On August 8, 2024, Veritone Inc (VERI, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Veritone Inc, a provider of artificial intelligence (AI) computing solutions and services, reported a total revenue of $31.0 million, aligning with the analyst estimate of $31.0 million.
Company Overview
Veritone Inc is a leader in designing human-centered AI solutions. The company generates revenue through its Software Products and Services, which include revenues from Commercial Enterprise and Government and Regulated Industries customers using the company's aiWARE platform and hiring solutions. Additionally, Veritone offers Managed Services, which consist of content licensing services, advertising agency, influencer management, and related services. The company operates in the United States, the United Kingdom, France, Australia, Israel, and India.
Performance and Challenges
Veritone Inc reported a Q2 2024 revenue of $31.0 million, an 11% increase compared to Q2 2023. The company saw significant growth in new bookings, which rose by 67% year-over-year to $14.0 million. However, the total number of Software Products & Services customers decreased by 7% year-over-year, primarily due to the planned migration of legacy CareerBuilder customers off the Broadbean software platform. This decline in customer base could pose challenges for future revenue growth.
Financial Achievements
Veritone Inc's financial achievements in Q2 2024 include:
- Software Products and Services revenue of $15.6 million, an 11% increase compared to Q2 2023.
- Managed Services revenue of $15.4 million, also an 11% increase year-over-year.
- Annual Recurring Revenue (ARR) of $67.9 million, with 72% from subscription-based customers.
- Non-GAAP gross profit of $24.4 million, a 21% increase compared to Q2 2023.
- Non-GAAP net loss of $6.9 million, a 47% improvement compared to Q2 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $31.0 million | $28.0 million | 11% |
| Loss from Operations | $(17.7) million | $(28.2) million | 37% |
| Net Loss | $(22.2) million | $(23.3) million | 5% |
| Non-GAAP Gross Profit | $24.4 million | $20.2 million | 21% |
| Non-GAAP Net Loss | $(6.9) million | $(13.0) million | 47% |
Balance Sheet and Cash Flow
As of June 30, 2024, Veritone Inc had cash and cash equivalents of $46.0 million. The company reported a decrease in accounts receivable to $53.9 million from $69.3 million as of December 31, 2023. Total liabilities stood at $327.5 million, with a stockholders' deficit of $5.7 million.
Commentary
“Veritone delivered a strong performance in the second quarter, driven by accelerated growth across our AI software products and services and advertising managed services. Our strategic partnership with Amazon Web Services continues to expand rapidly through our Strategic Collaboration Agreement, unlocking new opportunities and driving innovation,” said Ryan Steelberg, CEO & President of Veritone.
Analysis
Veritone Inc's Q2 2024 performance demonstrates robust growth in revenue and new bookings, reflecting the company's successful execution of its strategic initiatives. The significant improvement in non-GAAP net loss and gross profit margins indicates effective cost management and operational efficiency. However, the decline in the customer base and ARR highlights potential challenges that the company needs to address to sustain long-term growth.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Veritone Inc for further details.
