Jun 30, 2024

Veritone Q2 2024 Earnings Report

Reported strong Q2 results with revenue in line with guidance and significant year-over-year improvements in operating loss and non-GAAP net loss driven by growth in AI software and services, advertising managed services, strategic partnerships, and cost restructuring actions.

Key Takeaways

Veritone reported Q2 2024 revenue of $31.0 million, aligning with guidance, and experienced significant year-over-year improvements in operating loss and non-GAAP net loss. The company secured 17 new Public Sector customers, achieved a record Public Sector sales pipeline exceeding $100 million, and finalized its largest contract to date with the NCAA.

Total revenue reached $31.0 million, an 11% increase compared to Q2 2023.

Software Products and Services revenues were $15.6 million, up 11% compared to GAAP revenue in Q2 2023.

Managed Services revenue increased by 11% to $15.4 million compared to Q2 2023, driven by advertising growth.

Total new bookings increased by 67% year-over-year to $14.0 million.

Total Revenue
$31M
Previous year: $28M
+10.8%
EPS
-$0.18
Previous year: -$0.35
-48.6%
Gross Profit
$24.4M
Previous year: $20.2M
+20.8%
Cash and Equivalents
$46M
Previous year: $62.7M
-26.6%
Free Cash Flow
-$44.2M
Previous year: -$26M
+70.1%
Total Assets
$322M
Previous year: $356M
-9.6%

Veritone

Veritone

Forward Guidance

Veritone anticipates revenue between $34.0 million and $35.0 million and a non-GAAP net loss between $2.6 million and $4.0 million for Q3 2024. The company projects full-year revenue between $136.0 million and $142.0 million and a non-GAAP net loss between $11.0 million and $15.0 million for 2024.

Positive Outlook

  • Expected revenue in the range of $34.0 million to $35.0 million for Q3 2024.
  • Non-GAAP net loss is expected to be in the range of $2.6 million to $4.0 million for Q3 2024.
  • Revenue is expected to be in the range of $136.0 million to $142.0 million for full year 2024.
  • Non-GAAP net loss is expected to be in the range of $11.0 million to $15.0 million for full year 2024.
  • Continued strong advertising momentum, with top-line media bookings increasing 12% year-over-year.

Challenges Ahead

  • Revenue for Q3 2024 is expected to be lower compared to $35.1 million in Q3 2023.
  • Annual Recurring Revenue decreased 37% year over year.
  • Total Software Products & Services Customers decreased 7% year over year.
  • The company experienced a net loss of $22.2 million.
  • Annual Recurring Revenue declined due to declines in consumption-based revenue.