Veritone (VERI) AI Stock Analysis

• Market Cap: $69.75M
• Dividend Yield: N/A
• Average Volume (3M): 593.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: -24.08%
• EPS Growth: -51.13%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): -0.24
• Shares Outstanding: 45,294,193
• 10 Day Avg. Volume: 666,652
• 30 Day Avg. Volume: 593,172
• PEG Ratio: -0.11
• Price to Book (P/B): 6.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.65
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: $4.67
• Price Target Upside: 211.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 40 Neutral
• Price Target: $1.50 ▲(0.00%Upside)

Veritone faces significant financial and operational challenges, reflected in its low financial performance and valuation scores. Technical indicators show bearish trends, adding further risk. While the earnings call revealed some positive strategic developments, these are overshadowed by the company's ongoing revenue declines and profitability issues.

Positive Factors

AI Demand

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

Cost-cutting Initiatives

Coupled with recent cost-cutting initiatives, results in coming quarters should allow investors to extrapolate a pathway to profitability.

Public Sector Demand

The company continues to see elevated levels of demand from the public sector, adding eight new customers and expanding sales with 40 existing customers during the quarter.

Negative Factors

Revenue Growth Expectations

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

Revenue Miss

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

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc., together with its subsidiaries, provides artificial intelligence (AI) computing solutions in the United States and the United Kingdom. It develops and operates aiWARE platform, an AI operating system that uses machine learning algorithms or AI models, such as perception, prediction, and problem solving and optimization, as well as cognitive processes, including transcription, language translation, face detection and recognition, object detection and recognition, logo recognition, sentiment analysis, text keyword/topic analysis, audio/video fingerprinting, geolocation, visual moderation, and optical character recognition to reveal valuable insights from vast amounts of structured and unstructured data. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.

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
	EBIT
-88.21M	-92.34M	-37.99M	-67.25M	-47.67M
	EBITDA
-58.16M	-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
119.90M	143.05M	137.77M	195.08M	0.00
	Net Debt
102.99M	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: 1.50
• 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 1.5 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.97, and below the 200-day MA of 2.85, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 33.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 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	63 Neutral	$61.11M	―	-10.44%	―	16.93%	85.85%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
STEM	55 Neutral	$88.70M	―	-6139.13%	―	-63.86%	-364.19%
REKR	51 Neutral	$172.39M	―	-121.54%	―	17.97%	21.12%
SNCR	50 Neutral	$79.57M	26.79	-3.58%	―	-13.46%	95.46%
VERI	40 Neutral	$69.75M	―	-600.12%	―	-24.08%	-51.13%
AISP	35 Underperform	$158.27M	―	-98.67%	―	―	―

Veritone Corporate Events

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.

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.