Veritone (VERI) AI Stock Analysis

• Market Cap: $95.05M
• Dividend Yield: N/A
• Average Volume (3M): 439.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.60
• Revenue Growth: -16.08%
• EPS Growth: -72.09%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 46
• Industry: Software - Infrastructure
• EPS (TTM): -2.75
• Shares Outstanding: 44,834,460
• 10 Day Avg. Volume: 493,159
• 30 Day Avg. Volume: 439,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.89
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.50
• Price Target Upside: 154.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Veritone's overall score reflects significant financial and operational challenges, evidenced by persistent losses and high leverage. While there is potential for growth, particularly in the public sector and AI solutions, current market conditions and valuation concerns weigh heavily on the stock. Technical indicators suggest bearish momentum, and although strategic initiatives offer some optimism, the company's financial instability remains a critical concern.

Positive Factors

Profitability Potential

Expanding gross margins and expense discipline suggest quarterly profitability as early as 2026.

Public Sector Expansion

The shift to revenue growth is being driven by powerful momentum in the company’s public sector vertical, which added 19 new public and safety and government customers.

Revenue Growth

AI Demand drives accelerating revenue growth, putting business on path to profitability.

Negative Factors

Balance Sheet

The company has been proactive in deleveraging the balance sheet, which is likely to continue.

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc. is a leading provider of artificial intelligence (AI) technology and solutions. The company operates primarily in the AI software and services sectors, offering a proprietary operating system for AI, aiWARE, which orchestrates an expanding ecosystem of machine learning models to transform audio, video, and other data sources into actionable intelligence. Veritone serves a wide range of industries, including media, entertainment, government, legal, and compliance, providing tools for content management, analytics, and monetization.

How the Company Makes Money

Veritone generates revenue through a combination of software licensing, subscription services, and professional services. The company's primary revenue stream comes from its aiWARE platform, where customers pay subscription fees to access its AI-powered capabilities. Additionally, Veritone offers custom AI applications and solutions tailored to specific industry needs, generating revenue through licensing and service contracts. Veritone also engages in strategic partnerships with organizations in various sectors to expand its AI applications and drive further sales. These partnerships often lead to co-developed solutions that leverage Veritone's AI technology, enhancing its market reach and revenue potential.

Veritone Financial Statement Overview

Summary

Veritone faces significant operational and financial challenges, with persistent losses, high leverage, and negative cash flows indicating both short-term and long-term sustainability concerns. The company needs to address revenue growth and profitability issues while managing its debt levels to improve its financial health.

Income Statement

Veritone's income statement reveals a challenging financial trajectory. The gross profit margin has been relatively stable, but the company struggles with profitability, as evidenced by persistent negative EBIT and net income over the years. Revenue has decreased significantly from previous years, indicating a potential issue in sustaining growth. These factors contribute to a below-average income statement score.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. Equity has been declining, and the equity ratio is low, suggesting limited asset backing for shareholders. The declining stockholders' equity and high total liabilities indicate financial instability, resulting in a low balance sheet score.

Cash Flow

Veritone's cash flow analysis demonstrates severe challenges, with consistently negative operating and free cash flows. The free cash flow to net income ratio is also concerning, reflecting inefficiencies in generating cash relative to earnings. These persistent cash flow deficits highlight liquidity issues and contribute to a low cash flow score.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
92.64M	127.56M	149.73M	115.31M	57.71M
	Gross Profit
65.38M	99.30M	122.30M	93.18M	42.05M
	EBIT
-88.21M	-92.34M	-37.99M	-67.25M	-47.67M
	EBITDA
-58.78M	-31.56M	5.16M	-52.02M	-41.39M
	Net Income Common Stockholders
-37.38M	-58.63M	-25.24M	-70.59M	-47.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.91M	79.44M	184.42M	254.72M	114.82M
	Total Assets
198.06M	375.81M	424.75M	504.75M	177.65M
	Total Debt
90.14M	143.05M	137.77M	195.08M	0.00
	Net Debt
73.22M	63.61M	-46.66M	-59.64M	-114.82M
	Total Liabilities
184.61M	337.67M	344.58M	424.17M	89.44M
	Stockholders Equity
13.45M	38.15M	80.17M	80.58M	88.21M
Cash Flow		Free Cash Flow
-30.82M	-81.54M	-1.03M	6.22M	1.26M
	Operating Cash Flow
-24.72M	-76.42M	3.74M	7.23M	1.43M
	Investing Cash Flow
-1.61M	-54.88M	-12.10M	-53.84M	-119.00K
	Financing Cash Flow
-37.06M	26.33M	-61.93M	186.51M	69.44M

Veritone Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.16 is below the 20-day moving average (MA) of 2.36, below the 50-day MA of 2.64, and below the 200-day MA of 3.01, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERI.

Veritone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNCR	66 Neutral	$112.73M	25.34	10.71%	―	-19.06%	―
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%
JG	58 Neutral	$48.15M	―	-9.96%	―	7.31%	88.98%
REKR	45 Neutral	$92.56M	―	-181.93%	―	31.76%	2.90%
VERI	41 Neutral	$95.05M	―	-365.12%	―	-16.08%	-72.09%
STEM	35 Underperform	$62.12M	―	-6139.13%	―	-68.67%	-484.48%
AISP	34 Underperform	$114.00M	―	-98.67%	―	―	―

Veritone Corporate Events

Veritone Appoints Francisco Morales to Board of Directors

On March 12, 2025, Chad Steelberg resigned from the Board of Directors of Veritone, Inc., but will continue as a strategic advisor. Francisco Morales, Co-Founder and Executive Chairman of 5.11 Tactical, was appointed to the Board effective March 20, 2025. Morales brings expertise in public sector and global business operations, which is expected to enhance Veritone’s AI platform and its reach in commercial and public sectors. His appointment is seen as a strategic move to bolster Veritone’s presence in critical law enforcement, first responder, and military communities.

Veritone CEO’s Salary Adjustment Approved for 2025

In May 2023, Ryan Steelberg, President and CEO of Veritone, voluntarily reduced his salary to $1 from an initial $525,000 as per his 2023 employment agreement. Recently, the Compensation Committee of Veritone’s Board approved an increase in his annual base salary to $665,000, effective January 1, 2025, aligning it with market levels.