Veritone Inc (VERI) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

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Fri, Mar 14, 2025, 1:10 AM 5 min read

Full-Year 2024 Revenue: $92.6 million, down 7% from $100 million in 2023.
Q4 2024 Revenue: $22.4 million, down $4.7 million from Q4 2023.
Full-Year 2024 GAAP Gross Profit: $62.7 million, down from $70.3 million in 2023.
Full-Year 2024 GAAP Gross Margin: 67.6%, down from 70.4% in 2023.
Q4 2024 GAAP Gross Profit: $15.3 million, down from $19.9 million in Q4 2023.
Q4 2024 GAAP Gross Margin: 68.1%, down from 73.5% in Q4 2023.
Full-Year 2024 Loss from Operations: $86.8 million, an improvement from $99.6 million in 2023.
Q4 2024 Loss from Operations: $19.7 million, flat year over year.
Full-Year 2024 Non-GAAP Net Loss from Continuing Operations: $48.8 million, improved by $5.4 million year over year.
Q4 2024 Non-GAAP Net Loss from Continuing Operations: $9.7 million, relatively flat year over year.
Cash and Restricted Cash as of December 31, 2024: $17.3 million, compared to $47.5 million at December 31, 2023.
Shares Outstanding as of December 31, 2024: 40.2 million shares, with 2.4 million warrants outstanding.
Fiscal 2025 Revenue Guidance: $107 million to $122 million, representing a 24% increase at the midpoint.
Fiscal 2025 Non-GAAP Net Loss Guidance: $27 million to $17 million, representing a 46% improvement at the midpoint.
Q1 2025 Revenue Guidance: $23 million to $24 million, compared to $24.2 million in Q1 2024.
Q1 2025 Non-GAAP Net Loss Guidance: $9.5 million to $8.5 million, an improvement of 13.5% at the midpoint compared to Q1 2024.

Warning! GuruFocus has detected 4 Warning Signs with VERI.

Release Date: March 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Veritone Inc (NASDAQ:VERI) reported solid revenue performance for Q4 2024 and full-year fiscal 2024, reflecting significant strides in strategic initiatives.
The company has optimized its operating structure and strengthened its balance sheet, focusing on AI software and services offerings.
Veritone Inc (NASDAQ:VERI) has a diverse customer base with no single customer accounting for more than 5% of revenues, maintaining gross revenue retention above the 90th percentile.
The launch of Veritone Data Refinery (VDR) is expected to be a major contributor to revenue growth in 2025, with a strong sales pipeline.
Veritone Inc (NASDAQ:VERI) is well-positioned in the public sector, with significant opportunities in digital evidence management and AI solutions for government agencies.

Negative Points

Revenue for 2024 was $92.6 million, down 7% year over year from $100 million in 2023, primarily due to declines in Software Products & Services.
The company experienced a decline in GAAP gross profit and gross margin, driven by a decrease in higher-margin revenue from consumption-based customers.
Veritone Inc (NASDAQ:VERI) reported a loss from operations of $86.8 million, although this was an improvement from the previous year.
The company is still facing challenges in the commercial sector, with a decline in Software Products & Services customers and lower consumption-based revenue.
Despite improvements, Veritone Inc (NASDAQ:VERI) is not expected to achieve profitability until the back half of 2026.

Q & A Highlights

Q: When do you expect to fully anniversary the consumption-customer headwinds, and when will year-over-year comparisons improve? A: We expect to be out of the consumption comparison by Q1 2024. (Michael Zemetra, CFO)

Q: Are you experiencing any disruption or delay in federal government contracts due to the administration turnover? A: We are not seeing disruption for contracts already awarded. Our current deployments and revenue opportunities are primarily servicing against approved 2025 dollars. (Ryan Steelberg, CEO)

Q: What are the potential upsell opportunities with the 11 new commercial customers signed during the quarter? A: For VDR-related customers, initial contracts have exceeded expectations. We anticipate multiple Statements of Work (SOWs) and upsell opportunities over the course of the year and into 2026. (Ryan Steelberg, CEO)

Q: Beyond consumption headwinds, what specific drivers underscore your confidence in growth for this year? A: VDR and public sector are leading growth. VDR has exceeded expectations in contract velocity and revenue growth, and we are actively deploying solutions in DOD facilities. (Ryan Steelberg, CEO)

Q: When do you expect to break even on a cash operating standpoint, and what are the longer-term profitability targets? A: Based on our projections, we expect to break even in the back-half of 2026. (Michael Zemetra, CFO)

Q: How does the new iDEMS offering differ from previous public safety revenue products? A: iDEMS is a suite of applications, expanding beyond Redact and Illuminate to include Track and Investigate, allowing for larger contracts and more diverse solutions. (Ryan Steelberg, CEO)

Q: Can you describe the competitive landscape for iDEMS and how Veritone differentiates itself? A: iDEMS, built on aiWARE, is the leading open platform capable of ingesting diverse data sets, creating a common narrative for investigations, which is critical in the public sector. (Ryan Steelberg, CEO)

Q: What are the key assumptions in your fiscal 2025 guidance? A: We expect public sector growth of 100% to 150% year over year, driven by near-term deals with the Department of Defense and international expansion. Commercial enterprise growth will be driven by renewed partnerships and new VDR product offerings. (Michael Zemetra, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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