- 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 -
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.
- 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.
- Cash and cash equivalents(1) of $139.7 million on March 31,
2023, as compared to $184.4 million at December 31, 2022.
(1)
Including approximately $67.9 million of
cash received from Managed Services clients for future payments to
vendors.
Three Months Ended
March 31,
Unaudited (in $000s, except customers)
2023
2022
Percent 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%
Three Months Ended
March 31,
Software Products & Services
Supplemental Financial Information* (in $000s, except
customers)
2023
2022
Percent Change
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.
- 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.
- 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.
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 PandoLogic’s 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) is a leader in artificial intelligence
(AI) solutions. Serving organizations in both commercial and
regulated sectors, Veritone’s software, services and industry
applications simplify data management, empowering the largest and
most recognizable brands in the world 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 to transform
audio, video and other data sources into actionable intelligence.
Through its robust partner ecosystem and professional and managed
services, Veritone develops and builds AI solutions that solve the
problems of today and tomorrow.
To learn more, visit Veritone.com.
Safe Harbor Statement
This news release contains forward-looking statements, including
without limitation statements regarding the Company’s expectations
regarding its plan to capitalize on customer-based momentum and the
Company’s expected total revenue and Non-GAAP net loss for Q2 2023
and for full year 2023. In addition, words such as “may,” “will,”
“expect,” “believe,” “anticipate,” “intend,” “plan,” “should,”
“could,” “estimate” 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, beliefs and
information. As such, the Company’s 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 to support
our business growth 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,
fluctuations in our results over time, the impact of seasonality on
our business, our ability to manage our growth, including through
acquisitions and our further 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 the technology in our
aiWARE platform, offering it for free to the public or making it
cost prohibitive to continue to incorporate their 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 economic disruption
caused by the recent and potential future disruptions in access to
bank deposits or lending commitments due to bank failures, the
impact of the continuing economic disruption caused by the COVID-19
pandemic and the Russian invasion of Ukraine on the business of the
Company and that of our existing and potential customers and
increasing interest rates, inflationary pressures and the threat of
a recession in the United States and around the world; as well as
the impact of future economic, competitive and market conditions,
particularly those related to its strategic end markets; and future
business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond the control of the
Company. Certain of these judgments and risks are discussed in more
detail in the Company’s Annual Report on Form 10-K, and other
periodic reports filed 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 the
Company or any other person that the Company’s objectives or plans
will be achieved. The forward-looking statements contained herein
reflect the Company’s beliefs, estimates and predictions as of the
date hereof, and the Company undertakes 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
March 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
139,707
$
184,423
Accounts receivable, net
54,071
56,001
Expenditures billable to clients
13,035
22,339
Prepaid expenses and other current
assets
13,585
15,242
Total current assets
220,398
278,005
Property, equipment and improvements,
net
6,394
5,291
Intangible assets, net
74,555
79,664
Goodwill
46,460
46,498
Long-term restricted cash
862
859
Other assets
13,901
14,435
Total assets
$
362,570
$
424,752
LIABILITIES AND STOCKHOLDERS'
EQUITY
Accounts payable
$
38,015
$
36,738
Accrued media payments
82,407
102,064
Client advances
3,412
19,042
Contingent consideration, current
190
8,067
Other accrued liabilities
27,943
27,412
Total current liabilities
151,967
193,323
Convertible senior notes, non-current
137,982
137,767
Other non-current liabilities
11,721
13,811
Total liabilities
301,670
344,901
Total stockholders' equity
60,900
79,851
Total liabilities and stockholders'
equity
$
362,570
$
424,752
VERITONE, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (UNAUDITED)
AND COMPREHENSIVE INCOME
(LOSS)
(in thousands, except per
share and share data)
Three Months Ended March
31,
2023
2022
Revenue
$
30,263
$
34,407
Operating expenses:
Cost of revenue
6,809
6,923
Sales and marketing
12,690
11,069
Research and development
11,347
9,883
General and administrative
17,397
22,321
Amortization
5,429
5,016
Total operating expenses
53,672
55,212
Loss from operations
(23,409
)
(20,805
)
Other income (expense), net
355
(1,186
)
Loss before provision for income taxes
(23,054
)
(21,991
)
(Benefit from) provision for income
taxes
(271
)
138
Net loss
$
(22,783
)
$
(22,129
)
Net loss used for calculating net income
(loss) per share:
Basic and diluted
$
(22,783
)
$
(22,129
)
Net loss per share:
Basic and diluted
$
(0.62
)
$
(0.62
)
Weighted average shares outstanding:
Basic and diluted
36,587,946
35,476,948
Comprehensive loss:
Net loss
$
(22,783
)
$
(22,129
)
Foreign currency translation (loss) gain,
net of income taxes
(766
)
190
Total comprehensive loss
$
(23,549
)
$
(21,939
)
VERITONE, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended March
31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(22,783
)
$
(22,129
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
5,907
5,214
Provision for credit losses
(72
)
194
Stock-based compensation expense
3,917
4,847
Change in fair value of contingent
consideration
651
5,045
Change in deferred taxes
(311
)
(465
)
Amortization of debt issuance costs
215
299
Amortization of right-of-use assets
300
251
Imputed non-cash interest income
(22
)
16
Changes in assets and liabilities:
Accounts receivable
2,002
18,982
Expenditures billable to clients
9,304
7,487
Prepaid expenses and other assets
631
(34
)
Other assets
234
(1,146
)
Accounts payable
1,277
(8,384
)
Accrued media payments
(19,657
)
8,770
Client advances
(15,630
)
(2,593
)
Other accrued liabilities
2,031
(6,104
)
Other liabilities
(1,779
)
(116
)
Net cash (used in) provided by operating
activities
(33,785
)
10,134
Cash flows from investing
activities:
Minority investment
—
(2,000
)
Capital expenditures
(1,447
)
(735
)
Acquisitions, net of cash acquired
(1,500
)
(1,319
)
Net cash used in investing activities
(2,947
)
(4,054
)
Cash flows from financing
activities:
Payment of contingent considerations
(7,772
)
(14,376
)
Taxes paid related to net share settlement
of equity awards
(852
)
(9,441
)
Proceeds from issuances of stock under
employee stock plans, net
643
569
Net cash used in financing activities
(7,981
)
(23,248
)
Net decrease in cash and cash equivalents
and restricted cash
(44,713
)
(17,168
)
Cash and cash equivalents and restricted
cash, beginning of period
185,282
255,577
Cash and cash equivalents and restricted
cash, end of period
$
140,569
$
238,409
VERITONE, INC.
REVENUE DETAIL
(UNAUDITED)
(in thousands)
Three Months Ended March 31,
2023
Government &
Commercial
Regulated
Enterprise
Industries
Total
Total Software Products &
Services
$
12,732
$
1,395
$
14,127
Managed Services
Advertising
10,535
—
10,535
Licensing
5,601
—
5,601
Total Managed Services
16,136
—
16,136
Total Revenue
$
28,868
$
1,395
$
30,263
Three Months Ended March 31,
2022
Government &
Commercial
Regulated
Enterprise
Industries
Total
Total Software Products &
Services
$
17,386
$
781
$
18,167
Managed Services
Advertising
10,968
—
10,968
Licensing
5,272
—
5,272
Total Managed Services
16,240
—
16,240
Total Revenue
$
33,626
$
781
$
34,407
VERITONE, INC.
RECONCILIATION OF NON-GAAP NET
INCOME (LOSS) TO GAAP NET LOSS (UNAUDITED)
(in thousands)
Three Months Ended March
31,
2023
2022
Core Operations(1)
Corporate(2)
Total
Core Operations(1)
Corporate(2)
Total
Net loss
$
(12,716
)
$
(10,067
)
$
(22,783
)
$
(6,100
)
$
(16,029
)
$
(22,129
)
(Benefit from) provision for income
taxes
(504
)
233
(271
)
134
4
138
Depreciation and amortization
5,754
153
5,907
5,098
116
5,214
Stock-based compensation expense
2,335
1,582
3,917
1,983
2,833
4,816
Change in fair value of contingent
consideration
—
651
651
—
5,045
5,045
Interest expense, net
9
796
805
—
1,182
1,182
Foreign currency impact
(1,146
)
(15
)
(1,161
)
—
—
—
Acquisition and due diligence costs
—
805
805
—
561
561
Contribution of business held for
sale(3)
917
—
917
—
—
—
Variable consultant performance bonus
expense
394
—
394
—
—
—
Severance and executive search
847
417
1,264
—
—
—
Non-GAAP Net Income (Loss)
$
(4,110
)
$
(5,445
)
$
(9,555
)
$
1,115
$
(6,288
)
$
(5,173
) (1)
Core Operations consists of our 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.
(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)
Contribution of business held for sale
relates to the net loss for the periods presented for our Energy
Group that we intend to divest before the end of Q2 2023. The
Energy Group met the held for sale criteria as of March 31, 2023.
However, we have not recast Non-GAAP Net Income (Loss) for periods
ended prior to March 31, 2023 because the change in business
strategy to divest the business occurred in Q1 2023 and the prior
period contributions were costs to operate the continuing business
when incurred in the prior periods. The historical amounts would
not have a major effect on prior period results. Immaterial assets
held for sale for the Energy Group are included within prepaid
expenses and other current assets and immaterial liabilities held
for sale are included within other accrued liabilities within our
condensed consolidated balance sheet.
VERITONE, INC.
RECONCILIATION OF EXPECTED
NON-GAAP NET INCOME (LOSS) RANGE
TO EXPECTED GAAP NET LOSS
RANGE (UNAUDITED)
(in millions)
Three Months Ending
Year Ending
June 30, 2023
December 31, 2023
Net loss
($20.3) to ($18.3)
($57.1) to ($52.1)
Provision for income taxes
$0.6
$2.0
Interest expense, net
$0.8
$3.2
Depreciation and amortization
$6.0
$23.8
Stock-based compensation expense
$4.0
$15.8
Acquisition and due diligence costs
-
$0.8
Change in fair value of contingent
consideration
-
$0.7
Variable consultant performance bonus
expense
$0.4
$1.6
Severance and executive search
-
$1.3
Contribution of business held for sale
-
$0.9
Non-GAAP net income (loss)
($8.5) to ($6.5)
($7.0) to ($2.0)
VERITONE, INC.
RECONCILIATION OF NON-GAAP TO
GAAP FINANCIAL INFORMATION (UNAUDITED)
(in thousands, except per
share data)
Three Months Ended March
31,
2023
2022
Revenue
$
30,263
$
34,407
Cost of revenue
6,809
6,923
Non-GAAP gross profit
23,454
27,484
GAAP cost of revenue
6,809
6,923
Stock-based compensation expense
(20
)
(20
)
Non-GAAP cost of revenue
6,789
6,903
GAAP sales and marketing expenses
12,690
11,069
Stock-based compensation expense
(176
)
(463
)
Contribution of business held for sale
(263
)
—
Severance and executive transition
costs
(316
)
—
Non-GAAP sales and marketing expenses
11,935
10,606
GAAP research and development expenses
11,347
9,883
Stock-based compensation expense
(1,542
)
(1,004
)
Contribution of business held for sale
(558
)
—
Severance and executive transition
costs
(344
)
—
Non-GAAP research and development
expenses
8,903
8,879
GAAP general and administrative
expenses
17,397
22,321
Depreciation
(478
)
(198
)
Stock-based compensation expense
(2,179
)
(3,329
)
Change in fair value of contingent
consideration
(651
)
(5,045
)
Variable consultant performance bonus
expense
(394
)
—
Contribution of business held for sale
(96
)
—
Acquisition and due diligence costs
(805
)
(561
)
Severance and executive transition
costs
(604
)
—
Non-GAAP general and administrative
expenses
12,190
13,188
GAAP amortization
(5,429
)
(5,016
)
GAAP loss from operations
(23,409
)
(20,805
)
Total non-GAAP adjustments (1)
13,855
15,636
Non-GAAP loss from operations
(9,554
)
(5,169
)
GAAP other income (expense), net
355
(1,186
)
Foreign currency impact
(1,161
)
—
Interest expense, net
805
1,182
Non-GAAP other expense, net
(1
)
(4
)
GAAP loss before income taxes
(23,054
)
(21,991
)
Total non-GAAP adjustments (1)
13,499
16,818
Non-GAAP loss before income taxes
(9,555
)
(5,173
)
Provision for (benefit from) income
taxes
(271
)
138
GAAP net loss
(22,783
)
(22,129
)
Total non-GAAP adjustments (1)
13,228
16,956
Non-GAAP net loss
$
(9,555
)
$
(5,173
)
Shares used in computing non-GAAP basic
and diluted net loss per share
36,588
35,477
Non-GAAP basic and diluted net loss per
share
$
(0.26
)
$
(0.15
)
(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 (expense) income, net (where applicable) listed
above.
VERITONE, INC. SUPPLEMENTAL FINANCIAL
INFORMATION
We are providing the following unaudited supplemental financial
information as a lookback of the trailing twelve months and the
comparative quarter for the prior year to help investors better
understand 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,
2022
2022
2022
2022
2023
Software Products & Services
Revenue
$
18,167
$
18,379
$
20,812
$
27,220
$
14,127
Ending Software Customers (1)
559
594
618
642
667
Average Annual Revenue (AAR) (in 000's)
(2)
$
207
$
187
$
170
$
140
$
128
Total New Bookings (in 000's) (3)
$
9,574
$
14,658
$
16,548
$
20,047
$
15,010
Gross Revenue Retention (4)
>90%
>90%
>90%
>90%
>90%
(1)
“Ending Software Customers” includes
Software Products & Services customers as of the end of each
respective quarter set forth above 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 and presents such customers on a
combined Pro Forma basis treating PandoLogic Ltd. as owned by
Veritone, Inc. since January 1, 2021.
(2)
“Average Annual Revenue (AAR)” is
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.
(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”: We calculate
our dollar-based gross retention rate as of the period end by
starting with the revenue from Ending Software Customers for
Software Products & Services 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 Ending
Software 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 Ending Software Customers from our Software
Products & Services as of the year prior that is not lost to
customer churn
Managed Services Supplemental Financial Information
Quarter Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
2022
2022
2022
2022
2023
Avg billings per active Managed Services
client (in 000's) (5)
$
684
$
736
$
747
$
823
$
771
Revenue during quarter (in 000's) (6)
$
10,735
$
9,625
$
10,035
$
11,074
$
9,337
(5)
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 clients that
are active during such quarter.
(6)
Managed Services revenue and metrics
exclude content licensing and media services.
VERITONE, INC.
RECONCILIATION OF PRO FORMA
REVENUE TO REVENUE AND CALCULATION OF AAR
(in thousands)
Trailing Twelve Months
Ended
Mar 31,
Jun 30,
Sept 30,
Dec 31,
Mar 31,
2022
2022
2022
2022
2023
Software Products & Services
Revenue
$
72,997
$
85,796
$
97,581
$
84,578
$
80,538
PandoLogic Revenue
27,325
12,833
—
—
—
Software Revenue - Pro Forma (1)
$
100,322
$
98,629
$
97,581
$
84,578
$
80,538
Managed Services Revenue
58,419
60,546
63,406
65,150
65,046
Total Pro Forma Revenue
$
158,741
$
159,175
$
160,987
$
149,728
$
145,584
Average Number of Customers - Pro
Forma
485
529
575
603
630
Average Annual Revenue (AAR)
$
207
$
187
$
170
$
140
$
128
(1)
"Software Revenue - Pro Forma" includes
historical Software Products & Services revenue of each of
Veritone, Inc. and PandoLogic (unaudited) and presents such revenue
on a combined pro forma basis.
VERITONE, INC.
RECONCILIATION OF NON-GAAP
GROSS PROFIT TO LOSS FROM OPERATIONS
(in thousands)
Three Months Ended March
31,
2023
2022
Loss from operations
$
(23,409
)
$
(20,805
)
Sales and marketing
12,690
11,069
Research and development
11,347
9,883
General and administrative
17,397
22,321
Amortization
5,429
5,016
Non-GAAP gross profit
$
23,454
$
27,484
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230502005911/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
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