Veritone provides business update, initiates cost restructuring initiatives

Veritone (VERI) provided an update on the company’s execution of its long-term growth strategy, including the execution of cost-savings initiatives and the accelerated growth of Veritone’s VDR pipeline. Veritone’s AI-powered solutions, including current and future state of its Intelligent Digital Evidence Management System, will be implemented as part of Department of Defense’s mission requirements for Law Enforcement Modernization, Counterintelligence & Security. Under the contract, which was awarded on June 24, Veritone’s aiWARE platform, iDEMS and professional services will provide AFOSI with advanced investigative, intelligence and counterintelligence capabilities in support of the DoD and inter-agency mission requirements. Veritone announced that it has implemented certain cost and restructuring initiatives designed to further streamline the business and improve its financial condition following the completion of previously announced strategic transactions, accelerating its path to profitability. The recent cost reduction initiatives are expected to generate annualized savings of up to $10M, of which over $7.5M was executed in June, and provide a clearer pathway to profitability as early as the second half of 2026. Management expects the restructuring will result in a more efficient and effective operating structure to support both near- and longer-term growth initiatives, as well as continued innovation in AI software and solutions. Headcount remains the company’s largest cost driver, followed by professional services, which have increased in recent periods due to higher transaction volume and integration efforts. The company expects to incur costs and expenses of between $0.5M to $0.7M as a result of these reductions primarily related to one-time severance, transition, and termination-related costs. Beyond these expected savings, Veritone will continue to manage its cost structure throughout 2025 to ensure necessary investments are timed with corresponding growth.