Jun 30, 2023

Veritone Q2 2023 Earnings Report

Reported a decrease in GAAP and Pro forma revenues, driven by decline in one-time nonrecurring Software Products & Services revenue. The acquisition of Broadbean was completed, and cost reduction initiatives were executed.

Key Takeaways

Veritone's Q2 2023 results showed a decrease in GAAP and Pro forma revenues compared to Q2 2022, primarily due to a decline in one-time nonrecurring Software Products & Services revenue. However, the company completed the acquisition of Broadbean and executed cost reduction initiatives, achieving significant annualized savings.

Total revenue and software revenue were $28.0 million and $14.1 million, respectively.

ARR of $108 million from 3,705 total software Products & Services customers, including $47 million from subscription-based customers.

Cost reduction initiatives achieved to date resulted in over $17 million of annualized savings, including successful divestiture of Energy Group in Q2 2023.

Successfully completed acquisition of Broadbean in June 2023, accelerating revenue growth and market share opportunities across +3,000 HR Solutions customers.

Total Revenue
$28M
Previous year: $34.2M
-18.3%
EPS
-$0.35
Previous year: -$0.2
+75.0%
Gross Profit
$20.2M
Previous year: $27.5M
-26.6%
Cash and Equivalents
$62.7M
Previous year: $220M
-71.6%
Free Cash Flow
-$26M
Previous year: -$15.9M
+63.1%
Total Assets
$356M
Previous year: $452M
-21.2%

Veritone

Veritone

Forward Guidance

Veritone expects revenue to be in the range of $35.5 million to $37.5 million for Q3 2023, compared to $37.2 million in Q3 2022. Non-GAAP net loss is expected to be in the range of $6.5 million to $8.5 million, compared to a non-GAAP net loss of $5.7 million in Q3 2022. For the full year 2023, revenue is expected to be in the range of $128.0 million to $135.0 million, compared to $149.7 million for fiscal 2022. Non-GAAP net loss is expected to be in the range of $28.0 million to $33.0 million, compared to a non-GAAP net loss of $15.9 million for fiscal 2022.