Veritone Inc NASDAQVERI a leader in designing humancentered AI solutions reported financial results
Intellectia.AI1970-01-01
Veritone, Inc. (NASDAQ:VERI), a leader in designing human-centered AI solutions, reported financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | Consensus Estimates | Actual vs. Estimates |
|---|---|---|---|---|---|---|---|
| Total Revenue | $31.0 million | $28.0 million | $31.0 million | +11% | 0% | $31.0 million | In line |
| Earnings Per Share (EPS) | -$0.35 | -$0.50 | -$0.57 | Improved | Improved | -$0.25 | Missed |
Interpretation: Veritone showed an improvement in revenue year-over-year, posting an 11% increase, maintaining steadiness quarter-over-quarter. However, the company missed the consensus EPS estimate, suggesting challenges in controlling costs or increased operational expenses impacting overall profitability.
Revenue Performance by Segments
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | QoQ Change | Previous Guidance | Actual vs. Guidance |
|---|---|---|---|---|---|
| Software Products & Services | $15.6 million | $14.1 million | +11% | Not Provided | N/A |
| Managed Services | $15.4 million | $14.0 million | +11% | Not Provided | N/A |
Interpretation: Both the Software Products & Services and Managed Services segments experienced an 11% growth year-over-year, implicitly driven by new contracts and strategic partnerships, such as the one with AWS. This consistent segment performance reflects effective business execution.
Key Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| ARR (Annual Recurring Revenue) | $67.9M | $107.9M | -37% |
| Total New Bookings | $14.0M | $8.4M | +67% |
| Non-GAAP Gross Profit | $24.4M | $20.2M | +21% |
| Total Software Products & Services Customers | 3,437 | N/A | -7% |
Interpretation: The substantial year-over-year decline in ARR is primarily due to a decrease in consumption-based revenue from major customers such as Amazon, mitigated slightly by an increase in SaaS revenue. Notably, new bookings surged by 67%, indicating robust future potential.
Comments from Company Officers
Ryan Steelberg, CEO & President of Veritone, remarked, "Veritone delivered a strong performance in the second quarter, driven by accelerated growth across our AI products and services, and significant new contracts, including a landmark deal with the NCAA."
Forward Guidance
- Q3 2024: Expected Revenue: $34.0 million to $35.0 million, Non-GAAP Net Loss: $2.6 million to $4.0 million.
- Full Year 2024: Expected Revenue: $136.0 million to $142.0 million, Non-GAAP Net Loss: $11.0 million to $15.0 million.
Stock Price Movement
After event stock price change: +17.98%
Summary: Following the earnings announcement, Veritone's stock saw a significant increase of nearly 18%, indicating positive investor sentiment towards the company’s performance and its future growth potential, likely fueled by new partnerships and pipeline growth.
In conclusion, Veritone’s Q2 results demonstrated solid revenue growth and improved operational efficiency, despite challenges reflected in their EPS and ARR. The future looks promising driven by new bookings and strategic alliances.
The report has been organized into a clear and concise format suitable for investors.
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