Veritone (VERI) AI Stock Analysis

• Market Cap: $66.41M
• Dividend Yield: N/A
• Average Volume (3M): 836.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.28
• Revenue Growth: -24.08%
• EPS Growth: -51.13%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Infrastructure
• EPS (TTM): -0.24
• Shares Outstanding: 46,769,630
• 10 Day Avg. Volume: 1,213,874
• 30 Day Avg. Volume: 836,039
• PEG Ratio: 0.11
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -185.78
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: -1.16
• 1Y Price Target: $4.00
• Price Target Upside: 181.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $1.50 ▲(5.63%Upside)

Veritone's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage, persistent losses, and negative cash flows. Technical analysis also suggests a bearish outlook. Despite some positive signals from recent corporate events and strategic shifts highlighted in the earnings call, the company's valuation remains a significant concern, contributing to a low overall score.

Positive Factors

Contract Wins

Recent contract wins and business updates are driving optimism for Veritone's revenue growth.

Cost Restructuring

The company's cost restructuring initiatives are expected to generate significant expense savings and streamline operations.

Negative Factors

Revenue Estimates

As the company executes on its growth strategy and delivers against current growth expectations, interest in VERI shares among investors should increase.

Revenue Forecast

The company reported 1Q25 revenue of $22.5M, versus our $25.2M estimate and $24.5M for the Street.

Valuation

The valuation of VERI shares at a $6 price target presents a significant upside potential from current trading levels.

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. Persistent losses, high leverage, and negative cash flows highlight 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
EBITDA	-58.16M	-31.56M	5.16M	-52.02M	-41.39M
Net Income	-37.38M	-58.63M	-25.24M	-70.59M	-47.88M
Balance Sheet
Total Assets	198.06M	375.81M	424.75M	504.75M	177.65M
Cash, Cash Equivalents and Short-Term Investments	16.91M	79.44M	184.42M	254.72M	114.82M
Total Debt	119.90M	143.05M	137.77M	195.08M	0.00
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: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.42 is below the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.74, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 43.54 is Neutral, neither overbought nor oversold. The STOCH value of 52.85 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
JG	65 Neutral	$69.04M	―	-10.44%	―	16.93%	85.85%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
REKR	55 Neutral	$134.61M	―	-121.54%	―	17.97%	21.12%
SNCR	51 Neutral	$75.77M	26.79	-3.58%	―	-13.46%	95.46%
STEM	49 Neutral	$53.69M	―	-6139.13%	―	-63.86%	-364.20%
VERI	42 Neutral	$66.41M	―	-600.12%	―	-24.08%	-51.13%
AISP	35 Underperform	$176.10M	―	-98.67%	―	―	―

Veritone Corporate Events

Veritone Amends Credit Agreement and Increases Equity Plan

On June 13, 2025, Veritone, Inc. amended its Credit and Guaranty Agreement to adjust the minimum Consolidated Liquidity requirements, issuing 253,744 shares of common stock to consenting lenders. This amendment reflects Veritone’s strategic financial adjustments and impacts its liquidity management, potentially affecting stakeholders’ interests. Additionally, Veritone’s Board authorized an increase in the number of shares under its 2023 Equity Incentive Plan, effective after the June 13, 2025 annual meeting, allowing for expanded equity awards to employees and affiliates. This move, along with the approved Charter Amendment to increase authorized shares, positions Veritone for potential growth and enhanced capital structure.

The most recent analyst rating on (VERI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Veritone stock, see the VERI Stock Forecast page.

Veritone Stockholders Approve Key Governance Changes

At the annual meeting of stockholders held on June 13, 2025, Veritone, Inc. presented six proposals, with significant outcomes impacting the company’s governance and structure. Key decisions included the election of two directors, the approval of an increase in authorized shares, and amendments to the equity incentive plan, while a proposal regarding officer exculpation was not approved. These decisions reflect strategic adjustments aimed at supporting Veritone’s growth and operational flexibility.

The most recent analyst rating on (VERI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Veritone stock, see the VERI Stock Forecast page.

Veritone Releases Preliminary Q1 2025 Financials

On April 24, 2025, Veritone released preliminary, unaudited financial information for the first quarter of 2025, highlighting the company’s ongoing financial closing procedures and potential adjustments. The release also notes the sale of its subsidiary, Veritone One, in October 2024, which has been classified as discontinued operations, impacting historical financial results. The announcement reflects Veritone’s strategic adjustments and the potential implications for its financial performance and market positioning.