Veritone® Reports Financial Results for the Second Quarter of 2019

World News: . []

Veritone, Inc. (NASDAQ: LINK  ), a leading provider of artificial intelligence (AI) technology and solutions, today reported results for the second quarter and six months ended June 30, 2019.

Chad Steelberg, CEO and Chairman of Veritone, said, “Our second quarter net revenues increased 194% year-over-year to a record $12.3 million, due to a $6.2 million contribution from the companies we acquired last year and organic growth. Our aiWARE SaaS revenue increased by 211% (102% excluding acquisitions) compared with the second quarter of 2018. We achieved new customer wins in all of our end markets in the second quarter, through both direct and channel sales efforts. In the first half of 2019, we saw increasing traction with our new Attribute, Identify and Redact applications for aiWARE and introduced our powerful Illuminate application, positioning us well for growth in the future. We continue to believe that the inherent strategic value of our aiWARE OS is becoming stronger and more evident as we expand our addressable market with these unique and powerful AI-based solutions.”

“Our advertising business continues to deliver outstanding growth, with net revenues reaching $5.8 million in the second quarter of 2019, driven by the differentiation of aiWARE and our leading market share in the rapidly growing podcast segment,” said Ryan Steelberg, President of Veritone. “This morning, we announced Influencer Bridge, the first of three initiatives that we expect to launch this quarter that will expand our served market, leveraging our AI-enabled software and the scale of our platform in Media and Entertainment. We expect this effort, coupled with the increasing traction we are seeing in our public safety and legal markets, to further diversify and accelerate our growth.”

Chad Steelberg concluded, “Executing effectively in the second quarter, we achieved 45% organic net revenue growth, improved our Adjusted EBITDAS loss year-over-year and sequentially in both dollars and rate, more than doubled the number of customer trials for our Identify and Redact applications, and unveiled our innovative new Illuminate application for the Legal and Government markets. Looking ahead, we are very well positioned to accelerate our organic net revenue growth and deliver on our vision to be the AI platform of choice.”

Second Quarter 2019 Financial Highlights:

  • Net revenues increased 194% to $12.3 million, compared with $4.2 million in Q2 2018.
  • aiWARE SaaS revenues increased 211% compared with Q2 2018 to $2.7 million ($1.7 million, or an increase of 102%, excluding acquisitions).
  • Adjusted EBITDAS loss rate improved to 75%, compared with 77% in Q1 2019 and 263% in Q2 2018.
  • Cash and cash equivalents and marketable securities totaled $45.3 million at the end of the quarter.

Recent Business Highlights:

  • Selected by Cox Media Group (CMG) to provide the aiWARE-powered Veritone Essentials suite of applications for use across 49 of its radio stations in 11 markets.
  • Launched Veritone Illuminate, an AI-powered solution that enables legal and law enforcement investigative teams to cost-effectively search, analyze, cull and explore large amounts of audio, video and text-based evidence during early case assessment (ECA) or other digital data culling processes.
  • Engaged in 32 customer trials (8 for Identify and 24 for Redact) to date, with two converted into renewed contracts. Nearly 30 public safety and other government agencies are currently in various stages of evaluation of these applications.
  • Introduced Influencer Bridge, the first of a series of new audio advertising services, which gives podcasters, influencers and other content creators unprecedented access to advertisers and enables them to monetize their content through sponsored ad placements.

Second Quarter 2019 Financial Results:

Net revenues were $12.3 million, including $6.2 million from the Company’s acquisitions completed in the third quarter of 2018, compared with $4.2 million in the second quarter of 2018. This was comprised of $2.7 million from aiWARE SaaS solutions, $3.8 million from aiWARE content licensing and media services, and $5.8 million from Advertising. Net revenues from the Company's aiWARE software and services businesses were 52% of total net revenues.

Operating expenses were $24.4 million, an increase of $6.6 million compared with $17.8 million in the second quarter of 2018. The increase was due primarily to the addition of approximately $3.3 million of operating expenses of the businesses acquired in the third quarter of 2018, approximately $0.6 million of amortization of intangibles and earn-out compensation linked to those acquisitions, and approximately $2.5 million of additional stock-based compensation expense.

Loss from operations was $16.7 million, an increase of $2.2 million compared with a loss from operations of $14.5 million in the second quarter of 2018.

Net loss totaled $16.7 million, or $(0.80) per share, compared with $14.3 million, or $(0.88) per share, in the second quarter of 2018. Non-GAAP net loss was $9.2 million, or $(0.44) per share, compared with $11.0 million, or $(0.67) per share, in the second quarter of 2018. See “About the Presentation of Supplemental Non-GAAP Financial Information” below for an explanation of the items excluded from the calculation of non-GAAP net loss and a reconciliation of net loss to non-GAAP net loss following the financial statements below.

Adjusted EBITDAS, a non-GAAP financial measure, totaled a loss of $9.2 million, or 75% of net revenues, compared with a loss of $11.0 million, or 263% of net revenues, in the second quarter of 2018. The lower Adjusted EBITDAS loss was due primarily to the increase in net revenues, offset in part by the increase in operating expenses related to the recent acquisitions. See “About the Presentation of Supplemental Non-GAAP Financial Information” below for an explanation of the items excluded from the calculation of Adjusted EBITDAS and a reconciliation of net loss to Adjusted EBITDAS following the financial statements below.

Cash: As of June 30, 2019, the Company had cash and cash equivalents and marketable securities of $45.3 million, including $8.9 million of cash received from Advertising clients for future payments to vendors, and no long-term debt. During the second quarter, the Company raised net proceeds of $8.1 million through the issuance of 1.0 million shares of its common stock under the ATM facility established in the second quarter of 2018.

First Half 2019 Financial Results:

Net revenues were $24.4 million, including $12.5 million from the Company’s recent acquisitions, compared with $8.6 million in the first half of 2018. This was comprised of $5.5 million from aiWARE SaaS solutions, $7.4 million from aiWARE content licensing and media services, and $11.6 million from Advertising. Net revenues from the Company's aiWARE software and services businesses were 53% of total revenue.

Operating expenses were $49.2 million, an increase of $14.3 million compared with $34.9 million in the first half of 2018. The increase was due primarily to the addition of approximately $6.7 million of operating expenses of the businesses acquired in the third quarter of 2018, approximately $1.1 million of amortization of intangibles and earn-out compensation linked to those acquisitions, and approximately $5.3 million of additional stock-based compensation expense.

Loss from operations was $33.2 million, an increase of $5.6 million compared with a loss from operations of $27.7 million in the first half of 2018.

Net loss totaled $33.0 million, or $(1.64) per share compared with $27.4 million, or $(1.69) per share, in the first half of 2018. Non-GAAP net loss was $18.5 million, or $(0.92) per share, compared with $21.2 million, or $(1.31) per share, in the first half of 2018. See “About the Presentation of Supplemental Non-GAAP Financial Information” below for an explanation of the items excluded from the calculation of non-GAAP net loss and a reconciliation of net loss to non-GAAP net loss following the financial statements below.

Adjusted EBITDAS, a non-GAAP financial measure, totaled a loss of $18.5 million, or 76% of net revenues, compared with a loss of $21.2 million, or 248% of net revenues, for the first six months of 2018. The lower Adjusted EBITDAS loss was due primarily to the increase in net revenues, offset in part by the increase in operating expenses related to the recent acquisitions. See “About the Presentation of Supplemental Non-GAAP Financial Information” below for an explanation of the items excluded from the calculation of Adjusted EBITDAS and a reconciliation of net loss to Adjusted EBITDAS following the financial statements below.

Third Quarter 2019 Revenue Outlook:

For the third quarter ending September 30, 2019, the Company expects its total net revenues to be in the range of $12.6 million to $13.0 million.

Investor Conference Call:

Veritone will hold a conference call today August 7, 2019, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results and provide an update on the business. Veritone management will host the presentation, followed by a question and answer session. The call will be open to all interested parties through a live audio webcast at LINK  . The call will also be available by dialing 877-791-0151 or 647-689-5650 for International.

Please call the conference telephone number 5-10 minutes prior to the start time and reference the conference ID 3646088. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact LHA at 415-433-3777.

A replay of the audio webcast will be available on the Company’s website shortly after the call ends. Additionally, a telephonic replay of the call will be available through August 21, 2019 by dialing the following numbers:

Replay number: 800-585-8367
International replay number: 416-621-4642
Replay ID: 3646088

About Veritone

Veritone (Nasdaq: VERI) is a leading provider of artificial intelligence (AI) technology and solutions. The company’s proprietary operating system, aiWARE™, orchestrates an expanding ecosystem of machine learning models to transform audio, video and other data sources into actionable intelligence. aiWARE can be deployed in a number of environments and configurations to meet customers’ needs. Its open architecture enables customers in the media and entertainment, legal and compliance, and government sectors to easily deploy applications that leverage the power of AI to dramatically improve operational efficiency and effectiveness. Veritone has over 300 employees and is headquartered in Costa Mesa, California, with offices in Denver, London, New York, San Diego and Seattle. To learn more, visit LINK  .

About the Presentation of Supplemental Non-GAAP Financial Information

In this news release, the Company has supplemented its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures: “Non-GAAP net loss,” “Non-GAAP net loss per share,” and “Adjusted EBITDAS.” Non-GAAP net loss is the company’s net loss, adjusted to exclude interest expense, depreciation expense, amortization expense, stock-based compensation expense, and certain acquisition, integration and financing-related costs. Adjusted EBITDAS is defined as earnings before interest expense, depreciation, amortization and stock-based compensation expenses, adjusted to exclude certain acquisition, integration and financing-related costs. Adjusted EBITDAS should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from Non-GAAP net loss and Adjusted EBITDAS are detailed in the reconciliations included following the financial statements attached to this news release. Other companies (including the Company’s competitors) may define Non-GAAP net loss and/or Adjusted EBITDAS differently.

In addition, following the financial statements attached to this news release, the Company has provided additional supplemental non-GAAP measures of gross profit, operating expenses, loss from operations, other income, net, and loss before income taxes, excluding the items excluded from non-GAAP net loss as noted above, and reconciling such non-GAAP measures to the applicable GAAP measures.

The Company presents this supplemental non-GAAP financial information because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting and budgeting. These non-GAAP measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider this supplemental non-GAAP financial information in isolation or as a substitute for analysis of the Company’s results as reported in accordance with GAAP.

Safe Harbor Statement

This news release contains forward-looking statements, including without limitation statements regarding the Company’s belief that its new applications have positioned it well for future growth; the Company’s belief regarding the value of its aiWARE OS; the expectation that the Company’s new audio advertising initiatives, together with its increasing traction in the public safety and legal markets, will diversify and accelerate its revenue growth; the Company’s belief that it is very well positioned to accelerate its organic revenue growth and deliver on its vision to be the AI platform of choice; the expected benefits of Influencer Bridge to content creators; and the Company’s expected total net revenues in the third quarter of 2019. In addition, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “should,” “could,” “estimate” or “continue” or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based on management’s current assumptions, beliefs and information. As such, the Company’s actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include, among other things, the Company’s ability to successfully integrate its recent acquisitions; the Company’s ability to achieve broad recognition and customer acceptance of its products and services; the Company’s ability to continue to develop and add additional capabilities and features to its aiWARE operating system, including expanding the capabilities of its Conductor technology and extending it to other cognitive classes; the development of the market for cognitive analytics solutions; the ability of third parties to develop and provide additional high quality, relevant cognitive engines and applications; the Company’s ability to successfully identify and integrate such additional third-party cognitive engines and applications onto its aiWARE operating system, and to continue to be able to access and utilize such engines and applications, and the cost thereof; as well as the impact of future economic, competitive and market conditions, particularly those related to its strategic end markets; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Certain of these judgments and risks are discussed in more detail in the Company’s Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s objectives or plans will be achieved. The forward-looking statements contained herein reflect the Company’s beliefs, estimates and predictions as of the date hereof, and the Company undertakes no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law.

VERITONE, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

 

 

 

 

As of

 

June 30,

 

 

December 31,

 

2019

 

 

2018

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

40,275

 

 

$

37,539

Marketable securities

 

4,998

 

 

 

13,565

Accounts receivable, net

 

26,820

 

 

 

29,142

Expenditures billable to clients

 

4,806

 

 

 

2,695

Prepaid expenses and other current assets

 

3,625

 

 

 

3,579

Total current assets

 

80,524

 

 

 

86,520

 

 

 

 

 

 

 

Long-term restricted cash

 

1,135

 

 

 

1,237

Property, equipment and improvements, net

 

3,660

 

 

 

4,008

Intangible assets, net

 

18,823

 

 

 

20,480

Goodwill

 

5,420

 

 

 

5,509

Total assets

$

109,562

 

 

$

117,754

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$

18,459

 

 

$

28,714

Accrued media payments

 

12,414

 

 

 

7,416

Client advances

 

14,281

 

 

 

9,639

Accrued compensation

 

2,819

 

 

 

6,570

Other accrued liabilities

 

5,721

 

 

 

3,746

Total current liabilities

 

53,694

 

 

 

56,085

 

 

 

 

 

 

 

Other liabilities

 

1,369

 

 

 

1,386

Total liabilities

 

55,063

 

 

 

57,471

Total stockholders' equity

 

54,499

 

 

 

60,283

Total liabilities and stockholders' equity

$

109,562

 

 

$

117,754

VERITONE, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS

(in thousands, except per share and share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2019

 

2018

 

2019

 

 

2018

 

Net revenues

$

12,270

 

 

$

4,168

 

 

$

24,395

 

 

$

8,556

 

Cost of revenues

 

4,562

 

 

 

820

 

 

 

8,434

 

 

 

1,384

 

Gross profit

 

7,708

 

 

 

3,348

 

 

 

15,961

 

 

 

7,172

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

6,448

 

 

 

5,142

 

 

 

12,581

 

 

 

10,890

 

Research and development

 

6,351

 

 

 

5,146

 

 

 

13,289

 

 

 

9,674

 

General and administrative

 

11,645

 

 

 

7,513

 

 

 

23,335

 

 

 

14,291

 

Total operating expenses

 

24,444

 

 

 

17,801

 

 

 

49,205

 

 

 

34,855

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(16,736

)

 

 

(14,453

)

 

 

(33,244

)

 

 

(27,683

)

Other income, net

 

51

 

 

 

133

 

 

 

262

 

 

 

316

 

Loss before provision for income taxes

 

(16,685

)

 

 

(14,320

)

 

 

(32,982

)

 

 

(27,367

)

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

6

 

 

 

10

 

 

 

15

 

 

 

12

 

Net loss

$

(16,691

)

 

$

(14,330

)

 

$

(32,997

)

 

$

(27,379

)

Net loss per share:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

$

(0.80

)

 

$

(0.88

)

 

$

(1.64

)

 

$

(1.69

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

20,759,396

 

 

 

16,314,236

 

 

 

20,138,756

 

 

 

16,192,569

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(16,691

)

 

$

(14,330

)

 

$

(32,997

)

 

$

(27,379

)

Unrealized gain (loss) on marketable securities, net of income taxes

 

13

 

 

 

61

 

 

 

48

 

 

 

(2

)

Foreign currency translation adjustments, net of income taxes

 

45

 

 

 

30

 

 

 

24

 

 

 

20

 

Total comprehensive loss

$

(16,633

)

 

$

(14,239

)

 

$

(32,925

)

 

$

(27,361

)

VERITONE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

 

 

 

Six Months Ended

 

June 30,

 

2019

 

2018

Cash flows from operating activities:

 

 

 

 

 

Net loss

$

(32,997

)

 

$

(27,379

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization

 

2,719

 

 

 

828

 

Costs of warrants issued

 

 

 

207

 

Change in fair value of warrant liability

 

50

 

 

 

15

 

Provision for doubtful accounts

 

44

 

 

 

22

 

Stock-based compensation expense

 

11,285

 

 

 

5,125

 

Other

 

(19

)

 

 

Changes in assets and liabilities:

 

 

 

 

 

Accounts receivable

 

2,278

 

 

 

(3,914

)

Expenditures billable to clients

 

(2,111

)

 

 

(900

)

Prepaid expenses and other current assets

 

413

 

 

 

(367

)

Accounts payable

 

(10,255

)

 

 

2,421

 

Accrued media payments

 

4,998

 

 

 

1,945

 

Client advances

 

4,642

 

 

 

1,148

 

Other accrued liabilities

 

2,364

 

 

 

(966

)

Other liabilities

 

(17

)

 

 

474

 

Net cash used in operating activities

 

(16,606

)

 

 

(21,341

)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Proceeds from sales of marketable securities

 

8,616

 

 

 

14,000

 

Capital expenditures

 

(208

)

 

 

(2,899

)

Intangible assets acquired

 

(477

)

 

 

(70

)

Acquisition of businesses, net of cash acquired

 

(883

)

 

 

Net cash provided by investing activities

 

7,048

 

 

 

11,031

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from common stock offerings, net

 

11,778

 

 

 

32,536

 

Proceeds from exercise of stock options

 

120

 

 

 

Proceeds from issuances of stock under employee stock plans

 

294

 

 

 

921

 

Net cash provided by financing activities

 

12,192

 

 

 

33,457

 

 

 

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

2,634

 

 

 

23,147

 

Cash, cash equivalents and restricted cash, beginning of period

 

38,776

 

 

 

29,545

 

Cash, cash equivalents and restricted cash, end of period

$

41,410

 

 

$

52,692

 

VERITONE, INC.

UNAUDITED NET REVENUES DETAIL

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

June 30,

 

 

June 30,

 

2019

 

 

2018

 

 

2019

 

 

 

 

2018

Advertising

$

5,842

 

 

$

3,308

 

 

$

11,556

 

 

 

 

$

6,429

aiWARE SaaS Solutions

 

2,677

 

 

 

860

 

 

 

5,457

 

 

 

 

 

2,127

aiWARE Content Licensing and Media Services

 

3,751

 

 

 

 

 

 

7,382

 

 

 

 

 

Net revenues

$

12,270

 

 

$

4,168

 

 

$

24,395

 

 

 

 

$

8,556

VERITONE, INC.

RECONCILIATION OF UNAUDITED GAAP NET LOSS TO ADJUSTED EBITDAS

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2019

 

2018

 

2019

 

2018

Reconciliation of Net Loss to Adjusted EBITDAS:

 

 

 

 

 

 

 

 

 

 

 

Net loss

$

(16,691

)

 

$

(14,330

)

 

$

(32,997

)

 

$

(27,379

)

Provision for income taxes

 

6

 

 

 

10

 

 

 

15

 

 

 

12

 

Depreciation and amortization

 

1,586

 

 

 

473

 

 

 

2,719

 

 

 

828

 

Stock-based compensation expense

 

5,255

 

 

 

2,651

 

 

 

10,058

 

 

 

5,125

 

Issuance of warrants

 

 

 

207

 

 

 

 

 

207

 

Change in fair value of warrant liability

 

37

 

 

 

15

 

 

 

50

 

 

 

15

 

Machine Box contingent payments

 

530

 

 

 

 

1,447

 

 

Machine Box earn-out fair value adjustment

 

70

 

 

 

 

70

 

 

Performance Bridge earn-out fair value adjustment

 

 

 

 

139

 

 

Adjusted EBITDAS

$

(9,207

)

 

$

(10,974

)

 

$

(18,499

)

 

$

(21,192

)

VERITONE, INC.

RECONCILIATION OF UNAUDITED GAAP TO NON-GAAP FINANCIAL INFORMATION

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2019

 

2018

 

2019

 

2018

GAAP gross profit

$

7,708

 

 

$

3,348

 

 

$

15,961

 

 

$

7,172

 

Depreciation and amortization

 

535

 

 

 

47

 

 

 

905

 

 

 

96

 

Non-GAAP gross profit

 

8,243

 

 

 

3,395

 

 

 

16,866

 

 

 

7,268

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing expenses

 

6,448

 

 

 

5,142

 

 

 

12,581

 

 

 

10,890

 

Depreciation and amortization

 

(529

)

 

 

 

 

(742

)

 

 

Stock-based compensation expense

 

(271

)

 

 

(248

)

 

 

(514

)

 

 

(569

)

Non-GAAP sales and marketing expenses

 

5,648

 

 

 

4,894

 

 

 

11,325

 

 

 

10,321

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP research and development expenses

 

6,351

 

 

 

5,146

 

 

 

13,289

 

 

 

9,674

 

Depreciation and amortization

 

(275

)

 

 

(256

)

 

 

(502

)

 

 

(512

)

Stock-based compensation expense

 

(376

)

 

 

(266

)

 

 

(757

)

 

 

(507

)

Machine Box contingent payments

 

(600

)

 

 

 

 

(1,517

)

 

 

Non-GAAP research and development expenses

 

5,100

 

 

 

4,624

 

 

 

10,513

 

 

 

8,655

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative expenses

 

11,645

 

 

 

7,513

 

 

 

23,335

 

 

 

14,291

 

Depreciation and amortization

 

(247

)

 

 

(170

)

 

 

(570

)

 

 

(220

)

Stock-based compensation expense

 

(4,608

)

 

 

(2,137

)

 

 

(8,787

)

 

 

(4,049

)

Issuance of warrants

 

 

 

(207

)

 

 

 

 

(207

)

Performance Bridge earn-out fair value adjustment

 

 

 

 

 

(139

)

 

 

Non-GAAP general and administrative expenses

 

6,790

 

 

 

4,999

 

 

 

13,839

 

 

 

9,815

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss from operations

 

(16,736

)

 

 

(14,453

)

 

 

(33,244

)

 

 

(27,683

)

Total non-GAAP adjustments

 

7,441

 

 

 

3,331

 

 

 

14,433

 

 

 

6,160

 

Non-GAAP loss from operations

 

(9,295

)

 

 

(11,122

)

 

 

(18,811

)

 

 

(21,523

)

 

 

 

 

 

 

 

 

 

 

 

 

GAAP other income, net

 

51

 

 

 

133

 

 

 

262

 

 

 

316

 

Change in fair value of warrant liability

 

37

 

 

 

15

 

 

 

50

 

 

 

15

 

Non-GAAP other income, net

 

88

 

 

 

148

 

 

 

312

 

 

 

331

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP loss before income taxes

 

(16,685

)

 

 

(14,320

)

 

 

(32,982

)

 

 

(27,367

)

Total non-GAAP adjustments1

 

7,478

 

 

 

3,346

 

 

 

14,483

 

 

 

6,175

 

Non-GAAP loss before income taxes

 

(9,207

)

 

 

(10,974

)

 

 

(18,499

)

 

 

(21,192

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

6

 

 

 

10

 

 

 

15

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

(16,691

)

 

 

(14,330

)

 

 

(32,997

)

 

 

(27,379

)

Total non-GAAP adjustments

 

7,484

 

 

 

3,356

 

 

 

14,498

 

 

 

6,187

 

Non-GAAP net loss

$

(9,207

)

 

$

(10,974

)

 

$

(18,499

)

 

$

(21,192

)

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing non-GAAP basic and diluted net loss per share

 

20,759

 

 

 

16,314

 

 

 

20,139

 

 

 

16,193

 

Non-GAAP basic and diluted net loss per share

$

(0.44

)

 

$

(0.67

)

 

$

(0.92

)

 

$

(1.31

)

1 Adjustments are comprised of the adjustments to GAAP gross profit, sales and marketing expenses, research and development expenses and general and administrative expenses listed above.

VERITONE, INC.

 

UNAUDITED KEY PERFORMANCE INDICATORS (KPIs)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advertising

Q1 2018

 

 

Q2 2018

 

 

Q3 2018

 

 

Q4 2018

 

 

Q1 2019

 

 

Q2 2019

 

Including acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new advertising clients added during quarter

 

14

 

 

 

14

 

 

 

10

 

 

 

14

 

 

 

14

 

 

 

21

 

 

Clients with active advertising campaigns during quarter

 

60

 

 

 

74

 

 

 

78

 

 

 

115

 

 

 

107

 

 

 

108

 

 

Average advertising spend per active client during quarter (in 000's)

$

490

 

 

$

425

 

 

$

540

 

 

$

478

 

 

$

486

 

 

$

497

 

 

Net revenue during quarter (in 000's)

$

3,121

 

 

$

3,308

 

 

$

4,730

 

 

$

5,986

 

 

$

5,714

 

 

$

5,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net new advertising clients added during quarter

 

14

 

 

 

14

 

 

 

10

 

 

 

14

 

 

 

14

 

 

 

21

 

 

Clients with active advertising campaigns during quarter

 

60

 

 

 

74

 

 

 

78

 

 

 

76

 

 

 

71

 

 

 

71

 

 

Average advertising spend per active client during quarter (in 000's)

$

490

 

 

$

425

 

 

$

540

 

 

$

616

 

 

$

604

 

 

$

542

 

 

Net revenue during quarter (in 000's)

$

3,121

 

 

$

3,308

 

 

$

4,296

 

 

$

4,681

 

 

$

4,186

 

 

$

4,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

aiWARE SaaS Solutions

Q1 2018

 

 

Q2 2018

 

 

Q3 2018

 

 

Q4 2018

 

 

Q1 2019

 

 

Q2 2019

 

Including acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total customers at quarter end

 

70

 

 

 

86

 

 

 

93

 

 

 

123

 

 

 

129

 

 

 

136

 

 

Total accounts on platform at quarter end

 

591

 

 

 

625

 

 

 

634

 

 

 

840

 

 

 

911

 

 

 

941

 

 

Active cognitive engines at quarter end

 

184

 

 

 

214

 

 

 

252

 

 

 

287

 

 

 

343

 

 

 

357

 

 

Hours of data processed during quarter

 

2,805,000

 

 

 

2,729,000

 

 

 

2,830,000

 

 

 

3,566,000

 

 

 

4,061,000

 

 

 

4,015,050

 

 

Total contract value of new bookings received during quarter (in 000's)

$

237

 

 

$

583

 

 

$

226

 

 

$

1,196

 

 

$

1,316

 

 

$

1,362

 

 

Monthly recurring revenue under agreements in effect at quarter end (in 000's)

$

169

 

 

$

214

 

 

$

191

 

 

$

544

 

 

$

494

 

 

$

545

 

 

Net revenue during quarter (in 000's)

$

1,267

 

 

$

860

 

 

$

1,406

 

 

$

2,426

 

 

$

2,754

 

 

$

2,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Excluding acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total customers at quarter end

 

70

 

 

 

86

 

 

 

93

 

 

 

97

 

 

 

103

 

 

 

107

 

 

Total accounts on platform at quarter end

 

591

 

 

 

625

 

 

 

634

 

 

 

814

 

 

 

885

 

 

 

913

 

 

Active cognitive engines at quarter end

 

184

 

 

 

214

 

 

 

252

 

 

 

287

 

 

 

343

 

 

 

357

 

 

Hours of data processed during quarter

 

2,805,000

 

 

 

2,729,000

 

 

 

2,830,000

 

 

 

3,566,000

 

 

 

4,061,000

 

 

 

4,015,050

 

 

Total contract value of new bookings received during quarter (in 000's)

$

237

 

 

$

583

 

 

$

226

 

 

$

898

 

 

$

736

 

 

$

765

 

 

Monthly recurring revenue under agreements in effect at quarter end (in 000's)

$

169

 

 

$

214

 

 

$

191

 

 

$

229

 

 

$

235

 

 

$

283

 

 

Net revenue during quarter (in 000's)

$

1,267

 

 

$

860

 

 

$

1,077

 

 

$

1,474

 

 

$

1,639

 

 

$

1,735

 

1 The results of Performance Bridge are included in the results for each KPI for the Company’s Advertising business for the three most recent full quarters. In addition, Performance Bridge’s net revenues are included for the portion of the third quarter of 2018 following the closing date of that acquisition.

2 The results related to Wazee Digital and Machine Box offerings are included in the results for the following KPIs for the Company’s aiWARE SaaS Solutions business for the three most recent full quarters: (i) total number of customers, (ii) total accounts on the platform, (iii) total contract value of new bookings, (iv) monthly recurring revenue under active agreements, and (v) net revenues. In addition, net revenues from the Wazee Digital and Machine Box offerings are included for the portion of the third quarter of 2018 following the closing date of that acquisition.

More news and information about Veritone, Inc.

Published By:

Business Wire: 21:05 GMT Wednesday 7th August 2019

Published: .

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