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Veritone Inc (VERI)
NASDAQ:VERI
Top Page
Veritone
(NASDAQ:VERI)
47Neutral
Positive Factors
Business Model
Attractive SaaS model provides strong revenue visibility.
Revenue Growth
AI Demand drives accelerating revenue growth, putting business on path to profitability.
Negative Factors
Veritone (VERI) vs. S&P 500 (SPY)
Market Cap
$107.92M
Dividend YieldN/A
Average Volume (3M)653.96K
Price to Earnings (P/E)―
Beta (1Y)2.94
Revenue Growth-13.43%
EPS Growth15.63%
CountryUS
Employees696
SectorTechnology
Sector Strength54
IndustrySoftware
Share Statistics
EPS (TTM)-2.16
Shares Outstanding44,594,734
10 Day Avg. Volume424,025
30 Day Avg. Volume653,962
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.78
Price to Cash Flow (P/CF)6.50
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.25Price Target Upside124.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Veritone Business Overview & Revenue Model
Company DescriptionVeritone, Inc. engages in the provision of artificial intelligence (AI) computing solutions to media and entertainment, government, and legal and compliance industries. It operates through the following segments: Advertising; aiWARE SaaS Solutions; and aiWARE Content Licensing and Media Services. The Advertising segment places advertisements for clients, primarily with radio broadcasters, podcasters and digital media producers. The aiWARE SaaS Solutions segment offers solutions through a combination of its direct sales force and indirect channel partners such as value-added resellers (VARs), distributors, system integrators, managed services providers, and referral partners. The aiWARE Content Licensing and Media Services segment sells and markets activities relating to its digital content licensing services business through its direct sales force. The company was founded by Chad Steelberg and Ryan Steelberg in 2014 and is headquartered in Costa Mesa, CA.
How the Company Makes MoneyVeritone generates revenue primarily through the licensing of its aiWARE platform and associated AI solutions. The company's revenue streams include software-as-a-service (SaaS) subscriptions, where customers pay recurring fees for access to its AI capabilities, and professional services, which involve custom AI model development and integration support. Additionally, Veritone partners with major media and technology firms to enhance its platform's reach and functionality, further driving revenue through strategic alliances and joint ventures. These partnerships, along with continuous innovation and expansion into new verticals, are significant contributors to Veritone's earnings.
Veritone Financial Statement Overview
Summary
Veritone faces significant financial challenges with declining revenue, persistent losses, high leverage, and negative equity. Cash flow issues further exacerbate the financial instability, suggesting high financial risk and potential sustainability concerns.Income Statement
Veritone's income statement reflects significant challenges with negative net income and declining revenue year-over-year. The gross profit margin for TTM is approximately 66.4%, showing a decrease compared to previous years. The net profit margin remains negative, highlighting ongoing profitability issues. Revenue has decreased from $127.56 million in 2023 to $118.82 million in the TTM period, indicating a negative growth trajectory. Operating losses are evident with negative EBIT and EBITDA margins.33
Negative
Balance Sheet
The balance sheet shows a concerning negative stockholders' equity of -$25.16 million as of the TTM period, indicating potential financial instability. The debt-to-equity ratio cannot be calculated due to negative equity, but the presence of high total liabilities relative to assets suggests significant leverage. The equity ratio is negative, reflecting a potential risk of insolvency. Overall, the balance sheet indicates high financial risk.28
Negative
Cash Flow
Veritone's cash flow statement reveals negative operating and free cash flows, with a free cash flow of -$58.73 million in the TTM period. The operating cash flow to net income ratio is unfavorable due to both metrics being negative. The company has not demonstrated free cash flow sustainability, and the free cash flow growth rate is negative, indicating worsening cash flow health over time.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 118.82M | 127.56M | 149.73M | 115.31M | 57.71M | 49.65M | Gross Profit |
| 78.92M | 99.30M | 122.30M | 93.18M | 42.05M | 32.36M | EBIT |
| -71.97M | -92.34M | -37.99M | -67.25M | -47.67M | -64.07M | EBITDA |
| -20.39M | -31.56M | 5.16M | -52.02M | -41.39M | -57.58M | Net Income Common Stockholders |
| -57.00M | -58.63M | -25.24M | -70.59M | -47.88M | -62.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 51.10M | 79.44M | 184.42M | 254.72M | 114.82M | 44.06M | Total Assets |
| 119.54M | 375.81M | 424.75M | 504.75M | 177.65M | 108.53M | Total Debt |
| 0.00 | 143.05M | 137.77M | 195.08M | 0.00 | 0.00 | Net Debt |
| -37.54M | 63.61M | -46.66M | -59.64M | -114.82M | -44.06M | Total Liabilities |
| 57.53M | 337.67M | 344.58M | 424.17M | 89.44M | 61.12M | Stockholders Equity |
| 62.01M | 38.15M | 80.17M | 80.58M | 88.21M | 47.41M |
| Cash Flow | Free Cash Flow | ||||
| -58.73M | -81.54M | -1.03M | 6.22M | 1.26M | -30.89M | Operating Cash Flow |
| -52.53M | -76.42M | 3.74M | 7.23M | 1.43M | -30.12M | Investing Cash Flow |
| -4.47M | -54.88M | -12.10M | -53.84M | -119.00K | 11.96M | Financing Cash Flow |
| 30.92M | 26.33M | -61.93M | 186.51M | 69.44M | 24.61M |
Veritone Technical Analysis
Negative
2.34
Price Trends
2.98
Negative
3.01
Negative
3.04
Negative
Market Momentum
-0.19
Positive
38.41
Neutral
25.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERI, the sentiment is Negative. The current price of 2.34 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 2.98, and below the 200-day MA of 3.04, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERI.
Veritone Risk Analysis
Veritone disclosed 45 risk factors in its most recent earnings report. Veritone reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veritone Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $196.19B | 421.05 | 10.90% | ― | 28.79% | 112.38% | |
66 Neutral | $34.97B | 192.17 | 7.75% | ― | 26.12% | 274.50% | |
58 Neutral | $21.67B | 10.04 | -18.58% | 2.39% | 5.01% | -23.17% | |
54 Neutral | $2.78B | ― | -32.07% | ― | 23.79% | 4.10% | |
48 Neutral | $961.95M | ― | -16.25% | ― | 7.45% | -10.76% | |
48 Neutral | $4.65B | ― | -20.27% | ― | 24.50% | 49.38% | |
47 Neutral | $107.92M | ― | 226.54% | ― | -13.43% | 15.63% |
* Technology Sector Average
Performance Comparison
VERI
Veritone
2.34
-1.54
-39.69%
FSLY
Fastly
6.60
-6.00
-47.62%
DDOG
Datadog
98.68
-21.74
-18.05%
PLTR
Palantir Technologies
79.62
56.13
238.95%
AI
C3ai
20.92
-8.00
-27.66%
UPST
Upstart Holdings
46.31
22.68
95.98%
Veritone Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: 0.00% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Veritone, Inc. demonstrated solid strategic progress with strong growth potential in the public sector and through new product launches. Cost reductions and strategic divestitures have positioned the company well for future growth. However, revenue declines and challenges in consumption-based revenue present ongoing challenges. Despite these challenges, the company's strategic initiatives and growth projections in the public sector and AI solutions suggest positive momentum moving forward.Highlights
Solid Revenue Performance
Q4 2024 and full year fiscal 2024 financial results reflect solid revenue performance despite a 7% year-over-year decrease from $100 million in 2023 to $92.6 million in 2024. The company is positioned for a breakout year in 2025 with projected revenue growth of 24%.
Strategic Divestiture
Sale of VeritoneOne, the legacy advertising agency, focused operations on advanced AI solutions. The divestiture strengthened financial foundation, reduced debt, and improved focus on AI enterprise software.
Expansion and Product Launches
Launched Veritone Data Refinery and expanded partnerships with CBS News, AWS Marketplace, and others. VDR is in full production, contributing to revenue growth, and has a $5 million sales pipeline.
Public Sector Growth
Expecting a 100% to 150% year-over-year growth in the public sector, driven by IDEMS applications and significant contracts with the Department of Defense and other federal entities.
Diverse Customer Base
No single customer represented more than 5% of revenue, maintaining gross revenue retention above the ninetieth percentile. Expanded customer base includes CBS News, ESPN, NCAA, FedEx, and government agencies.
Cost Reduction and Improved Profitability
Executed over $40 million of annualized cost savings since 2023, including $17 million in 2024. Positioned for improved profitability and projected path to profitability as early as fiscal 2026.
Lowlights
Revenue and Margin Decline
2024 revenue decreased by 7% year-over-year, with a decline in software products and services by 10.8%. GAAP gross margin declined by 280 basis points.
Challenges in Consumption-Based Revenue
Decline in consumption-based customers, including Amazon, affected revenue. ARR from consumption-based customers decreased, impacting overall financial performance.
Non-GAAP Net Loss
Non-GAAP net loss from continuing operations was $48.8 million, with a decline in non-GAAP gross margin, though cost reductions offset some losses.
Debt and Liquidity Concerns
Debt remains a concern with consolidated term debt at $132.6 million. Cash and restricted cash decreased from $47.5 million at the end of 2023 to $17.3 million at the end of 2024.
Company Guidance
In the fourth quarter of 2024, Veritone, Inc. reported a revenue of $22.4 million, witnessing a decline of $4.7 million compared to Q4 2023, primarily due to a decrease in software products and services in the commercial sector. The company's full-year revenue for 2024 was $92.6 million, a 7% decrease from 2023. Despite this, Veritone is optimistic about fiscal 2025, projecting revenue between $107 and $122 million, representing a potential 24% year-over-year increase. The company anticipates substantial growth in the public sector, predicting a 100% to 150% increase, driven by its IDEMS applications. Additionally, Veritone's gross revenue retention remained above the ninetieth percentile, and the company ended 2024 with a significantly improved cost structure due to $40 million in annualized cost savings. The positive outlook for 2025 is bolstered by Veritone's strategic divestiture of its legacy media agency, Veritone One, which strengthened its financial foundation, and the success of its Veritone Data Refinery platform, which has already generated $0.7 million in revenue in Q4 2024.Veritone Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Veritone Announces $20.3M Direct Stock Offering
Neutral
Jan 2, 2025
Veritone, Inc. has announced a registered direct offering of common stock and pre-funded warrants to raise approximately $20.3 million, with Esousa Group Holdings, LLC as the purchaser. The company intends to use the proceeds for working capital, general corporate purposes, and to further develop its AI platform and applications, potentially impacting its market positioning by expanding its solutions and financial flexibility.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.