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Jun 30, 2020
Veritone Q2 2020 Earnings Report
Reported record quarterly revenues and outperformed expectations in Advertising and Content Licensing.
Key Takeaways
Veritone reported Q2 2020 net revenues of $13.3 million, up 8.1% year-over-year. The company saw significant rebounds in its Advertising and Content Licensing businesses. They are forecasting an even better performance in the third quarter.
Net revenues were $13.3 million, an increase of 8.1% year-over-year.
Advertising net revenues were $7.0 million, an increase of 20.5% year-over-year.
aiWARE Content Licensing and Media Services net revenues were $3.2 million, a decrease of 13.9% year-over-year.
Net loss was $11.8 million, improving $4.9 million compared with Q2 of 2019.
Veritone
Veritone
Forward Guidance
For the third quarter of 2020, Veritone expects sequential revenue growth in its Advertising business and from SaaS customers in the Government, Legal and Compliance markets. The Company expects its total net revenues for the third quarter of 2020 to be in the range of $14.2 million to $14.6 million, and expects to reduce its non-GAAP net loss sequentially again in the third quarter, to be in the range of $5.7 million to $5.3 million.
Positive Outlook
- Expects sequential revenue growth in Advertising business.
- Expects sequential revenue growth from SaaS customers in the Government, Legal and Compliance markets.
- Expects total net revenues for Q3 2020 to be in the range of $14.2 million to $14.6 million.
- Assuming that major sporting events occur in line with current schedules.
- Assuming that the Company’s Advertising clients do not experience further supply chain disruptions.
Challenges Ahead
- Major sporting events may not occur in line with current schedules.
- Advertising clients may experience further supply chain disruptions.
- Expected non-GAAP net loss for Q3 2020 to be in the range of $5.7 million to $5.3 million.
- Impact of the economic disruption caused by COVID-19 pandemic on the business of the Company and that of its existing and potential customers
- The Company’s ability to achieve broad recognition and customer acceptance of its products and services