Breaking News

Veritone : Earnings Release Q1 2023

0 0

Read full article

Veritone Reports First Quarter 2023 Results – Q1 Total Revenue and Software Revenue of $30.3 and $14.1 million, Respectively – – Grew Ending Software Customers to 667, Up 19% Year over Year – – Q1 Total New Bookings of $15.0 Million, Up 57% Year over Year – – Executing Against Strategic Plan to Improve Operating Structure – DENVER, CO – May 2, 2023 – Veritone, Inc. (NASDAQ: VERI), a leader in enterprise AI software and services, today reported results for the first quarter ended March 31, 2023. “Veritone drove disciplined growth through executing on our strategic priorities during the first quarter,” said Ryan Steelberg, CEO & President of Veritone. “We have clear differentiation in our key verticals, demonstrated by our new bookings momentum and record customer count. Today, demand for AI has never been higher. World-class companies are seeking our AI applications and solutions that deliver material insights from data sets and enhance workflows to drive growth and efficiency. Veritone is delivering on that demand and is on the right path to opportunistically scale operations while unlocking long-term shareholder value.” First Quarter 2023 Financial Highlights Revenues of $30.3 million, a decrease of $4.1 million or 12% compared to Q1 2022 on a GAAP basis driven by a decline in hiring solutions Software Products & Services.

Managed Services revenue of $16.1 million, as compared to $16.2 million in Q1 2022.

Ending Software Customers of 667, increasing 19% compared to Q1 2022 and 4% compared to Q4 2022.

Total New Bookings of $15.0 million, up 57% compared to Q1 2022.

Loss from Operations of $23.4 million, as compared to a loss of $20.8 million in Q1 2022.

Non-GAAP gross profit of $23.5 million, a decrease of $4.0 or 15% compared to Q1 2022 driven by the decline in Software Products and Services.

gross profit of $23.5 million, a decrease of $4.0 or 15% compared to Q1 2022 driven by the decline in Software Products and Services. Net Loss of $22.8 million, as compared to $22.1 million in Q1 2022.

Non-GAAP Net Loss of $9.6 million, as compared to $5.2 million in Q1 2022.

Net Loss of $9.6 million, as compared to $5.2 million in Q1 2022. Cash and cash equivalents (1) of $139.7 million on March 31, 2023, as compared to $184.4 million at December 31, 2022. Three Months Ended March 31, Unaudited Percent (in $000s, except customers) 2023 2022 Change Revenue $30,263 $34,407 (12%) Loss from Operations $(23,409) $(20,805) 13% Net Income (Loss) $(22,783) $(22,129) 3% Non-GAAP Gross Profit * $23,454 $27,484 (15%) Non-GAAP Net Income (Loss) * $(9,555) $(5,173) 85% Including approximately $67.9 million of cash received from Managed Services clients for future payments to vendors.

Three Months Ended March 31, Software Products & Services Percent Supplemental Financial Information* Change (in $000s, except customers) 2023 2022 Software Products & Services Revenue $14,127 $18,167 (22%) Ending Software Customers 667 559 19% Average Annual Revenue* (AAR) $128 $207 (38%) Total New Bookings $15,010 $9,574 57% *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 Received two prestigious awards at the NAB Show 2023, including the NAB Product of the Year in the AI and Machine Learning category and the IABM BaM (Broadcast and Media) award in the monetization category.

Extended multi-year partnership with Augusta National, Inc. (ANI), the business arm of Augusta National Golf Club, the home of the iconic Masters Tournament. ANI utilizes Veritone’s suite of AI-based technology and licensing services to efficiently monetize their video rights.

multi-year partnership with Augusta National, Inc. (ANI), the business arm of Augusta National Golf Club, the home of the iconic Masters Tournament. ANI utilizes Veritone’s suite of AI-based technology and licensing services to efficiently monetize their video rights. Partnered with VONQ, an industry leading provider of job marketing solutions to exclusively provide the Company’s AI-enabled Hiring Solutions across VONQ’s Hapi Job

Marketing platform in the U.S., U.K., Canada and Germany.

AI-enabled Hiring Solutions across VONQ’s Hapi Job Marketing platform in the U.S., U.K., Canada and Germany. Executed on $10.8 million or close to 80% of the $12 to $15 million in annualized strategic cost reduction initiatives announced in Q1 2023. The Company remains on plan to divest its Energy Group before the end of Q2 2023. Financial Results for Three Months Ended March 31, 2023 Delivered first quarter revenue of $30.3 million, a decrease of $4.1 million or 12% from $34.4 million in the first quarter of 2022. Driving this decrease was Software Products & Services revenue of $14.1 million, which declined $4.0 million or 22% year over year driven by lower hiring solutions revenue, which returned back to non-pandemic consumption trends for our high- volume hiring solutions customers in Q1 2023 as compared to Q1 2022. Managed Services revenue was relatively flat at $16.1 million, driven by slightly lower advertising revenue, offset by growth in content licensing services. Loss from operations was $23.4 million as compared to a loss of $20.8 million in Q1 2022. Non-GAAP gross profit of $23.5 million declined by $4.0 million year over due to the year over year decline in hiring solutions revenue. Non-GAAP gross margin was 77.5%, as compared to 79.9% in the first quarter of 2022. GAAP net loss was $22.8 million, compared to $22.1 million in the first quarter of 2022, driven in part by the decline in Non-GAAP gross margin, offset by a decline of $4.4 million in the fair value of contingent purchase price consideration. Non-GAAP net loss was $9.6 million, a decline of $4.4 million compared to $5.2 million in the first quarter of 2022, largely driven by the hiring solutions platform revenue decline.

During Q1 2023, Software Products & Services ending software customers increased 19% year over year to 667. Total new bookings increased by 57% to $15.0 million versus the comparable period a year ago. Average Annual Revenue (AAR) declined by 38% year over year driven in large part by a decline in Amazon revenue of 49% year over year. Excluding Amazon, Software Products & Services revenue growth was 16% year over year. As of March 31, 2023, the Company had cash and cash equivalents of $139.7 million, including approximately $67.9 million of cash received from Managed Services clients for future payments to vendors. Business Outlook Second Quarter 2023 Revenue is expected to be in the range of $32.0 million to $34.0 million, as compared to $34.2 million in the second quarter of 2022.

Non-GAAP net loss is expected to be in the range of $8.5 million to $6.5 million, compared to non-GAAP net loss of $7.2 million in the second quarter of 2022. Full Year 2023 Revenue is expected to be in the range of $158 million to $166 million, as compared to $149.7 million in 2022.

Non-GAAP net loss is expected to be in the range of $7.0 million to $2.0 million, as compared to non-GAAP net loss of $15.9 million in 2022. 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 using its synthetic voice technology, Veritone Voice, to deliver management’s prepared remarks on Tuesday, May 2, 2023, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its first quarter 2023 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 Dial-In:844-750-4897 International Dial-In:412-317-5293

Please note that pre-registered participants will receive their dial-in number and unique PIN upon registration. About the Presentation of Supplemental Non-GAAP and Pro Forma Financial Information 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 Revenue, Average Annual Revenue (AAR), Non- GAAP gross profit, Non-GAAP gross margin, Non-GAAP net income (loss) and Non-GAAP net

income (loss) per share. The Company has posted additional supplemental financial information on its website at investors.veritone.com concurrently with this press release. Pro Forma Revenue includes historical Software Products & Services revenue from the past eight fiscal quarters of each of Veritone, Inc. and PandoLogic Ltd. (unaudited) and presents such revenue on a combined pro forma basis treating PandoLogic Ltd. as owned by Veritone, Inc. since January 1, 2021. Average Annual Revenue (AAR) is calculated as the aggregate of trailing twelve-month Software Products & Services Pro Forma Revenue divided by the average number of customers over the same period for both Veritone, Inc. and PandoLogic Ltd. 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 is the Company’s net income (loss) and net income (loss) per share, respectively, adjusted to exclude interest expense, 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, a reserve for state sales taxes, charges related to a facility sublease, gain on sale of asset, warrant expense, acquisition and diligence costs, and severance and executive search 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 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. These 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. These 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.

GPT’s reaction to this article:

As an AI language model, I cannot provide an opinion on the article. However, I can provide a summary of the key points. The article reports on Veritone’s financial results for the first quarter of 2023. The company saw a decrease in revenue compared to the same period in 2022, but an increase in software customers and new bookings. Veritone’s CEO, Ryan Steelberg, stated that the company is executing on its strategic plan to improve its operating structure and is delivering on the demand for AI applications and solutions. The article also provides financial highlights, recent business highlights, and a business outlook for the second quarter and full year 2023. Finally, the article includes information on the presentation of supplemental non-GAAP and pro forma financial information.

Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %