Dec 31, 2020

Veritone Q4 2020 Earnings Report

Veritone's Q4 2020 earnings beat top- and bottom-line guidance with record results, driven by significant year-over-year growth in aiWARE SaaS Solutions and Advertising revenue.

Key Takeaways

Veritone reported record Q4 revenue of $16.8 million, a 35% increase year-over-year, with aiWARE SaaS Solutions and Advertising revenues growing significantly. The company improved its GAAP net loss by 17% and non-GAAP net loss by 51% year-over-year. They also recorded Non-GAAP Net Income from Core Operations of $1.1 Million.

aiWARE SaaS Solutions and Advertising Revenue each up over 50% Year over Year

Record Q4 Revenue of $16.8 Million, Up 35% Year over Year

Increased Q4 Gross Profit 43% Year over Year to $12.7 Million

Improved Q4 GAAP Net Loss 17% Year over Year to $12.4 Million

Total Revenue
$16.8M
Previous year: $12.4M
+35.1%
EPS
-$0.14
Previous year: -$0.33
-57.6%
Gross Profit
$12.7M
Cash and Equivalents
$115M
Previous year: $44.1M
+160.6%
Total Assets
$178M

Veritone

Veritone

Forward Guidance

Veritone expects revenue to range from $17.0 million to $17.5 million and non-GAAP net loss to range from $4.4 million to $3.9 million for the first quarter of 2021. Full year 2021 revenue is expected to be in the range of $76.0 million to $81.0 million and non-GAAP net loss is expected to be in the range of $18.0 million to $14.0 million.

Positive Outlook

  • Revenue is expected to range from $17.0 million to $17.5 million, representing a 45% increase year over year at the midpoint.
  • Non-GAAP net loss is expected to range from $4.4 million to $3.9 million, representing a 38% improvement year over year at the midpoint.
  • Revenue is expected to be in the range of $76.0 million to $81.0 million, representing a year-over-year increase of 36% at the midpoint and over 40% at the high end.
  • aiWARE SaaS Solutions revenue is expected to grow 60% to 65% year over year.
  • Non-GAAP net loss is expected to be in the range of $18.0 million to $14.0 million, representing a 22% improvement year over year at the midpoint.

Challenges Ahead

  • Management also expects to record a one-time, non-cash charge of approximately $16.2 million for stock-based compensation expense related to the vesting of its performance-based stock options.
  • Management also expects to record a one-time charge of approximately $4.5 million associated with the sublease of its former corporate headquarters facility in Costa Mesa, California, which includes non-cash write-downs of approximately $1.9 million.
  • Net loss ($31.5) to ($31.0) millions
  • Lease abandonment $4.5 millions
  • Non-GAAP net loss ($4.4) to ($3.9) millions