
|
Accounts receivable, net |
|
|
31,859 |
|
|
|
31,997 |
|
Prepaid expenses and other current assets |
|
|
12,513 |
|
|
|
10,498 |
|
Total current assets |
|
|
57,940 |
|
|
|
59,406 |
|
Property, equipment, and improvements, net |
|
|
10,676 |
|
|
|
10,052 |
|
Intangible assets, net |
|
|
47,732 |
|
|
|
59,500 |
|
Goodwill |
|
|
53,110 |
|
|
|
53,110 |
|
Restricted cash |
|
|
288 |
|
|
|
407 |
|
Other assets |
|
|
17,060 |
|
|
|
15,585 |
|
Total assets |
|
$ |
186,806 |
|
|
$ |
198,060 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|||||||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
15,088 |
|
|
$ |
11,023 |
|
Deferred revenue |
|
|
12,345 |
|
|
|
12,056 |
|
Term Loan, current portion |
|
|
7,750 |
|
|
|
7,750 |
|
Accrued purchase compensation, current portion |
|
|
1,213 |
|
|
|
1,200 |
|
Accrued expenses and other current liabilities |
|
|
28,446 |
|
|
|
28,928 |
|
Total current liabilities |
|
|
64,842 |
|
|
|
60,957 |
|
Convertible Notes |
|
|
90,428 |
|
|
|
90,135 |
|
Term Loan, non-current portion |
|
|
18,669 |
|
|
|
21,316 |
|
Accrued purchase compensation, non-current portion |
|
|
— |
|
|
|
900 |
|
Other non-current liabilities |
|
|
11,649 |
|
|
|
11,300 |
|
Total liabilities |
|
|
185,588 |
|
|
|
184,608 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders' equity (deficit): |
|
|
|
|
|
|
||
Common stock, par value |
|
|
55 |
|
|
|
41 |
|
Additional paid-in capital |
|
|
515,982 |
|
|
|
480,477 |
|
Accumulated other comprehensive income (loss) |
|
|
(866 |
) |
|
|
214 |
|
Accumulated deficit |
|
|
(513,953 |
) |
|
|
(467,280 |
) |
Total stockholders' equity |
|
|
1,218 |
|
|
|
13,452 |
|
Total liabilities and stockholders' equity |
|
$ |
186,806 |
|
|
$ |
198,060 |
|
Veritone, Inc. |
||||||||||||||||
Condensed Consolidated Statements of Operations (unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
||||
Revenue |
|
$ |
24,013 |
|
|
$ |
24,058 |
|
|
$ |
46,476 |
|
|
$ |
48,211 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (exclusive of depreciation and amortization shown separately below) |
|
|
7,478 |
|
|
|
6,342 |
|
|
|
15,312 |
|
|
|
13,289 |
|
Sales and marketing |
|
|
11,096 |
|
|
|
11,208 |
|
|
|
21,201 |
|
|
|
21,156 |
|
Research and development |
|
|
4,932 |
|
|
|
6,082 |
|
|
|
10,138 |
|
|
|
14,507 |
|
General and administrative |
|
|
12,653 |
|
|
|
13,855 |
|
|
|
26,657 |
|
|
|
29,633 |
|
Depreciation and amortization |
|
|
7,172 |
|
|
|
6,877 |
|
|
|
14,120 |
|
|
|
14,302 |
|
Total operating expenses |
|
|
43,331 |
|
|
|
44,364 |
|
|
|
87,428 |
|
|
|
92,887 |
|
Operating loss |
|
|
(19,318 |
) |
|
|
(20,306 |
) |
|
|
(40,952 |
) |
|
|
(44,676 |
) |
Interest expense, net |
|
|
3,434 |
|
|
|
3,034 |
|
|
|
6,062 |
|
|
|
5,496 |
|
Other expense (income), net |
|
|
3,162 |
|
|
|
115 |
|
|
|
(899 |
) |
|
|
528 |
|
Loss from continuing operations before income taxes |
|
|
(25,914 |
) |
|
|
(23,455 |
) |
|
|
(46,115 |
) |
|
|
(50,700 |
) |
Income taxes |
|
|
884 |
|
|
|
(78 |
) |
|
|
558 |
|
|
|
(1,123 |
) |
Net loss from continuing operations |
|
|
(26,798 |
) |
|
|
(23,377 |
) |
|
|
(46,673 |
) |
|
|
(49,577 |
) |
Net income from discontinued operations, net of income taxes |
|
|
— |
|
|
|
1,146 |
|
|
|
— |
|
|
|
2,148 |
|
Net loss |
|
$ |
(26,798 |
) |
|
$ |
(22,231 |
) |
|
$ |
(46,673 |
) |
|
$ |
(47,429 |
) |
Earnings (Loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss per share from continuing operations, basic and diluted |
|
$ |
(0.54 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.95 |
) |
|
$ |
(1.32 |
) |
Earnings per share from discontinued operations, basic and diluted |
|
$ |
— |
|
|
$ |
0.03 |
|
|
$ |
— |
|
|
$ |
0.06 |
|
Loss per share, basic and diluted |
|
$ |
(0.54 |
) |
|
$ |
(0.59 |
) |
|
$ |
(0.95 |
) |
|
$ |
(1.26 |
) |
Weighted-average common shares outstanding used in computing loss per share, basic and diluted |
|
|
49,626,642 |
|
|
|
37,814,019 |
|
|
|
48,988,604 |
|
|
|
37,583,623 |
|
Veritone, Inc. |
||||||||
Condensed Consolidated Statements of Cash Flows (unaudited) |
||||||||
(in thousands) |
||||||||
|
|
Six Months Ended |
|
|||||
|
|
June 30,
|
|
|
June 30,
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(46,673 |
) |
|
$ |
(47,429 |
) |
Less: net income from discontinued operations, net of income taxes |
|
|
— |
|
|
|
(2,148 |
) |
Net loss from continuing operations |
|
|
(46,673 |
) |
|
|
(49,577 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
14,120 |
|
|
|
14,302 |
|
Stock-based compensation |
|
|
3,453 |
|
|
|
3,593 |
|
Non-cash interest expense |
|
|
2,507 |
|
|
|
2,833 |
|
Deferred income taxes |
|
|
(315 |
) |
|
|
(2,464 |
) |
Provision for credit losses |
|
|
668 |
|
|
|
548 |
|
Reduction in carrying amount of operating lease right-of-use assets |
|
|
489 |
|
|
|
237 |
|
Change in fair value of earnout receivable |
|
|
(784 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(530 |
) |
|
|
3,339 |
|
Prepaid expenses and other current assets |
|
|
815 |
|
|
|
2,065 |
|
Other assets |
|
|
(11 |
) |
|
|
30 |
|
Accounts payable |
|
|
3,570 |
|
|
|
(7,738 |
) |
Deferred revenue |
|
|
289 |
|
|
|
653 |
|
Accrued expenses and other current liabilities |
|
|
(2,797 |
) |
|
|
500 |
|
Other non-current liabilities |
|
|
(78 |
) |
|
|
341 |
|
Net cash used in operating activities – continuing operations |
|
|
(25,277 |
) |
|
|
(31,338 |
) |
Net cash provided by operating activities – discontinued operations |
|
|
— |
|
|
|
3,547 |
|
Net cash used in operating activities |
|
|
(25,277 |
) |
|
|
(27,791 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(2,311 |
) |
|
|
(3,247 |
) |
Sale of non-marketable equity investment |
|
|
— |
|
|
|
1,800 |
|
Net cash used in investing activities – continuing operations |
|
|
(2,311 |
) |
|
|
(1,447 |
) |
Net cash used in investing activities – discontinued operations |
|
|
— |
|
|
|
(152 |
) |
Net cash used in investing activities |
|
|
(2,311 |
) |
|
|
(1,599 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Repayment of senior secured term loan |
|
|
(3,875 |
) |
|
|
(1,938 |
) |
Proceeds from issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offering, net of offering costs |
|
|
29,449 |
|
|
|
— |
|
Debt issuance costs |
|
|
(114 |
) |
|
|
— |
|
Proceeds from issuance of stock under employee stock plans, net |
|
|
140 |
|
|
|
235 |
|
Taxes paid related to net share settlement of equity awards |
|
|
(341 |
) |
|
|
(456 |
) |
Settlement of deferred consideration for acquisitions |
|
|
— |
|
|
|
(1,800 |
) |
Net cash provided by (used in) financing activities – continuing operations |
|
|
25,259 |
|
|
|
(3,959 |
) |
Net cash provided by financing activities – discontinued operations |
|
|
— |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
|
25,259 |
|
|
|
(3,959 |
) |
Effect of exchange rates on cash, cash equivalents, and restricted cash |
|
|
(1,133 |
) |
|
|
— |
|
Net change in cash, cash equivalents, and restricted cash |
|
|
(3,462 |
) |
|
|
(33,349 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
|
17,318 |
|
|
|
80,306 |
|
Cash, cash equivalents, and restricted cash, end of period |
|
|
13,856 |
|
|
|
46,957 |
|
Less: cash, cash equivalents, restricted cash included in discontinued operations |
|
|
— |
|
|
|
(39,357 |
) |
Cash, cash equivalents, and restricted cash included in continuing operations |
|
$ |
13,856 |
|
|
$ |
7,600 |
|
Veritone, Inc. |
||||||||||||||||||||||||
Revenue Detail (unaudited) |
||||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
||||||||||||||||||
|
|
Commercial
|
|
|
Public
|
|
|
Total |
|
|
Commercial
|
|
|
Public
|
|
|
Total |
|
||||||
Software Products & Services |
|
$ |
15,334 |
|
|
$ |
2,135 |
|
|
$ |
17,469 |
|
|
$ |
14,510 |
|
|
$ |
1,122 |
|
|
$ |
15,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Representation Services |
|
|
1,529 |
|
|
|
— |
|
|
|
1,529 |
|
|
|
3,541 |
|
|
|
— |
|
|
|
3,541 |
|
Licensing |
|
|
5,015 |
|
|
|
— |
|
|
|
5,015 |
|
|
|
4,885 |
|
|
|
— |
|
|
|
4,885 |
|
Total Managed Services |
|
|
6,544 |
|
|
|
— |
|
|
|
6,544 |
|
|
|
8,426 |
|
|
|
— |
|
|
|
8,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue |
|
$ |
21,878 |
|
|
$ |
2,135 |
|
|
$ |
24,013 |
|
|
$ |
22,936 |
|
|
$ |
1,122 |
|
|
$ |
24,058 |
|
|
|
Six Months Ended |
|
|||||||||||||||||||||
|
|
June 30, 2025 |
|
|
June 30, 2024 |
|
||||||||||||||||||
|
|
Commercial
|
|
|
Public
|
|
|
Total |
|
|
Commercial
|
|
|
Public
|
|
|
Total |
|
||||||
Software Products & Services |
|
$ |
28,483 |
|
|
$ |
3,469 |
|
|
$ |
31,952 |
|
|
$ |
28,212 |
|
|
$ |
2,640 |
|
|
$ |
30,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Managed Services: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Representation Services |
|
|
4,301 |
|
|
|
— |
|
|
|
4,301 |
|
|
|
7,033 |
|
|
|
— |
|
|
|
7,033 |
|
Licensing |
|
|
10,223 |
|
|
|
— |
|
|
|
10,223 |
|
|
|
10,326 |
|
|
|
— |
|
|
|
10,326 |
|
Total Managed Services |
|
|
14,524 |
|
|
|
— |
|
|
|
14,524 |
|
|
|
17,359 |
|
|
|
— |
|
|
|
17,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total revenue |
|
$ |
43,007 |
|
|
$ |
3,469 |
|
|
$ |
46,476 |
|
|
$ |
45,571 |
|
|
$ |
2,640 |
|
|
$ |
48,211 |
|
Veritone, Inc. |
||||||||||||||||
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
||||
Net loss |
|
$ |
(26,798 |
) |
|
$ |
(22,231 |
) |
|
$ |
(46,673 |
) |
|
$ |
(47,429 |
) |
Net income from discontinued operations, net of income taxes |
|
|
— |
|
|
|
(1,146 |
) |
|
|
— |
|
|
|
(2,148 |
) |
Interest expense, net |
|
|
3,434 |
|
|
|
3,034 |
|
|
|
6,062 |
|
|
|
5,496 |
|
Income taxes |
|
|
884 |
|
|
|
(78 |
) |
|
|
558 |
|
|
|
(1,123 |
) |
Depreciation and amortization |
|
|
7,172 |
|
|
|
6,877 |
|
|
|
14,120 |
|
|
|
14,302 |
|
Stock-based compensation |
|
|
1,710 |
|
|
|
2,059 |
|
|
|
3,453 |
|
|
|
3,593 |
|
Change in fair value of earnout receivable |
|
|
2,870 |
|
|
|
— |
|
|
|
(784 |
) |
|
|
— |
|
Contingent purchase compensation expense |
|
|
138 |
|
|
|
568 |
|
|
|
213 |
|
|
|
885 |
|
Foreign currency impact and other |
|
|
254 |
|
|
|
(61 |
) |
|
|
(162 |
) |
|
|
355 |
|
Acquisition and due diligence costs |
|
|
588 |
|
|
|
202 |
|
|
|
856 |
|
|
|
1,105 |
|
(Gain) Loss on asset disposition |
|
|
— |
|
|
|
170 |
|
|
|
— |
|
|
|
170 |
|
Severance and executive transition costs |
|
|
1,035 |
|
|
|
903 |
|
|
|
1,500 |
|
|
|
4,747 |
|
Other non-recurring items(1) |
|
|
— |
|
|
|
— |
|
|
|
1,014 |
|
|
|
— |
|
Non-GAAP net loss from continuing operations |
|
|
(8,713 |
) |
|
|
(9,703 |
) |
|
|
(19,843 |
) |
|
|
(20,047 |
) |
Non-GAAP net income from discontinued operations(2) |
|
|
— |
|
|
|
2,853 |
|
|
|
— |
|
|
|
5,578 |
|
Non-GAAP net loss |
|
$ |
(8,713 |
) |
|
$ |
(6,850 |
) |
|
$ |
(19,843 |
) |
|
$ |
(14,469 |
) |
(1) |
|
Other non-recurring items for the six months ended June 30, 2025 consists of fees paid to the lenders of our senior secured term loan in connection with the Limited Consent to the Credit Agreement entered into on March 13, 2025. |
(2) |
|
A reconciliation of non-GAAP net income from discontinued operations to GAAP net income from discontinued operations for the three and six months ended June 30, 2024 is set forth in the table below. |
Veritone, Inc. |
||||||||
Reconciliation of GAAP Net Income from Discontinued Operations to Non-GAAP Net Income from Discontinued Operations (unaudited) |
||||||||
(in thousands) |
||||||||
|
|
Three Months
|
|
|
Six Months
|
|
||
|
|
June 30,
|
|
|
June 30,
|
|
||
Net income from discontinued operations, net of income taxes |
|
$ |
1,146 |
|
|
$ |
2,148 |
|
Interest expense, net |
|
|
1,463 |
|
|
|
2,991 |
|
Income taxes |
|
|
35 |
|
|
|
35 |
|
Depreciation and amortization |
|
|
82 |
|
|
|
159 |
|
Stock-based compensation |
|
|
80 |
|
|
|
154 |
|
Acquisition and due diligence costs |
|
|
39 |
|
|
|
77 |
|
Severance and executive transition costs |
|
|
8 |
|
|
|
14 |
|
Non-GAAP net income from discontinued operations |
|
$ |
2,853 |
|
|
$ |
5,578 |
|
Veritone, Inc. |
||||
Reconciliation of Expected Non-GAAP Net Loss Range to Expected GAAP Net Loss Range (unaudited) |
||||
(in millions) |
||||
|
|
Three Months
|
|
Year Ending |
|
|
September 30,
|
|
December 31,
|
Net loss |
|
|
|
|
Interest expense, net |
|
|
|
|
Income taxes |
|
$— to |
|
$— to |
Depreciation and amortization |
|
|
|
|
Stock-based compensation |
|
|
|
|
Non-GAAP net loss |
|
|
|
|
Veritone, Inc. |
||||||||||||||||||||
Supplemental Financial Information (unaudited) |
||||||||||||||||||||
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. |
||||||||||||||||||||
|
|
Quarter Ended |
|
|||||||||||||||||
|
|
June 30,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
March 31,
|
|
|
June 30,
|
|
|||||
Total Software Products & Services Customers(1) |
|
|
3,437 |
|
|
|
3,291 |
|
|
|
3,237 |
|
|
|
3,156 |
|
|
|
3,067 |
|
Annual Recurring Revenue (SaaS) (in 000's)(2) |
|
$ |
49,223 |
|
|
$ |
48,269 |
|
|
$ |
47,549 |
|
|
$ |
47,494 |
|
|
$ |
50,350 |
|
Annual Recurring Revenue (Consumption) (in 000's)(3) |
|
$ |
18,701 |
|
|
$ |
15,011 |
|
|
$ |
11,245 |
|
|
$ |
11,223 |
|
|
$ |
12,249 |
|
Total New Bookings (in 000's)(4) |
|
$ |
14,047 |
|
|
$ |
16,471 |
|
|
$ |
13,228 |
|
|
$ |
15,835 |
|
|
$ |
15,766 |
|
Gross Revenue Retention(5) |
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|
> |
|
|||||
(1) |
|
“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 |
(2) |
|
“Annual Recurring Revenue (SaaS)” represents an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers. 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-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. |
(3) |
|
“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. 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-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. |
(4) |
|
“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). |
(5) |
|
“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 three 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. |
Veritone, Inc. |
||||||||||||||||
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
|
June 30,
|
|
||||
Revenue |
|
$ |
24,013 |
|
|
$ |
24,058 |
|
|
$ |
46,476 |
|
|
$ |
48,211 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (exclusive of depreciation and amortization) |
|
|
7,478 |
|
|
|
6,342 |
|
|
|
15,312 |
|
|
|
13,289 |
|
Depreciation and amortization related to cost of revenue |
|
|
1,191 |
|
|
|
1,301 |
|
|
|
2,106 |
|
|
|
2,180 |
|
GAAP gross profit |
|
|
15,344 |
|
|
|
16,415 |
|
|
|
29,058 |
|
|
|
32,742 |
|
Depreciation and amortization related to cost of revenue |
|
|
1,191 |
|
|
|
1,301 |
|
|
|
2,106 |
|
|
|
2,180 |
|
Non-GAAP gross profit |
|
$ |
16,535 |
|
|
$ |
17,716 |
|
|
$ |
31,164 |
|
|
$ |
34,922 |
|
GAAP gross margin |
|
|
63.9 |
% |
|
|
68.2 |
% |
|
|
62.5 |
% |
|
|
67.9 |
% |
Non-GAAP gross margin |
|
|
68.9 |
% |
|
|
73.6 |
% |
|
|
67.1 |
% |
|
|
72.4 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250807125840/en/
Company:
Mike Zemetra
Chief Financial Officer
Veritone, Inc.
investors@veritone.com
Investor Relations:
Cate Goldsmith
Prosek Partners
914-815-7678
cgoldsmith@prosek.com
Source: Veritone, Inc.
